DoD awards $17.5M for Universal Test Sets to Textron Systems, raising concerns about competition and value

Contract Overview

Contract Amount: $17,528,496 ($17.5M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2010-06-03

End Date: 2012-02-23

Contract Duration: 630 days

Daily Burn Rate: $27.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BAND A/B AN/GLM-11 UNIVERSAL TEST SETS

Place of Performance

Location: GOOSE CREEK, BERKELEY County, SOUTH CAROLINA, 29445

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to TEXTRON SYSTEMS CORPORATION for work described as: BAND A/B AN/GLM-11 UNIVERSAL TEST SETS Key points: 1. High contract value of $17.5M for specialized test equipment. 2. Sole awarded vendor, Textron Systems, limits competitive pricing. 3. Potential for overpayment due to lack of competition. 4. Sector: Defense manufacturing of specialized measuring devices.

Value Assessment

Rating: questionable

The contract value of $17.5M for 1 universal test set appears high, especially given the lack of competitive bidding. Without market research or comparison to similar contracts, assessing fair pricing is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid for essential defense equipment due to a non-competitive award. Limited visibility into the justification for a sole-source award for test sets. Potential for future sole-source awards if this becomes a precedent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competitive pricing
High contract value without clear justification

Positive Signals

Awarded to a known defense contractor
Specific equipment for military needs

Sector Analysis

The Department of Defense frequently procures specialized electronic test equipment. Benchmarks for such items vary widely based on complexity and quantity, but competitive bidding is standard practice to ensure value.

Small Business Impact

No indication of small business participation in this sole-source award. The focus was on a single, large contractor.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification was sound and that competitive alternatives were thoroughly explored.

Related Government Programs

Other Measuring and Controlling Device Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing.
Limited market research evident.
High unit cost raises value concerns.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to TEXTRON SYSTEMS CORPORATION. BAND A/B AN/GLM-11 UNIVERSAL TEST SETS

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2010-06-03. End: 2012-02-23.

What was the specific justification for awarding this contract on a sole-source basis, and was a market survey conducted to assess competitive options?

The provided data indicates a sole-source award ('CT': 'NOT COMPETED'). A thorough justification would typically detail why only one vendor could meet the requirement, such as unique capabilities or urgent needs. A market survey is crucial to confirm the absence of viable alternatives and ensure fair pricing, even in sole-source situations.

How does the $17.5M cost for one universal test set compare to industry benchmarks for similar equipment, considering its technical specifications?

Without detailed specifications of the 'BAND A/B AN/GLM-11 UNIVERSAL TEST SETS', a direct benchmark is challenging. However, $17.5 million for a single unit of test equipment is exceptionally high. Industry benchmarks for complex, specialized test sets can range from tens of thousands to a few million dollars, making this award appear significantly overpriced.

What is the long-term strategy for acquiring these universal test sets, and will future procurements be competed to ensure better value?

The data only reflects a single award from 2010-2012. Future procurement strategies are unknown. Best practice dictates that after an initial sole-source award, especially for critical equipment, the agency should actively explore competitive avenues for subsequent acquisitions to leverage market forces and achieve cost savings.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: 124 INDUSTRY LN, HUNT VALLEY, MD, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,528,496

Exercised Options: $17,528,496

Current Obligation: $17,528,496

Contract Characteristics

Cost or Pricing Data: NO

Timeline