Partnerships drive cost savings on critical aircraft component

Coordination between Defense Logistics Agency Weapons Support, service program offices and industry partners ensured fair pricing for a critical aircraft component, strengthening readiness across multiple platforms while protecting taxpayer dollars and reinforcing DLA's focus on partnerships.

A cost analysis and negotiation effort led by Amy Shimko, a pricing division cost and price analyst, and Christy Oakley, a programs division contracting officer and negotiator - both within the Procurement Process Support Directorate - resulted in $203,193.50 in savings on the Matrix Assembly, a high-priority item identified by the Nuclear and Space Enterprise Support Office. The effort reflects coordination across service program offices and a close internal partnership between cost analysis and contracting functions.

The Matrix Assembly supports the F-16 Fighting Falcon, CH-53 Sea Stallion, B-2 Spirit and MH-53E Sea Dragon aircraft and plays a critical role in engine performance. In simple terms, the component works like a cooling system for an aircraft engine, helping prevent overheating that could ground the aircraft.

"The Matrix Assembly is a cross-platform critical item. It is a high-performance heat exchanger. Its primary role is to regulate the thermal environment of the engine by dissipating extreme heat generated during operation," Shimko said. "Without efficient heat dissipation, engines are prone to catastrophic seizure. This matrix is a single point of failure component; if the matrix fails, the aircraft is grounded."

The effort began after proposed pricing did not align with procurement history, prompting a detailed review of cost elements.

"When comparing the proposed unit price and adjusting for quantity and time the proposed price was not in line with the DLA estimated price," Shimko said. "Thus, (there was a) need for a more in-depth review of every cost element that makes up the unit price."

Shimko gathered material, labor and historical procurement data to establish pricing objectives.

"Because the procurement involved multiple vendor or contractor tiers, the analyst had to 'peel back the onion' to isolate the true baseline cost of the part," Shimko said.

The effort required coordination across multiple organizations, with each piece of data contributing to a clearer picture of the final cost. The analysis informed negotiations led by Oakley and was supported through close coordination between the cost and price analyst and the contracting officer.

"Our roles functioned as a seamless partnership between data analysis and tactical execution," Oakley said.

Using that analysis and the procurement history, Oakley approached negotiations with a focus on pricing objectives within the cost and price analysis along with the pricing behavior tied to order quantities found within the Procurement history.

"I noticed a strong correlation between our order volume and the unit price," Oakley said. "Basically, the more we bought, the better the deal got."

When the vendor disputed that the requirement was quantity-sensitive, Oakley used historical data to challenge the pricing.

"If this isn't quantity-sensitive, there is absolutely no way the government can justify a $40,000 or 20% increase per unit in just six months." said Oakley.

The process began with cost analysis in late November 2025, followed by negotiations in December and final agreement in February 2026.

"By early February 2026, (the vendor) came back with a final offer that hit our target objectives, and we successfully closed out the negotiations," Oakley said.

The savings reflect both effective negotiation and responsible stewardship of taxpayer dollars.

"Anytime we can prevent the government from overpaying, that is an absolute win in my book," Oakley said.

Those savings support DLA's mission by allowing resources to be redirected to other requirements.

"By establishing a fair and reasonable objective and maximum price, DLA maximizes its purchasing power," Shimko said.

The approach can be applied to future procurements.

"That evidence-based approach, using our tools to build a bulletproof case, is something any buyer can replicate," Oakley said.