It’s not uncommon to see the cost of military spare parts increase when they are sole source or after a company is sold. After reviewing NSN procurement history on a manual check valve used on the F/A-18 we saw significant price increases just after the sale of the original company producing that valve. We have seen this kind of price increase in past research based on company ownership changes, below is one example we found.
The company initially manufacturing and selling this part to the Navy and DLA was GE Aviation / Smiths Aerospace up until the year 2017. GE Aviation sold this division with new company operating (at the same location) under the name Integral Aerospace, LLC. We looked at the procurement history of this NSN 4820-01-559-1959 and at two contracts, one awarded to GE Aviation and the other awarded to Integral Aerospace. Contract SPE4A1-14-G-0009 was awarded to GE Aviation Systems in 2016 showing a delivery order for a quantity of 78 units, the cost was $1,333.00 each. Two years later Integral Aerospace LLC was awarded contract number SPE4A1-18-T-0010 for the same quantity at a price of $3,069.98 each which is more than double the price GE Aviation charged.
GE Aviation Systems
SPE4A1-14-G-0009 – Quantity: 78 – Price: $1,333.00 each (January 2016)
Integral Aerospace
SPE4A1-18-T-0010 – Quantity: 78 – Price: $3,069.98 (August 2018)
This NSN 4820-01-559-1959 is currently open for bid again; solicitation SPE7MC-19-T-160F and DLA regularly posts requests for this item. DLA Land and Maritime notices in the past specifically stated they were looking for new sources to be qualified to manufacture this item. US valve manufacturers or companies capable of reverse engineering may want to look at this item. This valve is classified under FSC 4820 Valves, Nonpowered; there are no drawings are available. The Defense Logistics Agency (DLA) currently buys over 80 of these valves per year.
What is it?
This manual “stop-check valve” is assigned NSN 4820-01-559-1959, the current reference part numbers are 1180175-1 and 1200-1. This manual stop-check valve is part of the F/A-18 aircraft fuel tank. Several variants of F/A-18s use this valve including the F/A-18 Hornet and EA-18G Growler.
DLA and its agencies are constantly looking to qualify new manufacturers on parts that have no drawings. Reverse engineering helps both the new manufacturer as well as the US Military. The new manufacturer potentially obtains new business and the Government secures a new source. Some companies’ entire businesses exist on becoming new sources. Foreign Military Sales (FMS) customers may also end up purchasing products from the new source. There are 1000’s of these kinds of government contracting opportunities you just need to look for them.
One of the best times to inquire and start the process of becoming a new government source is at open solicitation. Take a look for yourself at BidLink.
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