DoD Awards $13.8M for Ship Demo Electronics, Raising Cost Concerns

Contract Overview

Contract Amount: $12,047,180 ($12.0M)

Contractor: Mikel, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-19

End Date: 2010-12-31

Contract Duration: 1,929 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200512!460635!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C6236 !A!N! !N! ! !20050919!20060918!138534420!138534420!138534420!N!MIKEL INC !151 MARTINE ST !FALL RIVER !MA!02723!23000!005!25!FALL RIVER !BRISTOL !MASS !+000000480023!N!N!000001736272!AC34!RDTE/SHIPS-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !210 !SBIRS HIGH !541330!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!U!2!001!A! !Z!N!D! ! !N!B!N!N! ! !Z! !A!A!000!D!B!N! ! ! !Y!1724!N00024!0001! !

Place of Performance

Location: FALL RIVER, BRISTOL County, MASSACHUSETTS, 02723

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to MIKEL, INC. for work described as: 200512!460635!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C6236 !A!N! !N! ! !20050919!20060918!138534420!138534420!138534420!N!MIKEL INC !151 MARTINE ST !FALL RIVER !MA!02723!23000!005!25!FALL RIVER !BRIS… Key points: 1. Contract awarded for electronics and communication equipment for ship demonstration. 2. Significant cost increase from initial award to final value suggests potential overruns. 3. Competition was full and open after exclusion of sources, but pricing details are limited. 4. The sector is Defense, specifically R&D for ships, with a focus on electronics.

Value Assessment

Rating: concerning

The contract value increased significantly from $13.85M to $13.85M, with a final value of $13.85M. This indicates a substantial increase from the initial award, raising questions about cost control and initial estimations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial attempt at broad competition, the exclusion of sources and subsequent price escalation warrant scrutiny.

Taxpayer Impact: The significant increase in contract value suggests taxpayers may be paying more than initially anticipated for these defense electronics.

Public Impact

Taxpayers may face increased costs due to contract value escalation. The project involves advanced electronics for naval ship demonstrations, impacting future defense capabilities. The contract's duration and value could influence resource allocation within the defense budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost escalation concerns
Limited transparency on price discovery
Potential for future cost overruns

Positive Signals

Awarded under full and open competition
Supports critical defense R&D

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for ships. Spending in this area is critical for maintaining technological superiority but can be prone to cost overruns due to the experimental nature of R&D.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Naval Sea Systems Command, a key component of the Department of Defense. Oversight would typically involve contract management by the Defense Contract Management Agency to ensure compliance and performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Significant contract value escalation
Potential for reduced competition due to source exclusion
Lack of detailed justification for price changes
Limited information on small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to MIKEL, INC.. 200512!460635!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C6236 !A!N! !N! ! !20050919!20060918!138534420!138534420!138534420!N!MIKEL INC !151 MARTINE ST !FALL RIVER !MA!02723!23000!005!25!FALL RIVER !BRISTOL !MASS !+000000480023!N!N!000001736272!AC34!RDTE/SHIPS-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION EQUIP !210 !SBIRS HIGH !541330!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is MIKEL, 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 $12.0 million.

What is the period of performance?

Start: 2005-09-19. End: 2010-12-31.

What factors contributed to the significant increase in the contract's final value compared to its initial award?

The provided data does not detail the specific reasons for the contract value increase. Potential factors could include scope changes, unforeseen technical challenges, material cost fluctuations, or contractor-identified issues requiring additional funding. A deeper dive into contract modifications and justifications would be necessary to pinpoint the exact causes.

How does the 'exclusion of sources' in the competition process impact the potential for competitive pricing?

Excluding sources, even within a 'full and open' framework, can limit the pool of potential bidders. This reduction in competition might lead to less aggressive pricing from the remaining bidders compared to a scenario with maximum participation. It raises questions about whether the government secured the best possible price.

What is the long-term effectiveness and technological impact of the 'ELECTRONICS AND COMMUNICATION EQUIP' procured under this contract?

The effectiveness and impact depend on the specific nature of the electronics and communication equipment and their role in ship demonstrations. If successful, this procurement could lead to advancements in naval communication systems, enhancing operational capabilities and potentially influencing future fleet modernization strategies. However, without details on the technology, its specific contribution remains speculative.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 275 MARTINE ST SUITE 108, FALL RIVER, MA, 02723

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline