DoD awards $21.3M for ALQ-211 LRU-4 Package, less RF Switch, to ITT Corporation
Contract Overview
Contract Amount: $21,354,180 ($21.4M)
Contractor: ITT Corporation
Awarding Agency: Department of Defense
Start Date: 2009-04-15
End Date: 2012-01-22
Contract Duration: 1,012 days
Daily Burn Rate: $21.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: ALQ-211 LRU-4 PACKAGE LESS RF SWITCH
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $21.4 million to ITT CORPORATION for work described as: ALQ-211 LRU-4 PACKAGE LESS RF SWITCH Key points: 1. Contract awarded to ITT Corporation for specialized aircraft electronic warfare components. 2. The award represents a significant investment in maintaining and upgrading critical defense systems. 3. Lack of competition raises questions about potential price inflation and limited market exploration. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $21.3 million for the ALQ-211 LRU-4 package appears moderate given the specialized nature of electronic warfare components. Without specific unit cost data or comparable contract benchmarks, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to ITT Corporation. This limits price discovery and may result in higher costs compared to a competitive bidding process.
Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these specialized defense components.
Public Impact
Ensures continued operational readiness for U.S. Special Operations Command aircraft. Supports advanced electronic warfare capabilities crucial for mission success. Potential for higher costs due to non-competitive award impacts overall defense budget efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in price determination
Positive Signals
- Supports critical defense systems
- Awarded to established defense contractor
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, specifically for electronic warfare components. Defense spending in this area is critical for maintaining technological superiority and operational effectiveness.
Small Business Impact
The contract was awarded to ITT Corporation, a large business. There is no indication that small businesses were involved in this specific procurement, missing an opportunity for small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny to ensure fair pricing and efficient use of taxpayer funds. Further oversight may be needed to understand the justification for the sole-source award.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of competition
- Potential for price gouging
- Limited market research evident
- No small business participation
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to ITT CORPORATION. ALQ-211 LRU-4 PACKAGE LESS RF SWITCH
Who is the contractor on this award?
The obligated recipient is ITT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $21.4 million.
What is the period of performance?
Start: 2009-04-15. End: 2012-01-22.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair and reasonable pricing, the contracting agency would likely conduct a price analysis based on historical data, cost breakdowns from the contractor, or comparisons to similar, albeit not identical, procurements. However, without competition, the inherent pressure to offer the lowest price is absent.
How does the cost of this ALQ-211 LRU-4 package compare to similar electronic warfare components procured competitively?
Direct comparison is challenging without specific unit cost data and detailed specifications of 'similar' components. However, non-competed contracts generally carry a higher risk of inflated pricing due to the absence of market competition. If comparable systems were procured competitively, their pricing would likely serve as a benchmark, and any significant deviation in this sole-source award could indicate a less favorable price for the government.
What is the long-term impact of relying on sole-source contracts for critical electronic warfare systems on defense readiness and budget?
Long-term reliance on sole-source contracts can stifle innovation and create vendor lock-in, potentially leading to escalating costs and reduced system interoperability. It may also limit the government's ability to adapt to rapidly evolving threats if only one supplier can provide necessary upgrades. This can strain the defense budget and, in the long run, potentially compromise readiness if critical systems become prohibitively expensive or technologically stagnant.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 77 RIVER RD, CLIFTON, NJ, 09
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,354,180
Exercised Options: $21,354,180
Current Obligation: $21,354,180
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9224106D0001
IDV Type: IDC
Timeline
Start Date: 2009-04-15
Current End Date: 2012-01-22
Potential End Date: 2012-01-22 00:00:00
Last Modified: 2011-01-05
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