DoD's $10M Contract for Optical Instruments to Aviation Specialties Unlimited Raises Questions on Competition

Contract Overview

Contract Amount: $10,000,000 ($10.0M)

Contractor: Aviation Specialties Unlimited, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2025-12-31

Contract Duration: 1,188 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WFOVAG

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to AVIATION SPECIALTIES UNLIMITED, INC. for work described as: WFOVAG Key points: 1. Contract awarded to a single vendor without competition. 2. High value contract for specialized optical instruments. 3. Potential for inflated pricing due to lack of competitive bidding. 4. Sector: Manufacturing of optical instruments.

Value Assessment

Rating: questionable

The contract value of $9,999,999.88 for optical instruments is significant. Without competitive data, it's difficult to assess if this price is reasonable compared to similar government or commercial contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these optical instruments.

Public Impact

Taxpayers may be overpaying for specialized optical equipment. Limited visibility into the justification for a sole-source award. Potential impact on the availability of advanced optical technology if competition is stifled.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award justification unclear

Positive Signals

Specific need for optical instruments met
Contract awarded to a known entity

Sector Analysis

This contract falls within the optical instrument and lens manufacturing sector, which often involves specialized, high-value components. Benchmarks for this niche are hard to establish without competitive data.

Small Business Impact

The contract was not awarded to a small business, and the sole-source nature limits opportunities for small businesses to compete for this specific requirement.

Oversight & Accountability

Further review is needed to understand the justification for the sole-source award and ensure appropriate oversight was applied to prevent potential overpricing.

Related Government Programs

Optical Instrument and Lens Manufacturing
Department of Defense Contracting
U.S. Special Operations Command Programs

Risk Flags

Sole-source award
Lack of competitive bidding
High contract value
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to AVIATION SPECIALTIES UNLIMITED, INC.. WFOVAG

Who is the contractor on this award?

The obligated recipient is AVIATION SPECIALTIES UNLIMITED, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-12-31.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Agencies must still conduct price analysis, often using historical data, commercial price lists, or independent government cost estimates, to ensure the price is fair and reasonable, even without direct competition.

What are the risks associated with a sole-source contract of this magnitude in the optical instrument sector?

The primary risk is paying an inflated price due to the absence of competitive pressure. Other risks include potential for vendor lock-in, reduced innovation if the vendor faces no market challenge, and a lack of transparency in the procurement process, which can erode public trust.

How effective is this contract likely to be in meeting the U.S. Special Operations Command's needs for optical instruments?

The effectiveness hinges on Aviation Specialties Unlimited's ability to deliver high-quality, specified optical instruments within the contract timeline and budget. While the sole-source nature raises cost concerns, if the vendor possesses the unique capabilities required, the contract can be effective in meeting specific operational needs.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: H9240222R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4632 W AERONCA ST, BOISE, ID, 83705

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,000,000

Exercised Options: $10,000,000

Current Obligation: $10,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline