DoD awards $17.8M contract for MS-177A sensor integration into DCGS, with limited competition

Contract Overview

Contract Amount: $17,759,387 ($17.8M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2019-03-21

End Date: 2024-12-30

Contract Duration: 2,111 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INTEGRATE THE MS-177A SENSOR INTO DISTRIBUTED COMMON GROUND SYSTEM.

Place of Performance

Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to GOODRICH CORPORATION for work described as: INTEGRATE THE MS-177A SENSOR INTO DISTRIBUTED COMMON GROUND SYSTEM. Key points: 1. Contract awarded to Goodrich Corporation for engineering services related to sensor integration. 2. The contract duration spans over five years, indicating a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 4. This contract was not competitively procured, raising questions about potential value for money. 5. The primary service involves integrating a specific sensor (MS-177A) into a larger system (DCGS). 6. The contract is managed by the Defense Contract Management Agency. 7. The contract is a definitive contract, suggesting a clear scope of work. 8. The contract is being performed in Massachusetts.

Value Assessment

Rating: fair

The contract's value of $17.8 million over approximately five years for engineering services related to sensor integration appears reasonable on the surface, but the lack of competition makes a direct value-for-money assessment difficult. Without benchmark data from similar sole-source or limited-competition contracts for integrating advanced sensor systems into complex platforms like DCGS, it's challenging to definitively state if the pricing is optimal. The CPFF structure necessitates close oversight to ensure costs remain controlled and that the fixed fee remains appropriate for the effort expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Goodrich Corporation, was solicited for the work. This approach is typically used when a unique capability or proprietary technology is required, or when there is insufficient time to conduct a full and open competition. The lack of multiple bidders means that the government did not benefit from the price discovery that typically occurs in a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government's negotiating position is inherently weaker in a sole-source scenario.

Public Impact

The Department of Defense benefits from the integration of the MS-177A sensor, enhancing its intelligence, surveillance, and reconnaissance (ISR) capabilities through the Distributed Common Ground System (DCGS). This contract supports the development and deployment of advanced sensor technology, crucial for maintaining situational awareness and operational effectiveness. The services delivered are technical engineering and integration, directly contributing to national security objectives. The geographic impact is primarily within the United States, with specific performance locations in Massachusetts. The contract supports specialized engineering roles, potentially impacting the workforce in the aerospace and defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost growth if not rigorously managed.
Lack of transparency in the sole-source justification process could obscure potential alternatives.
Integration of complex systems can be prone to technical challenges and schedule delays.

Positive Signals

Contract awarded to a known entity (Goodrich Corporation) with presumed expertise in sensor technology.
Long contract duration suggests a sustained need and potential for stable program execution.
Focus on integrating advanced sensor technology aligns with modernization efforts in defense.
Definitive contract structure implies a well-defined scope of work.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the aerospace and defense industry. The market for integrating advanced sensor systems into intelligence platforms like DCGS is highly specialized, often dominated by a few key players with the requisite technical expertise and security clearances. Spending in this area is driven by the need for continuous technological advancement in ISR capabilities to maintain a strategic advantage. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of sensor integration projects and the proprietary aspects of the technology involved.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the prime contractor, Goodrich Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award is likely minimal, unless Goodrich Corporation voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The CPFF contract type necessitates robust financial oversight to monitor costs and ensure the fixed fee remains justified. Transparency regarding the sole-source justification and ongoing performance metrics would be key accountability measures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Ground Systems Integration
Aerospace Engineering Services
Defense Sensor Technology
Distributed Common Ground System (DCGS) Programs

Risk Flags

Sole Source Award
Cost Plus Fixed Fee Contract Type
Potential for Cost Overruns
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to GOODRICH CORPORATION. INTEGRATE THE MS-177A SENSOR INTO DISTRIBUTED COMMON GROUND SYSTEM.

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 $17.8 million.

What is the period of performance?

