DoD's $14.7M Radar Equipment Contract with Amphitech Holdings Corporation Raises Value Concerns

Contract Overview

Contract Amount: $10,660,466 ($10.7M)

Contractor: Amphitech Holdings Corporation

Awarding Agency: Department of Defense

Start Date: 2004-11-16

End Date: 2011-07-29

Contract Duration: 2,446 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200503!078367!1700!N68936!NAVAL AIR WARFARE CENTER !N6893605C0009 !A!N! !N! ! !20041116!20081109!146844274!146844274!146844274!N!AMPHITECH HOLDINGS CORPORATION!411 W PUTNAM AVE !GREENWICH !CT!06830!33690!001!09!GREENWICH !FAIRFIELD !CONN !+000001656606!N!N!000005285295!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !334511!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!U!2!002!N!1A!A!N!Z!B!CA!N!B!N!N! ! !A! !A!A!000!A!B!Y!A! ! !Y!1719!N68936!0001! !

Place of Performance

Location: GREENWICH, FAIRFIELD County, CONNECTICUT, 06830

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to AMPHITECH HOLDINGS CORPORATION for work described as: 200503!078367!1700!N68936!NAVAL AIR WARFARE CENTER !N6893605C0009 !A!N! !N! ! !20041116!20081109!146844274!146844274!146844274!N!AMPHITECH HOLDINGS CORPORATION!411 W PUTNAM AVE !GREENWICH !CT!06830!33690!001!09!GREENWICH !FAIR… Key points: 1. The contract value of $14.7 million for radar equipment appears high relative to the duration and number of awards. 2. Amphitech Holdings Corporation secured this contract through full and open competition after exclusion of sources, suggesting a potentially competitive but complex procurement process. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type introduces risk regarding cost control and final pricing. 4. The sector is IT/Defense, specifically radar equipment manufacturing, which is a critical but specialized area.

Value Assessment

Rating: questionable

The total contract value of $14.7 million over approximately 8 years (2004-2011) with two awards suggests a significant per-year cost. Benchmarking against similar radar equipment contracts is needed to assess 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 After Exclusion of Sources,' indicating that while competition was sought, certain sources may have been excluded. This could impact price discovery and potentially lead to less competitive pricing.

Taxpayer Impact: The significant contract value necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively for critical defense needs.

Public Impact

This contract supports the Naval Air Warfare Center, indicating a direct impact on military readiness and technological advancement. The procurement of specialized radar equipment is crucial for national security and defense capabilities. The duration of the contract (over 8 years) suggests a long-term need for these systems, impacting future defense planning and budgeting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Overruns Risk (CPFF contract type)
Potential for Non-Competitive Pricing (Exclusion of Sources)
Long Contract Duration May Obscure Current Market Value

Positive Signals

Supports Critical Defense Technology (Radar)
Awarded via Competition (albeit with exclusions)
Established Contractor Performance History (implied by contract award)

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for defense, but often involves high R&D costs and specialized manufacturing, making direct cost comparisons challenging.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program management reviews, contract performance monitoring, and audits to ensure compliance and value for money.

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 relative to duration.
Use of Cost Plus Fixed Fee contract type.
Potential for limited competition due to source exclusion.
Long contract performance period (over 8 years).
Lack of transparency on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to AMPHITECH HOLDINGS CORPORATION. 200503!078367!1700!N68936!NAVAL AIR WARFARE CENTER !N6893605C0009 !A!N! !N! ! !20041116!20081109!146844274!146844274!146844274!N!AMPHITECH HOLDINGS CORPORATION!411 W PUTNAM AVE !GREENWICH !CT!06830!33690!001!09!GREENWICH !FAIRFIELD !CONN !+000001656606!N!N!000005285295!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !334511!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is AMPHITECH HOLDINGS 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 $10.7 million.

What is the period of performance?

Start: 2004-11-16. End: 2011-07-29.

What specific radar capabilities were procured, and how do they align with current and future naval air warfare needs?

The data specifies 'RADAR EQUIPMENT, EXCEPT AIRBORNE' under PSC 334511. Understanding the precise technical specifications and operational requirements for this equipment is crucial. This would allow for an assessment of whether the procured systems meet evolving threats and technological advancements, ensuring the investment remains relevant and effective for naval air warfare.

What was the rationale for excluding certain sources during the 'Full and Open Competition After Exclusion of Sources' process?

The exclusion of sources in a competitive bid process warrants scrutiny. Understanding the justification (e.g., specific technical requirements, proprietary technology, national security concerns) is vital. If the exclusions were not adequately justified, it could indicate a lack of true competition, potentially leading to higher prices and reduced innovation for the taxpayer.

How did the Cost Plus Fixed Fee (CPFF) structure impact the final cost and contractor's incentive for efficiency?

CPFF contracts are often used when project scope is uncertain, but they can incentivize contractors to increase costs to maximize profit, as the fee is fixed. Analyzing the final cost against the initial estimates and understanding the contractor's cost control measures is essential. This helps determine if the government received good value and if the contractor effectively managed expenses within the agreed-upon fee structure.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 411 W PUTNAM AVE, GREENWICH, CT, 04

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline