DoD's $22.7M AN/SSQ-101A Contract Awarded to ERAPSCO Under Sole-Source Basis
Contract Overview
Contract Amount: $22,695,550 ($22.7M)
Contractor: Erapsco
Awarding Agency: Department of Defense
Start Date: 2010-03-04
End Date: 2012-03-05
Contract Duration: 732 days
Daily Burn Rate: $31.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/SSQ-101A
Place of Performance
Location: DE LEON SPRINGS, VOLUSIA County, FLORIDA, 32130
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $22.7 million to ERAPSCO for work described as: AN/SSQ-101A Key points: 1. The contract for AN/SSQ-101A was awarded to ERAPSCO, a single vendor. 2. The Department of the Navy awarded this contract, indicating a specific military need. 3. The contract was not competed, raising questions about potential price discovery. 4. The firm fixed price contract type aims to control costs for the government.
Value Assessment
Rating: questionable
The contract value is $22.7 million. Without competitive bidding, it's difficult to assess if this price is optimal or if it reflects fair market value compared to similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government as there was no competitive pressure to lower bids.
Taxpayer Impact: The lack of competition for this $22.7 million contract means taxpayers may have paid more than necessary, as there was no market mechanism to ensure the lowest possible price.
Public Impact
Military readiness may be impacted if the AN/SSQ-101A is a critical component. Taxpayers are directly funding this sole-source contract, with potential for overpayment. The absence of competition could stifle innovation in this specific system manufacturing area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Firm fixed price contract
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for national defense and maritime operations.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received the best possible value and that the pricing was justified.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- No clear indication of small business participation.
- Lack of transparency in justification for sole-source award.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.7 million to ERAPSCO. AN/SSQ-101A
Who is the contractor on this award?
The obligated recipient is ERAPSCO.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $22.7 million.
What is the period of performance?
Start: 2010-03-04. End: 2012-03-05.
What specific factors necessitated a sole-source award for the AN/SSQ-101A, and were these factors thoroughly documented and justified?
Sole-source awards are typically justified by unique capabilities, proprietary technology, or urgent and compelling circumstances where only one source can fulfill the requirement. The Department of Defense would need to provide detailed documentation proving that no other vendor could meet the specifications or that the timeline precluded a competitive process. Without this justification, the award raises concerns about procurement efficiency and potential favoritism.
How does the $22.7 million contract value compare to industry benchmarks for similar search and navigation systems, especially considering the lack of competition?
Without competitive bids, establishing a precise benchmark is challenging. However, the $22.7 million price should be rigorously compared against publicly available data for comparable systems, considering factors like system complexity, features, and quantity. If the price appears significantly higher than similar systems procured competitively, it suggests potential overpayment due to the sole-source nature of this award.
What is the long-term strategic value of the AN/SSQ-101A system to the Department of the Navy, and does the sole-source award impact future sustainment or upgrade options?
The long-term value depends on the system's criticality to naval operations. A sole-source award might create a dependency on ERAPSCO for future sustainment, upgrades, or spare parts, potentially limiting future competition and increasing long-term costs. The Navy should assess if this initial award strategy compromises future flexibility and cost-effectiveness for maintaining and evolving this critical capability.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042109R0121
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4578 EAST PARK 30 DR, COLUMBIA CITY, IN, 03
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,695,550
Exercised Options: $22,695,550
Current Obligation: $22,695,550
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042110D0010
IDV Type: IDC
Timeline
Start Date: 2010-03-04
Current End Date: 2012-03-05
Potential End Date: 2012-03-05 00:00:00
Last Modified: 2010-12-10
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