DoD awards $65.7M for Radar Warning Receivers without competition to ITT Corporation

Contract Overview

Contract Amount: $65,743,346 ($65.7M)

Contractor: ITT Corporation

Awarding Agency: Department of Defense

Start Date: 2011-01-14

End Date: 2016-02-23

Contract Duration: 1,866 days

Daily Burn Rate: $35.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RADAR WARNING RECEIVER W/O SWITCH

Place of Performance

Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $65.7 million to ITT CORPORATION for work described as: RADAR WARNING RECEIVER W/O SWITCH Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition raises concerns about price discovery. 3. Potential for higher costs due to sole-source award. 4. Spending in Aircraft Engine and Engine Parts Manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $65.7M for Radar Warning Receivers is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems or potential alternatives.

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 less favorable terms for the government.

Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for these critical defense systems.

Public Impact

Special Operations Command relies on this equipment for critical functions. The sole-source nature may impact the availability of advanced technology. Long contract duration (2011-2016) suggests a sustained need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • High contract value

Positive Signals

  • Critical defense system
  • Established vendor

Sector Analysis

This spending falls within the Aircraft Engine and Engine Parts Manufacturing sector, which is crucial for defense readiness. Benchmarks for similar specialized electronic warfare components are hard to establish without competitive data.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the vendor is ITT Corporation. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential lack of robust oversight in the procurement process. Further review is needed to understand the justification for bypassing competitive procedures.

Related Government Programs

  • Aircraft Engine and Engine Parts Manufacturing
  • Department of Defense Contracting
  • U.S. Special Operations Command Programs

Risk Flags

  • Sole-source award lacks transparency.
  • Potential for inflated pricing.
  • Limited vendor options for future needs.
  • Risk of technological stagnation.

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 $65.7 million to ITT CORPORATION. RADAR WARNING RECEIVER W/O 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 $65.7 million.

What is the period of performance?

Start: 2011-01-14. End: 2016-02-23.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without detailed documentation, it's impossible to ascertain the precise rationale. This lack of transparency hinders a full assessment of value for money.

How does the $65.7M price compare to similar radar warning receiver systems procured competitively?

Direct comparison is challenging due to the sole-source nature of this award. If similar systems were procured competitively, their pricing would serve as a benchmark. The absence of competitive bids means the government may have overpaid, as ITT Corporation faced no pressure to offer its best price.

What is the long-term strategic impact of relying on a single vendor for such critical equipment?

Long-term reliance on a single vendor can create strategic vulnerabilities, including supply chain risks, potential price escalations, and stifled innovation. It also limits the government's ability to leverage competition for better technology and cost savings in the future.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft 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: FIRM FIXED PRICE (J)

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: $65,743,346

Exercised Options: $65,743,346

Current Obligation: $65,743,346

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: H9224106D0001

IDV Type: IDC

Timeline

Start Date: 2011-01-14

Current End Date: 2016-02-23

Potential End Date: 2016-02-23 00:00:00

Last Modified: 2014-10-20

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