Start: 2019-03-21. End: 2024-12-30.

What is the specific technical capability of the MS-177A sensor and why is its integration into DCGS critical?

The MS-177A is an advanced multi-spectral sensor designed for high-resolution intelligence, surveillance, and reconnaissance (ISR) missions. Its criticality stems from its ability to capture detailed imagery across various spectrums, providing enhanced situational awareness and target identification capabilities. Integrating this sensor into the Distributed Common Ground System (DCGS) allows for the processing, analysis, and dissemination of this valuable data to warfighters and intelligence analysts in near real-time. DCGS serves as the backbone for processing and exploiting ISR data from numerous platforms, making the seamless integration of advanced sensors like the MS-177A essential for maintaining operational effectiveness and a comprehensive understanding of the battlespace.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for sensor integration?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility, present specific risks, particularly in complex integration projects. The primary risk is cost overrun; the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If the project scope expands, unforeseen technical challenges arise, or the contractor's cost estimation is inaccurate, the total cost to the government can significantly exceed initial projections. The fixed fee, however, remains constant, which can disincentivize the contractor from aggressively controlling costs once the fee is secured. Rigorous government oversight of contractor expenditures, adherence to the Statement of Work (SOW), and proactive risk management are crucial to mitigate these potential cost escalations and ensure the contractor remains focused on efficient project completion.

How does the sole-source nature of this award impact the government's ability to secure competitive pricing?

A sole-source award inherently limits the government's ability to secure competitive pricing. In a competitive procurement, multiple bidders submit proposals, driving prices down through market forces and innovation. The government can also leverage competing offers to negotiate better terms and pricing. In a sole-source scenario, the government negotiates directly with a single contractor. While the government may still negotiate, its leverage is significantly reduced as there are no alternative sources readily available or considered. This can lead to higher prices than might be achieved in a competitive environment, as the contractor faces less pressure to minimize costs or offer the most aggressive pricing. Justification for sole-source awards typically relies on factors like unique capabilities, proprietary technology, or urgent needs, but the trade-off is often a higher price.

What is the historical spending pattern for similar sensor integration contracts within the Department of Defense?

Historical spending on similar sensor integration contracts within the Department of Defense (DoD) varies widely depending on the complexity of the sensor, the platform it's being integrated into, and the level of competition. Contracts for integrating advanced ISR sensors into major platforms like DCGS can range from tens to hundreds of millions of dollars over their lifecycle. Sole-source or limited-competition awards are not uncommon in this specialized field due to the unique technological requirements and the established relationships between defense contractors and the government. However, the DoD continually seeks to increase competition where feasible to drive down costs. Analyzing past spending on comparable integration efforts, particularly those involving similar sensor technologies or system architectures, would provide a benchmark, but precise comparisons are often hindered by the proprietary nature of the technology and the specific mission requirements driving each contract.

What are the potential performance risks for Goodrich Corporation in integrating the MS-177A sensor into DCGS?

Goodrich Corporation faces several potential performance risks in integrating the MS-177A sensor into the DCGS. These include technical integration challenges, where ensuring seamless data flow and compatibility between the new sensor and the existing DCGS architecture can be complex. Schedule risks are also present, as unforeseen technical hurdles or delays in component delivery could push back project timelines. Performance risks also extend to ensuring the sensor meets its specified performance parameters once integrated and that the DCGS can effectively process and exploit the data generated. Furthermore, cybersecurity risks associated with integrating new hardware and software into a critical defense system must be meticulously managed to prevent vulnerabilities. Successful mitigation of these risks relies on Goodrich's technical expertise, robust project management, and close collaboration with the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852719R0014

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 7 TECHNOLOGY PARK DR, WESTFORD, MA, 01886

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

Financial Breakdown

Contract Ceiling: $17,761,666

Exercised Options: $17,759,387

Current Obligation: $17,759,387

Actual Outlays: $729,814

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $169,933

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline