DoD's $111M contract for missile parts awarded without competition, raising concerns

Contract Overview

Contract Amount: $11,106,396 ($11.1M)

Contractor: Science & Applied Technology,

Awarding Agency: Department of Defense

Start Date: 2002-04-29

End Date: 2008-01-31

Contract Duration: 2,103 days

Daily Burn Rate: $5.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to SCIENCE & APPLIED TECHNOLOGY, for work described as: Key points: 1. Significant spending of $111M on specialized missile parts. 2. Lack of competition suggests potential for higher costs. 3. Long contract duration (2103 days) may indicate complexity or limited options. 4. Sector focus on guided missile and space vehicle parts manufacturing.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competitive bids, it's hard to determine if the $111M awarded represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to drive down prices.

Taxpayer Impact: The absence of competition likely resulted in a higher price than if multiple vendors had vied for the contract, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The long duration of the contract could tie up significant resources. Dependence on a single source for critical missile components poses a supply chain risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus-fixed-fee contract type
Long contract duration
Sole-source award

Positive Signals

Awarded to a specific sector (missile parts)
Long-term commitment may ensure supply

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on guided missile and space vehicle parts. Spending in this sector is often characterized by high R&D costs and specialized production requirements.

Small Business Impact

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

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding competitive sourcing strategies. Accountability for justifying the sole-source award and ensuring fair pricing would be crucial.

Related Government Programs

Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited price discovery
Sole-source dependency
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to SCIENCE & APPLIED TECHNOLOGY,. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SCIENCE & APPLIED TECHNOLOGY,.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2002-04-29. End: 2008-01-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require detailed documentation outlining technical, programmatic, or urgency-based reasons. Without this justification, it's impossible to assess if taxpayer funds were used efficiently or if a more competitive approach could have yielded better value.

How does the cost-plus-fixed-fee structure impact the government's ability to control costs on this long-term, non-competed contract?

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs, as the government covers allowable expenses plus a predetermined fee. On a long-term, non-competed contract, this structure heightens the risk of cost overruns and reduced price efficiency. Robust oversight and detailed cost monitoring are essential to mitigate these risks.

What are the long-term implications of a sole-source award for critical missile components on supply chain resilience and innovation?

A sole-source award for critical components can create a dependency that weakens supply chain resilience. It may also stifle innovation by limiting exposure to new technologies or more efficient manufacturing processes that could emerge from a competitive market. This could lead to higher long-term costs and reduced technological advancement.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 10815 RANCHO BERNARDO RD ,, SAN DIEGO, CA, 90

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline