DoD awards $55.5M for ALQ-211 LRU-1 to ITT Corporation, a sole-source contract
Contract Overview
Contract Amount: $55,503,250 ($55.5M)
Contractor: ITT Corporation
Awarding Agency: Department of Defense
Start Date: 2008-04-18
End Date: 2011-05-19
Contract Duration: 1,126 days
Daily Burn Rate: $49.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ALQ-211 LRU-1
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $55.5 million to ITT CORPORATION for work described as: ALQ-211 LRU-1 Key points: 1. Contract awarded to ITT Corporation for ALQ-211 LRU-1. 2. Significant value of $55.5 million over 1126 days. 3. Sole-source award raises questions about competition and price discovery. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $55.5 million for the ALQ-211 LRU-1 appears high given the lack of competitive bidding. Without market comparisons or multiple offers, it's difficult to assess if this price represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition was sought. This method limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the ALQ-211 LRU-1.
Public Impact
Special Operations Command procures critical aircraft components. Taxpayer funds allocated for defense technology. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Awarded to established contractor
- Supports Special Operations Command needs
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this sector can be substantial, especially for specialized defense applications, but competitive pricing is crucial for efficiency.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, limiting opportunities for smaller enterprises in this procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that proper justification for the lack of competition was documented.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for overpayment due to no price discovery.
- Limited transparency on justification for sole-sourcing.
- No small business participation noted.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.5 million to ITT CORPORATION. ALQ-211 LRU-1
Who is the contractor on this award?
The obligated recipient is ITT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $55.5 million.
What is the period of performance?
Start: 2008-04-18. End: 2011-05-19.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without access to the specific justification documentation, it's impossible to confirm the exact reasons, but it's a critical factor in assessing the procurement's legitimacy and value.
What is the potential risk associated with the lack of competition for this contract?
The primary risk associated with a lack of competition in a sole-source contract is the potential for inflated prices. Without competing bids, the contractor may not feel pressured to offer the most cost-effective solution. This can lead to taxpayers bearing a higher cost than if the contract had been competitively bid, potentially diverting funds from other critical defense needs or programs.
How effective is the ALQ-211 LRU-1 in meeting the U.S. Special Operations Command's needs?
The effectiveness of the ALQ-211 LRU-1 in meeting the U.S. Special Operations Command's needs is not directly assessed by the contract data alone. However, the fact that it was awarded, even sole-source, suggests a perceived need. Further evaluation would require operational performance data, user feedback, and mission success rates associated with its deployment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 77 RIVER RD, CLIFTON, NJ, 09
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $55,503,250
Exercised Options: $55,503,250
Current Obligation: $55,503,250
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9224106D0001
IDV Type: IDC
Timeline
Start Date: 2008-04-18
Current End Date: 2011-05-19
Potential End Date: 2011-05-19 00:00:00
Last Modified: 2012-07-12
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