Navy awards $21.3M for sonobuoys, with 2 bidders competing for undersea sensor systems

Contract Overview

Contract Amount: $21,350,139 ($21.4M)

Contractor: Undersea Sensor Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-02-02

End Date: 2009-04-29

Contract Duration: 817 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/SSQ-53F SONOBUOY

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to UNDERSEA SENSOR SYSTEMS, INC. for work described as: AN/SSQ-53F SONOBUOY Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a moderately contested market for these specific systems. 3. Risk indicators include contract duration and fixed-price nature. 4. Performance context is within undersea warfare and surveillance capabilities. 5. Sector positioning is in specialized defense manufacturing for naval operations.

Value Assessment

Rating: good

The contract value of $21.3 million for AN/SSQ-53F SONOBUOYs appears reasonable given the specialized nature of undersea sensor systems. Benchmarking against similar contracts for advanced sonobuoys is challenging due to proprietary technology and specific performance requirements. However, the presence of two bidders suggests a degree of market competition that likely influenced pricing. The firm fixed-price structure shifts cost risk to the contractor, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Two bids were received, suggesting a moderately competitive environment for this specific type of sonobuoy. While more than two bidders could potentially drive prices lower, two bidders still provide a basis for price discovery and comparison, preventing a sole-source situation.

Taxpayer Impact: The full and open competition with two bidders likely resulted in a fair market price for taxpayers, avoiding the premium often associated with sole-source procurements.

Public Impact

Naval forces benefit from advanced undersea detection and surveillance capabilities. Services delivered include the manufacturing and supply of critical sonobuoy technology. Geographic impact is primarily on naval operations globally, supporting maritime security. Workforce implications include employment in specialized defense manufacturing in Indiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 817 days could introduce risks related to technological obsolescence or changing operational needs.
Reliance on a single manufacturer for a critical component could pose supply chain risks if not managed proactively.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, indicating a healthy market.
Contractor is based in Indiana, potentially supporting domestic manufacturing jobs.

Sector Analysis

The defense sector for undersea sensor systems is highly specialized, driven by technological advancements in anti-submarine warfare and maritime surveillance. The market is characterized by a limited number of highly capable contractors due to significant R&D investment and stringent performance requirements. Spending in this area is critical for maintaining naval superiority and national security. Comparable spending benchmarks are difficult to establish due to the unique nature of each system, but consistent investment in sonobuoys reflects their ongoing importance.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting plans for small businesses in the provided data. 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 the direct impact on the small business ecosystem for this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified goods within budget. Transparency is facilitated by the contract award being made under full and open competition, with data publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sonobuoy Systems
Undersea Warfare Technology
Maritime Surveillance Equipment
Defense Sensor Manufacturing
Naval Aviation Support Systems

Risk Flags

Contract Duration
Potential for Technological Obsolescence
Supply Chain Concentration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to UNDERSEA SENSOR SYSTEMS, INC.. AN/SSQ-53F SONOBUOY

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 $21.4 million.

What is the period of performance?

Start: 2007-02-02. End: 2009-04-29.

What is the historical spending trend for AN/SSQ-53F SONOBUOYs or similar sonobuoys by the Department of the Navy?

Analyzing historical spending for specific sonobuoy models like the AN/SSQ-53F is complex without access to detailed procurement databases. However, general trends in naval spending indicate a consistent requirement for advanced acoustic sensors. The Department of the Navy has historically allocated significant resources to anti-submarine warfare (ASW) capabilities, which heavily rely on sonobuoys. Factors such as geopolitical tensions, the perceived threat from submarines, and technological advancements in both detection and counter-detection systems influence the volume and value of sonobuoy procurements over time. The shift towards more sophisticated, multi-mission sonobuoys also impacts overall spending, potentially increasing per-unit costs while offering enhanced capabilities. Without specific contract data for this model over multiple years, it's difficult to pinpoint precise spending trends, but the overall investment in ASW technology suggests sustained demand.

How does the unit cost of these sonobuoys compare to other similar systems procured by the Navy or other military branches?

