DoD's $104M F-16C Install Contract with ITT Corporation Lacked Competition, Awarded in 2009
Contract Overview
Contract Amount: $104,250,299 ($104.3M)
Contractor: ITT Corporation
Awarding Agency: Department of Defense
Start Date: 2009-02-12
End Date: 2017-06-30
Contract Duration: 3,060 days
Daily Burn Rate: $34.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-16C INSTALLS
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $104.3 million to ITT CORPORATION for work described as: F-16C INSTALLS Key points: 1. The contract value of $104.25 million for F-16C installs is significant, but the lack of competition raises concerns about potential overspending. 2. ITT Corporation secured this definitive contract, highlighting a single-source award for a critical defense system. 3. The absence of competition and the firm-fixed-price structure suggest potential risks to achieving best value for taxpayers. 4. This spending falls within the Defense sector, specifically related to aircraft system manufacturing.
Value Assessment
Rating: questionable
The contract's firm-fixed-price structure with no available competition makes a direct pricing assessment difficult. Without benchmarks or competing bids, it's hard to determine if the $104.25 million represents a fair market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded as a definitive contract with no competition available. This limited competition likely impacted price discovery, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competitive bidding on this $104.25 million contract may have resulted in taxpayers paying more than necessary for F-16C installations.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding for F-16C installations. The long contract duration (2009-2017) for a single vendor raises questions about long-term cost-effectiveness. Dependence on a single supplier for critical aircraft components can create supply chain vulnerabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- No small business participation indicated
Positive Signals
- Firm fixed price contract type can provide cost certainty
Sector Analysis
This contract falls under the Defense sector, specifically within the manufacturing of aircraft systems and instruments. The total spending on similar Navigation, Guidance, and Control Systems (NAICS 334511) can vary significantly based on defense priorities and technological advancements.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests that the contract was not structured to encourage or require involvement from small businesses.
Oversight & Accountability
The definitive contract award without competition warrants further oversight to ensure the Department of Defense obtained fair value. Accountability for the procurement process and cost justification is crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- No small business participation
- Long contract duration without clear performance metrics
- Limited transparency in price justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $104.3 million to ITT CORPORATION. F-16C INSTALLS
Who is the contractor on this award?
The obligated recipient is ITT 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 $104.3 million.
What is the period of performance?
Start: 2009-02-12. End: 2017-06-30.
What was the justification for awarding this contract without competition, and how was the price determined to be fair and reasonable?
The justification for awarding this contract without competition is not provided in the data. Typically, such sole-source or limited-competition awards require a detailed justification, such as unique capabilities or urgent need. The price determination process is also unclear without competitive bids, necessitating a review of the government's cost analysis and negotiation records to ascertain fairness.
What are the potential long-term risks associated with a sole-source contract for critical F-16C components, especially given the extended duration?
Long-term risks include vendor lock-in, reduced innovation due to lack of competitive pressure, and potential price escalations over time as the vendor faces no market alternatives. Dependence on a single supplier can also create supply chain vulnerabilities, potentially impacting aircraft readiness if the vendor experiences production issues or goes out of business.
How effective was this contract in ensuring the operational readiness and modernization of the F-16C fleet, and could alternative procurement strategies have yielded better results?
The effectiveness in ensuring operational readiness is difficult to assess solely from contract data. However, the lack of competition suggests potential inefficiencies. Alternative strategies like phased competitive procurements or modular contract designs could have fostered innovation and potentially secured better pricing and technological advancements for the F-16C fleet.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $104,250,299
Exercised Options: $104,250,299
Current Obligation: $104,250,299
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-02-12
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2017-06-16
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