DoD Awards $14.2M for AN/SQQ-89 Sonar Systems to EDO Western Corp

Contract Overview

Contract Amount: $14,221,881 ($14.2M)

Contractor: L3 Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-04-01

End Date: 2008-09-30

Contract Duration: 2,374 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200207!021842!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6329 !A!N! !N! !20020401!20041231!009073305!009073305!001876440!N!EDO WESTERN CORPORATION !2645 SOUTH 300 WEST !SALT LAKE CITY !UT!84115!67000!035!49!SALT LAKE CITY !SALT LAKE !UTAH !+000006397748!N!N!000000000000!2090!MISCELLANEOUS SHIP AND MARINE EQUIPMENT !A3 !SHIPS !2GSS!AN/SQQ-89 SONAR !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!004!B! !A!N!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! !Y! ! !0001!

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84115, UNITED STATES OF AMERICA

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to L3 TECHNOLOGIES, INC. for work described as: 200207!021842!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6329 !A!N! !N! !20020401!20041231!009073305!009073305!001876440!N!EDO WESTERN CORPORATION !2645 SOUTH 300 WEST !SALT LAKE CITY !UT!84115!67000!035!49!SALT LAKE CITY !SALT … Key points: 1. Contract awarded for sonar systems, a critical component for naval operations. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk appears moderate given the fixed-price contract type and established system. 4. Spending falls within the Defense sector, specifically for ship systems.

Value Assessment

Rating: good

The contract value of $14.2 million for sonar systems appears reasonable given the duration and scope. Benchmarking against similar complex defense electronics contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense equipment.

Public Impact

Enhances naval defense capabilities through advanced sonar technology. Supports military readiness and national security objectives. Contributes to the technological advancement in maritime surveillance.

Waste & Efficiency Indicators

Waste Risk Score: 59 / 10

Warning Flags

Potential for cost overruns if scope creeps beyond initial fixed-price terms.
Dependence on a single contractor for specialized sonar components.
Long-term sustainment and upgrade costs for the sonar system.

Positive Signals

Awarded through full and open competition.
Utilizes a fixed-price contract type, providing cost certainty.
Supports critical naval defense infrastructure.

Sector Analysis

This contract falls within the Defense sector, specifically for shipboard systems. Spending on sonar and related navigation equipment is common for maintaining naval fleet capabilities.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was managed by the Naval Sea Systems Command, a key agency for naval procurement. Oversight would focus on delivery schedules, quality control, and adherence to contract specifications.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Contract duration is substantial (over 2 years).
Fixed-price contract may not fully account for unforeseen material cost increases.
Potential for sole-source follow-on contracts if this system becomes standard.
Complexity of sonar systems can lead to integration challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to L3 TECHNOLOGIES, INC.. 200207!021842!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6329 !A!N! !N! !20020401!20041231!009073305!009073305!001876440!N!EDO WESTERN CORPORATION !2645 SOUTH 300 WEST !SALT LAKE CITY !UT!84115!67000!035!49!SALT LAKE CITY !SALT LAKE !UTAH !+000006397748!N!N!000000000000!2090!MISCELLANEOUS SHIP AND MARINE EQUIPMENT !A3 !SHIPS !2GSS!AN/SQQ-89 SONAR !334511!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is L3 TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2002-04-01. End: 2008-09-30.

What is the historical performance of EDO Western Corporation on similar defense contracts?

Historical performance data for EDO Western Corporation on similar defense contracts is crucial for assessing reliability and execution capability. Reviewing past contract awards, delivery records, and any reported issues or disputes would provide insight into their track record. This information helps predict their ability to meet the current contract's requirements and timelines effectively.

How does the cost of this sonar system compare to commercially available alternatives or systems used by allied nations?

Comparing the cost of this military-specific sonar system to commercial equivalents or systems used by allies can reveal potential inefficiencies or unique technological advantages. If commercial options are significantly cheaper, it raises questions about the necessity of specialized military features or potential overpricing. Conversely, if it's competitively priced against allied systems, it may indicate good value for advanced capabilities.

What are the long-term implications of this sonar system's technology on future naval modernization efforts?

The long-term implications of this sonar system's technology are significant for future naval modernization. Understanding its capabilities, upgrade potential, and integration with newer platforms will influence future procurement decisions. If the system is easily adaptable and upgradable, it could extend its service life and reduce future modernization costs. Conversely, if it represents a technological dead-end, it might necessitate earlier replacement.

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: SHIP AND MARINE EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ITT Corporation (UEI: 001216845)

Address: 2645 S 300 W, SALT LAKE CITY, UT, 84115

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline