DoD's $32.8M Contract for Navigation Systems Awarded to CEIA USA LTD, Lacking Competition

Contract Overview

Contract Amount: $32,828,080 ($32.8M)

Contractor: Ceia USA Ltd

Awarding Agency: Department of Defense

Start Date: 2013-03-15

End Date: 2013-08-12

Contract Duration: 150 days

Daily Burn Rate: $218.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CMD

Plain-Language Summary

Department of Defense obligated $32.8 million to CEIA USA LTD for work described as: CMD Key points: 1. Significant contract value of $32.8 million awarded. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. 4. No small business participation was noted in this award.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $32.8 million price represents fair market value. Benchmarking against similar sole-source contracts or industry standards would be necessary for a thorough evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The absence of competition likely means taxpayers did not benefit from potential cost savings that a bidding process could have generated.

Public Impact

Taxpayers may have paid more than necessary due to the lack of competition. Limited visibility into the justification for a sole-source award. Potential for reduced innovation in navigation systems due to lack of market pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
No small business participation
Lack of transparency in pricing

Positive Signals

Awarded to a specific company for a specialized need.

Sector Analysis

This contract is within the manufacturing sector for navigation systems, a critical component for defense operations. Benchmarks for similar sole-source contracts in this niche are hard to establish without more data.

Small Business Impact

The contract data indicates no small business participation. This suggests that opportunities for small businesses in this specific procurement were either not sought or not realized.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification was sound and that the price paid was reasonable. Accountability for the lack of competition is crucial.

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 inflated pricing due to lack of competition.
Limited transparency regarding the necessity of a sole-source award.
Missed opportunity to engage small businesses.
Risk of technological stagnation in navigation systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to CEIA USA LTD. CMD

Who is the contractor on this award?

The obligated recipient is CEIA USA LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.8 million.

What is the period of performance?

Start: 2013-03-15. End: 2013-08-12.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. A thorough review of the contract file would be required to ascertain the specific reasons and assess their validity.

How does the $32.8 million price compare to industry benchmarks for similar navigation systems, especially considering the lack of competition?

Without competitive bids, direct price comparison is challenging. The $32.8 million price should be benchmarked against historical sole-source awards for comparable systems or against independent cost estimates. The absence of competition inherently raises the risk that the price may not be the most cost-effective achievable.

What is the long-term impact on technological advancement in navigation systems when contracts are awarded without competition?

Sole-source awards can stifle innovation by removing the competitive pressure that drives companies to develop more advanced or cost-effective solutions. When a single entity is guaranteed a contract, there may be less incentive to invest in research and development beyond meeting the immediate contract requirements.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9155 DUTTON DR, TWINSBURG, OH, 13

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,828,080

Exercised Options: $32,828,080

Current Obligation: $32,828,080

Contract Characteristics

Cost or Pricing Data: NO

Timeline