DoD's $28.5M Optical Sensors Interface Contract Awarded to Goodrich Corporation

Contract Overview

Contract Amount: $28,502,283 ($28.5M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2024-09-21

Contract Duration: 365 days

Daily Burn Rate: $78.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: OPTICAL SENSORS INTERFACE (OSI)

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to GOODRICH CORPORATION for work described as: OPTICAL SENSORS INTERFACE (OSI) Key points: 1. Contract awarded to Goodrich Corporation for Optical Sensors Interface (OSI). 2. Significant award value of $28.5 million. 3. Department of the Air Force is the contracting agency. 4. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. No small business participation noted.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. Lack of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these engineering services.

Public Impact

Enhances Department of Defense's optical sensing capabilities. Supports Air Force operations with critical interface technology. Potential for long-term reliance on Goodrich Corporation for this technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
No small business participation

Positive Signals

Supports critical Air Force operations
Award to established corporation

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise and long-term government engagements. Spending in this sector can vary widely based on technological advancements and defense needs.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor, Goodrich Corporation, is handling the entire scope of work, potentially missing opportunities to leverage small business innovation and capacity.

Oversight & Accountability

Oversight will be crucial for the Cost Plus Fixed Fee contract to ensure costs remain reasonable and the fixed fee is justified. The Department of the Air Force needs to actively monitor performance and expenditures to ensure accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type increases cost risk.
No small business participation noted.
Potential for cost overruns without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to GOODRICH CORPORATION. OPTICAL SENSORS INTERFACE (OSI)

Who is the contractor on this award?

The obligated recipient is GOODRICH CORPORATION.

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 $28.5 million.

What is the period of performance?

Start: 2023-09-22. End: 2024-09-21.

What specific optical sensors and interface functionalities does this contract cover, and how do they align with current Air Force modernization priorities?

The contract covers the Optical Sensors Interface (OSI), likely involving the integration and development of systems that process data from optical sensors for Air Force platforms. Understanding the specific sensor types (e.g., infrared, visible light, radar) and the interface's role in data fusion, command and control, or targeting systems is key. Alignment with modernization priorities would be evident if the OSI supports next-generation aircraft, intelligence, surveillance, and reconnaissance (ISR) platforms, or advanced weapon systems.

Given the sole-source nature of this award, what steps are being taken to ensure fair and reasonable pricing and prevent potential cost overruns associated with the Cost Plus Fixed Fee structure?

With a sole-source award and a CPFF structure, robust government oversight is paramount. This includes detailed cost analysis, negotiation of the fixed fee based on realistic projections, and continuous monitoring of incurred costs against the contract ceiling. The contracting officer must ensure adequate price competition was considered and documented, or that the sole-source justification is sound. Regular audits and performance reviews are essential to manage risk and ensure value for taxpayer money.

What is the long-term strategic value of this OSI contract for the Air Force, and are there plans for future competition or technology refresh to ensure continued innovation and cost-effectiveness?

The long-term strategic value lies in enhancing the Air Force's situational awareness and operational effectiveness through advanced optical sensing capabilities. However, the current sole-source, CPFF award raises concerns about future innovation and cost-effectiveness. The Air Force should consider developing a strategy for future contract actions, potentially including market research for alternative solutions, phased competition, or performance-based requirements to drive innovation and ensure competitive pricing in subsequent procurements.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $28,502,283

Exercised Options: $28,502,283

Current Obligation: $28,502,283

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $468,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852723D0001

IDV Type: IDC

Timeline