DoD's $45.6M contract for reconnaissance pods awarded to Goodrich Corporation shows limited competition

Contract Overview

Contract Amount: $45,604,302 ($45.6M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2016-12-23

End Date: 2022-06-17

Contract Duration: 2,002 days

Daily Burn Rate: $22.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NON ACAT, PEACE VECTOR EGYPT DB-110 RECONNAISSANCE PODS IN ACCORDANCE WITH (IAW) THE EGYPTIAN AIR FORCE (EAF) DB-110 RECONNAISSANCE SYSTEM PROGRAM

Place of Performance

Location: WESTFORD, MIDDLESEX County, MASSACHUSETTS, 01886

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 million to GOODRICH CORPORATION for work described as: NON ACAT, PEACE VECTOR EGYPT DB-110 RECONNAISSANCE PODS IN ACCORDANCE WITH (IAW) THE EGYPTIAN AIR FORCE (EAF) DB-110 RECONNAISSANCE SYSTEM PROGRAM Key points: 1. The contract value of $45.6 million over approximately six years suggests a significant investment in intelligence, surveillance, and reconnaissance (ISR) capabilities. 2. Awarded to Goodrich Corporation, this contract highlights the company's established role in providing specialized aerospace components. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about potential cost efficiencies and the exploration of alternative solutions. 4. The firm fixed-price contract type aims to provide cost certainty for the Department of Defense. 5. The contract's duration of approximately 2002 days (around 5.5 years) indicates a long-term need for these reconnaissance pods. 6. The specific nature of the DB-110 reconnaissance system suggests a focus on intelligence gathering for the Egyptian Air Force.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns or comparisons to similar reconnaissance pod systems. However, the $45.6 million award over nearly six years suggests a substantial per-year expenditure. The firm fixed-price nature implies that Goodrich Corporation assumed the risk for cost overruns, which can be a positive indicator if the final price reflects efficient execution. Without more data on the capabilities and market alternatives, a definitive value assessment is difficult, but the lack of competition warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one bidder, Goodrich Corporation, was considered for this requirement. While sole-source awards can be justified for unique capabilities or existing systems, they typically limit price discovery and may result in higher costs compared to a competitively bid contract. The absence of multiple bidders means the government did not benefit from the potential cost savings that arise from a competitive bidding process.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these reconnaissance pods. Without competing offers, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Egyptian Air Force, which will receive advanced reconnaissance capabilities. The contract delivers specialized DB-110 reconnaissance pods, enhancing intelligence, surveillance, and reconnaissance (ISR) operations. The geographic impact is primarily focused on areas where the Egyptian Air Force operates, supporting national security interests. The contract supports specialized manufacturing roles within Goodrich Corporation, likely involving engineers and technicians skilled in aerospace systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to suboptimal pricing for taxpayers.
Sole-source awards can reduce transparency in the procurement process.
Dependence on a single supplier for critical reconnaissance technology could pose long-term supply chain risks.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established contractor like Goodrich Corporation suggests a focus on proven technology and reliability.
The contract addresses a specific, likely critical, intelligence requirement for an allied nation.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on specialized electronic equipment for aircraft. The market for reconnaissance pods is driven by national security needs and technological advancements in ISR. While specific market size data for DB-110 pods is not publicly available, the broader market for aerospace components and defense systems is substantial, with significant government spending globally. This contract represents a niche but important segment of that market, providing advanced sensor technology.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb': false. The award to Goodrich Corporation, a large aerospace manufacturer, suggests that the primary contract is not aimed at fostering small business participation directly. Subcontracting opportunities for small businesses may exist within Goodrich's supply chain, but these are not explicitly detailed in the provided data. The overall impact on the small business ecosystem for this specific contract is likely indirect.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight structures. The firm fixed-price nature provides some level of cost control. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Specific performance metrics and reporting requirements would be detailed in the contract's terms and conditions, which are not fully provided here.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Aerospace Component Manufacturing
Foreign Military Sales (FMS) Support
Defense Electronics Procurement

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of competition.
Lack of transparency in procurement process.
Dependence on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to GOODRICH CORPORATION. NON ACAT, PEACE VECTOR EGYPT DB-110 RECONNAISSANCE PODS IN ACCORDANCE WITH (IAW) THE EGYPTIAN AIR FORCE (EAF) DB-110 RECONNAISSANCE SYSTEM PROGRAM

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 $45.6 million.

