DoD's $26.7M V/UHF AIU ORDERING YR 2 contract awarded to POLE/ZERO LLC for communications equipment

Contract Overview

Contract Amount: $26,725,902 ($26.7M)

Contractor: Pole/Zero LLC

Awarding Agency: Department of Defense

Start Date: 2016-04-26

End Date: 2018-02-28

Contract Duration: 673 days

Daily Burn Rate: $39.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: V/UHF AIU ORDERING YR 2 IGF::OT::IGF

Place of Performance

Location: WEST CHESTER, BUTLER County, OHIO, 45069

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to POLE/ZERO LLC for work described as: V/UHF AIU ORDERING YR 2 IGF::OT::IGF Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The contract duration of 673 days suggests a significant operational need for the specified equipment. 3. The award was a delivery order under a larger contract, indicating a phased procurement approach. 4. The North American Industry Classification System (NAICS) code 334220 points to the manufacturing of radio and television broadcasting and wireless communications equipment. 5. The contract's fixed-price nature aims to control costs, but the lack of competition limits benchmarking. 6. The geographic location of the contractor in Ohio may have implications for logistics and support.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the absence of publicly available comparable contract data for similar V/UHF AIU systems. The firm fixed-price contract type suggests an attempt to cap costs, but without competitive bids, it's difficult to ascertain if the $26.7 million represents a fair market price. Further analysis would require access to historical pricing for this specific system or similar systems procured through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that potential cost savings that could arise from a bidding process were not realized, and it limits the government's ability to explore alternative solutions or pricing structures.

Taxpayer Impact: Taxpayers may have paid a premium for this equipment due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the lowest possible cost for the required capabilities.

Public Impact

The Department of the Navy benefits from the acquisition of V/UHF AIU systems, crucial for maintaining communication capabilities. The contract supports the manufacturing sector within the wireless communications equipment industry. The delivery order implies the provision of specific hardware or systems to support naval operations. The workforce implications are primarily within the manufacturing and engineering roles at POLE/ZERO LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Limited public data on the specific capabilities and performance metrics of the V/UHF AIU system.
Contract duration of over 1.5 years without clear performance milestones.
Potential for vendor lock-in due to specialized nature of the equipment.

Positive Signals

Firm fixed-price contract type helps to establish cost certainty.
Award to a single vendor may indicate specialized expertise required for the V/UHF AIU system.
The contract is a delivery order, suggesting it's part of a larger, potentially established program.
The contractor is located in Ohio, potentially supporting regional economic activity.

Sector Analysis

The contract falls within the Information Technology and Communications Equipment Manufacturing sector, specifically NAICS code 334220. This sector is characterized by rapid technological advancements and specialized production. The market for military communications equipment is often dominated by a few key players due to high barriers to entry, including R&D costs and security clearances. Comparable spending benchmarks are difficult to establish without more specific details on the V/UHF AIU system's capabilities and intended use.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting plans for small businesses. The award to POLE/ZERO LLC, a single entity, does not directly benefit the small business ecosystem through set-asides or mandated subcontracting. Further investigation into the contractor's own use of small business suppliers would be needed to assess broader impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. As a delivery order, it is part of a larger contract vehicle, which may have its own oversight mechanisms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense V/UHF Communications Systems
Naval Communications Equipment Procurement
Wireless Communications Manufacturing Contracts
Sole-Source Defense Contracts
Radio and Television Broadcasting Equipment Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency
Aging technology concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to POLE/ZERO LLC. V/UHF AIU ORDERING YR 2 IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is POLE/ZERO LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2016-04-26. End: 2018-02-28.

What is the specific function and technical capability of the V/UHF AIU system being procured?

