Navy awards $1.63M contract for electrical measurement instruments, highlighting potential for sole-source procurement

Contract Overview

Contract Amount: $16,327,178 ($16.3M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2003-02-26

End Date: 2007-04-30

Contract Duration: 1,524 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: NOT REPORTED

Sector: Defense

Official Description: 200305!003374!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0128 !A!N! !N! !20030226!20050930!003090198!003090198!001527852!N!AAI CORP !YORK RD & INDUSTRY LA !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000015973016!N!N!000000000000!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A1C!OTHER AIRCRAFT EQUIPMENT !2000!NOT DISCERNABLE OR CLASSIFIED !334513!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to TEXTRON SYSTEMS CORPORATION for work described as: 200305!003374!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0128 !A!N! !N! !20030226!20050930!003090198!003090198!001527852!N!AAI CORP !YORK RD & INDUSTRY LA !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALTI… Key points: 1. Contract awarded to AAI Corp for electrical measurement and test instruments. 2. The contract was not competitively procured, raising questions about price discovery. 3. Duration of the contract was 1524 days, indicating a potentially long-term need. 4. The specific instruments procured fall under the 'Instruments and Related Products Manufacturing' NAICS code. 5. The award was made by the Naval Air Warfare Center, Aircraft Division. 6. The contract value of $1.63 million is relatively small in the context of major defense procurements.

Value Assessment

Rating: fair

The contract value of $1.63 million is modest. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition suggests that the government may not have achieved the best possible value. Further analysis would be needed to determine if the price paid was reasonable for the specified instruments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The data does not provide details on why a competitive process was not utilized. Sole-source awards can sometimes lead to higher prices and reduced innovation compared to open competition. The absence of multiple bidders means there was no direct price comparison to ensure optimal value for taxpayer funds.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these instruments, as there was no market pressure to drive down costs. This also limits transparency in the procurement process.

Public Impact

The primary beneficiaries are likely the Naval Air Warfare Center and its operations, which will utilize the electrical measurement and test instruments. The services delivered involve the provision of specialized equipment crucial for aircraft maintenance, testing, and potentially research and development. The geographic impact is centered around the Naval Air Warfare Center facilities, likely in Maryland, where the instruments will be deployed. Workforce implications are minimal for the public, but the contractor, AAI Corp, will be involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
Limited transparency into the justification for a sole-source award.
Potential for vendor lock-in if this is a recurring need without re-competition.

Positive Signals

Contract awarded to a known entity (AAI Corp).
The contract addresses a specific need for specialized instruments.
The duration suggests a stable requirement, allowing for planned resource allocation.

Sector Analysis

This contract falls within the broader 'Instruments and Related Products Manufacturing' sector, specifically related to electrical and electronic properties measurement and testing instruments. This is a niche but critical area supporting defense readiness and technological advancement. The market for such specialized instruments is often characterized by a limited number of highly capable manufacturers, which can sometimes lead to sole-source or limited competition scenarios.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it provide information on subcontracting opportunities. Given the specialized nature of the equipment, it's possible that larger, established defense contractors like AAI Corp are more likely to be awarded such contracts. Further investigation would be needed to determine if small businesses were considered or had the capability to fulfill this requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and financial management oversight mechanisms. The Naval Air Warfare Center would be responsible for monitoring performance and ensuring compliance. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Naval Air Systems Command (NAVAIR) contracts
Defense contract for test and measurement equipment
Sole-source defense procurements
AAI Corporation contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency regarding the procurement process.
Long contract duration may not reflect current market value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to TEXTRON SYSTEMS CORPORATION. 200305!003374!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0128 !A!N! !N! !20030226!20050930!003090198!003090198!001527852!N!AAI CORP !YORK RD & INDUSTRY LA !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000015973016!N!N!000000000000!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A1C!OTHER AIRCRAFT EQUIPMENT !2000!NOT DISCERNABLE OR CLASSIFIED !334513!E! !3! ! ! ! ! !99990909!B

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 $16.3 million.

What is the period of performance?

Start: 2003-02-26. End: 2007-04-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to proprietary technology, unique capabilities, or urgent requirements where competition is not feasible. Without further documentation from the Department of the Navy, the exact reason remains unknown. This lack of transparency is a common concern with sole-source procurements, as it limits the ability to verify that the government truly obtained the best value.

How does the contract value compare to similar procurements for electrical measurement instruments by the Department of Defense?

Comparing this $1.63 million contract to similar procurements is challenging without more specific data on the exact type and quantity of instruments. However, in the broader context of defense spending, $1.63 million is a relatively modest sum. Larger, more complex test equipment suites or systems can cost tens or hundreds of millions of dollars. The value here suggests a procurement of specific, perhaps specialized, but not system-level, measurement tools. Benchmarking would require identifying contracts with identical or highly similar Product Service Codes (PSCs) and North American Industry Classification System (NAICS) codes, which is not readily available in this dataset.

What is AAI Corp's track record with the Department of the Navy for similar equipment?

AAI Corp, now part of Textron Systems, has a history of providing various defense-related products and services, including training systems, unmanned aircraft systems, and electronic warfare systems. While the specific data here pertains to electrical measurement instruments, AAI Corp's broader involvement in defense contracting suggests they possess the technical capabilities and experience to supply such equipment. Their track record with the Navy would likely include numerous other contracts, the details of which would need to be researched through federal procurement databases to assess their performance history specifically for measurement instruments.

What are the potential risks associated with a sole-source award for specialized instruments?

The primary risks associated with a sole-source award for specialized instruments include potentially higher costs due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the pricing and selection process. Taxpayers may not receive the best possible value for their money. Furthermore, it can create a dependency on a single supplier, making future procurements potentially more difficult or expensive if the original contractor is no longer the best option or if market conditions change. There's also a risk that the government's specific needs might not be as optimally met as they would be through a competitive process where multiple solutions could be proposed.

How does the duration of this contract (1524 days) impact its overall value and risk?

A contract duration of 1524 days (approximately 4.2 years) suggests a stable, long-term requirement for these electrical measurement instruments. This extended period can offer value by ensuring consistent availability of necessary equipment and potentially allowing for volume discounts or more favorable pricing over the contract's life, assuming the price was fair to begin with. However, a long duration also increases the risk associated with a sole-source award. Over several years, market prices for similar instruments could decrease, or alternative technologies could emerge, but the government remains locked into the original agreement, potentially missing out on better value or more advanced solutions available through re-competition.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: NOT REPORTED (NO)

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

Address: YORK RD & INDUSTRY LA, HUNT VALLEY, MD, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,327,178

Current Obligation: $16,327,178

Contract Characteristics

Cost or Pricing Data: NO

Timeline