Navy Awards $402M Contract for Electronic Countermeasures Systems to ITT Industries

Contract Overview

Contract Amount: $402,238,754 ($402.2M)

Contractor: ITT Corporation

Awarding Agency: Department of Defense

Start Date: 2005-03-02

End Date: 2012-11-30

Contract Duration: 2,830 days

Daily Burn Rate: $142.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200606!332152!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0054 !A!N! !N! ! !20060302!20080930!001216845!001216845!001216845!N!ITT INDUSTRIES, INC !4 WEST RED OAK LANE !WHITE PLAINS !NY!10604!13690!031!34!CLIFTON !PASSAIC !NEW JERSEY!+000082074576!N!N!000454700376!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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!1700!N00019!0001! !

Place of Performance

Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $402.2 million to ITT CORPORATION for work described as: 200606!332152!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0054 !A!N! !N! ! !20060302!20080930!001216845!001216845!001216845!N!ITT INDUSTRIES, INC !4 WEST RED OAK LANE !WHITE PLAINS !NY!10604!13690!031!34!CLIFTON !PASS… Key points: 1. The contract is for Electronic Countermeasures (ECM) systems, crucial for naval aviation. 2. ITT Industries, a large defense contractor, secured this significant award. 3. The 'NOT COMPETED' status raises questions about the procurement process and potential cost savings. 4. This spending falls within the broader 'Electronics and Communication Equipment' sector.

Value Assessment

Rating: questionable

The contract value of $402,238,754 is substantial. Without specific unit costs or comparison data for similar ECM systems, it's difficult to definitively assess its value. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was 'NOT COMPETED,' indicating a sole-source or limited competition procurement. This method can lead to higher prices as there is no market pressure from competing vendors to drive down costs.

Taxpayer Impact: The lack of competitive bidding likely results in higher costs for taxpayers compared to a fully competed contract.

Public Impact

Enhances naval aviation capabilities with advanced electronic countermeasures. Supports a major defense contractor and its supply chain. Raises concerns about the efficiency and cost-effectiveness of sole-source procurements. Impacts national security by ensuring advanced defense systems are available.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long contract duration (2005-2012)

Positive Signals

Provides critical defense capability
Supports established contractor

Sector Analysis

This contract falls under the 'Electronics and Communication Equipment' sector, specifically for search, detection, and navigation systems. Defense spending in this area is often characterized by high R&D costs and specialized requirements, sometimes leading to less competition.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Large sole-source contracts often bypass small business participation unless they are subcontractors.

Oversight & Accountability

The 'NOT COMPETED' designation warrants further oversight to ensure the government obtained fair and reasonable pricing. Accountability for the procurement decision is crucial.

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

Sole-source procurement
Lack of price transparency
Potential for cost overruns
Long contract performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $402.2 million to ITT CORPORATION. 200606!332152!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0054 !A!N! !N! ! !20060302!20080930!001216845!001216845!001216845!N!ITT INDUSTRIES, INC !4 WEST RED OAK LANE !WHITE PLAINS !NY!10604!13690!031!34!CLIFTON !PASSAIC !NEW JERSEY!+000082074576!N!N!000454700376!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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 $402.2 million.

What is the period of performance?

Start: 2005-03-02. End: 2012-11-30.

What was the justification for not competing this contract, and were alternative solutions explored?

The justification for not competing this contract is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent needs. Further investigation would be required to determine if alternatives were explored and why they were deemed unsuitable.

How does the per-unit cost of these ECM systems compare to similar systems acquired through competitive processes?

Without access to specific unit cost data for this contract and comparable systems acquired competitively, a direct comparison is impossible. However, the absence of competition strongly suggests that the per-unit cost may be higher than if multiple vendors had vied for the contract, potentially leading to increased taxpayer expense.

What is the long-term strategic value of relying on a single provider for these critical electronic countermeasures?

Relying on a single provider for critical systems like ECM can create strategic vulnerabilities, including potential supply chain disruptions, price escalation, and reduced innovation due to lack of competitive pressure. While it can ensure specialized expertise, it necessitates robust contract management and contingency planning to mitigate risks.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4 WEST RED OAK LANE, WHITE PLAINS, NY, 16

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline