DoD awards $34.8M Sonobuoys contract to Undersea Sensor Systems, Inc. via full and open competition

Contract Overview

Contract Amount: $34,850,334 ($34.9M)

Contractor: Undersea Sensor Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-10

End Date: 2011-02-11

Contract Duration: 731 days

Daily Burn Rate: $47.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SONOBUOYS PROCUREMENT

Place of Performance

Location: COLUMBIA CITY, WHITLEY County, INDIANA, 46725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $34.9 million to UNDERSEA SENSOR SYSTEMS, INC. for work described as: SONOBUOYS PROCUREMENT Key points: 1. The contract value is $34.8 million. 2. Competition was full and open. 3. The contract is for Sonobuoys, a critical defense component. 4. The sector is Defense, specifically related to undersea warfare.

Value Assessment

Rating: fair

The contract was awarded in 2009 with a firm fixed price, suggesting an attempt at cost control. However, the lack of specific cost breakdowns makes a precise value assessment difficult without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized full and open competition, which generally promotes competitive pricing. The award to a single entity suggests this was the most advantageous offer received.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bids.

Public Impact

Ensures continued availability of critical sonar technology for naval operations. Supports defense industrial base and potential job creation. Provides essential equipment for maritime surveillance and anti-submarine warfare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of 2 years may not reflect long-term needs.
  • No specific mention of small business participation.

Positive Signals

  • Full and open competition utilized.
  • Firm fixed price contract type.

Sector Analysis

This procurement falls within the Defense sector, specifically focusing on specialized sensor systems for naval applications. Spending benchmarks for similar systems can vary widely based on technological complexity and quantity.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award. Further investigation would be needed to determine if any subcontracting opportunities were pursued.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency, indicating standard oversight for this type of procurement. The firm fixed price structure provides some level of cost accountability.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Potential for limited competition despite 'full and open' designation.
  • Lack of detailed cost breakdown for value assessment.
  • No explicit mention of small business utilization.
  • Contract duration may not align with long-term strategic needs.

Tags

search-detection-navigation-guidance-aer, department-of-defense, in, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to UNDERSEA SENSOR SYSTEMS, INC.. SONOBUOYS PROCUREMENT

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $34.9 million.

What is the period of performance?

Start: 2009-02-10. End: 2011-02-11.

What was the competitive landscape like for sonobuoy manufacturing at the time of award?

Understanding the competitive landscape is crucial. If few companies could produce sonobuoys meeting the stringent military specifications, 'full and open competition' might have yielded limited viable bids, potentially impacting the final price. Research into the number of bidders and their respective capabilities would clarify this.

How does the awarded price compare to industry benchmarks for similar sonobuoy systems?

Benchmarking the awarded price against similar sonobuoy systems procured by other defense agencies or allies is essential for assessing value. Factors like technological advancements, quantity ordered, and specific performance requirements influence pricing. Without this comparative data, it's difficult to definitively state if the $34.8 million represents a fair market price.

What is the long-term strategic value of this sonobuoy procurement for the Department of Defense?

The long-term strategic value hinges on the sonobuoys' role in maintaining naval superiority, particularly in anti-submarine warfare. Ensuring a reliable supply chain for these critical components supports ongoing operational readiness and national security objectives. The effectiveness of the procured systems in real-world scenarios would be the ultimate measure of their strategic value.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, 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: TWO STEP

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 4868 E PARK 30 DR, COLUMBIA CITY, IN, 46725

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

Financial Breakdown

Contract Ceiling: $37,119,344

Exercised Options: $34,850,334

Current Obligation: $34,850,334

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2009-02-10

Current End Date: 2011-02-11

Potential End Date: 2011-02-11 00:00:00

Last Modified: 2021-11-01

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