Naval contract for undersea sensor systems awarded to Undersea Sensor Systems, Inc. for over $26 million

Contract Overview

Contract Amount: $26,180,478 ($26.2M)

Contractor: Undersea Sensor Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-12-20

End Date: 2008-02-11

Contract Duration: 1,148 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200504!A01337!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0016405C6769 !A!N! !N! ! !20041220!20061220!046185794!046185794!046185794!N!UNDERSEA SENSOR SYSTEMS INC !4578 EAST PARK 30 DRIVE !COLUMBIA CITY !IN!46725!14716!183!18!COLUMBIA CITY !WHITLEY !INDIANA !+000009872049!N!N!000000000000!5845!UNDERWATER SOUND EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!002!N!3A!A!N!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! ! ! ! !1719!N00019!0001! !

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to UNDERSEA SENSOR SYSTEMS, INC. for work described as: 200504!A01337!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0016405C6769 !A!N! !N! ! !20041220!20061220!046185794!046185794!046185794!N!UNDERSEA SENSOR SYSTEMS INC !4578 EAST PARK 30 DRIVE !COLUMBIA CITY !IN!46725!14716!183!18!COLUMBIA CITY !WHIT… Key points: 1. Contract value of $26.18 million for undersea sensor systems. 2. Awarded to a single contractor, Undersea Sensor Systems, Inc. 3. Contract duration of approximately 3.8 years. 4. Primarily for underwater sound equipment. 5. Firm Fixed Price contract type. 6. Located in Columbia City, Indiana.

Value Assessment

Rating: fair

The contract value of $26.18 million for undersea sensor systems appears to be within a reasonable range for specialized defense equipment. However, without specific details on the quantity and technical specifications of the 'undersea sensor systems' or comparable contract data for similar systems, a precise value-for-money assessment is challenging. The firm fixed-price nature of the contract shifts risk to the contractor, which can be beneficial for the government if the contractor manages costs effectively. The number of bids received (2) suggests some level of competition, but further analysis would be needed to determine if this was sufficient for optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that while competition was sought, certain sources may have been excluded for specific reasons. With only two bids received, the level of competition was limited. This suggests that the market for these specific undersea sensor systems might be concentrated among a few suppliers, or that the exclusion of other sources narrowed the field significantly. Limited competition can sometimes lead to higher prices than would be achieved in a broader, more open bidding process.

Taxpayer Impact: The limited competition for this contract means taxpayers may not have benefited from the most aggressive pricing possible. The government may have paid a premium due to the restricted number of bidders.

Public Impact

The primary beneficiary is the Department of the Navy, receiving critical undersea sensor systems. The contract supports the development and/or procurement of underwater sound equipment. The geographic impact is concentrated in Indiana, where the contractor is located. The contract supports jobs and economic activity within the defense manufacturing sector in Indiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in higher costs for taxpayers.
The specific technical capabilities and performance metrics of the sensor systems are not detailed, making it difficult to assess true value.
The exclusion of sources in the competition process warrants further investigation to ensure fairness and maximize potential savings.

Positive Signals

Firm Fixed Price contract type helps control costs and manage budget predictability.
The contractor, Undersea Sensor Systems, Inc., is a specialized provider in this niche area.
The contract supports a critical defense capability for the Navy.

Sector Analysis

This contract falls within the 'Electronics and Communication Equipment' sector, specifically focusing on 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' The market for specialized undersea sensor systems is typically dominated by a few key defense contractors due to high barriers to entry, including technological expertise and security clearances. Spending in this niche can fluctuate based on defense priorities and technological advancements in areas like submarine detection and underwater surveillance.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting plans specifically for small businesses. The prime contractor, Undersea Sensor Systems, Inc., is likely a mid-to-large-sized entity given the contract value. The absence of small business set-asides or explicit subcontracting goals means there is limited direct benefit to the small business ecosystem from this particular award.

