DoD's $10.5M Loral Fairchild Systems Contract: Long Duration, Firm Fixed Price, Limited Competition
Contract Overview
Contract Amount: $10,459,334 ($10.5M)
Contractor: Loral Fairchild Systems Inc
Awarding Agency: Department of Defense
Start Date: 1999-11-23
End Date: 2015-02-28
Contract Duration: 5,576 days
Daily Burn Rate: $1.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: GREENLAWN, SUFFOLK County, NEW YORK, 11740
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $10.5 million to LORAL FAIRCHILD SYSTEMS INC for work described as: Key points: 1. Contract awarded to Loral Fairchild Systems Inc. for $10.5 million. 2. Long contract duration of 5576 days (approx. 15 years). 3. Firm Fixed Price contract type suggests price certainty but limits flexibility. 4. Limited competition raises questions about price discovery and value. 5. Awarded by the Department of Defense, managed by DCMA.
Value Assessment
Rating: questionable
The contract's long duration and lack of readily available competition data make a direct pricing assessment difficult. Without benchmarks or comparable contracts, it's hard to determine if the $10.5 million represents a fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The limited competition nature of this contract raises concerns about potential overspending and reduced value for taxpayer dollars.
Public Impact
Long-term commitment of taxpayer funds for a single vendor. Potential for reduced innovation due to lack of competitive pressure. Government reliance on a specific vendor for an extended period. Lack of transparency in the procurement process due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Long contract duration
- Lack of transparency
Positive Signals
- Firm Fixed Price contract type provides cost certainty
Sector Analysis
This contract falls within the defense sector, likely involving specialized systems or equipment. Spending benchmarks in this area are highly variable depending on the specific technology and defense needs.
Small Business Impact
No information is available regarding small business participation in this contract. The focus appears to be on a large prime contractor.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides oversight. However, the limited competition aspect warrants further scrutiny to ensure accountability and value.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may lead to inflated prices.
- Long contract duration increases risk of obsolescence and vendor lock-in.
- Lack of transparency in the procurement process.
- Potential for reduced innovation due to lack of competitive pressure.
Tags
department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.5 million to LORAL FAIRCHILD SYSTEMS INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LORAL FAIRCHILD 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 $10.5 million.
What is the period of performance?
Start: 1999-11-23. End: 2015-02-28.
What specific defense systems or services did this contract procure, and why was it not available for competition?
The specific defense systems or services procured under this contract are not detailed in the provided data. The 'NOT AVAILABLE FOR COMPETITION' status suggests a potential sole-source justification, possibly due to proprietary technology, unique capabilities, or urgent national security requirements that only Loral Fairchild Systems Inc. could meet at the time of award.
What was the rationale for such a long contract duration (over 15 years), and what risks does this pose?
The extended duration of over 15 years likely reflects the lifecycle of the systems being procured or the long-term support required. This poses risks such as technological obsolescence, vendor lock-in, and potential for cost overruns if market conditions or requirements change significantly over the contract's life.
How was the firm fixed price determined, and what mechanisms were in place to ensure it remained competitive over the contract's lifespan?
The firm fixed price was likely established based on initial cost estimates and anticipated risks at the time of award. However, with limited competition and a long duration, mechanisms to ensure ongoing competitiveness might be weak. Periodic reviews or price adjustments based on market data would be crucial, though not explicitly stated here.
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 300 ROBBINS LN, SYOSSET
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1999-11-23
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2017-02-22
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