DoD's $22.1M DB-110 Sensor Pod contract awarded to Goodrich Corporation shows potential value concerns

Contract Overview

Contract Amount: $22,129,773 ($22.1M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2012-08-17

End Date: 2015-09-30

Contract Duration: 1,139 days

Daily Burn Rate: $19.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DB-110 SENSOR POD

Place of Performance

Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to GOODRICH CORPORATION for work described as: DB-110 SENSOR POD Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize higher spending. 2. Limited competition raises questions about price discovery and potential overpayment. 3. The duration of the contract (1139 days) suggests a long-term need for the sensor pods. 4. The specific North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, indicating a specialized defense product. 5. The contract was awarded as a definitive contract, suggesting a clear scope of work. 6. The absence of small business set-asides indicates a focus on larger prime contractors.

Value Assessment

Rating: fair

The total award amount of $22.1 million for 19429 units of DB-110 Sensor Pods results in a per-unit cost of approximately $1,139. While specific benchmarking data for this niche defense component is not readily available, the cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. Without more detailed cost breakdowns or comparisons to similar systems, assessing the true value for money is challenging, but the CPFF structure warrants careful scrutiny.

Cost Per Unit: $1,139 per unit

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one source is capable of meeting the agency's needs, often due to proprietary technology, unique capabilities, or urgent requirements. The lack of competition means the Department of Defense did not benefit from a competitive bidding process, which could have potentially driven down prices.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium, as there was no market pressure to ensure the most cost-effective price was achieved.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially other branches of the Department of Defense requiring advanced aerial reconnaissance capabilities. The contract delivers DB-110 Sensor Pods, which are advanced electro-optical/infrared (EO/IR) reconnaissance systems used for intelligence, surveillance, and reconnaissance (ISR) missions. The geographic impact is likely global, supporting military operations and intelligence gathering in various theaters of operation. The contract supports jobs within the aerospace and defense manufacturing sector, specifically at Goodrich Corporation and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Cost-plus-fixed-fee structure may not be the most cost-efficient.
Lack of transparency on specific cost drivers within the CPFF structure.

Positive Signals

Delivery of critical ISR technology to the Air Force.
Contract awarded to a known defense contractor (Goodrich Corporation).
Definitive contract indicates a defined scope and duration.

Sector Analysis

The DB-110 Sensor Pod falls within the aerospace and defense sector, specifically in the intelligence, surveillance, and reconnaissance (ISR) market. This market is characterized by high technological sophistication, significant R&D investment, and long product development cycles. Spending in this area is driven by national security requirements and the need for advanced situational awareness. Comparable spending benchmarks would typically involve other advanced sensor systems and airborne platforms, which often represent substantial investments due to their complexity and critical mission roles.

Small Business Impact

This contract does not appear to have involved any small business set-asides, as indicated by 'sb': false. The award was made directly to Goodrich Corporation, a large defense contractor. There is no explicit information regarding subcontracting plans for small businesses within the provided data. This suggests that the primary contract value likely flowed to a large prime contractor, with potential downstream subcontracting opportunities for small businesses not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Air Force is the specific agency, and they would have established mechanisms for monitoring performance, costs, and compliance. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is often limited for specific defense contracts due to national security considerations, but contract awards and basic details are generally publicly available through systems like FPDS.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Airborne Sensor Platforms
Defense Electronics Manufacturing
Aircraft Component Manufacturing

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to GOODRICH CORPORATION. DB-110 SENSOR POD

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 $22.1 million.

What is the period of performance?

Start: 2012-08-17. End: 2015-09-30.

What is the historical spending trend for DB-110 Sensor Pods or similar ISR systems by the Department of Defense?

