DoD's $21.3M contract for robotic systems awarded to iRobot Corporation without competition

Contract Overview

Contract Amount: $21,285,495 ($21.3M)

Contractor: Irobot Corporation

Awarding Agency: Department of Defense

Start Date: 2011-08-17

End Date: 2012-01-18

Contract Duration: 154 days

Daily Burn Rate: $138.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAN TRANSPORTABLE ROBOTIC

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to IROBOT CORPORATION for work described as: MAN TRANSPORTABLE ROBOTIC Key points: 1. The contract value represents a significant investment in specialized robotic technology. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. The short performance period suggests a focused, immediate need for the systems. 4. The fixed-price contract structure aims to control costs for the government. 5. The award falls within the manufacturing of navigation and guidance systems. 6. The contractor, iRobot Corporation, is known for its consumer robotics but also has defense applications.

Value Assessment

Rating: questionable

Benchmarking the value of this specific contract is challenging due to its sole-source nature and the specialized equipment involved. Without competitive bids, it's difficult to ascertain if the $21.3 million price reflects optimal market value. The fixed-price structure provides some cost certainty, but the lack of competition prevents a direct comparison to similar robotic system procurements from other vendors. Further analysis would require understanding the specific capabilities and technological advancements of the delivered robotic systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, iRobot Corporation, was solicited. This approach is typically used when a unique capability is required, or when only one source is capable of meeting the government's needs. The absence of a competitive bidding process means that the government did not benefit from the price discovery and potential cost savings that typically arise from multiple offers.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as there was no incentive for the sole-source provider to offer the lowest possible price.

Public Impact

The U.S. Department of the Navy is the primary beneficiary, acquiring advanced robotic systems. The systems are intended for search, detection, navigation, guidance, and related applications. The geographic impact is likely focused on operational theaters where the Navy deploys. The contract may have implications for specialized defense technology workforces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to higher costs for taxpayers.
Sole-source awards can limit access for other capable small or large businesses.
The short duration might indicate a one-off need rather than a long-term strategic investment.

Positive Signals

Fixed-price contract helps manage budget predictability.
Award to a known entity like iRobot suggests a degree of confidence in their capabilities.
The contract specifies a clear deliverable for a defined purpose.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on advanced robotics for navigation and guidance systems. The market for such specialized defense robotics is often characterized by high barriers to entry due to technological complexity and stringent security requirements. While iRobot is widely recognized for its consumer products, its involvement in defense contracts highlights a niche but critical segment of the industry. Comparable spending benchmarks are difficult to establish without more detailed specifications of the robotic systems procured.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to iRobot Corporation, a relatively established company, suggests that the focus was on acquiring a specific capability rather than promoting small business participation. The impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. As a fixed-price contract, the primary accountability measure is the delivery of the specified robotic systems according to the contract terms. 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

Robotic Systems Procurement
Defense Navigation and Guidance Systems
Naval Technology Acquisition
Sole-Source Defense Contracts

Risk Flags

Sole-source award may result in higher costs.
Limited competition restricts market price discovery.
Contract duration is relatively short (154 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to IROBOT CORPORATION. MAN TRANSPORTABLE ROBOTIC

Who is the contractor on this award?

The obligated recipient is IROBOT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2011-08-17. End: 2012-01-18.

What specific capabilities do the MAN TRANSPORTABLE ROBOTIC systems provide to the Department of the Navy?

The provided data indicates the contract is for 'MAN TRANSPORTABLE ROBOTIC' systems and falls under the North American Industry Classification System (NAICS) code 334511, which covers 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' While the exact functionalities are not detailed, these systems are likely designed to enhance situational awareness, perform reconnaissance, or assist in hazardous operations in environments where human presence is risky. Their transportable nature suggests they are deployable by naval personnel in various operational settings, potentially aiding in tasks such as mine detection, surveillance, or route clearance.

Why was this contract awarded to iRobot Corporation on a sole-source basis?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. For this contract, the Department of the Navy likely determined that iRobot Corporation possessed unique technology, proprietary designs, or specialized manufacturing capabilities essential for the 'MAN TRANSPORTABLE ROBOTIC' systems. This could stem from prior development, existing intellectual property, or a specific technological advantage that other potential contractors could not match within the required timeframe or specifications. The justification for sole-sourcing would be documented by the agency.

How does the $21.3 million contract value compare to similar robotic system procurements?

Direct comparison of the $21.3 million contract value is difficult without knowing the precise specifications, quantity, and technological sophistication of the robotic systems procured. As a sole-source award, there is no competitive benchmark. However, iRobot Corporation is known for both consumer and specialized robotic solutions. The value could be considered reasonable if the systems incorporate advanced sensors, AI capabilities, and robust construction for military-grade operations. Conversely, without competition, there's a risk the price might be higher than if multiple bids were solicited. Further context on the system's intended use and performance requirements would be needed for a more precise valuation.

What is the track record of iRobot Corporation in fulfilling defense contracts?

iRobot Corporation has a history of developing and supplying robotic systems for defense and security applications, in addition to its well-known consumer products. The company has previously provided robots for military use, including unmanned ground vehicles for reconnaissance and explosive ordnance disposal. While specific details of past defense contract performance are not provided here, their continued engagement in this sector suggests a capacity to meet certain defense requirements. The 'MAN TRANSPORTABLE ROBOTIC' contract awarded by the Department of the Navy in 2011 indicates a recognized capability by a major defense agency.

What are the potential risks associated with a sole-source award for robotic systems?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may not achieve the best possible value for its investment. Another risk is the lack of innovation that competition can foster; a sole-source provider may have less incentive to continuously improve their offerings. Furthermore, sole-sourcing can limit opportunities for other capable companies, potentially hindering the broader development of the defense robotics industrial base. Dependence on a single supplier can also pose risks if that supplier faces production issues or business challenges.

What is the significance of the NAICS code 334511 for this contract?

The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' precisely categorizes the nature of the goods being procured. This indicates that the contract is for the manufacturing of sophisticated instruments and systems used for locating targets, determining position and course, and operating aircraft or vessels. For the 'MAN TRANSPORTABLE ROBOTIC' systems, this NAICS code suggests they incorporate advanced sensors and processing capabilities crucial for military operations, aligning with the Department of the Navy's need for cutting-edge technology in navigation and detection.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0017409R0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 CROSBY DR, BEDFORD, MA, 06

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: $21,285,495

Exercised Options: $21,285,495

Current Obligation: $21,285,495

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0017411D0013

IDV Type: IDC

Timeline