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
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: Manufacturing › Other General Purpose Machinery Manufacturing › All 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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