DoD's $29.6M IJHMCS Contract Awarded to Collins Elbit Vision Systems Raises Questions on Competition

Contract Overview

Contract Amount: $29,639,483 ($29.6M)

Contractor: Collins Elbit Vision Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-28

End Date: 2026-04-24

Contract Duration: 1,001 days

Daily Burn Rate: $29.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IJHMCS DESIGN AND DEVELOPMENT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76179

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to COLLINS ELBIT VISION SYSTEMS, LLC for work described as: IJHMCS DESIGN AND DEVELOPMENT Key points: 1. The contract for IJHMCS design and development is a significant investment in advanced navigation systems. 2. Competition appears limited, with a sole-source award raising concerns about price discovery and value. 3. The sector is critical for defense, but the lack of competition could lead to higher costs. 4. Potential risks include overspending and suboptimal technology due to a lack of market pressure.

Value Assessment

Rating: questionable

The contract value of $29.6 million for IJHMCS design and development needs further scrutiny. Without competitive bidding, it's difficult to assess if this price is aligned with industry benchmarks for similar complex system development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may not yield the best value for taxpayers.

Taxpayer Impact: The absence of competition for this $29.6 million contract could result in higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Taxpayers may be paying a premium for advanced navigation technology due to the sole-source award. The Department of the Navy is investing heavily in systems that could impact future military operations. Lack of transparency in the procurement process could erode public trust in defense spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for overpayment without competitive pressure
Lack of small business participation noted

Positive Signals

Investment in critical defense technology
Clear contract duration and scope

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national security, but often involves high R&D costs and specialized expertise, making competitive benchmarking challenging.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). Efforts should be made to ensure small businesses have opportunities in future related procurements.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor delivers on the contract requirements efficiently and at a reasonable cost. Accountability for performance and spending 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

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive pressure.
No indication of small business involvement.
High contract value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to COLLINS ELBIT VISION SYSTEMS, LLC. IJHMCS DESIGN AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is COLLINS ELBIT VISION SYSTEMS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2023-07-28. End: 2026-04-24.

What specific justification was provided for the sole-source award, and how does it align with federal procurement regulations for limiting competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of qualified sources. For this IJHMCS contract, the Department of Defense would need to demonstrate that only Collins Elbit Vision Systems could provide the required design and development services, or that competition was impractical or not in the government's best interest. This justification is critical for ensuring compliance with procurement laws and maximizing taxpayer value.

How will the government ensure cost control and value for money on this Cost Plus Fixed Fee contract without competitive pressure?

Despite the lack of upfront competition, the government can implement robust cost control measures. This includes detailed monitoring of contractor expenditures, regular audits, and performance-based incentives within the Cost Plus Fixed Fee structure. Strong contract management and clear performance metrics are essential to ensure the contractor remains efficient and delivers the required capabilities within the allocated budget, maximizing value for taxpayers.

What are the potential long-term implications of awarding critical defense technology development on a sole-source basis for future innovation and market competition?

Sole-source awards, while sometimes necessary, can stifle innovation and reduce future market competition if they become a pattern. By not fostering a competitive environment, the government might miss out on alternative technological advancements and potentially higher-quality solutions from other firms. Over time, this can lead to a less dynamic defense industrial base and potentially higher costs for essential technologies.

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: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042123R0031

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 4700 MARINE CREEK PARKWAY, FORT WORTH, TX, 76179

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,478,587

Exercised Options: $29,639,486

Current Obligation: $29,639,483

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $853,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline