DoD's AN/SSQ-125 Contract Awarded for $64.6M Under Full and Open Competition

Contract Overview

Contract Amount: $64,573,026 ($64.6M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2017-01-12

End Date: 2019-01-18

Contract Duration: 736 days

Daily Burn Rate: $87.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-125 (FY17)

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $64.6 million to ERAPSCO for work described as: AN/SSQ-125 (FY17) Key points: 1. The Department of Defense awarded a $64.6 million contract for AN/SSQ-125 systems. 2. ERAPSCO was the contractor, indicating potential competition within the supply chain. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is IT/Defense, focusing on Search, Detection, Navigation, Guidance systems.

Value Assessment

Rating: good

The award amount of $64.6 million for the AN/SSQ-125 system appears reasonable given the duration and the nature of defense electronics. Benchmarking against similar complex system procurements would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of potential bidders. This method is expected to yield fair market prices.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives competitive bids and avoids inflated prices.

Public Impact

Enhances naval search and detection capabilities, crucial for national security. Supports advanced navigation and guidance systems for military operations. The contract's duration of 736 days suggests a significant, ongoing need for these systems. Procurement through competitive means aims to maximize taxpayer return on investment.

Waste & Efficiency Indicators

Waste Risk Score: 87 / 10

Positive Signals

  • Full and open competition utilized.
  • Firm fixed price contract type.
  • Awarded to a known entity (ERAPSCO).

Sector Analysis

This contract falls within the Defense sector, specifically manufacturing instruments for search, detection, navigation, and guidance. Spending in this area is critical for maintaining military technological superiority and operational effectiveness.

Small Business Impact

While the data indicates the contract was awarded under full and open competition, it does not specify the extent of small business participation. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

The Department of Defense's procurement process, especially for critical systems like AN/SSQ-125, is subject to oversight from various bodies, including the Government Accountability Office (GAO) and congressional committees, to ensure fairness and value.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for sole-source dependency if ERAPSCO is the only qualified provider.
  • Long-term sustainment costs not detailed in this award.
  • Technological obsolescence risk for aging defense systems.
  • Dependence on specific component suppliers.

Tags

search-detection-navigation-guidance-aer, department-of-defense, in, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.6 million to ERAPSCO. AN/SSQ-125 (FY17)

Who is the contractor on this award?

The obligated recipient is ERAPSCO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $64.6 million.

What is the period of performance?

Start: 2017-01-12. End: 2019-01-18.

What is the specific function and importance of the AN/SSQ-125 system within the Navy's operational framework?

The AN/SSQ-125 is a crucial component for naval operations, likely related to sonar systems or acoustic processing for submarine detection and tracking. Its effective functioning is vital for maintaining situational awareness, ensuring force protection, and executing missions in complex underwater environments.

Are there any known performance issues or past concerns associated with the AN/SSQ-125 system or its previous procurements?

Without specific historical data on this contract or system, it's difficult to ascertain past performance issues. However, the use of full and open competition and a firm fixed price contract suggests an effort to mitigate risks and ensure reliable performance and cost control for this procurement.

How does the awarded amount compare to the estimated value or budget for this system, and what does this imply about cost-effectiveness?

The awarded amount of $64.6 million is a concrete figure, but its cost-effectiveness relative to the budget is not provided. The fact that it was awarded under full and open competition suggests that the price achieved is likely competitive and represents good value, assuming the bidding process was robust.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042113R0070

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4868 EAST PARK 30 DR, COLUMBIA CITY, IN, 46725

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $64,573,026

Exercised Options: $64,573,026

Current Obligation: $64,573,026

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $19,295,567

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042114D0025

IDV Type: IDC

Timeline

Start Date: 2017-01-12

Current End Date: 2019-01-18

Potential End Date: 2019-01-18 00:00:00

Last Modified: 2018-03-22

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