DoD awards $19.4M for optical instruments to Elbit America under full and open competition

Contract Overview

Contract Amount: $19,381,178 ($19.4M)

Contractor: Elbitamerica, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-07-28

End Date: 2007-03-30

Contract Duration: 245 days

Daily Burn Rate: $79.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: MERRIMACK, HILLSBOROUGH County, NEW HAMPSHIRE, 03054

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to ELBITAMERICA, INC. for work described as: Key points: 1. Contract awarded for optical instruments, a critical component in defense systems. 2. Elbit America, a significant defense contractor, secured the award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The award value is moderate within the context of defense procurement.

Value Assessment

Rating: good

The award value of $19.4 million for optical instruments appears reasonable given the contract duration of 245 days. Benchmarking against similar contracts for specialized optical equipment would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely benefited from a fair market price for the optical instruments.

Public Impact

Enhances U.S. Navy's optical capabilities with new instruments. Supports a key defense manufacturing sector and its supply chain. Potential for technology transfer and innovation in optical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific details on the optical instruments' technical specifications.
  • Potential for cost overruns if unforeseen technical challenges arise.
  • Dependence on a single supplier for a critical component.

Positive Signals

  • Awarded through full and open competition.
  • Firm fixed price contract provides cost certainty.
  • Contract awarded to an established defense contractor.

Sector Analysis

The defense sector, particularly in areas like optical instruments, requires specialized manufacturing capabilities. Spending benchmarks vary widely based on the complexity and quantity of items procured.

Small Business Impact

This contract was awarded to Elbit America, Inc., a large business. There is no indication of small business participation in this specific award, which is common for prime contracts of this nature.

Oversight & Accountability

The Department of the Navy's procurement process, including the use of full and open competition, is subject to standard oversight mechanisms. Further review would be needed to assess specific accountability measures for this contract.

Related Government Programs

  • Optical Instrument and Lens Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of detailed technical specifications for the optical instruments.
  • No explicit mention of small business subcontracting goals.
  • Potential for sole-source follow-on contracts if this award proves successful.
  • Limited visibility into the specific performance metrics required.

Tags

optical-instrument-and-lens-manufacturin, department-of-defense, nh, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to ELBITAMERICA, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ELBITAMERICA, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2006-07-28. End: 2007-03-30.

What specific types of optical instruments were procured, and how do they align with current military requirements?

The data indicates the procurement of 'Optical Instrument and Lens Manufacturing' under NAICS code 333314. However, specific details regarding the types of instruments (e.g., targeting systems, surveillance optics, night vision devices) are not provided. Understanding the exact nature of these instruments is crucial to assessing their alignment with evolving military operational needs and technological advancements.

What was the competitive landscape like for this specific contract, and did any smaller businesses have the capability to bid?

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting multiple bidders were considered. While Elbit America, Inc. is the prime contractor, the extent to which smaller businesses participated as subcontractors or were excluded due to capability requirements is not detailed. Further investigation into the bidding process could reveal opportunities or limitations for small business involvement.

How does the firm fixed price structure impact the government's ability to manage potential cost increases during the contract period?

A firm fixed price (FFP) contract generally shifts the risk of cost overruns to the contractor. This structure provides the government with cost certainty, as the price is set regardless of the contractor's actual costs. However, if unforeseen technical challenges or material cost increases occur, the contractor may face financial strain, potentially impacting delivery or future bids.

Industry Classification

NAICS: ManufacturingCommercial and Service Industry Machinery ManufacturingOptical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Elbit Systems Ltd (UEI: 514421098)

Address: 220 DANIEL WEBSTER HWY, MERRIMACK, NH, 03054

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: M6785406D1007

IDV Type: IDC

Timeline

Start Date: 2006-07-28

Current End Date: 2007-03-30

Potential End Date: 2007-03-30 00:00:00

Last Modified: 2015-11-19

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