What is the period of performance?

Start: 2016-12-23. End: 2022-06-17.

What is the specific capability and operational context of the DB-110 reconnaissance pods?

The DB-110 is a dual-mode reconnaissance system designed for tactical and strategic intelligence gathering. It can operate in both electro-optical (EO) and infrared (IR) modes, allowing for day and night operations. The system is known for its high-resolution imagery and rapid data dissemination capabilities. Its primary use is on tactical aircraft, providing commanders with near real-time intelligence on enemy forces, terrain, and infrastructure. The 'PEACE VECTOR EGYPT' designation indicates this specific contract is part of a U.S. government program to provide defense articles and services to Egypt, enhancing their ISR capabilities and supporting regional security objectives.

How does the $45.6 million contract value compare to other similar reconnaissance pod procurements?

Direct comparisons for the DB-110 reconnaissance pods are difficult without access to proprietary pricing data or specific contract details for similar systems. However, the average annual value of this contract is approximately $7.6 million ($45.6M / 6 years). This figure needs to be considered in the context of the technology's sophistication, including its dual-mode capability and data processing. Broader ISR system procurements can range from tens of millions to billions of dollars, depending on the platform integration, sensor suite complexity, and quantity. Given the specialized nature of the DB-110, this value appears within a plausible range for advanced tactical reconnaissance systems, though the lack of competition prevents a definitive value-for-money assessment against alternatives.

What are the primary risks associated with a sole-source award for critical defense equipment?

The primary risks associated with a sole-source award for critical defense equipment like the DB-110 reconnaissance pods include potential overpricing due to the absence of competitive pressure, reduced incentive for innovation from the sole provider, and a lack of market validation for the chosen solution. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, reliance on a single supplier can create supply chain vulnerabilities and reduce flexibility if the technology becomes obsolete or if the supplier faces financial or operational difficulties. This can also limit the government's ability to explore alternative, potentially more cost-effective or technologically superior, solutions.

What is Goodrich Corporation's track record with providing reconnaissance systems to the U.S. military or allied nations?

Goodrich Corporation, now part of Raytheon Technologies, has a long-standing history and significant expertise in developing and manufacturing aerospace systems, including reconnaissance and surveillance equipment. They have been a key supplier of various sensors, avionics, and mission systems for military aircraft. The DB-110 system itself has been deployed on multiple platforms and supplied to various international partners. Their established presence and experience in this specialized field suggest a strong capability to deliver the required technology. However, specific details on past performance issues or exceptional successes related to DB-110 contracts would require deeper research into contract databases and performance reviews.

What are the implications of the 'firm fixed price' contract type for this procurement?

The 'firm fixed price' (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. This shifts the cost risk from the government to the contractor, Goodrich Corporation. If Goodrich can produce the reconnaissance pods for less than the agreed-upon price, they will realize a higher profit margin. Conversely, if their costs exceed the contract price, their profit will be reduced, or they could incur a loss. For the government, an FFP contract provides budget certainty and protects against cost overruns, assuming the initial price negotiated was fair and reasonable. This contract type is generally preferred when the scope of work is well-defined and technical risks are manageable.

How does this contract fit into the broader context of U.S. foreign military sales and defense cooperation with Egypt?

This contract, identified under 'PEACE VECTOR EGYPT', is a clear example of U.S. foreign military sales (FMS) and defense cooperation efforts. The U.S. often provides advanced military equipment and training to key allies like Egypt to enhance their defense capabilities, promote regional stability, and foster interoperability with U.S. forces. By supplying sophisticated ISR assets like the DB-110 pods, the U.S. aims to bolster Egypt's ability to monitor its borders, counter threats, and contribute to broader security initiatives. These sales also support the U.S. defense industrial base by providing revenue streams for American companies like Goodrich Corporation.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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

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: $45,604,302

Exercised Options: $45,604,302

Current Obligation: $45,604,302

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,159,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline