DoD Awards $113.5M for AN/ALQ-214(V)4 Electronic Warfare System to ITT Corp

Contract Overview

Contract Amount: $113,451,859 ($113.5M)

Contractor: ITT Corporation

Awarding Agency: Department of Defense

Start Date: 2009-12-17

End Date: 2014-06-30

Contract Duration: 1,656 days

Daily Burn Rate: $68.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/ALQ-214(V)4 GOVT LAB&FLIGHT TESTS

Place of Performance

Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $113.5 million to ITT CORPORATION for work described as: AN/ALQ-214(V)4 GOVT LAB&FLIGHT TESTS Key points: 1. The contract for the AN/ALQ-214(V)4 electronic warfare system was awarded to ITT Corporation. 2. This represents a significant investment in advanced defense technology for the Department of the Navy. 3. The lack of competition raises questions about potential price inflation and limited market exploration. 4. The sector is specialized in aerospace and defense electronics, with high barriers to entry.

Value Assessment

Rating: questionable

The total award of $113.5 million over 1656 days suggests a substantial investment. Without competitive bids, it's difficult to assess if this price is optimal compared to similar EW system development and testing contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was sole-sourced, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers as there was no incentive for multiple vendors to offer their best pricing.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the absence of competitive pressure to reduce costs.

Public Impact

Enhances naval aviation's electronic warfare capabilities, crucial for mission success and pilot safety. Supports advanced research and development in a critical defense technology sector. The significant funding allocated could be scrutinized for its efficiency given the lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Long contract duration

Positive Signals

  • Critical defense technology
  • Supports naval aviation

Sector Analysis

This contract falls within the aerospace and defense electronics manufacturing sector, specifically for electronic warfare systems. Benchmarks for similar sole-source R&D contracts are hard to establish due to the specialized nature and proprietary technologies involved.

Small Business Impact

The contract was awarded to ITT Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

The Department of the Navy awarded this contract. Oversight would typically involve program management reviews and milestone tracking to ensure delivery and performance, but the sole-source nature limits external accountability on pricing.

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 competitive bidding
  • Potential for cost overruns
  • Limited transparency in pricing
  • Long performance period may increase risk

Tags

search-detection-navigation-guidance-aer, department-of-defense, nj, dca, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.5 million to ITT CORPORATION. AN/ALQ-214(V)4 GOVT LAB&FLIGHT TESTS

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 $113.5 million.

What is the period of performance?

Start: 2009-12-17. End: 2014-06-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of adequate competition within a specific timeframe. For advanced systems like the AN/ALQ-214(V)4, the government might argue that only ITT Corporation possessed the necessary expertise or intellectual property to fulfill the requirements efficiently and effectively.

How does the cost of this sole-source contract compare to potentially competitive bids for similar EW systems?

Without competitive bids, a direct cost comparison is impossible. However, sole-source contracts generally carry a higher risk of inflated pricing because the awarded contractor faces no market pressure to offer the lowest possible cost. Independent cost estimates and historical data on similar, albeit non-identical, systems would be needed for a rough benchmark.

What is the long-term strategic value of investing $113.5 million in this specific electronic warfare system?

The long-term strategic value lies in maintaining and enhancing the U.S. Navy's technological superiority in electronic warfare. The AN/ALQ-214(V)4 likely provides critical capabilities for threat detection, jamming, and self-protection, which are essential for survivability and mission effectiveness in contested airspace. Continued investment ensures readiness against evolving adversary capabilities.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 77 RIVER RD, CLIFTON, NJ, 09

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $113,451,859

Exercised Options: $113,451,859

Current Obligation: $113,451,859

Contract Characteristics

Cost or Pricing Data: YES

Timeline

Start Date: 2009-12-17

Current End Date: 2014-06-30

Potential End Date: 2014-06-30 00:00:00

Last Modified: 2013-08-22

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