Navy Awards $136.9M Sonobuoy Contract to Undersea Sensor Systems, Inc
Contract Overview
Contract Amount: $136,924,800 ($136.9M)
Contractor: Undersea Sensor Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-15
End Date: 2027-09-14
Contract Duration: 729 days
Daily Burn Rate: $187.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACTIVE PASSIVE COMBO CAPABILITY SONOBUOY
Place of Performance
Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $136.9 million to UNDERSEA SENSOR SYSTEMS, INC. for work described as: ACTIVE PASSIVE COMBO CAPABILITY SONOBUOY Key points: 1. Contract awarded for active/passive combo sonobuoys, critical for undersea warfare. 2. Undersea Sensor Systems, Inc. is the sole awardee, raising questions about competition. 3. Potential risk associated with single-source award and limited price discovery. 4. Spending falls within the broader 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $136.9M over 729 days suggests a significant investment. Benchmarking against similar sonobuoy contracts is difficult without more specific technical details and market data, but the lack of competition raises concerns about optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'FULL AND OPEN COMPETITION', the award is a single delivery order to one contractor. This suggests that while the initial solicitation may have been open, the subsequent award process or specific requirements led to a single entity being selected, potentially limiting price discovery.
Taxpayer Impact: The impact on taxpayers is uncertain due to the lack of competitive pricing. A more competitive process could potentially yield lower costs.
Public Impact
Enhances naval capabilities for undersea detection and surveillance. Supports ongoing military operations and national security interests. Potential for technological advancements in sonar and acoustic sensing. Impacts companies within the defense manufacturing supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- Potential for price escalation without competitive pressure
- Reliance on a single supplier for critical components
Positive Signals
- Award supports critical defense capabilities
- Contract duration provides stability for the supplier
- Firm fixed price contract offers cost certainty
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, which is a specialized area within defense procurement. Spending benchmarks for sonobuoys are highly dependent on technological sophistication and quantity, making direct comparisons challenging.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific award. Further analysis would be needed to determine the extent of small business participation in the supply chain for this contract.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The firm fixed price structure provides some cost control, but the limited competition aspect warrants scrutiny to ensure fair pricing and value for taxpayer dollars.
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 demonstrated competition for the award
- Potential for inflated pricing due to single-source award
- Dependency on one contractor for critical defense technology
- Need for further justification of 'full and open' competition leading to single award
Tags
search-detection-navigation-guidance-aer, department-of-defense, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $136.9 million to UNDERSEA SENSOR SYSTEMS, INC.. ACTIVE PASSIVE COMBO CAPABILITY SONOBUOY
Who is the contractor on this award?
The obligated recipient is UNDERSEA SENSOR SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $136.9 million.
What is the period of performance?
Start: 2025-09-15. End: 2027-09-14.
What specific technical advancements or unique capabilities does Undersea Sensor Systems, Inc. offer that justified a single award despite a 'full and open' competition?
The justification for a single award, even under a full and open competition framework, likely stems from specific technical requirements, unique intellectual property, or demonstrated past performance that made Undersea Sensor Systems, Inc. the most qualified or only capable bidder for this particular sonobuoy capability. Detailed technical specifications and evaluation criteria from the solicitation would clarify this.
How does the unit cost of these sonobuoys compare to similar systems procured competitively by other allied nations or previous Navy contracts?
Without access to detailed cost breakdowns and specific technical parameters of the sonobuoys, a direct unit cost comparison is difficult. However, the absence of robust competition for this $136.9M contract raises a flag. If comparable systems were procured through more competitive means, the unit cost here might be higher than optimal, impacting overall value for money.
What is the long-term strategy for ensuring continued innovation and competitive pricing in sonobuoy technology beyond this single award?
The Navy's long-term strategy should involve fostering a broader ecosystem of sonobuoy developers and manufacturers. This could include investing in R&D for next-generation systems, encouraging dual-sourcing where feasible, and ensuring future solicitations are structured to maximize competitive engagement, thereby driving innovation and cost-effectiveness.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0001921R0009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4868 E PK 30 DR, COLUMBIA CITY, IN, 46725
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $136,924,800
Exercised Options: $136,924,800
Current Obligation: $136,924,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001922D0018
IDV Type: IDC
Timeline
Start Date: 2025-09-15
Current End Date: 2027-09-14
Potential End Date: 2027-09-14 00:00:00
Last Modified: 2025-09-17
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