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 goods within the agreed-upon price. Transparency is generally maintained through contract databases, though specific performance details and technical specifications may be sensitive. The Inspector General of the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Naval Surface Warfare Center
Undersea Warfare Systems
Defense Procurement
Sensor Technology
Naval Electronics

Risk Flags

Limited competition
Potential for price inflation due to restricted bidding
Lack of detailed technical specifications for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to UNDERSEA SENSOR SYSTEMS, INC.. 200504!A01337!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0016405C6769 !A!N! !N! ! !20041220!20061220!046185794!046185794!046185794!N!UNDERSEA SENSOR SYSTEMS INC !4578 EAST PARK 30 DRIVE !COLUMBIA CITY !IN!46725!14716!183!18!COLUMBIA CITY !WHITLEY !INDIANA !+000009872049!N!N!000000000000!5845!UNDERWATER SOUND EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334511!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is UNDERSEA SENSOR SYSTEMS, 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 $26.2 million.

What is the period of performance?

Start: 2004-12-20. End: 2008-02-11.

What is the specific nature and technical capability of the 'undersea sensor systems' being procured under this contract?

The provided data identifies the product service code (PSC) as 5845, which corresponds to 'Underwater Sound Equipment.' This suggests the contract is for systems designed to detect, identify, or analyze underwater acoustic signals. These could range from passive sonar arrays to active sonar components, or integrated systems for surveillance and tactical applications. Without further details, it's difficult to ascertain the exact technological sophistication, intended use (e.g., anti-submarine warfare, mine detection, oceanographic research), or performance specifications. The contractor, Undersea Sensor Systems, Inc., specializes in this domain, implying a certain level of technical expertise relevant to these systems.

How does the awarded price of $26.18 million compare to similar contracts for undersea sensor systems?

A direct comparison of the $26.18 million award to similar contracts is challenging without access to a comprehensive database of historical undersea sensor system procurements with detailed specifications. The value of such contracts can vary significantly based on the type of sensor (e.g., passive vs. active, towed array vs. hull-mounted), quantity, technological advancement, and specific performance requirements. Given that only two bids were received, it suggests a potentially niche market. To benchmark effectively, one would need to identify contracts for systems with comparable technical capabilities, quantities, and delivery timelines, ideally awarded under similar competitive conditions. The firm fixed-price nature also implies the contractor bears cost overruns, which is factored into the pricing.

What are the potential risks associated with awarding this contract to Undersea Sensor Systems, Inc.?

Potential risks include the limited competition, with only two bids received, which could indicate a lack of robust market engagement or potential for higher pricing than a more competitive scenario might yield. Dependence on a single contractor for a critical defense component like undersea sensor systems can also pose a risk if the contractor faces financial difficulties, production issues, or fails to meet delivery schedules. Furthermore, the 'Exclusion of Sources' clause in the competition type warrants scrutiny to ensure it was justified and did not unduly restrict competition. Finally, the long-term viability and technological roadmap of the contractor are important considerations for sustained support and future upgrades of these critical systems.

What is the historical spending pattern for undersea sensor systems by the Department of the Navy?

Historical spending on undersea sensor systems by the Department of the Navy is substantial and driven by ongoing requirements for maritime security, anti-submarine warfare (ASW), and intelligence gathering. While this specific contract represents a significant award, the Navy consistently invests in sonar technology, acoustic arrays, and related processing systems. Spending fluctuates based on modernization programs, new platform acquisitions (like submarines and surface combatants), and evolving threat assessments. Analyzing broader spending trends would involve examining budgets allocated to naval warfare systems, particularly those related to undersea surveillance and detection over multiple fiscal years, to understand the overall investment in this capability area.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

This award type signifies that the solicitation was intended for full and open competition, meaning all responsible sources were permitted to submit an offer. However, 'after exclusion of sources' implies that certain potential offerors were deliberately excluded from consideration, likely due to specific requirements, security concerns, or other pre-determined criteria outlined in the solicitation. This approach aims to ensure that only qualified and appropriate vendors participate, potentially streamlining the evaluation process. Nevertheless, it narrows the competitive pool compared to unrestricted full and open competition, which could impact price discovery and potentially lead to higher contract values if the excluded sources represented significant competition.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Undersea Sensor Systems Inc (UEI: 349084822)

Address: 4578 EAST PARK 30 DRIVE, COLUMBIA CITY, IN, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline