DoD awards $15.6M for iRobot Robotic Systems, bypassing competition

Contract Overview

Contract Amount: $15,568,875 ($15.6M)

Contractor: Irobot Corporation

Awarding Agency: Department of Defense

Start Date: 2009-04-28

End Date: 2009-12-31

Contract Duration: 247 days

Daily Burn Rate: $63.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IROBOT ROBOTIC SYSTEMS AND SPARE PARTS

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to IROBOT CORPORATION for work described as: IROBOT ROBOTIC SYSTEMS AND SPARE PARTS Key points: 1. Significant award to a single vendor for specialized robotic systems. 2. Lack of competition raises questions about price discovery and value. 3. Potential for higher costs due to sole-source nature. 4. Focus on defense applications for advanced robotics.

Value Assessment

Rating: questionable

The award of $15.6 million for robotic systems and spare parts to iRobot Corporation without competition makes a direct pricing assessment difficult. Without comparable bids, it's hard to determine if the price reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may not yield the best value for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially leading to less efficient use of funds.

Public Impact

Robotic systems for defense applications can be costly. Lack of competition may limit innovation from other potential suppliers. Dependence on a single supplier for critical equipment can pose risks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpayment

Positive Signals

  • Specific need for iRobot technology

Sector Analysis

The defense sector frequently procures specialized machinery and technology. Awards in this area can range widely, but non-competitive awards for complex systems like robotics warrant scrutiny for cost-effectiveness.

Small Business Impact

This award does not appear to involve small businesses, as it was directly awarded to iRobot Corporation. There is no indication of subcontracting opportunities for small businesses within this data.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight on price competitiveness. Further review would be needed to confirm if justification for non-competition was adequately documented and approved.

Related Government Programs

  • All Other Miscellaneous General Purpose Machinery Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award
  • Lack of competitive bidding
  • Potential for inflated pricing
  • Limited transparency in price negotiation
  • Risk of vendor lock-in

Tags

all-other-miscellaneous-general-purpose-, department-of-defense, ma, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to IROBOT CORPORATION. IROBOT ROBOTIC SYSTEMS AND SPARE PARTS

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 Army).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2009-04-28. End: 2009-12-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, critical urgency, or the unavailability of other sources. Without specific documentation, it's impossible to confirm the exact reason, but it implies that iRobot's technology was deemed essential and not readily available from other manufacturers at the time of procurement.

What are the risks associated with relying on a sole-source provider for robotic systems?

Sole-source procurement carries risks such as inflated pricing due to lack of competition, potential supply chain vulnerabilities if the single provider faces issues, and limited opportunities for technological advancement through broader market engagement. It can also lead to vendor lock-in, making future transitions more difficult and costly.

How does this award contribute to the Department of Defense's overall mission effectiveness?

The effectiveness hinges on the specific capabilities the iRobot systems provide to the Department of Defense. If these robots fulfill critical operational needs, enhance soldier safety, or improve mission outcomes in ways other systems cannot, then the award could be deemed effective despite the procurement method. However, the cost-effectiveness remains a concern.

Industry Classification

NAICS: ManufacturingOther General Purpose Machinery ManufacturingAll Other Miscellaneous General Purpose Machinery Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK08R0006

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, Federally Funded Research and Development Corp, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,568,875

Exercised Options: $15,568,875

Current Obligation: $15,568,875

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK08D0040

IDV Type: IDC

Timeline

Start Date: 2009-04-28

Current End Date: 2009-12-31

Potential End Date: 2009-12-31 00:00:00

Last Modified: 2010-08-06

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