DoD's $23.4M Video Scout Contract Awarded to Interstate Electronics Corporation
Contract Overview
Contract Amount: $23,369,066 ($23.4M)
Contractor: Interstate Electronics Corporation
Awarding Agency: Department of Defense
Start Date: 2008-08-22
End Date: 2009-10-23
Contract Duration: 427 days
Daily Burn Rate: $54.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VIDEO SCOUT MC L&C BAND
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Defense obligated $23.4 million to INTERSTATE ELECTRONICS CORPORATION for work described as: VIDEO SCOUT MC L&C BAND Key points: 1. Contract value of $23.4 million for custom computer programming services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with a short performance period (427 days). 4. Spending falls within the IT sector, specifically custom computer programming.
Value Assessment
Rating: fair
The contract value of $23.4 million for custom computer programming services appears reasonable given the scope. Benchmarking against similar contracts for specialized video analysis software would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value for the services rendered, minimizing the risk of overpayment.
Public Impact
Enhances Department of Defense capabilities in video analysis and intelligence. Supports national security objectives through advanced technological solutions. Potential for spin-off technologies or applications in other government sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may limit long-term development or integration.
- Reliance on a single vendor for a critical capability.
- Potential for scope creep if requirements are not clearly defined.
Positive Signals
- Awarded through full and open competition, ensuring market-based pricing.
- Clear contract type (Firm Fixed Price) limits cost overruns.
- Specific NAICS code (541511) indicates a focused service area.
Sector Analysis
This contract falls under the Information Technology sector, specifically custom computer programming. Spending in this area is significant across government, with benchmarks varying widely based on complexity and specialization.
Small Business Impact
The contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. Interstate Electronics Corporation is a large business, suggesting limited direct opportunities for small businesses on this prime contract.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the DoD. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for vendor lock-in if the system becomes highly integrated.
- Risk of obsolescence if technology advances rapidly.
- Dependence on contractor's ability to maintain and update the system.
- Limited transparency into the specific technical functionalities and performance metrics.
Tags
custom-computer-programming-services, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to INTERSTATE ELECTRONICS CORPORATION. VIDEO SCOUT MC L&C BAND
Who is the contractor on this award?
The obligated recipient is INTERSTATE ELECTRONICS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2008-08-22. End: 2009-10-23.
What specific capabilities does the 'VIDEO SCOUT MC L&C BAND' system provide, and how do these capabilities align with current DoD operational needs?
The 'VIDEO SCOUT MC L&C BAND' likely refers to a system designed for video reconnaissance, analysis, and potentially command and control (C&C) functions, possibly within a specific frequency band. Its alignment with current DoD needs would depend on the evolving nature of intelligence gathering and surveillance, particularly in areas requiring advanced video processing and real-time data dissemination.
Given the firm fixed price contract type, what mechanisms are in place to manage potential scope creep or unforeseen technical challenges?
A firm fixed price contract aims to lock in costs, but scope creep is managed through rigorous change control processes. Any deviation from the original statement of work requires formal modification, often involving negotiation of additional cost and time. Technical challenges are typically the contractor's responsibility to resolve within the agreed-upon price, incentivizing efficient problem-solving.
How does the $23.4 million expenditure compare to industry benchmarks for similar custom video analysis software development and deployment?
Comparing this expenditure requires detailed knowledge of the system's complexity, features, and intended lifespan. However, $23.4 million for a specialized, custom-developed system within the defense sector is not unusual. Industry benchmarks for advanced software development, especially with stringent security and performance requirements, can range significantly, making direct comparison challenging without specific technical details.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 3033 SCIENCE PARK RD, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,369,066
Exercised Options: $23,369,066
Current Obligation: $23,369,066
Parent Contract
Parent Award PIID: GS35F0478P
IDV Type: FSS
Timeline
Start Date: 2008-08-22
Current End Date: 2009-10-23
Potential End Date: 2009-10-23 00:00:00
Last Modified: 2010-06-07
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