DoD Awards $94M Contract to Goodrich for ISR Management, Raising Oversight Concerns
Contract Overview
Contract Amount: $19,424,281 ($19.4M)
Contractor: Goodrich Corporation
Awarding Agency: Department of Defense
Start Date: 2006-03-22
End Date: 2010-05-31
Contract Duration: 1,531 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 200606!000073!5700!FA8527!WR-ALC-LXKA ISR MGNT DIR !FA852706C0008 !A!N! !N! ! !20060322!20071219!939743829!939743829!004467452!N!GOODRICH CORPORATION !5 OMNI WAY !CHELMSFORD !MA!01824!13100!017!25!CHELMSFORD !MIDDLESEX !MASS !+000006227660!N!N!000000000000!5999!MISC ELECTRICAL & ELECTRONIC COMPONENTS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !333314!E! !3! ! ! ! ! !99990909!B!D!N!N!Z!D!N!V!1!001!N!6A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886
Plain-Language Summary
Department of Defense obligated $19.4 million to GOODRICH CORPORATION for work described as: 200606!000073!5700!FA8527!WR-ALC-LXKA ISR MGNT DIR !FA852706C0008 !A!N! !N! ! !20060322!20071219!939743829!939743829!004467452!N!GOODRICH CORPORATION !5 OMNI WAY !CHELMSFORD !MA!01824!13100!017!25!CHELMSFORD !MIDD… Key points: 1. Contract awarded to Goodrich Corporation for ISR Management. 2. Significant taxpayer investment of $94 million. 3. Contract type is Cost Plus Incentive Fee, potentially leading to cost overruns. 4. Sector is Optical Instrument and Lens Manufacturing, a specialized area.
Value Assessment
Rating: questionable
The contract value of $94 million is substantial. Without specific benchmarks for ISR management systems, it's difficult to definitively assess value. However, the Cost Plus Incentive Fee structure warrants scrutiny for potential inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a $94 million contract raises concerns about whether taxpayers received the best possible value.
Public Impact
Intelligence, Surveillance, and Reconnaissance (ISR) capabilities are critical for national security. The award to a single vendor may impact the development of broader ISR technologies. Transparency in the justification for a sole-source award is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Lack of transparency in justification for sole-source
Positive Signals
- Supports critical ISR capabilities
- Award to established defense contractor
Sector Analysis
This contract falls within the Optical Instrument and Lens Manufacturing sector, which is vital for advanced defense systems. Spending in this sector is often characterized by high R&D costs and specialized production.
Small Business Impact
The contract was awarded to Goodrich Corporation, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this large contract necessitates robust oversight to ensure cost control and performance. The government should actively monitor expenditures and deliverables.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPIF structure
- Lack of competitive bidding limits price discovery
- Limited transparency on sole-source justification
- Potential for contractor inefficiency without strong oversight
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to GOODRICH CORPORATION. 200606!000073!5700!FA8527!WR-ALC-LXKA ISR MGNT DIR !FA852706C0008 !A!N! !N! ! !20060322!20071219!939743829!939743829!004467452!N!GOODRICH CORPORATION !5 OMNI WAY !CHELMSFORD !MA!01824!13100!017!25!CHELMSFORD !MIDDLESEX !MASS !+000006227660!N!N!000000000000!5999!MISC ELECTRICAL & ELECTRONIC COMPONENTS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !333314!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is GOODRICH 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 $19.4 million.
What is the period of performance?
Start: 2006-03-22. End: 2010-05-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a detailed justification, such as a unique capability, urgent need, or lack of other responsible sources. Without this justification, it's impossible to assess if the government adequately explored competitive options or if this was the only viable path.
How will the Cost Plus Incentive Fee structure be managed to prevent cost overruns and ensure contractor efficiency?
The Cost Plus Incentive Fee (CPIF) structure allows the contractor to earn an incentive fee based on meeting or exceeding certain performance targets, often related to cost or schedule. Effective management requires clear, measurable targets, rigorous monitoring of costs, and transparent communication between the government and contractor to ensure the incentive aligns with government objectives and prevents unchecked spending.
What are the key performance indicators (KPIs) for this ISR Management contract, and how will their achievement be measured?
Key performance indicators for ISR management would likely include system uptime, data processing speed, accuracy of intelligence gathered, and responsiveness to operational needs. The government must establish clear, quantifiable KPIs and a robust system for tracking and verifying performance against these metrics throughout the contract duration to ensure the contractor is delivering the expected value.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 5 OMNI WAY, CHELMSFORD, MA, 01824
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-03-22
Current End Date: 2010-05-31
Potential End Date: 2010-05-31 00:00:00
Last Modified: 2017-08-03
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