DoD awards $38.6M for MV-22 Communication Suites, lacking competition

Contract Overview

Contract Amount: $38,556,591 ($38.6M)

Contractor: Kranze Technology Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2018-09-21

End Date: 2022-09-30

Contract Duration: 1,470 days

Daily Burn Rate: $26.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ROLL ON ROLL OFF COMMUNICATION SUITES MV-22 A/B KITS AND DI KITS

Place of Performance

Location: PROSPECT HEIGHTS, COOK County, ILLINOIS, 60070

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $38.6 million to KRANZE TECHNOLOGY SOLUTIONS INC for work described as: ROLL ON ROLL OFF COMMUNICATION SUITES MV-22 A/B KITS AND DI KITS Key points: 1. Significant award for specialized aircraft components. 2. Sole-source award raises questions about price discovery. 3. Long contract duration suggests ongoing need. 4. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $38.6M over nearly 5 years for communication suites is difficult to benchmark without specific unit costs. The lack of competition suggests potential for overpricing compared to a competitive environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition on this $38.6M contract potentially results in higher costs for taxpayers than if it had been competitively bid.

Public Impact

Ensures operational readiness for critical MV-22 aircraft. Supports advanced communication capabilities for naval aviation. Potential for increased costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
No small business involvement

Positive Signals

Supports critical defense systems
Long-term contract provides stability

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is driven by military readiness and technological upgrades, with significant government investment.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor, KRANZE TECHNOLOGY SOLUTIONS INC, did not subcontract with small businesses for this award, missing an opportunity to support smaller enterprises.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring performance and adherence to contract terms, though the sole-source nature limits competitive oversight.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits price competition.
Potential for higher costs due to lack of market pressure.
No small business participation.
Long contract duration could mask inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.6 million to KRANZE TECHNOLOGY SOLUTIONS INC. ROLL ON ROLL OFF COMMUNICATION SUITES MV-22 A/B KITS AND DI KITS

Who is the contractor on this award?

The obligated recipient is KRANZE TECHNOLOGY SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.6 million.

What is the period of performance?

Start: 2018-09-21. End: 2022-09-30.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. To ensure fair and reasonable pricing, the government would likely conduct a price analysis based on historical data, commercial pricing, or cost proposals. However, without competition, the rigor of this analysis is crucial.

What is the specific technical advantage or necessity that prevented competition for these communication suites?

The necessity for a sole-source award often stems from highly specialized technical requirements unique to the MV-22 platform, potentially involving proprietary technology or deep integration with existing systems. Without this specific information, it's difficult to ascertain the exact technical barrier to competition.

How does the cost of these communication suites compare to similar systems on other aircraft platforms, considering the lack of competitive bidding?

Direct comparison is challenging due to the specialized nature of MV-22 components. However, non-competed contracts generally carry a higher risk of inflated costs. A thorough price analysis by the DoD, comparing proposed costs against independent estimates or commercial equivalents, would be necessary to assess value.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833518R0155

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lasoski Kranze Associates Inc

Address: 742 PINECREST DR, PROSPECT HEIGHTS, IL, 60070

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $38,556,591

Exercised Options: $38,556,591

Current Obligation: $38,556,591

Actual Outlays: $17,073,719

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline