Navy Awards $25.5M for V/UHF AIU to Pole/Zero LLC, Undisclosed Competition

Contract Overview

Contract Amount: $25,458,126 ($25.5M)

Contractor: Pole/Zero LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-19

End Date: 2021-11-30

Contract Duration: 956 days

Daily Burn Rate: $26.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NORWAY ORDERING PERIOD 2 LOT 10 V/UHF AIU

Place of Performance

Location: WEST CHESTER, BUTLER County, OHIO, 45069

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to POLE/ZERO LLC for work described as: NORWAY ORDERING PERIOD 2 LOT 10 V/UHF AIU Key points: 1. Significant award value for specialized communications equipment. 2. Sole-source or limited competition likely due to specialized nature. 3. Potential risk associated with single-vendor reliance. 4. Sector: IT/Communications Equipment Manufacturing.

Value Assessment

Rating: questionable

Benchmarking is difficult without knowing the specific technical requirements and comparing it to similar advanced AIU systems. The award value is substantial, suggesting a complex or high-performance system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition approach. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this specialized equipment.

Public Impact

Ensures critical communication capabilities for naval operations. Potential for higher costs due to non-competitive award. Impact on future procurement strategies for similar equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Vendor lock-in

Positive Signals

Acquisition of critical technology
Timely delivery to meet operational needs

Sector Analysis

This award falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is driven by defense modernization and technological advancements in communication systems.

Small Business Impact

The data does not indicate any specific involvement of small businesses in this contract. The award went to Pole/Zero LLC, which is not identified as a small business in this context.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny. Further review of justification for sole-source procurement and cost reasonableness is recommended.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to limited competition.
Risk of vendor lock-in for critical technology.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to POLE/ZERO LLC. NORWAY ORDERING PERIOD 2 LOT 10 V/UHF AIU

Who is the contractor on this award?

The obligated recipient is POLE/ZERO 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 $25.5 million.

What is the period of performance?

Start: 2019-04-19. End: 2021-11-30.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's requirements. Without further documentation, it's difficult to ascertain the precise reasons, but it likely relates to the specialized nature of the V/UHF AIU system.

How does the awarded price compare to market benchmarks for similar advanced AIU systems?

Direct comparison is challenging without detailed technical specifications and market research data for comparable systems. However, the absence of competition often inflates prices. A thorough cost analysis by the agency would be necessary to confirm price reasonableness against available benchmarks or historical data for similar, albeit potentially less advanced, systems.

What is the long-term strategic impact of relying on a single vendor for this critical communication technology?

Long-term reliance on a single vendor can create strategic vulnerabilities, including potential supply chain disruptions, limited negotiation leverage in future procurements, and a lack of incentive for the vendor to innovate or reduce costs. It also hinders the development of a competitive market for such technologies.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833518R0041

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dover Corporation (UEI: 003245271)

Address: 5558 UNION CENTRE DR, WEST CHESTER, OH, 45069

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,458,126

Exercised Options: $25,458,126

Current Obligation: $25,458,126

Actual Outlays: $3,961,046

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833518D0050

IDV Type: IDC

Timeline