DoD awards $25.9M for aircraft control units, raising questions on competition and value
Contract Overview
Contract Amount: $25,884,992 ($25.9M)
Contractor: Scientific Research Corporation
Awarding Agency: Department of Defense
Start Date: 2012-08-14
End Date: 2016-09-30
Contract Duration: 1,508 days
Daily Burn Rate: $17.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF MULTI-FUNCTION CONTROL DISPLAY UNITS FOR AIRCRAFT RETROFIT
Place of Performance
Location: ATLANTA, COBB County, GEORGIA, 30339
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $25.9 million to SCIENTIFIC RESEARCH CORPORATION for work described as: PROCUREMENT OF MULTI-FUNCTION CONTROL DISPLAY UNITS FOR AIRCRAFT RETROFIT Key points: 1. Contract awarded for multi-function control display units for aircraft retrofit. 2. Significant value of $25.9 million for specialized aircraft components. 3. Sole-source procurement raises concerns about price discovery and competition. 4. Limited public data on unit cost hinders value assessment.
Value Assessment
Rating: questionable
The contract value is $25,884,992.35. Without a per-unit cost or comparison to similar procurements, it is difficult to assess if this price is reasonable. The lack of competition further complicates value determination.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits the government's ability to leverage market forces to achieve the best possible price and may lead to higher costs.
Taxpayer Impact: The lack of competitive bidding in this sole-source procurement may result in taxpayers paying a premium for these aircraft control units.
Public Impact
Military readiness may be impacted by the availability and cost of these critical aircraft components. Taxpayers bear the cost of a sole-source contract, potentially without the benefit of competitive pricing. The long contract duration (1508 days) suggests a significant, ongoing need for these units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of pricing transparency
- No small business participation noted
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
This procurement falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation capabilities. Benchmarks are difficult to establish without more specific component data.
Small Business Impact
There is no indication that small businesses were involved in this procurement. Sole-source contracts often bypass opportunities for small business participation, potentially limiting their access to government contracts.
Oversight & Accountability
The 'GA' status code suggests the contract may be subject to government-wide acquisition contracts or specific oversight mechanisms, but details are not provided. Further investigation into the justification for the sole-source award is warranted.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Lack of transparency on unit pricing.
- No clear indication of small business involvement.
- Potential for inflated costs due to lack of competition.
- Limited public information on justification for sole-source.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.9 million to SCIENTIFIC RESEARCH CORPORATION. PROCUREMENT OF MULTI-FUNCTION CONTROL DISPLAY UNITS FOR AIRCRAFT RETROFIT
Who is the contractor on this award?
The obligated recipient is SCIENTIFIC RESEARCH 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 $25.9 million.
What is the period of performance?
Start: 2012-08-14. End: 2016-09-30.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically require detailed documentation, such as a Justification and Approval (J&A), outlining the reasons, like unique capabilities or lack of alternatives. Without this documentation, it's impossible to verify if fair and reasonable pricing was achieved through other means, such as historical data or independent cost estimates.
What is the per-unit cost of these multi-function control display units, and how does it compare to industry benchmarks for similar components?
Determining the per-unit cost is essential for assessing value for money. If the average unit cost can be calculated from the total award amount and the number of units (if known), it should be benchmarked against similar components in the aerospace industry. A high per-unit cost, especially in a sole-source scenario, raises significant concerns about potential overspending and inefficient use of taxpayer funds.
What is the expected impact of these control display units on aircraft performance and operational effectiveness, and how was this impact validated?
Understanding the functional benefits and validated impact of these control display units on aircraft performance is key to assessing their effectiveness. While the contract value is substantial, the true value lies in the operational improvements they enable. Evidence of rigorous testing, validation, and clear performance metrics would support the necessity and effectiveness of this procurement.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001912R0006
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2300 WINDY RGE PWY STE 400S, ATLANTA, GA, 30339
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: $49,904,211
Exercised Options: $25,884,992
Current Obligation: $25,884,992
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-08-14
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2021-03-08
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