DoD's $5.77M contract for amplifier tubes awarded to CPI Electron Device Business, Inc

Contract Overview

Contract Amount: $5,770,000 ($5.8M)

Contractor: CPI Electron Device Business, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-23

End Date: 2026-07-31

Contract Duration: 1,073 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPAIR OF SINGLE DUTY, DOUBLE DUTY, AND WATER COOLED VANE CROSS FIELD AMPLIFIER TUBES

Place of Performance

Location: WALPOLE, NORFOLK County, MASSACHUSETTS, 02081

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to CPI ELECTRON DEVICE BUSINESS, INC. for work described as: REPAIR OF SINGLE DUTY, DOUBLE DUTY, AND WATER COOLED VANE CROSS FIELD AMPLIFIER TUBES Key points: 1. Contract value appears reasonable given the specialized nature of electronic components. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. Contract duration of nearly three years suggests a sustained need for these components. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Focus on repair indicates a need for maintenance of existing systems rather than new acquisitions.

Value Assessment

Rating: good

The contract value of $5.77 million for amplifier tubes is within a reasonable range for specialized electronic components. Benchmarking against similar contracts for niche electronic parts is challenging due to limited public data. However, the price appears to be a firm fixed price, which provides cost certainty. The base contract value is $5.77M, with a potential ceiling of $5.38M, indicating flexibility for additional needs within the scope of the IDIQ.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation may have been broad, certain sources were excluded before the final award. The specific reasons for exclusion are not detailed, but this approach can limit the number of potential bidders. The award was made to a single contractor, CPI Electron Device Business, Inc., suggesting a lack of robust competition for this specific delivery order.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that could have been achieved through a wider bidding process.

Public Impact

The Department of the Navy benefits from the continued availability of critical amplifier tubes for its systems. This contract ensures the operational readiness of naval platforms that rely on these specific electronic components. The services delivered include the repair and potential refurbishment of specialized amplifier tubes. The geographic impact is primarily within the supply chain and maintenance facilities supporting the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices for taxpayers.
Lack of transparency regarding source exclusion raises questions about fairness.
Dependence on a single contractor for critical components poses a supply chain risk.

Positive Signals

Firm fixed price contract provides cost predictability.
Contract duration suggests a stable and predictable need.
Award to an established business likely ensures quality and reliability.

Sector Analysis

This contract falls within the 'Other Electronic Component Manufacturing' sector, specifically NAICS code 334419. This is a niche market focused on specialized electronic parts, often with high barriers to entry due to technical expertise and manufacturing requirements. The market size for such specific components is difficult to quantify but is driven by defense and aerospace needs. This contract represents a small portion of overall defense electronics spending, focusing on maintenance and repair rather than new system development.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit small business set-aside mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal, and subcontracting opportunities for small businesses are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed cost. Transparency is limited by the 'exclusion of sources' nature of the competition. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Electronics Manufacturing
Naval Systems Maintenance
Electronic Component Repair Services
IDIQ Contract Vehicles

Risk Flags

Limited competition
Potential for sole-source dependency
Lack of transparency in source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to CPI ELECTRON DEVICE BUSINESS, INC.. REPAIR OF SINGLE DUTY, DOUBLE DUTY, AND WATER COOLED VANE CROSS FIELD AMPLIFIER TUBES

Who is the contractor on this award?

The obligated recipient is CPI ELECTRON DEVICE BUSINESS, 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 $5.8 million.

What is the period of performance?

Start: 2023-08-23. End: 2026-07-31.

What is the historical spending pattern for CPI Electron Device Business, Inc. with the Department of Defense for similar amplifier tube repairs?

Analyzing historical spending for CPI Electron Device Business, Inc. with the Department of Defense for similar amplifier tube repairs requires access to comprehensive federal procurement databases. While this specific contract is valued at $5.77 million, understanding the company's broader contract history, including the number and value of previous awards for related services, would provide crucial context. A review of past performance, including any issues or successes, would help assess the contractor's track record and reliability. Without specific historical data points, it's difficult to determine if this award represents a significant increase or decrease in spending for such services or if it aligns with past trends.

How does the awarded price compare to market rates for the repair of single duty, double duty, and water-cooled vane cross field amplifier tubes?

Benchmarking the awarded price of $5.77 million against market rates for the repair of specialized amplifier tubes is challenging due to the niche nature of these components and the limited availability of public pricing data. The 'Other Electronic Component Manufacturing' sector (NAICS 334419) often involves proprietary technologies and custom repair processes. A firm fixed-price contract suggests that the price was negotiated and deemed fair by the contracting agency. However, without access to competitive bids or industry cost analyses, a definitive comparison to market rates is not feasible. The limited competition further complicates direct price validation.

What are the specific risks associated with relying on CPI Electron Device Business, Inc. for these critical amplifier tube repairs?

The primary risks associated with relying on CPI Electron Device Business, Inc. stem from the limited competition ('Full and Open Competition After Exclusion of Sources') and the potential for single-source dependency. If CPI Electron Device Business, Inc. were to experience production issues, financial instability, or decide to discontinue services, the Department of the Navy could face significant disruptions in maintaining its operational platforms. The exclusion of other sources raises concerns about the long-term availability of competitive repair options. Furthermore, the specialized nature of the components means that finding alternative qualified repair providers could be difficult and time-consuming, potentially leading to extended downtime for critical naval systems.

What is the overall effectiveness of the 'Full and Open Competition After Exclusion of Sources' strategy for procuring specialized electronic components like amplifier tubes?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' for specialized components is a nuanced issue. On one hand, it allows agencies to leverage existing relationships or specific capabilities that might be essential for unique requirements, potentially ensuring access to critical technologies or expertise. It can also be used when only a limited number of vendors possess the necessary qualifications or when national security concerns necessitate restricting the pool of potential contractors. However, this strategy inherently limits competition, which can lead to higher costs for taxpayers and reduce the incentive for contractors to offer their most competitive pricing. The effectiveness hinges on whether the exclusions are justified by genuine technical or security requirements, rather than administrative convenience.

How does the duration of this contract (nearly three years) impact the Department of the Navy's long-term planning for electronic component maintenance?

The contract duration of approximately three years (August 2023 to July 2026) provides the Department of the Navy with a degree of stability and predictability for the repair and maintenance of these specific amplifier tubes. This allows for better long-term resource planning, budgeting, and operational readiness forecasting. Knowing that a reliable source for these critical components is secured for this period reduces the immediate risk of supply chain disruptions. However, it also means that the Navy is committed to this specific vendor and pricing structure for the contract's term, potentially missing out on cost savings or technological advancements that might emerge from a more competitive procurement process initiated sooner.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0010420RD006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 150 SOHIER RD, BEVERLY, MA, 01915

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

Financial Breakdown

Contract Ceiling: $5,770,000

Exercised Options: $5,770,000

Current Obligation: $5,770,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010422DZP01

IDV Type: IDC

Timeline