Dod Awards $26.4M for Seafox Neutralizers to Tkms Atlas North America LLC, a Sole-Source Contract
Contract Overview
Contract Amount: $26,392,817 ($26.4M)
Contractor: Tkms Atlas North America LLC
Awarding Agency: Department of Defense
Start Date: 2016-03-31
End Date: 2023-09-30
Contract Duration: 2,739 days
Daily Burn Rate: $9.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SEAFOX NEUTRALIZERS
Place of Performance
Location: YORKTOWN, YORK County, VIRGINIA, 23692
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.4 million to TKMS ATLAS NORTH AMERICA LLC for work described as: SEAFOX NEUTRALIZERS Key points: 1. Spending of $26.4M on SEAFOX NEUTRALIZERS. 2. TKMS ATLAS NORTH AMERICA LLC is the sole contractor. 3. Contract awarded by the Department of Defense. 4. The contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market competition to drive down prices.
Taxpayer Impact: The lack of competition for this $26.4M contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract duration (2016-2023) suggests a critical, ongoing need for these systems. Lack of transparency in pricing due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Contract awarded to a specific company for a specialized need.
Sector Analysis
The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this sector can be significant, especially for defense applications, and often involves specialized, high-cost components.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any potential small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense, which has established oversight mechanisms. However, the sole-source nature and cost-plus contract type warrant close monitoring to ensure fiscal responsibility.
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
- Sole-source award limits competition and potentially increases costs.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for inefficient use of taxpayer funds.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.4 million to TKMS ATLAS NORTH AMERICA LLC. SEAFOX NEUTRALIZERS
Who is the contractor on this award?
The obligated recipient is TKMS ATLAS NORTH AMERICA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $26.4 million.
What is the period of performance?
Start: 2016-03-31. End: 2023-09-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without specific details on the SEAFOX NEUTRALIZERS, it's presumed the Department of Defense determined TKMS ATLAS NORTH AMERICA LLC was the only entity capable of fulfilling the requirement. Further review of the contract's justification documentation is needed to confirm this and assess if alternatives were adequately explored.
How does the final cost compare to the initial estimates, given the Cost Plus Fixed Fee structure?
Cost Plus Fixed Fee contracts allow for costs to exceed initial estimates, with the contractor receiving a fixed fee. Analyzing the final expenditure against initial projections and understanding the factors that influenced any variance is crucial. This requires access to detailed financial reports and performance metrics associated with the contract to assess cost efficiency and potential overruns.
What is the operational effectiveness and necessity of the SEAFOX NEUTRALIZERS, and how does this justify the significant sole-source expenditure?
The necessity and effectiveness of the SEAFOX NEUTRALIZERS are paramount in justifying the $26.4M sole-source expenditure. Understanding their role in defense operations, their performance metrics, and any unique capabilities they possess is essential. This information helps determine if the investment aligns with strategic objectives and if the benefits derived outweigh the costs incurred, especially in the absence of competitive benchmarking.
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: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002415R6301
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: America Aero Group LLC
Address: 120 NEWSOME DR, STE H, YORKTOWN, VA, 23692
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $28,563,798
Exercised Options: $27,983,526
Current Obligation: $26,392,817
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-03-31
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-10-30
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