DoD's AN/SSQ-101B Acquisition Reaches $54M, Lacking Competition

Contract Overview

Contract Amount: $54,077,940 ($54.1M)

Contractor: Erapsco

Awarding Agency: Department of Defense

Start Date: 2021-04-28

End Date: 2023-10-31

Contract Duration: 916 days

Daily Burn Rate: $59.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-101B (FY21)

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $54.1 million to ERAPSCO for work described as: AN/SSQ-101B (FY21) Key points: 1. Significant spending of $54M on AN/SSQ-101B without competitive bidding. 2. ERAPSCO is the sole contractor, raising concerns about price discovery. 3. The contract is a Firm Fixed Price delivery order, limiting cost flexibility. 4. This spending falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.

Value Assessment

Rating: questionable

The total award of $54,077,940 for the AN/SSQ-101B is difficult to benchmark without competitive data. The lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This significantly hinders price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely results in higher prices than a competed contract, impacting taxpayer value.

Public Impact

Taxpayers may be overpaying for critical navigation and guidance systems due to a lack of competitive bidding. The Department of the Navy relies on a single source for this equipment, creating potential supply chain risks. Limited transparency in pricing for the AN/SSQ-101B hinders public understanding of defense spending efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Sole-Source Award
Potential for Overpricing

Positive Signals

Firm Fixed Price contract type can provide cost certainty if priced appropriately.
Long contract duration may indicate a stable, long-term need for the system.

Sector Analysis

This spending is within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Benchmarking requires comparison with similar sole-source procurements in defense electronics.

Small Business Impact

The data provided does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was valid and that fair pricing was pursued.

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
Sole-Source Award
Potential for Overpricing
Limited Transparency
Supply Chain Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.1 million to ERAPSCO. AN/SSQ-101B (FY21)

Who is the contractor on this award?

The obligated recipient is ERAPSCO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $54.1 million.

What is the period of performance?

Start: 2021-04-28. End: 2023-10-31.

What is the justification for not competing this significant contract, and was a thorough market survey conducted to ensure no viable alternatives existed?

The justification for not competing this contract is not provided in the data. A thorough market survey is crucial in sole-source procurements to confirm the absence of competitive alternatives and ensure the government is obtaining fair and reasonable pricing. Without this information, it's difficult to assess the necessity of the sole-source award.

How does the unit cost of the AN/SSQ-101B compare to similar systems procured competitively by other defense agencies or allied nations?

Direct comparison is challenging without specific unit cost data and detailed specifications. However, the absence of competition inherently raises concerns that the unit cost may be higher than if multiple vendors had vied for the contract. Benchmarking against similar, competitively procured systems is essential for validating price reasonableness.

What are the long-term strategic implications of relying on a single source for this critical navigation and guidance system, particularly regarding technological advancements and supply chain resilie

Sole-source reliance can stifle innovation as the contractor faces less pressure to invest in R&D. It also creates significant supply chain vulnerability; any disruption to the sole provider could halt production. This lack of competition may lead to the system becoming technologically outdated faster and increases the risk of price escalations 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

Solicitation ID: N0001919R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4868 EAST PARK 30 DR, COLUMBIA CITY, IN, 46725

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,077,940

Exercised Options: $54,077,940

Current Obligation: $54,077,940

Subaward Activity

Number of Subawards: 76

Total Subaward Amount: $33,543,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001919D0032

IDV Type: IDC

Timeline