DoD awards $32.6M contract for explosive detection systems to Alakai Defense Systems, Inc
Contract Overview
Contract Amount: $32,586,913 ($32.6M)
Contractor: Alakai Defense Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2023-08-17
End Date: 2027-04-17
Contract Duration: 1,339 days
Daily Burn Rate: $24.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CHECK POINT EXPLOSIVE DETECTION SYSTEM PRODUCTION AND SUPPORT YEARS 1-2 TO SUPPORT THE EGYPTIAN MINISTRY OF DEFENSE.
Place of Performance
Location: SEMINOLE, PINELLAS County, FLORIDA, 33777
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $32.6 million to ALAKAI DEFENSE SYSTEMS, INC for work described as: CHECK POINT EXPLOSIVE DETECTION SYSTEM PRODUCTION AND SUPPORT YEARS 1-2 TO SUPPORT THE EGYPTIAN MINISTRY OF DEFENSE. Key points: 1. Contract awarded for production and support of explosive detection systems. 2. Focus on supporting the Egyptian Ministry of Defense. 3. Contract duration spans nearly four years. 4. Firm Fixed Price contract type suggests predictable costs. 5. Alakai Defense Systems, Inc. is the sole awardee. 6. Geographic location of performance is Florida.
Value Assessment
Rating: fair
The contract value of $32.6 million for a 4-year period for explosive detection systems appears to be within a reasonable range for specialized defense equipment. However, without specific details on the system's capabilities, unit costs, or comparisons to similar international sales, a definitive value-for-money assessment is challenging. The firm fixed price structure offers cost certainty for the government, but it relies on the contractor's accurate initial pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition limits price discovery and may result in higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may not benefit from the competitive pricing that could have been achieved through an open bidding process. The government relies on negotiation and oversight to ensure a fair price in sole-source awards.
Public Impact
The primary beneficiary is the Egyptian Ministry of Defense, receiving critical security equipment. The contract supports the production and ongoing support of advanced explosive detection systems. Performance is expected to occur in Florida, potentially impacting the local defense industry workforce. This contributes to international security cooperation efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing benefits for taxpayers.
- Lack of detailed performance metrics makes assessing effectiveness difficult.
- International sales can be subject to geopolitical risks and changing foreign policy.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Long-term support element ensures system sustainment.
- Award to a specific company suggests specialized capability.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on specialized electronic equipment for security and detection. The market for such systems is driven by global security needs and technological advancements in threat detection. Comparable spending would involve other government contracts for similar security equipment or international military sales of advanced technology.
Small Business Impact
There is no indication of small business set-asides or subcontracting requirements in the provided data. As a sole-source award, the focus is on the prime contractor's capabilities. Further investigation would be needed to determine if Alakai Defense Systems, Inc. utilizes small businesses in its supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the contract terms, particularly the firm fixed price structure. Transparency is limited due to the sole-source nature of the award, with details on the justification for this approach being crucial for public understanding.
Related Government Programs
- Foreign Military Sales (FMS)
- Defense Security Cooperation Agency (DSCA) programs
- Explosive Ordnance Disposal (EOD) equipment procurement
- Department of Defense Counter-Improvised Explosive Device (C-IED) initiatives
Risk Flags
- Sole-source award may indicate limited competition.
- Lack of detailed technical specifications hinders value assessment.
- International sales carry inherent geopolitical and policy risks.
Tags
defense, department-of-defense, navy, explosive-detection-systems, alakai-defense-systems, sole-source, firm-fixed-price, international-cooperation, egypt, florida, production, support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.6 million to ALAKAI DEFENSE SYSTEMS, INC. CHECK POINT EXPLOSIVE DETECTION SYSTEM PRODUCTION AND SUPPORT YEARS 1-2 TO SUPPORT THE EGYPTIAN MINISTRY OF DEFENSE.
Who is the contractor on this award?
The obligated recipient is ALAKAI DEFENSE SYSTEMS, 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 $32.6 million.
What is the period of performance?
Start: 2023-08-17. End: 2027-04-17.
What is the specific type and capability of the 'CHECK POINT EXPLOSIVE DETECTION SYSTEM' being procured?
The provided data does not specify the exact model or technical capabilities of the 'CHECK POINT EXPLOSIVE DETECTION SYSTEM'. It is described broadly as a system for detecting explosives. To understand the value and effectiveness, detailed specifications regarding its detection range, accuracy, types of explosives it can identify, operational speed, and portability would be necessary. This information is typically found in the contract's statement of work or technical exhibits, which are not publicly available in this summary.
What was the justification for awarding this contract on a sole-source basis?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For defense systems, this often involves proprietary technology, unique manufacturing capabilities, or essential integration with existing platforms. The specific justification for this contract would likely cite Alakai Defense Systems, Inc.'s exclusive rights to the technology, specialized production facilities, or a critical need for immediate delivery that precludes a competitive process. Without access to the Justification and Approval (J&A) document, the precise reasons remain speculative but are crucial for understanding the procurement's rationale.
How does the contract value compare to similar international sales of explosive detection systems?
Benchmarking this contract's value ($32.6 million over approximately 4 years) against similar international sales requires access to data on comparable systems sold to other nations. Factors influencing price include system sophistication, quantity, support services, and the specific buyer's negotiation leverage. Without data on the unit cost of these systems or the pricing of comparable systems from other vendors or for other countries, it is difficult to definitively assess if this represents a competitive price. The sole-source nature further complicates direct price comparisons.
What are the performance metrics and expected outcomes for this contract?
The provided data does not detail specific performance metrics or expected outcomes beyond the general requirement for 'production and support'. Key performance indicators (KPIs) would typically include delivery schedules, system reliability rates (e.g., Mean Time Between Failures - MTBF), detection accuracy percentages, and responsiveness of support services. The effectiveness of the contract is tied to the Egyptian Ministry of Defense successfully deploying and utilizing these systems to enhance their security capabilities. A thorough assessment would require post-award performance reports.
What is Alakai Defense Systems, Inc.'s track record with similar government contracts?
Information on Alakai Defense Systems, Inc.'s specific track record with similar government contracts is not provided in the data. To assess their performance history, one would need to examine past contracts awarded to them, including their value, duration, type (e.g., production, R&D, support), and any reported performance issues or successes. Government contract databases and performance rating systems (like the Contractor Performance Assessment Reporting System - CPARS) would be valuable resources for evaluating their reliability and capability in delivering defense systems.
What is the historical spending trend for similar explosive detection systems by the Department of Defense?
The provided data focuses on a single contract and does not offer historical spending trends for similar systems. To analyze this, one would need to aggregate spending data across multiple contracts for explosive detection systems, potentially filtering by agency, system type, and fiscal year. This would reveal patterns in procurement volume, average contract values, and the prevalence of sole-source versus competitive awards over time. Such analysis could indicate whether this $32.6 million award is consistent with, higher than, or lower than historical spending levels for comparable capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833522R0181
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8285 BRYAN DAIRY RD STE 125, LARGO, FL, 33777
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $34,584,240
Exercised Options: $32,586,913
Current Obligation: $32,586,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-17
Current End Date: 2027-04-17
Potential End Date: 2027-04-17 00:00:00
Last Modified: 2025-07-23
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