DoD's $32.5M Telephonics Corp Contract for Navigation Systems: Full & Open Competition

Contract Overview

Contract Amount: $32,525,274 ($32.5M)

Contractor: Telephonics Corp

Awarding Agency: Department of Defense

Start Date: 2014-06-17

End Date: 2018-12-31

Contract Duration: 1,658 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MODE 5- HARDWARE PROPOSAL

Place of Performance

Location: FARMINGDALE, SUFFOLK County, NEW YORK, 11735

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to TELEPHONICS CORP for work described as: MODE 5- HARDWARE PROPOSAL Key points: 1. Contract awarded to Telephonics Corp for navigation systems. 2. Significant spending of $32.5M over 4 years. 3. Competition was full and open after exclusion of sources. 4. Sector is IT/Defense, specifically navigation and guidance systems.

Value Assessment

Rating: good

The contract's fixed price structure suggests a focus on cost control. Benchmarking against similar navigation system contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'full and open competition after exclusion of sources' indicates a competitive process was initiated, aiming for the best value. This method generally promotes price discovery.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair pricing for the navigation systems.

Public Impact

Ensures critical navigation systems for the Air Force are procured. Supports a key defense contractor, Telephonics Corp. The competitive award process aims for efficient use of taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if scope changes.
  • Dependence on a single contractor for this specific hardware.

Positive Signals

  • Competitive award process.
  • Firm fixed price contract type.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of aeronautical and nautical navigation systems. Spending in this sub-sector is driven by military modernization and operational needs.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation in the supply chain.

Oversight & Accountability

The contract is a definitive contract, suggesting a more structured oversight process. The 'full and open competition' aspect implies a degree of accountability in the award.

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

  • Potential for scope creep.
  • Reliance on a single awardee.
  • Limited visibility into supply chain small business participation.
  • Need for ongoing performance monitoring.

Tags

search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to TELEPHONICS CORP. MODE 5- HARDWARE PROPOSAL

Who is the contractor on this award?

The obligated recipient is TELEPHONICS CORP.

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 $32.5 million.

What is the period of performance?

Start: 2014-06-17. End: 2018-12-31.

What was the specific justification for excluding other sources initially, and how did the subsequent full and open competition ensure fair pricing?

The exclusion of sources likely stemmed from specific technical requirements or existing system integration needs. The subsequent full and open competition aimed to broaden the field of potential bidders, ensuring that despite initial exclusions, the final award was based on the most competitive proposals received, thereby maximizing value for the government and taxpayers.

What are the long-term implications of this contract on the Air Force's technological advantage and potential vendor lock-in?

This contract ensures the Air Force receives necessary navigation hardware, maintaining operational capabilities. However, reliance on a single vendor for specific hardware could lead to vendor lock-in, potentially limiting future flexibility and increasing costs for upgrades or replacements if not managed proactively through ongoing market research and contract management.

How does the $32.5M expenditure compare to industry benchmarks for similar navigation system procurements?

Without specific details on the system's complexity and quantity, a direct comparison is challenging. However, $32.5M over approximately 4 years for specialized defense hardware suggests a significant investment. Benchmarking would require detailed analysis of system specifications, performance requirements, and market prices for comparable technologies in the defense sector.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Griffon Corporation (UEI: 050590710)

Address: 815 BROAD HOLLOW RD, FARMINGDALE, NY, 11735

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: $32,525,274

Exercised Options: $32,525,274

Current Obligation: $32,525,274

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Timeline

Start Date: 2014-06-17

Current End Date: 2018-12-31

Potential End Date: 2018-12-31 00:00:00

Last Modified: 2019-07-31

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