Navy awards $146M contract for electronic countermeasure systems to ITT Avionics

Contract Overview

Contract Amount: $146,067,397 ($146.1M)

Contractor: ITT Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-02

End Date: 2008-07-31

Contract Duration: 1,428 days

Daily Burn Rate: $102.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: NOT REPORTED

Sector: IT

Official Description: 200412!000042!1700!AA410 !NAVAL AIR SYSTEMS COMMAND !N0001904C0074 !A!N! !N! ! !20040902!20080731!052554441!052554441!001216845!N!ITT AVIONICS !100 KINGSLAND ROAD !CLIFTON !NJ!07014!13690!031!34!CLIFTON !PASSAIC !NEW JERSEY!+000063677442!N!N!000145859730!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!A!B!3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! !Y! ! !0001! !

Place of Performance

Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $146.1 million to ITT CORPORATION for work described as: 200412!000042!1700!AA410 !NAVAL AIR SYSTEMS COMMAND !N0001904C0074 !A!N! !N! ! !20040902!20080731!052554441!052554441!001216845!N!ITT AVIONICS !100 KINGSLAND ROAD !CLIFTON !NJ!07014!13690!031!34!CLIFTON !PASS… Key points: 1. The contract is for electronic countermeasure systems, a critical component for naval aviation. 2. ITT Avionics, a subsidiary of ITT Corporation, is the contractor, indicating a specific supplier relationship. 3. The award was 'NOT COMPETED', raising questions about the procurement process and potential lack of competitive pricing. 4. The sector is Electronics and Communication Equipment, with a significant value of $146,067,397.

Value Assessment

Rating: questionable

The contract value is substantial at $146,067,397. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts or market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED', suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these electronic countermeasure systems.

Public Impact

Naval forces will receive advanced electronic countermeasure systems, enhancing operational capabilities and safety. The significant contract value could impact the market for related electronic components and services. The non-competitive award may limit opportunities for other qualified small and large businesses in this specialized sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award
Limited visibility into cost-effectiveness

Positive Signals

Procurement of critical defense technology
Award to established defense contractor

Sector Analysis

This contract falls within the 'Electronics and Communication Equipment' sector, specifically for specialized systems used in defense applications. The value of $146M is significant for this niche.

Small Business Impact

The data indicates the prime contractor is ITT Avionics, a subsidiary of ITT Corporation. There is no explicit mention of small business participation in this specific award, and the non-competitive nature might limit subcontracting opportunities.

Oversight & Accountability

The 'NOT COMPETED' status warrants further review to ensure proper justification and adherence to procurement regulations, safeguarding taxpayer funds.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing
No clear indication of small business subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $146.1 million to ITT CORPORATION. 200412!000042!1700!AA410 !NAVAL AIR SYSTEMS COMMAND !N0001904C0074 !A!N! !N! ! !20040902!20080731!052554441!052554441!001216845!N!ITT AVIONICS !100 KINGSLAND ROAD !CLIFTON !NJ!07014!13690!031!34!CLIFTON !PASSAIC !NEW JERSEY!+000063677442!N!N!000145859730!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!A!B!3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is ITT 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 $146.1 million.

What is the period of performance?

Start: 2004-09-02. End: 2008-07-31.

What was the justification for not competing this contract, and was a thorough market research conducted to ensure the price was fair and reasonable?

The justification for not competing this contract is not detailed in the provided data. Typically, sole-source awards require extensive justification, such as a unique capability or urgent need. Without this information, it's impossible to confirm if market research was adequately performed to ensure a fair and reasonable price for the taxpayer.

What are the specific risks associated with a sole-source award for critical electronic countermeasure systems, particularly regarding long-term sustainment and technological obsolescence?

Sole-source awards for critical systems like electronic countermeasures carry risks of inflated costs, reduced innovation, and vendor lock-in. Long-term sustainment may be more expensive without competitive pressure. Furthermore, reliance on a single supplier could lead to delays or difficulties in upgrading to newer technologies, increasing the risk of obsolescence.

How effective are these electronic countermeasure systems in enhancing naval aviation capabilities, and is there a plan for independent verification and validation of their performance?

The effectiveness of the electronic countermeasure systems is presumed given their procurement by the Department of the Navy. However, the provided data does not include details on performance metrics or independent verification. A robust plan for testing and validation would be crucial to ensure these systems meet operational requirements and justify the investment.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Address: 100 KINGSLAND ROAD, CLIFTON, NJ, 09

Business Categories: Category Business, Not Designated a Small Business

Timeline