DoD's $29.3M Hardware Purchase for Army: Sole-Source Award to Danbury Mission Technologies
Contract Overview
Contract Amount: $29,316,676 ($29.3M)
Contractor: Danbury Mission Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-22
End Date: 2018-07-31
Contract Duration: 677 days
Daily Burn Rate: $43.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PURCHASE OF HARDWARE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $29.3 million to DANBURY MISSION TECHNOLOGIES, LLC for work described as: PURCHASE OF HARDWARE Key points: 1. Significant spending on hardware, with a substantial portion potentially lacking competitive pricing. 2. The award was not competed, raising questions about price discovery and value for money. 3. Risk of inflated costs due to the sole-source nature of the contract. 4. The sector involves manufacturing of electronic components, crucial for defense operations.
Value Assessment
Rating: questionable
The contract's value is substantial at $29.3M. Without competition, it's difficult to benchmark pricing against similar hardware purchases. The lack of competitive bids suggests potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: Taxpayers may have paid a premium for this hardware due to the absence of competitive bidding, potentially diverting funds from other critical needs.
Public Impact
Military readiness could be impacted if essential hardware is procured at inflated prices. Lack of transparency in sole-source awards can erode public trust in government spending. Potential for missed opportunities to foster innovation and competition within the defense supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Essential hardware procured
- Contract awarded to a specific company
Sector Analysis
This purchase falls under the 'Other Electronic Component Manufacturing' sector. Spending in this area is critical for defense systems, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, potentially missing opportunities to support smaller enterprises within the defense industrial base.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair value and that proper justification existed for bypassing competition.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award bypasses competition
- Potential for inflated pricing
- Lack of transparency in price discovery
- No indication of small business participation
- Limited data to assess value for money
Tags
other-electronic-component-manufacturing, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 million to DANBURY MISSION TECHNOLOGIES, LLC. PURCHASE OF HARDWARE
Who is the contractor on this award?
The obligated recipient is DANBURY MISSION TECHNOLOGIES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.3 million.
What is the period of performance?
Start: 2016-09-22. End: 2018-07-31.
What was the justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source'. A thorough review of the contract file would be necessary to ascertain the specific justification, such as urgency, unique capabilities, or lack of market availability. Without this documentation, it's impossible to definitively assess the validity of bypassing the competitive process.
How does the unit cost of this hardware compare to similar components purchased competitively by the DoD or other federal agencies?
Benchmarking the per-unit cost is challenging without specific item details and competitive data. However, the absence of competition inherently raises concerns about potential price inflation. A comparative analysis with publicly available contract data for similar electronic components, if available, would be crucial to identify any significant cost discrepancies.
What is the long-term strategic value of this hardware acquisition, and does the sole-source award impact future procurement strategies?
The long-term strategic value depends on the specific function of the hardware within Army systems. A sole-source award, especially if it establishes a vendor lock-in, could negatively impact future procurement by limiting options and potentially increasing costs for upgrades or replacements. It may also signal a need for better market research to identify competitive alternatives.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Danbury Mission Technologies LLC
Address: 100 WOOSTER HTS, DANBURY, CT, 06810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,409,185
Exercised Options: $29,409,185
Current Obligation: $29,316,676
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ13D0147
IDV Type: IDC
Timeline
Start Date: 2016-09-22
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 12:07:00
Last Modified: 2022-10-29
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