Industry partnerships slash costs on a critical aircraft component

Defense Logistics Agency Weapons Support said it secured more than $200,000 in savings on a critical aircraft engine component after a monthslong cost analysis and negotiation that agency officials described as a model for future buys.

The effort, led by cost and price analyst Amy Shimko and contracting officer and negotiator Christy Oakley within DLA’s Procurement Process Support Directorate, produced $203,193.50 in savings on the Matrix Assembly, a high-priority item flagged by the Nuclear and Space Enterprise Support Office. The component is used across multiple platforms, including the F-16 Fighting Falcon, CH-53 Sea Stallion, B-2 Spirit and MH-53E Sea Dragon, and is tied directly to aircraft readiness because of its role in engine performance.

“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.”

DLA initiated a deeper review after a vendor’s proposed unit price did not match the agency’s estimate or recent procurement history. “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 compiled material, labor and historical procurement data to set pricing targets and to trace costs through multiple supplier tiers. “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.

Oakley then used that analysis to guide negotiations, aligning pricing objectives with evidence from order quantities and past buys. “Our roles functioned as a seamless partnership between data analysis and tactical execution,” Oakley said.

“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 challenged the idea that prices were sensitive to quantity, Oakley cited historical trends to push back. “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.

According to DLA, the cost analysis began in late November 2025, negotiations followed in December, and a final agreement was reached 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.

Agency officials said the outcome helps protect taxpayer dollars while sustaining aircraft availability by keeping a single-point-of-failure part affordable and in supply. “Anytime we can prevent the government from overpaying, that is an absolute win in my book,” Oakley said. “By establishing a fair and reasonable objective and maximum price, DLA maximizes its purchasing power,” Shimko said.

The team said the data-driven approach they used—anchored in cost breakdowns, procurement history and quantity-price relationships—can be replicated across future procurements. “That evidence-based approach, using our tools to build a bulletproof case, is something any buyer can replicate,” Oakley said.