DoD awards $75.8M to ITT Corp for navigation systems, facing limited competition
Contract Overview
Contract Amount: $75,807,021 ($75.8M)
Contractor: ITT Corporation
Awarding Agency: Department of Defense
Start Date: 2005-02-23
End Date: 2012-09-30
Contract Duration: 2,776 days
Daily Burn Rate: $27.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $75.8 million to ITT CORPORATION for work described as: Key points: 1. Significant contract value of $75.8 million awarded to a single vendor. 2. Limited competition raises questions about price discovery and potential overspending. 3. Long contract duration (2005-2012) may indicate evolving needs or lack of agile procurement. 4. The sector is critical for defense operations, suggesting high stakes for performance.
Value Assessment
Rating: fair
The contract value of $75.8 million for navigation systems appears substantial. Without specific per-unit cost data or benchmarks for similar systems, it's difficult to definitively assess its fairness. However, the lack of competition suggests potential for a less favorable price than if multiple vendors had bid.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a sole-source or limited competition award. This method bypasses the competitive bidding process, potentially leading to higher prices and reduced innovation as the vendor faces less pressure to offer the best value.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than a fully competed contract, as the government may not have secured the most economical price.
Public Impact
Taxpayers may have paid more due to the absence of competitive bidding. Critical defense capabilities rely on the successful delivery of these navigation systems. The long performance period could impact the adoption of newer, potentially more advanced technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Firm Fixed Price contract with potential for cost overruns if scope changes
Positive Signals
- Award to established vendor (ITT Corporation)
- Critical system for defense operations
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national security, but often involves specialized, high-cost components where competition can be challenging.
Small Business Impact
The data indicates this contract was not competed and awarded to ITT Corporation, a large business. There is no indication of small business participation in this specific award, suggesting missed opportunities for small business set-asides.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for bypassing competition. Accountability for the pricing and performance rests with the Department of Defense and the Defense Contract Management Agency.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration could result in outdated technology.
- Potential for cost overruns if not managed tightly.
- Limited transparency due to non-competitive award.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.8 million to ITT CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ITT 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 $75.8 million.
What is the period of performance?
Start: 2005-02-23. End: 2012-09-30.
What was the specific justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a unique capability or urgent need. Without this information, it's impossible to assess if alternative solutions were explored or if this was the most cost-effective approach for the government.
How does the final cost compare to initial estimates or industry benchmarks for similar navigation systems?
The provided data does not include initial cost estimates or specific industry benchmarks for comparable navigation systems. While the total award was $75.8 million, a detailed cost-benefit analysis or comparison with similar contracts is needed to determine if the price was reasonable and represented good value for the taxpayer.
What performance metrics were used to evaluate ITT Corporation's delivery and effectiveness throughout the contract period?
Performance metrics are not detailed in the provided data. For a contract of this duration and value, robust performance evaluations should have been conducted by the Defense Contract Management Agency. Understanding these metrics would reveal the effectiveness of the navigation systems and the vendor's adherence to contract requirements.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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 ROAD, CLIFTON, NJ, 09
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2005-02-23
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2014-07-24
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