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
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: 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: 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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