Analyzing historical spending for DB-110 Sensor Pods specifically is challenging without more granular contract data beyond this single award. However, the broader category of Intelligence, Surveillance, and Reconnaissance (ISR) systems has seen consistent and significant investment from the Department of Defense over the past two decades. Factors driving this spending include evolving geopolitical threats, the need for persistent surveillance, and advancements in sensor technology. While specific dollar amounts fluctuate year-to-year based on program priorities and budget allocations, the overall trend indicates a sustained commitment to acquiring and upgrading ISR capabilities. For context, major ISR platforms and sensor suites can range from tens of millions to billions of dollars over their lifecycle. Understanding the specific lifecycle costs and sustainment needs of the DB-110 would provide a clearer picture of its place within this broader spending landscape.

How does the per-unit cost of the DB-110 Sensor Pod compare to other similar ISR sensor systems?

Directly comparing the per-unit cost of the DB-110 Sensor Pod ($1,139) to other similar ISR sensor systems is difficult without access to proprietary pricing information and detailed technical specifications of competing systems. The DB-110 is an advanced electro-optical/infrared (EO/IR) system designed for high-altitude reconnaissance. Its cost is influenced by factors such as sensor resolution, data processing capabilities, integration complexity, and manufacturing volume. Systems with higher resolution, more advanced processing, or broader spectral capabilities (e.g., multi-spectral or synthetic aperture radar) would likely command higher per-unit prices. Conversely, simpler or legacy systems might be less expensive. Given the specialized nature and likely advanced capabilities of the DB-110, its per-unit cost should be evaluated against systems offering comparable performance metrics and mission utility, rather than against less sophisticated or fundamentally different types of sensors.

What are the specific risks associated with a sole-source, cost-plus-fixed-fee contract for defense systems?

A sole-source, cost-plus-fixed-fee (CPFF) contract structure for defense systems presents several inherent risks. The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to innovate or become more efficient. The CPFF structure, while allowing for flexibility in scope, carries the risk of cost overruns. The 'cost-plus' element means the government reimburses the contractor for allowable costs, and the 'fixed-fee' provides a predetermined profit margin. If costs escalate, the government pays more, and the contractor's profit remains fixed (as a percentage of the estimated cost, or a fixed dollar amount depending on the specific fee arrangement). This can disincentivize cost control by the contractor. Effective oversight, stringent cost accounting standards, and clear performance metrics are crucial to mitigate these risks, but they require significant government resources and expertise.

What is Goodrich Corporation's track record with similar defense contracts, particularly in ISR systems?

Goodrich Corporation (now part of Raytheon Technologies) has a long and established track record in the defense industry, including significant experience with Intelligence, Surveillance, and Reconnaissance (ISR) systems and related avionics. They have been a key supplier of sensors, communication systems, and other critical components for various military platforms. Their portfolio includes a range of electro-optical and infrared (EO/IR) systems, radar, and data processing solutions. Historically, Goodrich has demonstrated the capability to develop and deliver complex defense technologies. However, like any large defense contractor, they have also been involved in contracts that have faced scrutiny regarding cost, schedule, or performance. A thorough review of their specific performance on prior ISR contracts, including any past issues with cost overruns or delivery delays, would be necessary for a comprehensive assessment of their reliability on this particular DB-110 contract.

What are the potential implications of the contract duration (1139 days) on sustainment and obsolescence?

A contract duration of 1139 days (approximately 3.1 years) for the delivery of DB-110 Sensor Pods suggests a significant production run or a phased deployment. This duration has implications for sustainment and obsolescence management. Firstly, it implies a need for ongoing support, maintenance, and potential upgrades throughout and beyond the contract period. The government must plan for long-term sustainment, including spare parts, technical support, and training, which can often exceed the initial procurement cost. Secondly, given the rapid pace of technological advancement in sensor technology, there is a risk of obsolescence. By the end of the contract period, newer, more capable systems may be available. The government needs to consider whether the DB-110's capabilities will remain relevant and effective for its intended operational lifespan, and whether provisions for upgrades or replacements are necessary.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

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: $22,129,773

Exercised Options: $22,129,773

Current Obligation: $22,129,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline