Navy Awards $10.4M for AN/SSQ-62E Sonobuoys to Undersea Sensor Systems, Inc
Contract Overview
Contract Amount: $10,399,774 ($10.4M)
Contractor: Undersea Sensor Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-02-02
End Date: 2010-01-30
Contract Duration: 1,093 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/SSQ-62E SONOBUOY
Place of Performance
Location: ALEXANDRIA, MADISON County, INDIANA, 46001
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to UNDERSEA SENSOR SYSTEMS, INC. for work described as: AN/SSQ-62E SONOBUOY Key points: 1. The contract is for sonobuoys, critical for undersea warfare detection. 2. Undersea Sensor Systems, Inc. is the sole awardee, raising questions about competition. 3. The firm fixed-price contract type aims to control costs. 4. This spending falls within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: fair
The award amount of $10.4 million for 2 sonobuoys appears high on a per-unit basis, suggesting potential overpricing or specialized components. Further benchmarking against similar acoustic sensor systems is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being listed as full and open competition, only one vendor was awarded the contract. This suggests potential limitations in the bidding process or a lack of responsive bidders, which could impact price discovery.
Taxpayer Impact: The $10.4 million expenditure represents taxpayer investment in critical defense capabilities. Ensuring competitive pricing is essential to maximize the value of this investment.
Public Impact
Enhances naval capabilities for undersea threat detection and tracking. Supports ongoing military operations and national security objectives. Potential for future follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation.
- High per-unit cost potential.
- Sole awardee may limit future innovation.
Positive Signals
- Firm fixed-price contract helps manage cost overruns.
- Addresses a critical defense need.
- Awardee is an established entity in sensor systems.
Sector Analysis
This contract falls under the broader defense sector, specifically focusing on specialized electronic equipment for naval operations. Spending benchmarks for similar acoustic detection systems are difficult to ascertain due to the niche nature of sonobuoys.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The contract's duration and value warrant regular performance reviews and financial audits to ensure accountability and proper use of funds.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for sole-source justification despite 'full and open' status.
- High per-unit cost requires validation.
- Lack of small business participation noted.
- Limited number of units awarded (2) for a significant sum.
Tags
search-detection-navigation-guidance-aer, department-of-defense, in, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to UNDERSEA SENSOR SYSTEMS, INC.. AN/SSQ-62E 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 $10.4 million.
What is the period of performance?
Start: 2007-02-02. End: 2010-01-30.
What is the specific technical capability difference that justifies the high per-unit cost of these sonobuoys compared to market alternatives?
The high per-unit cost likely stems from specialized acoustic sensing technology, advanced signal processing capabilities, and ruggedized design for harsh maritime environments. These factors differentiate them from standard acoustic devices, potentially offering superior detection range, accuracy, and resistance to countermeasures, justifying the premium for critical defense applications.
How can the Navy ensure greater competition for future sonobuoy procurements, given the 'full and open' designation resulted in a single award?
The Navy could enhance future competition by actively engaging potential vendors early in the acquisition process, clearly defining technical requirements to encourage broader participation, and exploring modular designs that allow for component-level competition. Additionally, reviewing past solicitations and award data for similar systems might reveal barriers to entry that could be addressed.
What is the long-term strategic value of investing in this specific sonobuoy technology for the Navy's evolving undersea warfare doctrine?
The AN/SSQ-62E sonobuoys are crucial for maintaining situational awareness in increasingly complex undersea environments. Their continued procurement supports the Navy's ability to counter advanced submarine threats and protect maritime interests. Investing in this technology ensures readiness and provides a foundational capability for future advancements in anti-submarine warfare.
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: N0016406R6786
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: $17,283,120
Exercised Options: $10,399,774
Current Obligation: $10,399,774
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-02-02
Current End Date: 2010-01-30
Potential End Date: 2010-01-30 00:00:00
Last Modified: 2008-11-03
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