Department of Defense awarded $14.9M contract for night vision equipment to Phototelepsis Corporation, a sole-source acquisition

Contract Overview

Contract Amount: $14,941,771 ($14.9M)

Contractor: Phototelesis Corporation

Awarding Agency: Department of Defense

Start Date: 2002-06-28

End Date: 2011-10-18

Contract Duration: 3,399 days

Daily Burn Rate: $4.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200210!003740!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CJ011 !A!N! !N! !20020628!20040630!072226710!072226710!072226710!N!PHOTOTELESIS CORPORATION !7800 IH 10 WEST !SAN ANTONIO !TX!78230!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !+000001347545!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !333319!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!A!Y!A! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to PHOTOTELESIS CORPORATION for work described as: 200210!003740!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CJ011 !A!N! !N! !20020628!20040630!072226710!072226710!072226710!N!PHOTOTELESIS CORPORATION !7800 IH 10 WEST !SAN ANTONIO !TX!78230!65000!029!48!SAN ANTONIO !BEXAR… Key points: 1. The contract value of $14.9M for night vision equipment represents a significant investment in specialized defense technology. 2. Sole-source procurement raises questions about potential price inflation and lack of competitive pressure. 3. The contract duration of over 9 years (from award to final delivery) suggests a long-term need for the equipment. 4. The specific nature of 'night vision equipment, emitted and reflected radia' indicates a focus on advanced surveillance and operational capabilities. 5. The award to a single contractor, Phototelepsis Corporation, warrants scrutiny of their capacity and pricing compared to market alternatives. 6. The contract's classification as 'NOT COMPETED' is a key indicator of potential risks related to value for money.

Value Assessment

Rating: questionable

Benchmarking the value of this $14.9M contract is challenging due to its sole-source nature and the specialized equipment involved. Without competitive bids, it's difficult to ascertain if the price reflects fair market value. The extended duration of over 9 years (from award to final delivery) also means the price is fixed over a long period, potentially exposing the government to risks if market prices for similar technology decrease. Further analysis would require comparing the specific technical specifications and quantities to publicly available data on similar night vision systems, which is often limited for defense procurements.

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 typically occurs when only one vendor possesses the necessary capabilities, technology, or security clearances, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to a higher price than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium for this equipment due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the lowest possible cost for the required goods.

Public Impact

The primary beneficiaries are likely military personnel requiring advanced night vision capabilities for operations. The services delivered include the provision of specialized night vision equipment, crucial for surveillance, reconnaissance, and tactical operations. The geographic impact is likely global, supporting deployed military units wherever advanced visual augmentation is needed. Workforce implications are minimal for the public sector, but the contract supports jobs within Phototelepsis Corporation and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may result in overpayment.
Long contract duration (over 9 years) increases risk of price being uncompetitive over time.
Lack of transparency in the justification for sole-sourcing.
Specialized nature of equipment may limit available market data for benchmarking.
Potential for contractor lock-in due to unique technology or specifications.

Positive Signals

Addresses a critical operational need for advanced night vision equipment.
Contract awarded to a single entity suggests specialized expertise.
Long duration indicates a sustained requirement and potential for stable supply.
Firm Fixed Price contract provides cost certainty for the government.

Sector Analysis

The defense sector for electronics and communication equipment is highly specialized, with significant R&D investment. Contracts for night vision technology are critical for maintaining military superiority in low-light conditions. The market includes a few key players capable of producing advanced systems. Spending benchmarks for similar specialized electronic warfare or surveillance equipment can vary widely based on technological sophistication and quantity, but multi-million dollar contracts are common for such critical defense assets.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or subcontracting goals. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses unless Phototelepsis Corporation itself is a small business or has a history of subcontracting with them. Further investigation into the contractor's size and subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations, likely managed by the Defense Contract Management Agency (DCMA). Accountability measures would include contract performance monitoring, quality assurance, and financial audits. Transparency is limited due to the sole-source nature and potential classification of the equipment's capabilities. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Night Vision Systems
Electronic Warfare Equipment
Surveillance and Reconnaissance Systems
Defense Electronics Manufacturing
Military Communications Equipment

Risk Flags

Sole-source award
Long contract duration
Lack of competitive bidding
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to PHOTOTELESIS CORPORATION. 200210!003740!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CJ011 !A!N! !N! !20020628!20040630!072226710!072226710!072226710!N!PHOTOTELESIS CORPORATION !7800 IH 10 WEST !SAN ANTONIO !TX!78230!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !+000001347545!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !333319!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is PHOTOTELESIS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2002-06-28. End: 2011-10-18.

What is the specific justification for awarding this contract on a sole-source basis to Phototelepsis Corporation?

The provided data indicates the contract was 'NOT COMPETED' and awarded solely to Phototelepsis Corporation. Typically, sole-source justifications are based on factors such as the uniqueness of the technology, the contractor's exclusive rights or patents, urgent and compelling needs where only one source can reasonably fulfill the requirement, or a lack of adequate competition. Without access to the official justification documentation (e.g., Justification and Approval - J&A), the precise reasons remain unknown. This lack of competition is a significant factor in assessing the value for money and potential risks associated with the contract.

How does the $14.9M contract value compare to similar night vision equipment procurements by the DoD or other agencies?

Direct comparison of the $14.9M contract value is difficult without knowing the exact specifications, quantities, and technological sophistication of the 'night vision equipment, emitted and reflected radia' procured. However, multi-million dollar contracts for advanced military optics and surveillance systems are not uncommon within the Department of Defense. The extended duration of over 9 years (from award to final delivery) suggests a substantial quantity or a long-term supply agreement. To benchmark effectively, one would need to identify contracts with similar technical requirements and award dates, factoring in inflation and technological advancements over the contract's lifespan. The sole-source nature also complicates direct price comparisons.

What are the key risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude ($14.9M) and duration (over 9 years) include: 1. **Price Risk:** Without competition, the government may pay a higher price than necessary. 2. **Performance Risk:** Reliance on a single contractor can lead to complacency or issues if the contractor faces financial difficulties or operational problems. 3. **Technological Obsolescence:** Over a long duration, the technology may become outdated, but the government is locked into the existing contract. 4. **Lack of Innovation:** The absence of competitive pressure can stifle innovation from alternative providers. 5. **Contractor Lock-in:** The government may become dependent on the sole provider, making future transitions difficult and costly.

What is the track record of Phototelepsis Corporation in fulfilling government contracts, particularly for defense-related electronics?

Information on Phototelepsis Corporation's specific track record with government contracts, especially for defense electronics like night vision equipment, is not detailed in the provided data snippet. To assess their performance history, one would need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for past awards, performance evaluations, and any history of contract disputes or terminations. Their ability to secure a sole-source award of this size suggests they possess specialized capabilities, but a thorough review of their past performance is crucial for risk assessment.

How does the duration of this contract (award 2002, final delivery 2011) impact its value and relevance today?

The contract was awarded in 2002 with a final delivery date in 2011, meaning its performance period has long since concluded. Analyzing its value and relevance today requires understanding that the data reflects historical spending. The $14.9M represents the total value obligated during that period. While it informs past procurement patterns and the government's investment in night vision technology at that time, it does not reflect current needs, market prices, or technological capabilities. Its primary relevance now is for historical analysis, understanding past defense spending, and potentially identifying trends or lessons learned from long-duration, sole-source procurements of that era.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 7800 IH 10 WEST, SAN ANTONIO, TX, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline