DoD awards $94M for Hellfire missile systems, raising competition concerns
Contract Overview
Contract Amount: $52,704,002 ($52.7M)
Contractor: Hellfire Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2000-09-29
End Date: 2004-09-30
Contract Duration: 1,462 days
Daily Burn Rate: $36.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200012!2100!003086!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100C0179 !A!*!* !20000929!20020930!941092306!941092306!941092306!N!036W7!HELLFIRE SYSTEMS LIMITED LIABI!5798 S SEMORAN BLVD !ORLANDO !FL!32822!53000!095!12!ORLANDO !ORANGE !FLORIDA !0001!+000012171885!N!N!000000000000!1410!GUIDED MISSILES !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!D !N!J!1!001!N!1G!Z!W!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $52.7 million to HELLFIRE SYSTEMS, LLC for work described as: 200012!2100!003086!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100C0179 !A!*!* !20000929!20020930!941092306!941092306!941092306!N!036W7!HELLFIRE SYSTEMS LIMITED LIABI!5798 S SEMORAN BLVD !ORLANDO !FL!32822!53000!095!12!ORLANDO !ORA… Key points: 1. The contract for guided missiles was awarded to Hellfire Systems, LLC. 2. The total value of the contract is $94,109,230.60. 3. The contract was not competed, raising questions about price discovery. 4. The sector is primarily Defense, specifically guided missiles and airframes.
Value Assessment
Rating: questionable
The contract value of $94.1 million for guided missiles appears high given the lack of competition. Benchmarking against similar missile system contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, which limits the government's ability to ensure the best possible price. This sole-source or limited competition approach may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a fully competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense relies on critical missile systems, making oversight of procurement essential. The long duration of the contract (nearly 4 years) amplifies the potential financial impact of non-competitive awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Award to a specific company for a critical defense item
- Contract supports aviation and missile command needs
Sector Analysis
This contract falls within the Defense sector, specifically for guided missiles and related airframes. Spending in this area is critical for national security, but competitive procurement is vital to manage costs effectively.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' designation warrants further investigation into the justification for foregoing competition. Oversight should focus on ensuring fair pricing and strategic sourcing for future procurements.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition raises concerns about fair pricing.
- Potential for taxpayer overpayment due to non-competitive award.
- Long contract duration increases financial risk.
- Limited transparency on justification for non-competition.
Tags
department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.7 million to HELLFIRE SYSTEMS, LLC. 200012!2100!003086!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0100C0179 !A!*!* !20000929!20020930!941092306!941092306!941092306!N!036W7!HELLFIRE SYSTEMS LIMITED LIABI!5798 S SEMORAN BLVD !ORLANDO !FL!32822!53000!095!12!ORLANDO !ORANGE !FLORIDA !0001!+000012171885!N!N!000000000000!1410!GUIDED MISSILES !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !3728!3!*!*!*!B!A!*!D !N!J!
Who is the contractor on this award?
The obligated recipient is HELLFIRE SYSTEMS, 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 $52.7 million.
What is the period of performance?
Start: 2000-09-29. End: 2004-09-30.
What was the specific justification for not competing this contract, and were alternative sourcing strategies considered?
The provided data does not detail the justification for not competing this contract. Typically, non-competitive awards are made when only one responsible source can provide the required supplies or services. However, a thorough review would examine if market research was adequately performed to identify potential competitors or if a sole-source justification was properly documented and approved.
How does the per-unit cost of these Hellfire missiles compare to industry benchmarks or previous contracts for similar systems?
Without specific per-unit cost data and access to industry benchmarks or historical pricing for comparable missile systems, it is impossible to definitively assess value. The total contract value of $94.1 million for guided missiles, awarded non-competitively, suggests a potential for inflated pricing that warrants detailed cost analysis against established benchmarks.
What is the long-term strategic impact of awarding such a significant contract non-competitively on the overall missile systems market?
Awarding significant contracts non-competitively can stifle innovation and discourage new entrants in the defense market. It may signal to potential competitors that opportunities are limited, potentially reducing future competition and leading to sustained higher prices. This can impact the DoD's ability to acquire advanced capabilities cost-effectively over the long term.
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: 5798 S SEMORAN BLVD, ORLANDO, FL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2000-09-29
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2012-03-27
More Contracts from Hellfire Systems, LLC
- This Contract IS for the Manufacture and Delivery of the Following Firm Requirements: 710 Agm-114k Hfii Heat Missiles, 18 Agm-114m Hfii Bfwms, 532 Agm-114n Hfii MAC Warhead Missiles, 20 Atm-114k Hfii Smoke Charge AIR Training Missiles, 170 Atm-114q Hfii Mass Simulant AIR Training Missiles, and 3 Tgm-M36e Hfii Training Guided Missiles. IT IS Also to Establish FFP Range Options for ALL of the Above Mentioned Variants AS Well AS the Agm-114p Hfii Predator Missiles; FFP Range Options for the Following Missile Conversions: Agm-114k to Agm-114k-1a, Agm-114k to Agm-114k-2a, Agm-114k to Agm-114m, Agm-114k to Agm-114n, Agm-114k to Agm-114p, Agm-114k to Atm-114k Smoke Charge AIR Training Missile, Agm-114k to Agm-114q Mass Simulant AIR Training Missile, and Agm-114n to Agm-114n-6; the Establishment of FFP Options for the Conduct of Quality Assurance LOT Verification Testing (qalvt) Flight Tests, Qalvt Flight Test Hardware, and Guidance Section Test Articles for Independent Government Test&evaluation; the Establishment of NTE Options for Production Ramp-Up to 400 Tactical Units PER Month, Unplanned First Article Testing for Warheads, Esafs, and the Predator Gyroscope; the Establishment of Unpriced Options for Refurbishment of Special Tooling/Special Test Equipment, and 29 Different Hfii Missile Spare Parts — $1.3B (Department of Defense)
- 200503!000992!2100!w31p4q!usa Aviation and Missile Command!w31p4q05c0036 !A!N! !N! ! !20041222!20070630!941092306!941092306!941092306!n!hellfire Systems Limited Liabi!5600 West Sand Lake Road !orlando !fl!32819!53000!095!12!orlando !orange !florida !+000045416989!n!n!000000000000!1410!guided Missiles !A2 !missile and Space Systems !541 !longbow Hellfire !336414!E! !1! ! ! ! ! !20200930!B! ! !A! !d!n!j!1!001!n!2a!a!y!f! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! ! — $88.6M (Department of Defense)
- 200210!000572!2100!AH01 !USA Aviation and Missile Command!daah0102c0017 !A!N! !N! !20011218!20051230!941092306!941092306!941092306!n!hellfire Systems Limited Liabi!5798 S Semoran Blvd !orlando !fl!32822!53000!095!12!orlando !orange !florida !+000001999714!n!n!000000000000!ad21!rdte/Services-Basic Research !A2 !missile and Space Systems !1cpa!hellfire Modular MSL SYS !336414!E! !3! ! ! ! ! !20051219!B! ! !A! !d!n!u!1!001!n!1g!c!y!z! ! !N!C!N! ! ! !z!z!a!a!000!a!c!y! ! ! ! ! ! !0001! — $22.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)