DoD's $31.4M helmet-mounted cueing system contract awarded to Collins Elbit Vision Systems, LLC

Contract Overview

Contract Amount: $31,394,985 ($31.4M)

Contractor: Collins Elbit Vision Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2013-05-17

End Date: 2015-01-30

Contract Duration: 623 days

Daily Burn Rate: $50.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REPLENISHMENT SPARE PARTS AND INSTALLS APPLICABLE JOINT HELMET MOUNTED CUEING SYSTEM

Place of Performance

Location: WILSONVILLE, WASHINGTON County, OREGON, 97070, UNITED STATES OF AMERICA

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to COLLINS ELBIT VISION SYSTEMS, LLC for work described as: REPLENISHMENT SPARE PARTS AND INSTALLS APPLICABLE JOINT HELMET MOUNTED CUEING SYSTEM Key points: 1. Contract awarded for replenishment spare parts and installs for a joint helmet-mounted cueing system. 2. The contract value of $31.4 million represents a significant investment in advanced aviation equipment. 3. Awarded to Collins Elbit Vision Systems, LLC, indicating a specific supplier relationship. 4. The contract duration of 623 days suggests a focused period for delivery and installation. 5. The North American Industry Classification System (NAICS) code 334511 points to the manufacturing of navigation and guidance systems. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The award was made under Other Transaction Authority (OTA), often used for rapid prototyping or research and development.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The $31.4 million award for spare parts and installation for a specialized helmet system appears substantial, but its fairness depends on the scope of work, the criticality of the system, and the prevailing market rates for such advanced components. The Firm Fixed Price (FFP) contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This approach is typically used when a unique capability or proprietary technology is required, or when there is insufficient time to conduct a full competition. The lack of competition means that the government did not benefit from potentially lower prices or innovative solutions that might have emerged from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as the contractor faces less pressure to offer competitive rates. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

Pilots and aircrew operating aircraft equipped with the Joint Helmet Mounted Cueing System (JHMCS) will benefit from the availability of critical spare parts and installation services. This contract ensures the continued operational readiness and effectiveness of advanced aviation platforms within the Department of Defense. The services delivered are essential for maintaining the functionality of sophisticated targeting and display systems integrated into military helmets. The geographic impact is likely global, supporting deployed air assets and training facilities wherever the JHMCS is utilized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of competition may reduce opportunities for other qualified suppliers to enter the market.
Dependence on a single supplier can create supply chain risks if the contractor faces production or financial issues.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Award to a specialized company like Collins Elbit Vision Systems suggests access to critical, potentially unique, technology.
Ensures continued operational capability for a key aviation system.

Sector Analysis

The defense logistics and aerospace manufacturing sector is characterized by high technological complexity and significant government investment. Contracts for specialized components like helmet-mounted cueing systems are crucial for maintaining the technological edge of military aviation. The market for such systems is often dominated by a few key players due to the high barriers to entry, including research and development costs, stringent quality requirements, and established relationships with defense agencies. Spending in this sub-sector is driven by the need for advanced situational awareness and targeting capabilities for pilots.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the awardee is Collins Elbit Vision Systems, LLC, a significant entity. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The sole-source nature of the award further limits the potential for small business participation through subcontracting opportunities that might arise in a competitive environment.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA). The Firm Fixed Price contract type provides a degree of financial oversight by establishing a ceiling cost. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competitively bid contracts. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Joint Helmet Mounted Cueing System (JHMCS)
Aviation Life Support Equipment
Military Avionics and Flight Control Systems
Defense Logistics and Support Services

Risk Flags

Sole-source award
Potential for price escalation due to lack of competition
Dependence on a single supplier for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to COLLINS ELBIT VISION SYSTEMS, LLC. REPLENISHMENT SPARE PARTS AND INSTALLS APPLICABLE JOINT HELMET MOUNTED CUEING SYSTEM

Who is the contractor on this award?

The obligated recipient is COLLINS ELBIT VISION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2013-05-17. End: 2015-01-30.

What is the historical spending pattern for the Joint Helmet Mounted Cueing System (JHMCS) spare parts and installation by the Defense Logistics Agency?

