DoD awards $20.5M for JHMCS spares to Collins Elbit Vision Systems, a sole-source contract

Contract Overview

Contract Amount: $20,502,504 ($20.5M)

Contractor: Collins Elbit Vision Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2012-07-24

End Date: 2014-10-31

Contract Duration: 829 days

Daily Burn Rate: $24.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MISCELLANEOUS SPARES FOR THE JOINT HELMET MOUNTED QUEING SYSTEM

Place of Performance

Location: WILSONVILLE, CLACKAMAS County, OREGON, 97070

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to COLLINS ELBIT VISION SYSTEMS, LLC for work described as: MISCELLANEOUS SPARES FOR THE JOINT HELMET MOUNTED QUEING SYSTEM Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. Focus on specialized JHMCS spares suggests a niche market with limited suppliers. 3. Long contract duration (829 days) may indicate complex supply chain or production needs. 4. The $20.5M award represents a significant investment in aviation system sustainment.

Value Assessment

Rating: questionable

The award amount of $20.5M for miscellaneous spares is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized components.

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 potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition on this $20.5M contract means taxpayers may be paying a premium for these specialized JHMCS spares.

Public Impact

Ensures continued operational readiness for aircrews relying on JHMCS. Supports the sustainment of critical aviation systems within the Department of Defense. Potential for increased costs due to sole-source nature impacts overall defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation noted

Positive Signals

Ensures availability of critical spares
Supports established supply chain for JHMCS

Sector Analysis

This contract falls within the Defense sector, specifically related to aerospace and defense manufacturing. Spending on specialized spares like these is crucial for maintaining the operational readiness of complex military equipment, but benchmarks are hard to establish due to the niche nature of the components.

Small Business Impact

There is no indication of small business participation in this contract. Given the sole-source nature and specialized components, it's possible that only a few large prime contractors possess the necessary capabilities.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential overspending. Further review of the justification for not competing the award is recommended.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing due to lack of market pressure.
No small business participation identified.
Contract duration is lengthy, requiring sustained oversight.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to COLLINS ELBIT VISION SYSTEMS, LLC. MISCELLANEOUS SPARES FOR THE JOINT HELMET MOUNTED QUEING SYSTEM

Who is the contractor on this award?

The obligated recipient is COLLINS ELBIT VISION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2012-07-24. End: 2014-10-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without access to the specific justification document, it's impossible to confirm if alternatives were explored. However, the lack of competition inherently limits the government's ability to ensure the best possible price and value.

How does the unit cost of these spares compare to similar components in other military aviation systems?

Benchmarking the unit cost is challenging without specific part numbers and detailed specifications. However, given the specialized nature of JHMCS spares and the sole-source award, it is probable that the unit costs are higher than for more common or commercially available components. A detailed cost analysis would be required for a precise comparison.

What is the long-term strategy for procuring these spares to ensure future cost-effectiveness and availability?

The long-term strategy should ideally involve exploring options for increasing competition, potentially through second-sourcing or developing alternative technologies. If the system is nearing end-of-life, a strategy for last-time buys might be necessary. Continuous market research and engagement with potential suppliers are crucial to avoid future sole-source situations and secure better pricing.

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: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins, Inc. (UEI: 962960589)

Address: 4700 MARINE CREEK PARKWAY, FORT WORTH, TX, 76179

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,502,504

Exercised Options: $20,502,504

Current Obligation: $20,502,504

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRWA111D0007

IDV Type: IDC

Timeline