DoD awards $21M for 81 Chemical Biological Mass Spectrometers, with no competition

Contract Overview

Contract Amount: $20,959,478 ($21.0M)

Contractor: Hamilton Sundstrand Space Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-02-22

End Date: 2016-09-30

Contract Duration: 1,316 days

Daily Burn Rate: $15.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: FINAL PRODUCTION OF CHEMICAL BIOLOGICAL MASS SPECTROMETER II, 81 UNITS.

Place of Performance

Location: POMONA, LOS ANGELES County, CALIFORNIA, 91767

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC. for work described as: FINAL PRODUCTION OF CHEMICAL BIOLOGICAL MASS SPECTROMETER II, 81 UNITS. Key points: 1. High dollar value for specialized analytical instruments. 2. Sole-source award raises concerns about price discovery. 3. Long contract duration (1316 days) for production. 4. Sector: Analytical Laboratory Instrument Manufacturing.

Value Assessment

Rating: questionable

The contract value of $20,959,478 for 81 units suggests a per-unit cost of approximately $258,759. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market rates for similar advanced analytical instruments.

Cost Per Unit: $258,759

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to achieve the best possible price.

Taxpayer Impact: The lack of competition for this significant procurement could result in inflated costs, directly impacting taxpayer funds.

Public Impact

Procurement of critical chemical and biological detection equipment for national security. Potential for advanced scientific research and development enabled by this technology. Ensures readiness for the Department of Defense in identifying hazardous agents.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Department of Defense is a major purchaser of advanced scientific and analytical instruments. Spending in this sector often involves high R&D costs and specialized manufacturing, making competitive benchmarking challenging but crucial.

Small Business Impact

The awardee, Hamilton Sundstrand Space Systems International, Inc., is a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Further review of the justification for not competing the award is recommended.

Related Government Programs

Risk Flags

Tags

analytical-laboratory-instrument-manufac, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC.. FINAL PRODUCTION OF CHEMICAL BIOLOGICAL MASS SPECTROMETER II, 81 UNITS.

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 $21.0 million.

What is the period of performance?

Start: 2013-02-22. End: 2016-09-30.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract file to understand the specific justification (e.g., unique capabilities, urgent need) and whether any market research was conducted to explore competitive options before resorting to a sole-source award.

How does the per-unit cost of $258,759 compare to similar mass spectrometers available on the commercial market or procured by other government agencies?

Benchmarking this per-unit cost requires detailed comparison with similar high-end mass spectrometers, considering specifications, features, and intended use. Without access to specific technical requirements and market data, it's difficult to definitively state if $258,759 is high or low. However, the absence of competition suggests potential for inflated pricing.

What are the long-term implications of relying on a single supplier for such critical defense technology, particularly regarding sustainment and future upgrades?

Sole-source reliance can create vendor lock-in, potentially leading to higher sustainment costs and limited options for future upgrades or replacements. It also poses a risk if the supplier faces financial difficulties or decides to exit the market, impacting the DoD's operational capabilities.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingAnalytical 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, 91767

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

Financial Breakdown

Contract Ceiling: $20,959,478

Exercised Options: $20,959,478

Current Obligation: $20,959,478

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911SR12D0011

IDV Type: IDC

Timeline

Start Date: 2013-02-22

Current End Date: 2016-09-30

Potential End Date: 2016-09-30 00:00:00

Last Modified: 2018-10-17

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