DoD Awards $292.7M for AN/ALQ-214(V)4 Electronic Warfare System to ITT Corp
Contract Overview
Contract Amount: $292,726,136 ($292.7M)
Contractor: ITT Corporation
Awarding Agency: Department of Defense
Start Date: 2012-04-16
End Date: 2016-11-30
Contract Duration: 1,689 days
Daily Burn Rate: $173.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/ALQ-214(V)4 OBJ SYSTEM, FRP LOTS 9-11
Place of Performance
Location: CLIFTON, PASSAIC County, NEW JERSEY, 07014
Plain-Language Summary
Department of Defense obligated $292.7 million to ITT CORPORATION for work described as: AN/ALQ-214(V)4 OBJ SYSTEM, FRP LOTS 9-11 Key points: 1. The AN/ALQ-214(V)4 is a crucial electronic warfare system for naval aircraft. 2. ITT Corporation is the sole provider, raising concerns about competition. 3. The contract's firm-fixed-price structure aims to control costs. 4. Spending is concentrated within the Defense sector, specifically naval aviation.
Value Assessment
Rating: fair
The total award of $292.7 million over approximately 4 years for the AN/ALQ-214(V)4 system appears substantial. Without specific per-unit cost data or benchmarks for similar advanced electronic warfare systems, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to ITT Corporation. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for a critical defense system may result in taxpayers paying a premium for the AN/ALQ-214(V)4.
Public Impact
Ensures continued operational capability for naval aviation electronic warfare. Supports advanced threat detection and countermeasures for U.S. Navy pilots. Potential for increased costs due to sole-source nature impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for cost overruns if not closely monitored.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Essential system for national security and naval readiness.
Sector Analysis
This contract falls under the Defense sector, specifically for the manufacturing of search, detection, navigation, guidance, and related instruments. Spending on advanced electronic warfare systems like the AN/ALQ-214(V)4 is typical for maintaining military technological superiority.
Small Business Impact
The data indicates no specific set-aside for small businesses in this contract. As a sole-source award to a large corporation, opportunities for small business participation are likely limited unless subcontracted.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight from the Department of Defense to ensure fair pricing and prevent potential waste. Robust auditing and performance monitoring are 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 award
- Potential for inflated pricing
- Limited transparency in cost structure
- No small business participation noted
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $292.7 million to ITT CORPORATION. AN/ALQ-214(V)4 OBJ SYSTEM, FRP LOTS 9-11
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 $292.7 million.
What is the period of performance?
Start: 2012-04-16. End: 2016-11-30.
What is the justification for the sole-source award of the AN/ALQ-214(V)4 system, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single vendor. The Department of Defense should have conducted a thorough market analysis to confirm no other sources exist. To ensure fair pricing, they likely rely on cost realism analyses, historical pricing data, and potentially independent government cost estimates, alongside contract clauses that allow for price adjustments if costs are found to be unreasonable.
How does the lack of competition for this electronic warfare system impact the overall defense budget and taxpayer burden?
A lack of competition for critical defense systems like the AN/ALQ-214(V)4 can lead to higher unit costs compared to a competitive environment. This directly increases the burden on the defense budget, potentially diverting funds from other essential programs or requiring increased appropriations. Taxpayers ultimately bear this cost through their tax contributions.
What is the long-term strategy for ensuring competitive sourcing or technological advancement for this system to mitigate future sole-source risks?
The long-term strategy might involve market research for potential alternative technologies or manufacturers, encouraging industry innovation through R&D contracts, or developing modular system designs that allow for component upgrades from different vendors. The DoD could also explore strategies like 'should-cost' analysis and incentivize the incumbent contractor to reduce costs over time.
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: 77 RIVER RD, CLIFTON, NJ, 07014
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $292,726,136
Exercised Options: $292,726,136
Current Obligation: $292,726,136
Subaward Activity
Number of Subawards: 265
Total Subaward Amount: $326,858,381
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-04-16
Current End Date: 2016-11-30
Potential End Date: 2016-11-30 00:00:00
Last Modified: 2016-01-27
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