The V/UHF AIU ORDERING YR 2 contract, valued at $26.7 million, is for the procurement of V/UHF AIU (Antenna Interface Unit) systems. While the specific technical details are not fully elaborated in the provided data, V/UHF (Very High Frequency/Ultra High Frequency) typically refers to radio frequency bands used for a wide range of communication purposes, including tactical military communications, air traffic control, and public safety. An Antenna Interface Unit (AIU) is a component that manages the connection and signal processing between an antenna and a radio transceiver. Therefore, this system likely plays a critical role in enabling reliable voice and data communications for Department of the Navy operations within these frequency bands, potentially supporting command and control, situational awareness, or other mission-critical functions.

Why was this contract awarded on a sole-source basis, and what was the justification?

The provided data indicates this contract was awarded on a 'NOT COMPETED' basis, signifying a sole-source procurement. The specific justification for this sole-source award is not detailed in the data. Typically, sole-source awards are made when only one responsible source is available to meet the government's needs. This could be due to proprietary technology, unique capabilities, urgent and compelling circumstances, or a lack of adequate competition. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to definitively state the reason. However, sole-source awards often raise concerns about potential lack of price competition and may lead to higher costs for the government compared to competitively procured items.

How does the $26.7 million contract value compare to similar V/UHF AIU systems or related procurements?

Directly comparing the $26.7 million contract value for the V/UHF AIU ORDERING YR 2 is challenging without more specific information on the system's exact capabilities, quantity, and the contract's duration. The provided data indicates a duration of 673 days (approximately 22 months) and a firm fixed-price contract type. To benchmark this value, one would need to identify comparable contracts for similar V/UHF communication systems or Antenna Interface Units procured by the Department of Defense or other federal agencies. This would involve searching contract databases for contracts with similar NAICS codes (334220), product descriptions, and award amounts. Given the sole-source nature of this award, it is possible that the price is higher than what might be achieved through a competitive process. A thorough value analysis would require access to detailed contract histories and market research reports.

What are the potential risks associated with a sole-source award for critical communication equipment?

A sole-source award for critical communication equipment like the V/UHF AIU system presents several potential risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it can result in a lack of innovation, as the government is limited to the solutions offered by a single vendor. Thirdly, there's a risk of vendor lock-in, where the government becomes dependent on a single supplier for maintenance, upgrades, and future procurements, potentially limiting flexibility and increasing long-term costs. Finally, without competitive benchmarking, it's harder to ensure the system meets the best possible performance standards for the price paid. This dependence can be particularly concerning for critical systems where operational readiness is paramount.

What is the track record of POLE/ZERO LLC in fulfilling government contracts, particularly for communication systems?

The provided data identifies POLE/ZERO LLC as the contractor for the $26.7 million V/UHF AIU ORDERING YR 2 contract. To assess their track record, a review of their past performance on government contracts would be necessary. This would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to POLE/ZERO LLC, examining contract values, types (e.g., firm fixed-price, cost-plus), durations, and agencies served. Additionally, performance evaluations (Contractor Performance Assessment Reporting System - CPARS) would provide insights into their past performance regarding quality, timeliness, cost control, and overall customer satisfaction. Without this specific historical data, it's difficult to provide a detailed assessment of their track record, especially concerning communication systems.

What are the implications of the contract's delivery period (2016-2018) for current operational needs?

The contract's period of performance, from April 26, 2016, to February 28, 2018, indicates that the V/UHF AIU systems were delivered and likely implemented over 1.5 years ago. For current operational needs, this means the equipment is no longer new or cutting-edge from a procurement standpoint. The implications depend on the system's lifecycle, technological obsolescence, and the contractor's ongoing support. If the V/UHF AIU system is a foundational component of current naval communications, the Department of the Navy would need to consider its long-term sustainment, potential upgrade paths, or replacement strategies. The aging of the equipment could necessitate further investments in maintenance, spare parts, or newer technologies to ensure continued operational effectiveness and interoperability with evolving communication networks.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833514R0277

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dover Corporation (UEI: 003245271)

Address: 5558 UNION CENTRE DR, WEST CHESTER, OH, 45069

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

Financial Breakdown

Contract Ceiling: $26,725,902

Exercised Options: $26,725,902

Current Obligation: $26,725,902

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833515D0024

IDV Type: IDC

Timeline