Direct unit cost comparisons for specialized defense equipment like sonobuoys are challenging due to variations in technical specifications, performance capabilities, quantities ordered, and contract terms. The AN/SSQ-53F is a specific model with particular acoustic sensing and data transmission features. Other sonobuoys might differ in frequency range, depth capability, power source, or data processing. Furthermore, contracts awarded under full and open competition with multiple bidders, like this one, tend to yield more competitive pricing than sole-source awards. To perform a robust comparison, one would need to identify contracts for sonobuoys with comparable specifications (e.g., AN/SSQ-125, AN/SSQ-101) and analyze their unit prices, considering the year of award, quantity, and competition level. The $21.3 million award for an unspecified quantity suggests that individual units could range significantly in price, likely in the thousands or tens of thousands of dollars each, depending on the exact configuration and volume.

What are the key performance requirements and technological advancements associated with the AN/SSQ-53F SONOBUOY?

The AN/SSQ-53F SONOBUOY is a critical component of the Navy's Anti-Submarine Warfare (ASW) capabilities, designed for detecting and classifying submarines and other underwater threats. While specific technical details are often classified or proprietary, general information suggests it is an advanced acoustic sensor. Key performance requirements typically include high sensitivity, wide frequency range detection, directional capabilities (e.g., DIFAR - Directional Frequency Analysis and Recording), and the ability to transmit processed acoustic data to a receiving platform (like an aircraft or surface vessel) in near real-time. Technological advancements in this generation of sonobuoys often focus on improved signal processing, reduced false alarm rates, enhanced countermeasures resistance, miniaturization, and potentially multi-static or active sonar capabilities. The 'F' designation often implies a specific variant or upgrade, suggesting it incorporates improvements over earlier models, potentially offering better performance in challenging acoustic environments or against quieter, more sophisticated submarine threats.

What is the track record of Undersea Sensor Systems, Inc. in delivering similar defense contracts?

Undersea Sensor Systems, Inc. (USSI) has a history of providing specialized acoustic sensing technology to the U.S. military. While specific contract performance details are not publicly available in this summary, USSI is known for its expertise in developing and manufacturing sonobuoys and related underwater acoustic systems. Their involvement in contracts like the AN/SSQ-53F suggests they possess the necessary technical capabilities and quality control processes to meet stringent defense requirements. Companies in this niche often have long-standing relationships with defense agencies due to the specialized nature of the products and the high barriers to entry. A review of contract databases and performance reports (if accessible) would provide a more granular understanding of their past performance, including on-time delivery, quality adherence, and responsiveness to contract modifications or issues.

What are the potential risks associated with the firm fixed-price contract type for this specific procurement?

A firm fixed-price (FFP) contract, while offering cost certainty to the government, places the primary risk of cost overruns on the contractor. For a complex system like the AN/SSQ-53F SONOBUOY, potential risks include the contractor underestimating production costs, facing unexpected material price increases, or encountering manufacturing challenges. If the contractor cannot absorb these costs, it could lead to quality compromises, delivery delays, or even contractor default, although the latter is less common with established defense suppliers. Conversely, if the contractor significantly overestimates costs due to uncertainty, the government might pay a premium. The success of an FFP contract often hinges on the contractor's accurate cost estimation and efficient production processes, as well as the government's clear definition of requirements to minimize scope creep.

How does the geographic location of the contractor (Indiana) impact the contract's execution and logistics?

The contractor, Undersea Sensor Systems, Inc., being located in Indiana, has several implications for this Department of the Navy contract. Firstly, it supports domestic manufacturing and potentially creates or sustains jobs within the United States, aligning with 'Buy American' or similar policies. Logistically, Indiana's central location in the U.S. offers reasonable access to major transportation networks (air, rail, road) for shipping finished products to naval bases or deployment points, although final delivery destinations for sonobuoys are often overseas or to naval air stations. Proximity can sometimes facilitate easier communication and oversight between the contractor and government representatives, potentially reducing travel costs and response times for issue resolution. However, the primary impact is economic and geopolitical, reinforcing the domestic defense industrial base rather than posing significant logistical challenges for this type of product.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0016406R6785

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 4578 E PARK 30 DR, COLUMBIA CITY, IN, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,281,646

Exercised Options: $21,350,139

Current Obligation: $21,350,139

Contract Characteristics

Cost or Pricing Data: NO

Timeline