DoD Awards $31M Contract for Support Equipment to Sun Test Systems B.V
Contract Overview
Contract Amount: $31,006,595 ($31.0M)
Contractor: SUN Test Systems B.V.
Awarding Agency: Department of Defense
Start Date: 2023-06-02
End Date: 2026-12-31
Contract Duration: 1,308 days
Daily Burn Rate: $23.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DEVELOPMENT, MANUFACTURING, AND SUSTAINMENT OF SUPPORT EQUIPMENT
Plain-Language Summary
Department of Defense obligated $31.0 million to SUN TEST SYSTEMS B.V. for work described as: DEVELOPMENT, MANUFACTURING, AND SUSTAINMENT OF SUPPORT EQUIPMENT Key points: 1. Contract value of $31,001,000 for support equipment. 2. Sole-source award to Sun Test Systems B.V. 3. Potential risks associated with limited competition. 4. Sector: Defense - Aircraft Parts Manufacturing.
Value Assessment
Rating: questionable
The contract value of $31M for support equipment is significant. Without comparable contract data or a clear justification for the sole-source award, assessing its value relative to similar procurements is difficult. The lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This significantly limits price discovery and may lead to higher costs for the government compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award raises concerns about taxpayer value, as the absence of competition could result in inflated prices.
Public Impact
Taxpayers may be paying more due to the lack of competitive bidding. The Department of Defense is acquiring critical support equipment. The contract duration extends to late 2026, indicating a long-term need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Awarded to a specific company for specialized equipment
- Long-term contract ensures availability
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts and auxiliary equipment manufacturing. Spending in this area is critical for maintaining military readiness, but competitive pricing is essential to ensure efficient use of funds.
Small Business Impact
The data does not indicate whether small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable and that the equipment meets all specified requirements. Accountability for the justification of the sole-source award is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price discovery.
- No indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to SUN TEST SYSTEMS B.V.. DEVELOPMENT, MANUFACTURING, AND SUSTAINMENT OF SUPPORT EQUIPMENT
Who is the contractor on this award?
The obligated recipient is SUN TEST SYSTEMS B.V..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $31.0 million.
What is the period of performance?
Start: 2023-06-02. End: 2026-12-31.
What is the justification for the sole-source award of this $31M contract for support equipment?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without the specific justification document, it's impossible to confirm the exact reasoning, but it's a critical piece of information for assessing the procurement's validity and potential risks.
What are the potential risks associated with awarding a $31M contract on a sole-source basis?
The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a higher price than if multiple vendors had bid. Other risks include potential quality issues if the vendor is not adequately incentivized to perform, and a lack of innovation that might come from a competitive environment. It also limits the government's ability to explore alternative solutions.
How can the Department of Defense ensure fair pricing and value for taxpayer money on this sole-source contract?
The Department of Defense can ensure fair pricing through rigorous price analysis, including comparing proposed costs to historical prices, commercial price lists, or independent cost estimates. They should also conduct thorough technical evaluations to ensure the equipment meets requirements and negotiate terms that include performance incentives or price reduction clauses where possible. Robust contract administration and oversight are also key.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: NIJVERHEIDSLAAN 15, WEESP
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $31,006,595
Exercised Options: $31,006,595
Current Obligation: $31,006,595
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-06-02
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-04-09
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