ITT Corporation awarded $62.3M for ALQ-211(V)9 POD, a definitive contract with unclear competition
Contract Overview
Contract Amount: $62,340,503 ($62.3M)
Contractor: ITT Corporation
Awarding Agency: Department of Defense
Start Date: 2011-06-30
End Date: 2019-01-23
Contract Duration: 2,764 days
Daily Burn Rate: $22.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ALQ-211(V)9 POD
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $62.3 million to ITT CORPORATION for work described as: ALQ-211(V)9 POD Key points: 1. Contract value of $62.3M for ALQ-211(V)9 POD. 2. Awarded to ITT CORPORATION. 3. Contract type is a definitive contract. 4. Performance period spans from June 2011 to January 2019. 5. The contract was not competed. 6. Small business set-aside was not utilized. 7. The contract is firm fixed price. 8. Located in New Jersey.
Value Assessment
Rating: questionable
The total award amount of $62.3M for the ALQ-211(V)9 POD is significant. However, without details on the specific system capabilities and the number of units procured, a direct value-for-money assessment is challenging. The lack of competition raises concerns about whether the government received the best possible pricing. Benchmarking against similar electronic warfare pods or systems would be necessary for a more robust evaluation of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source, 'not available for competition' basis. This means that only one bidder, ITT CORPORATION, was solicited. The lack of a competitive bidding process limits the government's ability to explore alternative solutions and potentially secure more favorable pricing through market forces. The rationale for this sole-source award is not provided in the available data.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in price negotiations.
Public Impact
The ALQ-211(V)9 POD likely enhances the electronic warfare capabilities of military aircraft, contributing to mission success and pilot safety. This contract supports the Department of the Air Force's operational readiness and technological superiority in the defense sector. The contract's performance in New Jersey may have implications for the local economy and specialized defense manufacturing workforce. The specific end-users and platforms benefiting from this system are likely military aviation units within the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing.
- Limited transparency into the sole-source justification.
- Potential for cost overruns without competitive oversight.
Positive Signals
- Firm fixed price contract provides cost certainty for the government.
- Definitive contract structure implies a clear scope of work.
- Long performance period suggests a sustained need for the system.
Sector Analysis
The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, specifically NAICS code 334511. This industry is characterized by high technological complexity and significant R&D investment. The market for electronic warfare systems is dominated by a few large defense contractors. Benchmarking this contract's value against other similar electronic warfare system procurements would provide further context on its relative cost.
Small Business Impact
The data indicates that this contract was not a small business set-aside, and there is no information provided regarding subcontracting plans. This suggests that small businesses were not specifically targeted for this procurement. The absence of small business participation in this particular contract may limit opportunities for smaller firms within the defense supply chain for this specific system.
Oversight & Accountability
As a definitive contract, it is expected to have defined oversight mechanisms. However, the 'not available for competition' status raises questions about the extent of independent review and justification. Transparency regarding the sole-source rationale and any subsequent modifications would be crucial for assessing accountability. Inspector General jurisdiction would typically apply to ensure proper use of funds.
Related Government Programs
- Electronic Warfare Systems
- Aircraft Pod Systems
- Defense Procurement
- Aerospace Manufacturing
Risk Flags
- Sole-source award lacks competitive justification.
- Limited transparency on specific system capabilities and pricing benchmarks.
- Potential for inflated costs due to lack of competition.
Tags
defense, department-of-defense, department-of-the-air-force, itt-corporation, definitive-contract, firm-fixed-price, sole-source, alqs-211, electronic-warfare, new-jersey, aerospace-manufacturing, 334511
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.3 million to ITT CORPORATION. ALQ-211(V)9 POD
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 $62.3 million.
What is the period of performance?
Start: 2011-06-30. End: 2019-01-23.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. However, the specific justification for this determination is not detailed in the dataset. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, such as in cases of unique capabilities, urgent needs where competition is impractical, or when a follow-on contract to a previously competed effort is involved. Without further documentation from the awarding agency (Department of the Air Force), the precise rationale remains unknown. This lack of transparency can be a concern for ensuring fair and competitive procurement practices.
How does the $62.3M contract value compare to similar electronic warfare pod procurements?
Direct comparison of the $62.3M contract value for the ALQ-211(V)9 POD to similar electronic warfare (EW) pod procurements is challenging without more specific data points. Key factors influencing cost include the specific capabilities of the pod (e.g., jamming, threat detection, countermeasures), the number of units procured under this contract, and the technological generation of the system. The ALQ-211 family is known for providing integrated EW capabilities. To benchmark effectively, one would need to identify contracts for comparable EW pods with similar functionalities, procured around the same timeframe, and ideally awarded through competitive processes to establish a market price. The sole-source nature of this award further complicates direct value-for-money comparisons.
What are the potential risks associated with a sole-source award for a critical defense system like the ALQ-211(V)9 POD?
Sole-source awards for critical defense systems like the ALQ-211(V)9 POD carry several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved in a competitive environment, as the contractor faces less pressure to offer the most cost-effective solution. Secondly, it can limit the government's access to innovative technologies or alternative solutions that other potential suppliers might offer. Thirdly, without competitive benchmarking, it can be more difficult to assess whether the government is receiving fair value for its investment. Finally, a sole-source award might reduce the incentive for the awarded contractor to maintain high levels of efficiency and performance, although contract terms and oversight can mitigate this.
What is the significance of the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code for this contract?
The NAICS code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' signifies that this contract is for the production or development of sophisticated systems used for locating, identifying, and guiding aircraft and nautical vessels. This sector is highly specialized, often involving advanced electronics, software, and complex engineering. Companies operating under this code typically possess unique technical expertise and significant research and development capabilities. Awarding a contract within this NAICS code suggests a need for specialized, high-technology equipment crucial for defense operations, underscoring the importance of the ALQ-211(V)9 POD's role in military aviation.
What does the 'firm fixed price' contract type imply for the government and the contractor?
A 'firm fixed price' (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. For the government, this offers the highest level of cost certainty, as the total expenditure is known upfront, assuming the scope of work remains unchanged. It shifts the risk of cost overruns entirely to the contractor. For the contractor (ITT CORPORATION in this case), it means they bear the financial risk if their costs exceed the agreed-upon price. This contract type incentivizes the contractor to manage costs efficiently to maximize profit, but it also requires a well-defined scope of work to avoid disputes or change orders.
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,340,503
Exercised Options: $62,340,503
Current Obligation: $62,340,503
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-06-30
Current End Date: 2019-01-23
Potential End Date: 2019-01-23 00:00:00
Last Modified: 2025-04-21
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