DoD's $24.3M AWACS Communications Integration Program awarded to Pole/Zero LLC via sole-source purchase order

Contract Overview

Contract Amount: $24,269,266 ($24.3M)

Contractor: Pole/Zero LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-31

End Date: 2026-01-30

Contract Duration: 548 days

Daily Burn Rate: $44.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) COMMUNICATIONS INTEGRATION PROGRAM (ACIP) POLE/ZERO PROCUREMENT

Place of Performance

Location: WEST CHESTER, BUTLER County, OHIO, 45069

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to POLE/ZERO LLC for work described as: AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) COMMUNICATIONS INTEGRATION PROGRAM (ACIP) POLE/ZERO PROCUREMENT Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential value. 2. The firm fixed-price contract structure shifts cost risk to the government. 3. Limited competition suggests potential for higher pricing compared to a more open bidding process. 4. The program aims to enhance critical airborne warning and control system communications. 5. Performance period of 548 days indicates a focused, medium-term project. 6. The awardee, Pole/Zero LLC, specializes in electronic component manufacturing.

Value Assessment

Rating: questionable

Benchmarking the value of this $24.3 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value or if a more competitive process could have yielded savings. The fixed-price structure, while providing cost certainty, means the government bears the risk if costs exceed estimates. Further analysis would require access to cost breakdowns and comparisons with similar sole-source procurements for specialized electronic components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Pole/Zero LLC, was solicited. This approach is typically used when a unique capability or proprietary technology is required, and competition is not feasible or practicable. The lack of multiple bidders means there was no direct price competition, which can limit the government's ability to negotiate the best possible price.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The government relies on the contractor's proposed pricing without the leverage of competing offers.

Public Impact

The primary beneficiaries are the Department of the Air Force and the broader U.S. military, which will receive enhanced AWACS communication capabilities. The services delivered involve the integration and procurement of specific components for the AWACS platform, crucial for intelligence, surveillance, and reconnaissance missions. The geographic impact is primarily within the Department of Defense's operational theaters, ensuring effective command and control. Workforce implications may include specialized engineering and manufacturing roles within Pole/Zero LLC and potentially within the Air Force for integration and testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Firm fixed-price contract shifts cost overrun risk to the government.
Lack of transparency in the sole-source justification could obscure potential alternatives.
Dependence on a single supplier for critical components may pose supply chain risks.

Positive Signals

Award to a specialized firm (Pole/Zero LLC) suggests access to unique technical expertise.
Focus on enhancing critical AWACS communication capabilities supports national security objectives.
Clear performance period and fixed-price terms provide defined project scope and budget.

Sector Analysis

This contract falls within the Other Electronic Component Manufacturing sector, a critical part of the broader aerospace and defense industrial base. The market for specialized defense electronics is often characterized by high barriers to entry due to technical complexity and stringent quality requirements. Spending in this sector is driven by modernization efforts and the need for advanced communication and sensor systems. Comparable spending benchmarks would involve analyzing procurements for similar specialized electronic components for defense platforms, which can vary significantly based on technological sophistication and volume.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to Pole/Zero LLC, a single entity, does not directly contribute to the small business ecosystem through set-asides or mandated subcontracting. The impact on small businesses is neutral in this specific award, but it highlights a procurement that did not leverage small business capabilities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through program management offices and contracting officers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified components by the deadline. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Airborne Warning and Control System (AWACS) Modernization Programs
Defense Communications Systems Procurement
Aerospace Electronic Component Manufacturing
Sole-Source Defense Contracts
Fixed-Price Purchase Orders

Risk Flags

Sole Source Justification
Potential for Overpricing
Cost Risk to Government (FFP)
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to POLE/ZERO LLC. AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) COMMUNICATIONS INTEGRATION PROGRAM (ACIP) POLE/ZERO PROCUREMENT

Who is the contractor on this award?

The obligated recipient is POLE/ZERO LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2024-07-31. End: 2026-01-30.

What is Pole/Zero LLC's track record with the Department of Defense, particularly on similar sole-source contracts?