Analyzing historical spending for JHMCS spare parts and installation by the Defense Logistics Agency (DLA) requires access to detailed contract databases beyond the scope of this single award. However, the current $31.4 million award for a 623-day period suggests a recurring need for these components. Typically, such systems require ongoing maintenance and replenishment of parts due to wear and tear, technological obsolescence, and operational demands. DLA's role as a logistics agency implies a consistent requirement to support various military branches. Without prior contract data, it's difficult to establish a trend, but the nature of military hardware suggests that sustained investment in spare parts and support is standard practice to ensure operational readiness across the fleet.

How does the unit cost of the spare parts in this contract compare to industry benchmarks for similar helmet-mounted display components?

Determining the precise unit cost of spare parts within this $31.4 million contract is not possible with the provided data, as it represents a total award value for a bundle of parts and installation services. To benchmark against industry standards, one would need to identify specific part numbers, their quantities, and their individual prices. Helmet-mounted display components are highly specialized and technologically advanced, often incorporating custom optics, micro-displays, and integrated electronics. Consequently, their unit costs can be significantly higher than commercial off-the-shelf items. A comparison would require access to pricing data from other military contracts for similar JHMCS components or from prime manufacturers if available, considering factors like volume discounts and the specific technical specifications required by the Department of Defense.

What are the specific risks associated with a sole-source award for critical aviation components like JHMCS spare parts?

A primary risk of a sole-source award for critical aviation components like JHMCS spare parts is the potential for inflated pricing. Without competitive pressure, the contractor may not be incentivized to offer the most cost-effective solution, leading to higher expenditures for the government and taxpayers. Another significant risk is supply chain vulnerability; reliance on a single supplier can create dependencies that are problematic if the contractor experiences production issues, financial instability, or decides to discontinue a product line. Furthermore, a sole-source award can stifle innovation by preventing other capable companies from contributing their expertise or developing alternative, potentially superior, solutions. This can also limit the government's long-term strategic options for sourcing and maintaining critical equipment.

What is the track record of Collins Elbit Vision Systems, LLC in delivering similar complex defense systems or components?

Collins Elbit Vision Systems, LLC (CEVS) is a joint venture formed by Collins Aerospace (a Raytheon Technologies company) and Elbit Systems of America. Both parent companies have extensive track records in developing and supplying advanced avionics, electro-optical systems, and defense technologies to military customers worldwide. Collins Aerospace is a major supplier of integrated avionics, cabin systems, and aerostructures, while Elbit Systems is a global defense electronics company known for its helmet-mounted displays, targeting systems, and intelligence, surveillance, and reconnaissance (ISR) solutions. Therefore, CEVS benefits from the combined expertise, manufacturing capabilities, and established supply chains of its parent organizations, suggesting a strong capability to deliver complex defense systems and components like the JHMCS spare parts and installations.

What is the estimated value of the Joint Helmet Mounted Cueing System (JHMCS) market, and how does this contract fit within that market?

The global market for helmet-mounted displays (HMDs) in military aviation is substantial and growing, driven by the demand for enhanced pilot situational awareness, targeting capabilities, and reduced pilot workload. While specific market size figures for the JHMCS alone are not readily available, the broader military HMD market is estimated to be in the billions of dollars annually. This $31.4 million contract represents a significant, albeit specific, procurement within this larger market. It addresses the sustainment and operational readiness needs for an existing, widely deployed system (JHMCS) rather than the development of a new generation of HMDs. The contract's value reflects the specialized nature and critical function of these components within the defense sector, highlighting the ongoing investment required to maintain advanced military aviation platforms.

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: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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

Parent Company: Rockwell Collins-Esa Vision Systems Limited Liability Company (UEI: 078569180)

Address: 4700 MARINE CREEK PARKWAY, FORT WORTH, TX, 76179

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

Financial Breakdown

Contract Ceiling: $31,394,985

Exercised Options: $31,394,985

Current Obligation: $31,394,985

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRWA111D0007

IDV Type: IDC

Timeline