DoD's $11.5M contract for electronic computer manufacturing awarded to SAVI TECHNOLOGY INCORPORATED

Contract Overview

Contract Amount: $11,472,768 ($11.5M)

Contractor: Savi Technology Incorporated

Awarding Agency: Department of Defense

Start Date: 2007-12-19

End Date: 2008-01-02

Contract Duration: 14 days

Daily Burn Rate: $819.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: SUB-CLIN 4015CD

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to SAVI TECHNOLOGY INCORPORATED for work described as: SUB-CLIN 4015CD Key points: 1. The contract value of $11.5 million for a short duration suggests a focus on specific, potentially high-value components or services. 2. Awarded as a sole-source contract, it bypasses competitive bidding, raising questions about potential cost efficiencies and market price discovery. 3. The short performance period (14 days) indicates a time-sensitive requirement or a task order under a larger, potentially pre-existing agreement. 4. The North American Industry Classification System (NAICS) code 334111 points to the manufacturing of electronic computers, a critical sector for defense operations. 5. The contract's Virginia location may reflect a concentration of defense contractors or specific logistical needs within the state. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this $11.5 million contract is challenging without knowing the specific goods or services procured. As a sole-source award, direct price comparisons to similar competitive contracts are not feasible. The short duration of 14 days implies a potentially high per-day cost, which warrants scrutiny to ensure it aligns with market rates for specialized electronic computer manufacturing or related services. Without further details on the scope of work, assessing the overall value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology, urgent needs, or specific capabilities. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The Department of the Army benefits from the acquisition of specialized electronic computer manufacturing capabilities. The services delivered are critical for supporting defense operations and potentially advanced technological requirements. The geographic impact is primarily centered around Virginia, where the contractor is located. Workforce implications may include specialized manufacturing roles within SAVI TECHNOLOGY INCORPORATED.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
The short performance period could indicate a rushed procurement, potentially increasing risk.
Limited transparency due to sole-source award makes it difficult to assess true market value.
Specific details of the 'electronic computer manufacturing' are not provided, hindering a full risk assessment.

Positive Signals

Award to a specific company suggests they possess unique or critical capabilities required by the Army.
The contract was awarded, indicating a need was met, albeit through a non-competitive process.
The fixed-price contract type provides cost certainty for the government, assuming the scope is well-defined.

Sector Analysis

The electronic computer manufacturing sector (NAICS 334111) is a vital component of the broader technology industry, supporting both commercial and government needs. This contract falls within a segment that often involves specialized hardware, potentially for defense applications requiring high reliability and specific performance characteristics. The defense sector frequently procures such goods, with spending often driven by technological advancements and national security requirements. Benchmarking against other similar sole-source awards in this niche would be necessary for a comprehensive value assessment.

Small Business Impact

This contract does not appear to have a small business set-aside designation, as indicated by 'sb': false. Therefore, it did not directly aim to promote small business participation. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is unclear. Without specific set-aside goals or subcontracting requirements, this award likely did not create direct opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award, the justification for the procurement method would be subject to review. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or award process.

Related Government Programs

Defense Information Technology Procurement
Electronic Equipment Manufacturing Contracts
Sole-Source IT Acquisitions
Department of the Army Supply Chain Management

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency into procurement justification.
Short performance period may indicate urgency or rushed process.
Specific product/service details are absent, hindering full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to SAVI TECHNOLOGY INCORPORATED. SUB-CLIN 4015CD

Who is the contractor on this award?

The obligated recipient is SAVI TECHNOLOGY INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2007-12-19. End: 2008-01-02.

What specific electronic computer hardware or services were procured under this contract?

The provided data indicates the contract falls under NAICS code 334111, 'Electronic Computer Manufacturing.' However, the specific nature of the goods or services is not detailed. This could range from custom-built computer systems, specialized components, or related manufacturing services. Without this information, it is difficult to assess the necessity, complexity, or market value of the procurement. Further investigation into the contract's statement of work would be required to understand the precise deliverables and their significance to the Department of the Army's mission.

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

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. Common justifications include proprietary technology, urgent and compelling needs where competition is not feasible, or when a specific contractor possesses unique capabilities essential for the requirement. For this contract, the justification would need to be documented by the Department of the Army. Without access to that justification, it's impossible to definitively state why competition was bypassed. This lack of transparency is a common concern with sole-source procurements, as it limits the government's ability to ensure it is obtaining the best possible value.

How does the contract value of $11.5 million compare to similar sole-source procurements in electronic computer manufacturing?

Directly comparing the $11.5 million value to similar sole-source procurements is challenging without knowing the exact scope of 'electronic computer manufacturing' and the specific requirements of this contract. Sole-source awards are inherently unique, often driven by specialized needs or proprietary solutions. However, for a 14-day performance period, $11.5 million represents a significant daily expenditure. To benchmark effectively, one would need to identify other sole-source contracts for highly specialized or custom-built computer systems or manufacturing services within the defense sector, considering factors like complexity, technology readiness level, and urgency. General market data for standard computer hardware would not be an appropriate comparison.

What are the potential risks associated with a sole-source award for electronic computer manufacturing?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Another risk is reduced innovation, as the contractor may have less incentive to develop cost-saving efficiencies or cutting-edge solutions. Furthermore, the government becomes dependent on a single supplier, which can create supply chain vulnerabilities. If the sole-source contractor faces production issues or goes out of business, the government's ability to obtain the necessary electronic computer hardware or services could be severely impacted. The lack of transparency also makes it harder to identify potential performance issues early on.

What is the track record of SAVI TECHNOLOGY INCORPORATED with the Department of Defense?

The provided data indicates SAVI TECHNOLOGY INCORPORATED was awarded this specific contract by the Department of the Army. To assess their track record, a broader search of federal procurement databases would be necessary to identify any prior or subsequent contracts awarded to this entity by the Department of Defense or other federal agencies. Information such as past performance ratings, contract modifications, and any history of disputes or terminations would be crucial in evaluating their reliability and capability as a government contractor. Without this broader context, their performance on this particular contract remains an isolated data point.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 615 TASMAN DR, SUNNYVALE, CA, 94089

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,472,768

Exercised Options: $11,472,768

Current Obligation: $11,472,768

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DABL0103D1002

IDV Type: IDC

Timeline