DoD's $22.4M A-10 CARA Assembly Spares Contract Awarded to Navcom Defense Electronics

Contract Overview

Contract Amount: $22,442,598 ($22.4M)

Contractor: Navcom Defense Electronics, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-20

End Date: 2015-12-01

Contract Duration: 1,533 days

Daily Burn Rate: $14.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPARES FOR THE A-10 CARA ASSEMBLY

Place of Performance

Location: CORONA, RIVERSIDE County, CALIFORNIA, 92883, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to NAVCOM DEFENSE ELECTRONICS, INC. for work described as: SPARES FOR THE A-10 CARA ASSEMBLY Key points: 1. Contract awarded for critical spares for the A-10 CARA assembly, ensuring aircraft readiness. 2. Sole-source award raises questions about potential lack of competitive pricing and value. 3. Long contract duration (over 4 years) may indicate complex supply chain or extended need. 4. Awarded by Defense Logistics Agency, a key entity for military procurement. 5. Contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. No small business set-aside, suggesting focus on specialized capabilities.

Value Assessment

Rating: questionable

The contract's value of $22.4 million for A-10 CARA assembly spares requires careful benchmarking against similar defense electronics procurements. Without competitive bidding, it is difficult to ascertain if the price reflects fair market value or if Navcom Defense Electronics, Inc. secured an advantageous position. The firm fixed price structure is standard, but the absence of competition limits the ability to assess cost-effectiveness and identify potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Navcom Defense Electronics, Inc., was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when only one source is available. The lack of competition means potential bidders were not given an opportunity to offer their services, which can lead to higher prices and reduced innovation.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the government secured the best possible price for these critical spares.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the A-10 Thunderbolt II aircraft, ensuring their combat readiness. The contract delivers essential spare parts for the CARA (Central Acquisition and Reporting Assembly) system, vital for aircraft navigation and targeting. Geographic impact is national, supporting Air Force operations across various bases. Workforce implications include maintaining specialized manufacturing and repair capabilities within Navcom Defense Electronics, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may stifle innovation and reduce the pool of qualified suppliers for future needs.
Long contract duration could mask inefficiencies if not actively managed.
Absence of small business participation might limit opportunities for smaller, specialized firms in the defense supply chain.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor, potentially protecting the government from cost overruns.
Award to a specific vendor ensures continuity of supply for critical A-10 components.
Specialized nature of CARA assembly spares suggests a focus on maintaining unique technical capabilities.

Sector Analysis

The defense electronics sector is characterized by high technological complexity, stringent quality requirements, and significant government investment. This contract for A-10 CARA assembly spares falls within the "Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing" industry. The market for such specialized components is often limited to a few key players due to the technical expertise and certifications required. Comparable spending benchmarks are difficult to establish without more specific data on the components involved, but defense logistics contracts for aircraft parts can range from thousands to millions of dollars depending on criticality and volume.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them mentioned in the provided data. The sole-source nature of the award further suggests that the primary contractor, Navcom Defense Electronics, Inc., was selected based on unique capabilities rather than a mandate to engage small business partners. This could limit opportunities for small businesses to participate in the supply chain for these specific A-10 components.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for ensuring compliance with contract terms and financial accountability. The Defense Logistics Agency (DLA) Contracting Office would also maintain oversight. Transparency is limited due to the sole-source nature, but contract performance metrics and financial audits would be key accountability measures. Inspector General investigations could be initiated if performance issues or fraud are suspected.

Related Government Programs

A-10 Thunderbolt II Sustainment Programs
Defense Logistics Agency (DLA) Aviation Procurement
Navigational and Guidance System Manufacturing
Aircraft Component Spares Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to NAVCOM DEFENSE ELECTRONICS, INC.. SPARES FOR THE A-10 CARA ASSEMBLY

Who is the contractor on this award?

The obligated recipient is NAVCOM DEFENSE ELECTRONICS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2011-09-20. End: 2015-12-01.

What is the specific nature of the 'CARA Assembly' and why are these spares critical for the A-10?

The CARA (Central Acquisition and Reporting Assembly) is a critical component of the A-10 Thunderbolt II's avionics suite, likely involved in processing and reporting flight data, navigation information, and potentially targeting parameters. Its criticality stems from its role in enabling the aircraft's primary functions, particularly its close air support (CAS) mission. Without functioning CARA assemblies and their associated spares, the A-10's ability to navigate accurately, acquire targets, and communicate effectively would be severely compromised, directly impacting mission effectiveness and pilot safety. The specific part numbers and technical specifications of the spares procured under this contract would further detail their importance.

What are the potential risks associated with a sole-source award for defense electronics?

Sole-source awards in defense electronics carry several risks. Primarily, the absence of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. This can result in taxpayers bearing a higher cost than necessary. Secondly, it limits the government's access to a broader range of technological solutions and potential innovations that might be offered by other qualified vendors. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single supplier, potentially facing supply disruptions or price hikes in the future. Furthermore, without competitive benchmarking, assessing the true value for money becomes challenging, and oversight becomes even more crucial to ensure fair pricing and quality.

How does the Firm Fixed Price (FFP) contract type benefit the government in this scenario?

A Firm Fixed Price (FFP) contract type is generally advantageous for the government, especially in procurement scenarios where the scope of work is well-defined, as is often the case with spare parts. Under an FFP agreement, the contractor, Navcom Defense Electronics, Inc., assumes the primary risk for cost overruns. This means the agreed-upon price remains constant regardless of the contractor's actual costs incurred during production or delivery. This structure provides budget certainty for the Department of Defense and the Defense Logistics Agency, protecting them from unexpected increases in material, labor, or overhead costs. It incentivizes the contractor to manage its resources efficiently to maximize profit.

What is the historical spending pattern for A-10 CARA assembly spares, and how does this contract compare?

Without access to historical contract databases or specific spending reports for A-10 CARA assembly spares, it is difficult to provide a precise historical spending pattern or a direct comparison. However, the $22.4 million award for a duration of approximately 1533 days (over 4 years) suggests a significant, ongoing need for these components. The fact that it's a sole-source award might indicate that previous procurements were also non-competitive or that the market has consolidated. To assess comparability, one would need to analyze the quantity of spares, the specific part numbers, and the unit prices from previous contracts, if any existed, and compare them against current market rates and other similar avionics component procurements.

What are the implications of this contract for the A-10's operational readiness and future?

This contract directly supports the operational readiness of the A-10 Thunderbolt II fleet by ensuring the availability of critical spares for the CARA assembly. The A-10 is a long-serving aircraft, and maintaining its aging systems requires a robust supply chain for parts. By securing these spares, the Department of Defense is investing in the continued viability of the A-10 for its intended missions. The sole-source nature, however, raises questions about the long-term cost-effectiveness of sustaining the A-10 fleet if critical component sourcing becomes consistently non-competitive. It underscores the importance of strategic sourcing and potentially fostering competition for sustainment parts where feasible.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9129 STELLAR CT, CORONA, CA, 92883

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

Financial Breakdown

Contract Ceiling: $22,442,598

Exercised Options: $22,442,598

Current Obligation: $22,442,598

Contract Characteristics

Cost or Pricing Data: YES

Timeline