DoD's $23.5M contract for CVRJ system spares and repair kits awarded to Impact Science & Technology, Inc

Contract Overview

Contract Amount: $23,511,678 ($23.5M)

Contractor: Impact Science & Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2010-07-31

Contract Duration: 304 days

Daily Burn Rate: $77.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS DELIVERY ORDER IS AN UNDEFINITIZED CONTRACT ACTION FOR THE PROCUREMENT OF INITIAL SPARES AND DEPOT LEVEL REPAIR KITS FOR CVRJ SYSTEMS.

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03063

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to IMPACT SCIENCE & TECHNOLOGY, INC. for work described as: THIS DELIVERY ORDER IS AN UNDEFINITIZED CONTRACT ACTION FOR THE PROCUREMENT OF INITIAL SPARES AND DEPOT LEVEL REPAIR KITS FOR CVRJ SYSTEMS. Key points: 1. This delivery order focuses on initial spares and depot-level repair kits for CVRJ systems. 2. The contract was not competed, raising questions about potential price discovery. 3. The contract duration is 304 days, indicating a short-term need for these specific items. 4. The procurement is for the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 334511 points to the manufacturing of search, detection, and navigation instruments. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The base of the contractor, Impact Science & Technology, Inc., is in New Hampshire.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar procurements for CVRJ system components. The firm fixed price structure is standard for this type of procurement, but the lack of competition makes it difficult to assess if the pricing is optimal. The total value of $23.5 million for initial spares and repair kits suggests a significant need for these components, but without historical data or market analysis, a definitive value-for-money assessment is not possible.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific reasons for not competing the award are not detailed in the provided data. Sole-source procurements can sometimes lead to higher prices due to the absence of competitive pressure. Without information on the justification for the sole-source award, it's difficult to determine if it was appropriate or if it limited the government's ability to secure the best possible pricing.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the most cost-effective pricing that could have been achieved through a competitive bidding process.

Public Impact

The primary beneficiaries are the Department of the Army personnel who rely on CVRJ systems for their operations. The contract delivers essential initial spare parts and depot-level repair kits, ensuring the operational readiness of CVRJ systems. The geographic impact is likely concentrated where Army units equipped with CVRJ systems are deployed or stationed. Workforce implications may include the need for specialized personnel to install, maintain, and repair these systems, both within the military and potentially at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Absence of detailed cost breakdowns makes it difficult to verify the reasonableness of the $23.5 million award.
The short duration of the delivery order (304 days) might indicate a stop-gap measure rather than a long-term strategic procurement.
The specific nature of 'CVRJ systems' is not defined, making it hard to assess the criticality or uniqueness of the required spares and kits.
No information is provided on small business participation or subcontracting opportunities.

Positive Signals

Firm Fixed Price contract type shifts cost risk to the contractor.
Procurement of initial spares and repair kits directly supports operational readiness of critical systems.
The contractor, Impact Science & Technology, Inc., is in the relevant manufacturing sector (NAICS 334511).
The contract is for the Department of the Army, a significant user of defense systems.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, classified under NAICS code 334511. This sector is crucial for defense applications, providing sophisticated equipment for military operations. The market for such specialized systems is often characterized by high barriers to entry due to technological complexity and stringent performance requirements. Comparable spending benchmarks are difficult to establish without knowing the specific CVRJ system and its market niche, but defense instrument manufacturing can involve substantial investments in R&D and production.

Small Business Impact

The provided data indicates that small business participation (sb) was false and that the contract was not set aside for small businesses (ss). This suggests that small businesses were likely not primary awardees or significantly involved in fulfilling this specific delivery order. There is no information regarding subcontracting plans or goals, making it impossible to assess the impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed cost information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Procurement
Army Aviation Systems
Navigation and Guidance Systems
Military Spares and Repair Parts
Defense Manufacturing Contracts

Risk Flags

Sole-source award without clear justification.
Lack of transparency in cost breakdown and pricing.
Potential for overpayment due to lack of competition.
Uncertainty regarding the specific system ('CVRJ') and its lifecycle.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to IMPACT SCIENCE & TECHNOLOGY, INC.. THIS DELIVERY ORDER IS AN UNDEFINITIZED CONTRACT ACTION FOR THE PROCUREMENT OF INITIAL SPARES AND DEPOT LEVEL REPAIR KITS FOR CVRJ SYSTEMS.

Who is the contractor on this award?

The obligated recipient is IMPACT SCIENCE & TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2009-09-30. End: 2010-07-31.

What is the specific nature and function of the 'CVRJ Systems' for which these spares and repair kits are being procured?

The provided data does not specify the exact nature or function of the 'CVRJ Systems.' The NAICS code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' suggests that CVRJ systems are likely related to military navigation, guidance, or detection equipment. Without further details, it is impossible to ascertain the system's criticality, its operational environment, or the specific technical requirements for the spares and repair kits. This lack of specificity hinders a comprehensive understanding of the procurement's context and the potential risks associated with system obsolescence or performance.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. However, the specific justification for this decision is not included. Common reasons for sole-source awards include the existence of only one responsible source, urgent and compelling needs that preclude competition, or specific national security requirements. Without the official justification document, it is impossible to verify the necessity of a sole-source award for these initial spares and repair kits. This lack of transparency raises concerns about whether the government explored all viable competitive options and potentially missed opportunities for better pricing or innovative solutions from a broader range of suppliers.

How does the $23.5 million cost for initial spares and repair kits compare to the overall lifecycle cost or previous procurements for similar systems?

The provided data offers a total award amount of $23,511,678 for initial spares and depot-level repair kits for CVRJ systems, with a contract duration of 304 days. However, there is no historical spending data, lifecycle cost information, or details on previous procurements for these specific CVRJ systems or comparable systems. Therefore, it is not possible to benchmark this $23.5 million figure against past expenditures or projected future costs. A comparative analysis would require access to historical contract databases, program cost estimates, and potentially market research reports to determine if this amount represents a reasonable investment for the required components.

What are the potential risks associated with procuring spares and repair kits for a system that may have a limited number of suppliers or a short operational lifespan?

Procuring spares and repair kits for systems with limited suppliers or potentially short operational lifespans carries several risks. A limited supplier base, especially in a sole-source scenario, can lead to price escalation and reduced negotiation leverage for the government. If the CVRJ system has a short lifespan or is being phased out, there's a risk of investing in parts for an obsolete technology, leading to wasted funds. Furthermore, reliance on a single source for critical components can create vulnerabilities in the supply chain, potentially impacting operational readiness if the supplier faces production issues or goes out of business. The lack of competition exacerbates these risks by limiting the government's options for alternative sourcing or competitive pricing.

What is the track record of Impact Science & Technology, Inc. in fulfilling similar defense contracts, particularly those involving specialized system components?

The provided data identifies Impact Science & Technology, Inc. as the contractor for this $23.5 million delivery order for CVRJ system spares and repair kits. However, it does not offer any information regarding the company's past performance, track record, or experience with similar defense contracts. To assess their reliability and capability, one would need to consult contract performance databases (like the Contractor Performance Assessment Reporting System - CPARS), review past awards, and examine any reported issues or successes on previous government contracts. Without this background information, it's difficult to evaluate the contractor's suitability and the potential risks associated with their performance on this specific delivery order.

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: COMM/DETECT/COHERENT RADIATION

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: Exelis Inc. (UEI: 969316046)

Address: 85 NW BLVD, NASHUA, NH, 03063

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,511,678

Exercised Options: $23,511,678

Current Obligation: $23,511,678

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T06DM605

IDV Type: IDC

Timeline