DoD Awards $23.3M for Optical Instruments, Test Equipment to AAI Corp, Raising Value Concerns

Contract Overview

Contract Amount: $23,253,839 ($23.3M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-29

End Date: 2010-10-01

Contract Duration: 2,193 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200412!001576!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0280 !A!N! !N! ! !20040929!20101029!003090198!003090198!001527852!N!AAI CORP !YORK RD & INDUSTRY LA !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000002937485!N!N!000000000000!6650!OPTICAL INSTRUMENTS, TEST EQUIP, COMPS & ACCYS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!001!B! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to TEXTRON SYSTEMS CORPORATION for work described as: 200412!001576!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0280 !A!N! !N! ! !20040929!20101029!003090198!003090198!001527852!N!AAI CORP !YORK RD & INDUSTRY LA !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALT… Key points: 1. The contract value of $23.3 million for optical instruments and test equipment appears high for a single award. 2. Competition was full and open, suggesting potential for better pricing, but the final price needs scrutiny. 3. Risk is moderate due to the long duration and potential for obsolescence in test equipment. 4. The sector is Defense, specifically Naval Air Warfare, with a focus on specialized instruments.

Value Assessment

Rating: questionable

The contract value of $23.3 million for optical instruments and test equipment seems substantial. Benchmarking against similar contracts for specialized test equipment is necessary to determine if this represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing. However, the final price of $23.3 million warrants further investigation to ensure it reflects the best possible price discovery.

Taxpayer Impact: The significant value of this contract means taxpayers are funding a substantial amount for specialized defense equipment.

Public Impact

Taxpayers are funding a significant contract for specialized defense equipment. The long contract duration could lead to outdated technology by its end. The award supports a specific segment of the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for specialized equipment
Long contract duration (6 years)
Potential for technology obsolescence

Positive Signals

Full and open competition utilized
Awarded to a known defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically for optical instruments and test equipment used by the Naval Air Warfare Center. Spending in this area is critical for maintaining advanced military capabilities, but often involves high unit costs for specialized items.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, but the long duration necessitates ongoing monitoring.

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

High contract value
Long contract duration
Potential for technology obsolescence
Lack of specific itemization for cost analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to TEXTRON SYSTEMS CORPORATION. 200412!001576!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833504C0280 !A!N! !N! ! !20040929!20101029!003090198!003090198!001527852!N!AAI CORP !YORK RD & INDUSTRY LA !HUNT VALLEY !MD!21030!41100!005!24!HUNT VALLEY !BALTIMORE !MARYLAND !+000002937485!N!N!000000000000!6650!OPTICAL INSTRUMENTS, TEST EQUIP, COMPS & ACCYS !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !334511!E! !3! ! ! ! ! !999

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 $23.3 million.

What is the period of performance?

Start: 2004-09-29. End: 2010-10-01.

What specific optical instruments and test equipment were procured under this contract, and how do their costs compare to industry benchmarks?

The contract specifies 'OPTICAL INSTRUMENTS, TEST EQUIP, COMPS & ACCYS' under NAICS code 334511. Without a detailed breakdown of the specific items and quantities, a precise cost comparison is difficult. However, given the $23.3 million total value over six years, individual unit costs for highly specialized test equipment could be substantial, potentially ranging from thousands to tens of thousands of dollars depending on complexity and features.

What are the primary risks associated with a six-year contract for test equipment, particularly concerning technological relevance?

The primary risk is technological obsolescence. Test equipment, especially in rapidly advancing fields like aerospace, can become outdated long before a six-year contract concludes. This could lead to the equipment being less effective or requiring costly upgrades, diminishing the overall value proposition for the government.

How effectively did the 'full and open competition' process ensure the best value for taxpayers on this $23.3 million award?

While 'full and open competition' is designed to foster the best value, the substantial contract amount and long duration warrant scrutiny. It's crucial to examine the number of bids received and the justification for the selected offer. Without this information, it's difficult to definitively assess the effectiveness of the competition in securing optimal taxpayer value.

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: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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

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