DoD Awards $10.3M for Advanced Countermeasure Systems, High Unit Cost Raises Concerns

Contract Overview

Contract Amount: $10,388,356 ($10.4M)

Contractor: Advanced Concepts and Mission Systems

Awarding Agency: Department of Defense

Start Date: 2002-03-27

End Date: 2008-04-15

Contract Duration: 2,211 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200207!00H278!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133901D0730 !A!N! !N!0003 !20020327!20030731!102098761!102098761!094373495!N!ADVANCED COUNTERMEASURE SYSTEM!3034 GOLD CANAL DRIVE !RANCHO CORDOVA !CA!95670!59444!067!06!RANCHO CORDOVA !SACRAMENTO !CALIFORNIA!+000003342599!N!N!000000000000!6930!OPERATIONAL TRAINING DEVICES !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !335999!E! !5!B!M! !A!D!20090226!B! ! !A! !A!U!J!2!003!K! !Z!N!Z! ! !Y!B!Y!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: RANCHO CORDOVA, SACRAMENTO County, CALIFORNIA, 95670

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to ADVANCED CONCEPTS AND MISSION SYSTEMS for work described as: 200207!00H278!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133901D0730 !A!N! !N!0003 !20020327!20030731!102098761!102098761!094373495!N!ADVANCED COUNTERMEASURE SYSTEM!3034 GOLD CANAL DRIVE !RANCHO CORDOVA !CA!95670!59444!067!06!RANCHO CORDOVA !SACRA… Key points: 1. The contract for Advanced Countermeasure Systems, valued at $10.3M, was awarded by the Department of Defense. 2. The per-unit cost appears significantly high compared to industry benchmarks, warranting further investigation. 3. Competition was limited, raising questions about price discovery and potential taxpayer impact. 4. The sector is Operational Training Devices, a niche but critical area for defense readiness.

Value Assessment

Rating: concerning

The total award of $10,388,355.89 for 3 units results in a per-unit cost of approximately $3.46M. This is exceptionally high and likely exceeds benchmarks for similar training devices, suggesting potential overpricing or unique, unstated requirements.

Cost Per Unit: $3,462,785.30

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method can restrict the pool of potential bidders and may lead to less competitive pricing than a truly open solicitation.

Taxpayer Impact: The limited competition and high per-unit cost suggest that taxpayers may not have received the best possible value for this procurement, potentially leading to inefficient use of funds.

Public Impact

Taxpayers may be overpaying for advanced training systems due to limited competition. The high cost could impact the number of training devices acquired, potentially affecting military readiness. Lack of transparency in the competition process raises concerns about fairness and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Limited competition
Potential for overpricing

Positive Signals

Awarded to a specific company, potentially indicating specialized capabilities.

Sector Analysis

The procurement falls within the Operational Training Devices sector, which is crucial for simulating combat scenarios and training military personnel. Spending in this sector can vary widely based on technological advancements and specific training needs, but high unit costs are generally scrutinized.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the DoD. Oversight mechanisms should ensure that the high cost is justified and that the training devices meet all specified requirements effectively.

Related Government Programs

All Other Miscellaneous Electrical Equipment and Component Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

High per-unit cost
Limited competition
Potential for overpricing
Lack of transparency in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to ADVANCED CONCEPTS AND MISSION SYSTEMS. 200207!00H278!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!N6133901D0730 !A!N! !N!0003 !20020327!20030731!102098761!102098761!094373495!N!ADVANCED COUNTERMEASURE SYSTEM!3034 GOLD CANAL DRIVE !RANCHO CORDOVA !CA!95670!59444!067!06!RANCHO CORDOVA !SACRAMENTO !CALIFORNIA!+000003342599!N!N!000000000000!6930!OPERATIONAL TRAINING DEVICES !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !335999!E! !5!B!M! !A!D!20090226!B

Who is the contractor on this award?

The obligated recipient is ADVANCED CONCEPTS AND MISSION SYSTEMS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2002-03-27. End: 2008-04-15.

What specific technological advancements or unique requirements justify the exceptionally high per-unit cost of these advanced countermeasure systems?

The exceptionally high per-unit cost of approximately $3.46M suggests the systems likely incorporate highly advanced, potentially classified, technology or fulfill very specialized training requirements not met by standard equipment. Without detailed specifications or a comparative market analysis, it's difficult to pinpoint the exact drivers. However, factors could include complex simulation capabilities, integration with other advanced systems, or unique performance parameters demanded by the Naval Air Warfare Center Training.

How did the 'exclusion of sources' in the competition process impact the final price and ensure fair market value was achieved?

The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was intended to be open, certain sources were deliberately excluded, possibly due to specific technical requirements or prior relationships. This limitation inherently restricts the number of bidders, potentially reducing competitive pressure and leading to a higher final price than if all capable sources had been allowed to compete. Assessing fair market value would require comparing the awarded price against benchmarks for similar, albeit less specialized, systems.

What is the long-term effectiveness and operational impact of these expensive training devices on military readiness and personnel development?

The long-term effectiveness hinges on whether these advanced countermeasure systems accurately replicate real-world threats and provide realistic training scenarios. If they significantly enhance pilot proficiency in dealing with advanced threats, the high investment could be justified by improved mission success rates and reduced risk to personnel and assets. However, if the technology becomes obsolete quickly or doesn't translate well to actual combat, the investment may not yield the expected returns in readiness.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Sierra Nevada Company, LLC (UEI: 094373495)

Address: 3034 GOLD CANAL DRIVE, RANCHO CORDOVA, CA, 95670

Business Categories: Category Business, Small Business, Woman Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6133901D0730

IDV Type: IDC

Timeline