DoD's $13M Battery Back-Up System Contract Awarded to Kidde Technologies Inc. for Army Aviation

Contract Overview

Contract Amount: $13,049,824 ($13.0M)

Contractor: Kidde Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2008-12-08

End Date: 2009-03-27

Contract Duration: 109 days

Daily Burn Rate: $119.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UCA CONTRACT FOR AFES BATTERY BACK-UP SYSTEMS.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to KIDDE TECHNOLOGIES INC for work described as: UCA CONTRACT FOR AFES BATTERY BACK-UP SYSTEMS. Key points: 1. Value for money assessed through firm-fixed-price contract type. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include a short contract duration and fixed-price structure. 4. Performance context is within Army Aviation's need for back-up power. 5. Sector positioning is within the broader defense manufacturing and electronic equipment space.

Value Assessment

Rating: good

The contract's firm-fixed-price structure suggests a clear understanding of costs and risks between the government and the contractor. Benchmarking against similar contracts for aviation battery systems is challenging without more specific technical details, but the total award amount of approximately $13 million for a 109-day delivery order appears reasonable for specialized defense equipment. The price per unit, while not explicitly detailed, would be a key factor in a more granular value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 4 bids received, the level of competition suggests that the government likely received competitive pricing. This process aims to ensure that the most capable and cost-effective solution is selected.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are the U.S. Army Aviation units requiring reliable back-up power for their aircraft systems. The service delivered is the provision of critical battery back-up systems essential for flight safety and operational readiness. The geographic impact is likely concentrated where Army Aviation units are stationed, with potential deployment across various operational theaters. Workforce implications may include specialized manufacturing and technical support roles within Kidde Technologies Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (109 days) may limit long-term strategic planning or extensive testing.
Reliance on a single delivery order for a critical system could pose supply chain risks if not managed proactively.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Award to an established company like Kidde Technologies Inc. may indicate a track record of reliability.

Sector Analysis

This contract falls within the broader defense industrial base, specifically the manufacturing of electronic equipment for vehicles and aircraft. The market for specialized aviation components is often characterized by high technical requirements and stringent quality controls. Comparable spending benchmarks would typically be found within other military procurements for similar electronic or power systems, where prices can vary significantly based on technological sophistication and volume.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Kidde Technologies Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Army Aviation Modernization Programs
Defense Logistics Agency (DLA) Procurement
Aircraft Electrical Systems
Uninterruptible Power Supply (UPS) Systems

Risk Flags

Short contract duration
Potential supply chain vulnerability
Limited public detail on technical specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to KIDDE TECHNOLOGIES INC. UCA CONTRACT FOR AFES BATTERY BACK-UP SYSTEMS.

Who is the contractor on this award?

The obligated recipient is KIDDE TECHNOLOGIES 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 $13.0 million.

What is the period of performance?

Start: 2008-12-08. End: 2009-03-27.

What is the specific technical capability and expected lifespan of the AFES battery back-up systems procured under this contract?

The provided data does not specify the exact technical capabilities or expected lifespan of the AFES (Aircraft Fire and Emergency Systems) battery back-up systems. However, given the context of aviation and the supplier (Kidde Technologies Inc., known for safety and fire suppression systems), these systems are likely designed to provide critical power during emergencies or system failures, ensuring the continued operation of essential aircraft functions like fire suppression, communication, or navigation. The lifespan would depend on the battery chemistry, usage patterns, and maintenance schedules, which are not detailed in the available information. Further investigation into the specific system model and its technical specifications would be required for a comprehensive understanding.

How does the $13 million award compare to historical spending on similar battery back-up systems for Army Aviation?

Direct comparison of the $13 million award to historical spending on similar systems is difficult without more granular data on the specific type of battery back-up system, its technical specifications, and the quantity procured. The award is for a single delivery order with a duration of 109 days, suggesting a focused procurement rather than a long-term sustainment contract. Historical data would need to identify contracts for comparable AFES battery back-up systems, factoring in inflation, technological advancements, and the specific needs of different aircraft platforms. Without such detailed comparative data, it's challenging to definitively state whether this award represents a significant increase or decrease compared to past expenditures.

What are the primary risks associated with this contract, considering its short duration and fixed-price nature?

The primary risks associated with this contract include potential supply chain disruptions given the short 109-day delivery window, which might not allow ample time for manufacturing or sourcing specialized components. The fixed-price nature, while beneficial for cost certainty, could pose a risk if unforeseen technical challenges arise during production that increase Kidde Technologies Inc.'s costs beyond the agreed price, potentially impacting their profit margin or willingness to bid on future similar contracts. Additionally, the risk of obsolescence for the battery technology, though less likely for a short-term supply, is always a consideration in defense procurements. Ensuring the system meets all stringent military specifications within the tight timeframe is also a key risk.

What is Kidde Technologies Inc.'s track record with the Department of Defense, particularly for aviation-related systems?

Kidde Technologies Inc. has a history of supplying safety and fire suppression systems, including those for aviation applications, to the Department of Defense. While this specific contract is for battery back-up systems, the company's broader experience in critical safety equipment suggests a foundational understanding of military requirements. A deeper dive into their contract history with DoD would reveal the extent and success of their previous deliveries, including any performance issues, on-time delivery rates, and overall customer satisfaction. Their established presence in the defense sector implies a degree of familiarity with DoD procurement processes and standards.

How does the number of bids (4) in this full and open competition reflect the competitiveness of the market for these specific battery back-up systems?

Receiving 4 bids in a full and open competition for specialized defense equipment like AFES battery back-up systems generally indicates a moderately competitive market. While more bids could suggest even greater competition and potentially lower prices, 4 bidders demonstrate that multiple companies possessed the capability and interest to pursue this contract. This level of competition is sufficient to provide the government with options and encourage reasonable pricing. However, it also suggests that the market might not be saturated, or that the technical requirements are specific enough to limit the number of qualified potential suppliers.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Other Motor Vehicle Electrical and Electronic Equipment Manufacturing

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 163 AERO CAMINO, GOLETA, CA, 93117

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,049,824

Exercised Options: $13,049,824

Current Obligation: $13,049,824

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV06D0116

IDV Type: IDC

Timeline