With the Pentagon preparing for spending cuts, BidLink is looking for opportunities for American companies to prosper. Declines in spending on new weapons systems means more replacement parts for aging equipment. Many are common items, which can be made by companies who might be struggling due to softening consumer demand.
If you’re in the business of making bushings, rings, shims or spacers for the defense department, business is good. Purchasing activity for these items from federal supply class (FSC) 5365 have been stable even through the depths of the great recession.
Looking at spending in this area over the past four years, we see relatively stable purchasing volume. This is what we often find when analyzing the manufacture of what are commonly known in the military as “spares”. The dramatic increase from 2006 likely relates to a transfer of buying activity from the old DOD procurement system to BSM (Business System Modernization). An analysis of projected buying activity for 2011 shows that DOD is planning to purchase approximately $30,000,000 worth of bushings, rings, shims and spacers.
In an analysis of the industries top players by sales volume, GE Aviation (99207) leads, but also holds the third place spot (CAGE 07482). Their top contract from 2009 for this supply class was for 127 ring, bearing seals (NSN 5365-00-042-7344) at $1,384.70 each, totaling $175,856 (see contract).
A breakdown of the top 10 defense suppliers in 2009, looking at total sales in dollars.
We also looked at the most popular items purchased within this supply class.
|Stock Number||Contracts||Item Name||Cage||Company|
|5365-01-246-8281||380||SUPPORT ASSEMBLY||02769||LOCKHEED MARTIN|
|5365-01-180-2369||127||PLUG,MACHINE THREAD||78500||MERITOR HEAVY VEHICLE|
This information was discovered using BidLink.net’s comprehensive database of DLA procurement history for 2009. It also includes analysis from the NSN database and the central contractor registry. For 14 days of free access to BidLink.net, click here.Tweet