DoD awards $22.2M contract for chemical/biological mass production to Hamilton Sundstrand
Contract Overview
Contract Amount: $22,204,114 ($22.2M)
Contractor: Hamilton Sundstrand Space Systems International, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-26
End Date: 2014-08-28
Contract Duration: 701 days
Daily Burn Rate: $31.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PRODUCTION OF CHEMICAL BIOLOGICAL MASS
Place of Performance
Location: POMONA, LOS ANGELES County, CALIFORNIA, 91767
Plain-Language Summary
Department of Defense obligated $22.2 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC. for work described as: PRODUCTION OF CHEMICAL BIOLOGICAL MASS Key points: 1. Contract value of $22.2 million for specialized production. 2. No competition was identified for this procurement. 3. Potential risk associated with sole-source awards and lack of price discovery. 4. Spending falls under the 'Analytical Laboratory Instrument Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $22.2 million for analytical laboratory instruments is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar instruments or production runs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to achieve the lowest possible price.
Taxpayer Impact: The lack of competition on this $22.2 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Ensuring the quality and necessity of the produced items is crucial given the sole-source nature. Future procurements in this area should explore competitive strategies to ensure value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Specific production need identified
- Contract awarded to a known entity
Sector Analysis
The Department of Defense's spending on analytical laboratory instrument manufacturing is critical for research and testing capabilities. Benchmarks for this specific niche are hard to establish without competitive data, but the value suggests a significant requirement.
Small Business Impact
There is no indication that small businesses were involved in this sole-source procurement, suggesting a missed opportunity for small business participation.
Oversight & Accountability
Oversight is needed to ensure the justification for the sole-source award was robust and that the contractor delivers on the contract requirements effectively and efficiently.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no market pressure.
- Limited transparency in the procurement process.
- Missed opportunity for small business engagement.
- Dependency on a single supplier for critical production.
Tags
analytical-laboratory-instrument-manufac, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC.. PRODUCTION OF CHEMICAL BIOLOGICAL MASS
Who is the contractor on this award?
The obligated recipient is HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2012-09-26. End: 2014-08-28.
What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly documented?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Thorough documentation is essential to demonstrate that competition was not feasible or would not serve the government's best interest. Without access to the specific justification documents, it's impossible to verify the validity of this sole-source decision.
How can the government ensure fair pricing and value for money when awarding contracts without competition?
Ensuring fair pricing without competition requires robust price analysis techniques, including historical price data, commercial price lists, and independent cost estimates. Government negotiators must possess strong analytical skills to challenge contractor proposals and negotiate the best possible terms. Regular market research and pre-award strategy planning can also help identify potential competitors.
What are the long-term implications of relying on sole-source contracts for critical production needs?
Sole-source contracts can lead to a lack of innovation, reduced competition, and potentially higher costs over time as contractors face less pressure to improve efficiency or offer competitive pricing. It can also create dependency on a single supplier, posing risks if that supplier faces financial difficulties or production issues. Diversifying suppliers and actively seeking competitive opportunities are crucial for long-term stability.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911SR12R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 2771 N GAREY AVE, POMONA, CA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,719,107
Exercised Options: $49,719,107
Current Obligation: $22,204,114
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W911SR12D0011
IDV Type: IDC
Timeline
Start Date: 2012-09-26
Current End Date: 2014-08-28
Potential End Date: 2014-08-28 00:00:00
Last Modified: 2014-01-23
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