DoD Awards $19.4M for JSAM-JSF Production Assets to Gentex Corp, Sole-Source

Contract Overview

Contract Amount: $19,411,131 ($19.4M)

Contractor: Gentex Corp

Awarding Agency: Department of Defense

Start Date: 2016-09-27

End Date: 2024-07-31

Contract Duration: 2,864 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: IGF::OT::IGF DELIVERY ORDER 02_PRODUCTION&PRODUCTION ASSETS FOR JSAM-JSF (FPI(S))AND FFP CLINS

Place of Performance

Location: RANCHO CUCAMONGA, SAN BERNARDINO County, CALIFORNIA, 91730

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to GENTEX CORP for work described as: IGF::OT::IGF DELIVERY ORDER 02_PRODUCTION&PRODUCTION ASSETS FOR JSAM-JSF (FPI(S))AND FFP CLINS Key points: 1. Significant award for critical aircraft components. 2. Sole-source award raises questions about price discovery. 3. Long contract duration (8 years) impacts long-term value. 4. Focus on production assets suggests ongoing program needs.

Value Assessment

Rating: fair

The award value of $19.4M over nearly 8 years is difficult to assess without comparable contracts. The fixed-price incentive (FPI) structure aims to control costs, but the lack of competition limits external price validation.

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 taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award may result in taxpayers paying more than necessary for these production assets.

Public Impact

Ensures continued production of critical JSAM-JSF components. Supports a specific defense manufacturing capability. Potential for cost overruns due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of transparency in pricing

Positive Signals

Supports critical defense program
Fixed-price incentive contract type

Sector Analysis

This award falls within the Defense sector, specifically related to aircraft parts manufacturing. Benchmarks for similar sole-source awards for specialized production assets are scarce, making direct comparison challenging.

Small Business Impact

The data indicates this award went to Gentex Corp, a large business. There is no indication of small business participation in this specific contract award.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature warrants close monitoring to ensure fair pricing and performance.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Long contract duration
Potential for cost overruns
Limited price competition
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to GENTEX CORP. IGF::OT::IGF DELIVERY ORDER 02_PRODUCTION&PRODUCTION ASSETS FOR JSAM-JSF (FPI(S))AND FFP CLINS

Who is the contractor on this award?

The obligated recipient is GENTEX CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2016-09-27. End: 2024-07-31.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Price reasonableness is usually determined through cost analysis, historical pricing, or market research, though competition is the most robust method for price discovery.

What are the potential risks associated with a fixed-price incentive contract awarded on a sole-source basis for nearly eight years?

Risks include potential cost overruns if the contractor's cost estimates are inaccurate, as the government shares in cost savings or overruns. The sole-source aspect exacerbates this by limiting competitive pressure to drive efficiency and fair pricing throughout the extended performance period.

How does the long duration of this contract impact the government's ability to adapt to technological changes or evolving program requirements?

An eight-year contract duration can create inflexibility. The government may be locked into specific technologies or production methods, making it difficult and costly to incorporate upgrades or pivot if program needs change significantly over the contract's life.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911SR16R0003

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 9859 7TH ST, RANCHO CUCAMONGA, CA, 91730

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

Financial Breakdown

Contract Ceiling: $19,479,987

Exercised Options: $19,479,987

Current Obligation: $19,411,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SR16D0021

IDV Type: IDC

Timeline