Information regarding Pole/Zero LLC's specific track record with the Department of Defense on similar sole-source contracts is not detailed in the provided data. Generally, sole-source awards are justified when a contractor possesses unique capabilities or technologies essential for a specific requirement. To assess their track record thoroughly, one would need to examine past performance evaluations, contract history, and any documented issues or successes on previous DoD engagements. Without this specific data, it's presumed the DoD has determined Pole/Zero LLC is the sole capable provider for this ACIP component integration, but a deeper dive into their history would provide greater assurance regarding their reliability and past performance.

How does the $24.3 million value compare to similar AWACS communication integration efforts or specialized electronic component procurements?

Direct comparison of the $24.3 million value is difficult without specific details on the scope and technical complexity of the components being procured for the AWACS Communications Integration Program (ACIP). However, procurements for specialized defense electronics can range widely. If this contract involves highly advanced, custom-designed components or significant integration services, the price might be within a reasonable range for a sole-source award. Conversely, if the components are more standardized or the integration is less complex, the price could be considered high, especially given the lack of competitive bidding. Benchmarking would require access to data on similar sole-source awards for comparable electronic systems within the defense sector, considering factors like technological maturity, quantity, and required performance specifications.

What are the primary risks associated with awarding a $24.3 million contract on a sole-source, firm fixed-price basis?

The primary risks associated with this sole-source, firm fixed-price award are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing as the government lacks the leverage of multiple bids to drive down costs. This means taxpayers may be paying more than necessary. Secondly, the firm fixed-price (FFP) contract structure shifts the risk of cost overruns entirely to the government. If Pole/Zero LLC encounters unforeseen difficulties or increased material costs during the 548-day performance period, the government is obligated to pay the agreed-upon price, regardless of the contractor's actual expenses. This contrasts with cost-reimbursement contracts where the contractor bears more of the financial risk.

What is the expected effectiveness of the AWACS Communications Integration Program (ACIP) and how is success measured?

The expected effectiveness of the AWACS Communications Integration Program (ACIP) is to enhance the communication capabilities of the Airborne Warning and Control System (AWACS) aircraft. This likely translates to improved data sharing, command and control, and overall situational awareness for military operations. Success is typically measured through a combination of technical performance metrics, such as signal clarity, data transmission rates, system reliability, and interoperability with other platforms. Contractual milestones, delivery schedules, and adherence to technical specifications defined in the purchase order will also serve as key indicators of program success. Formal testing and validation phases post-integration are crucial for confirming the system meets its intended operational requirements.

How has spending on AWACS-related communications technology evolved, and does this $24.3 million award represent a significant shift or continuation?

Historical spending on AWACS-related communications technology has likely seen consistent investment due to the platform's critical role in air defense and command and control. Modernization efforts are continuous, driven by evolving threats and technological advancements. This $24.3 million award for the ACIP appears to be a specific, targeted investment rather than a broad shift in spending strategy. It represents a continuation of efforts to maintain and upgrade the AWACS fleet's communication suite. Without historical spending data for ACIP or similar integration programs, it's difficult to definitively label it as a 'significant' shift, but it underscores the ongoing need for robust and updated communication systems for this vital platform.

What are the potential long-term implications of relying on Pole/Zero LLC for this specific AWACS communication integration?

The long-term implications of relying on Pole/Zero LLC for this specific AWACS communication integration hinge on several factors. If the company consistently delivers high-quality components and support, this sole-source relationship could foster a strong, efficient partnership beneficial for future upgrades or sustainment. However, a prolonged sole-source dependency can also lead to vendor lock-in, potentially limiting future competition and innovation. It may also create supply chain vulnerabilities if Pole/Zero LLC faces financial difficulties or production issues. The DoD would need to actively manage this relationship, potentially seeking alternative solutions or fostering competition for future iterations to mitigate these risks and ensure long-term cost-effectiveness and technological advancement.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: 5558 UNION CENTRE DR, WEST CHESTER, OH, 45069

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,603,333

Exercised Options: $24,269,266

Current Obligation: $24,269,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline