DoD awards $31.7M for 30MM Gun Weapon System to MSI-Defence Systems Ltd

Contract Overview

Contract Amount: $31,715,982 ($31.7M)

Contractor: Msi-Defence Systems Ltd

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2012-12-30

Contract Duration: 822 days

Daily Burn Rate: $38.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 30MM GUN WEAPON SYSTEM

Plain-Language Summary

Department of Defense obligated $31.7 million to MSI-DEFENCE SYSTEMS LTD for work described as: 30MM GUN WEAPON SYSTEM Key points: 1. Contract awarded to MSI-Defence Systems Ltd. for a 30MM Gun Weapon System. 2. The total contract value is $31,715,982. 3. The contract was not competed, raising potential concerns about price discovery. 4. This procurement falls under the Defense sector, specifically for the Department of the Navy.

Value Assessment

Rating: questionable

The contract value of $31.7M for a weapon system is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition could lead to a higher expenditure of taxpayer funds than if the contract had been competitively bid.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense is acquiring a critical weapon system, impacting national security capabilities. The long-term sustainment and operational effectiveness of this system will be a key consideration for the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Acquisition of critical defense equipment

Sector Analysis

This contract falls within the defense industrial sector, which often involves complex and high-value weapon system procurements. Benchmarks for similar 30MM gun systems are not readily available without competitive data.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this specific contract award.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and value for taxpayer money. The Department of Defense's contracting officers are responsible for justifying the non-competitive award.

Related Government Programs

International Affairs
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 million to MSI-DEFENCE SYSTEMS LTD. 30MM GUN WEAPON SYSTEM

Who is the contractor on this award?

The obligated recipient is MSI-DEFENCE SYSTEMS LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.7 million.

What is the period of performance?

Start: 2010-09-30. End: 2012-12-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without further documentation, it's impossible to determine the specific rationale used by the Department of the Navy to bypass competitive bidding for this 30MM Gun Weapon System.

What is the potential risk of cost overruns or inflated pricing due to the non-competitive nature of this award?

The primary risk of a non-competitive award is the absence of market pressure to drive down prices. This can lead to inflated costs for the government compared to what might be achieved through a competitive process. The $31.7M value amplifies this concern, necessitating robust cost analysis and negotiation by the DoD.

How will the effectiveness and performance of this 30MM Gun Weapon System be evaluated post-award?

Effectiveness will be evaluated through rigorous testing, operational deployment, and performance metrics defined in the contract. The Department of the Navy will likely conduct post-delivery inspections and monitor the system's reliability and combat effectiveness during its service life to ensure it meets the required military specifications.

Industry Classification

NAICS: Public Administration › National Security and International Affairs › International Affairs

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MS International PLC (UEI: 212095772)

Address: SALHOUSE RD, NORWICH

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $41,985,864

Exercised Options: $31,715,982

Current Obligation: $31,715,982

Contract Characteristics

Cost or Pricing Data: YES

Timeline