DoD awards $11.5M for radar equipment, with a significant portion for electronics and communication equipment

Contract Overview

Contract Amount: $11,607,216 ($11.6M)

Contractor: EDO Reconnaissance and Surveillance Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-08-05

End Date: 2008-03-30

Contract Duration: 968 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200511!005730!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CD602 !A!N! !N! ! !20050805!20071230!114918373!114918373!114918373!N!EDO RSS !18705 MADRONE PKWY !MORGAN HILL !CA!95037!68000!085!06!SAN JOSE !SANTA CLARA !CALIFORNIA!+000011607216!Y!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541512!E! !3! ! ! ! ! !20200930!B! ! !N!Z!B!U!J!1!001!N!4A!Z!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MORGAN HILL, SANTA CLARA County, CALIFORNIA, 95037

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to EDO RECONNAISSANCE AND SURVEILLANCE SYSTEMS, INC. for work described as: 200511!005730!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CD602 !A!N! !N! ! !20050805!20071230!114918373!114918373!114918373!N!EDO RSS !18705 MADRONE PKWY !MORGAN HILL !CA!95037!68000!085!06!SAN JOSE !SANT… Key points: 1. Contract awarded for radar equipment, with a focus on electronics and communication equipment. 2. The contract value is substantial, indicating a significant need for these specialized systems. 3. Awarded by the Department of the Army, suggesting a specific military application. 4. The contract duration is over two years, implying a sustained requirement. 5. The contractor, EDO Reconnaissance and Surveillance Systems, Inc., is a key player in this niche. 6. The contract type is Firm Fixed Price, which typically offers cost certainty.

Value Assessment

Rating: good

The total award amount of $11,491,837 for radar equipment and related electronics is a significant investment. Benchmarking this against similar contracts for specialized defense electronics is challenging without more granular data on the specific capabilities of the radar systems. However, the fixed-price nature of the contract suggests an attempt to control costs. The contract was awarded in 2005, and pricing may not reflect current market conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded sole-source. This indicates that the Department of the Army likely identified a specific need that only EDO Reconnaissance and Surveillance Systems, Inc. could fulfill, possibly due to proprietary technology, unique capabilities, or a sole-source justification based on prior performance or specialized knowledge. The lack of competition means there was no opportunity for price discovery through a bidding process.

Taxpayer Impact: Sole-source awards can sometimes lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. However, if the contractor possesses unique and essential capabilities, the cost may be justified by the strategic value.

Public Impact

The primary beneficiaries are the U.S. Army, receiving advanced radar and communication equipment. The services delivered include the provision of specialized radar equipment, crucial for surveillance and defense operations. The geographic impact is primarily within the United States, with the contractor based in California. Workforce implications may include specialized manufacturing and engineering roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit innovation by not exposing the government to alternative solutions from other vendors.
The contract's age means current market prices and technological advancements may not be reflected.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
The contractor, EDO Reconnaissance and Surveillance Systems, Inc., likely possesses specialized expertise in radar technology.
The award addresses a specific defense need, indicating strategic procurement.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on electronics and communication equipment, including radar systems. The market for defense electronics is characterized by high technological barriers to entry, long development cycles, and significant government investment. Comparable spending benchmarks would typically involve other large-scale procurements of advanced surveillance and radar technology for military applications, often involving sole-source or limited competition due to the specialized nature of the systems.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. As this was a sole-source award, the focus was likely on the prime contractor's capabilities rather than broader small business participation goals. This contract does not appear to directly impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Accountability measures would be defined by the contract terms and conditions, including performance milestones and delivery schedules. Transparency is limited due to the sole-source nature and the age of the data, with specific oversight reports not readily available.

Related Government Programs

Defense Radar Systems Procurement
Military Electronics and Communication Equipment
Army Surveillance Technology
Sole-Source Defense Contracts

Risk Flags

Sole-source award limits competition.
Contract awarded in 2005; pricing may not reflect current market value.
Specific technical details and capabilities of the radar equipment are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to EDO RECONNAISSANCE AND SURVEILLANCE SYSTEMS, INC.. 200511!005730!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CD602 !A!N! !N! ! !20050805!20071230!114918373!114918373!114918373!N!EDO RSS !18705 MADRONE PKWY !MORGAN HILL !CA!95037!68000!085!06!SAN JOSE !SANTA CLARA !CALIFORNIA!+000011607216!Y!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541512!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is EDO RECONNAISSANCE AND SURVEILLANCE SYSTEMS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2005-08-05. End: 2008-03-30.

What is the specific type and capability of the radar equipment procured under this contract?

The data indicates the contract is for 'RADAR EQUIPMENT, EXCEPT AIRBORNE' and falls under the Product Service Code (PSC) 5840, which covers Radar Equipment, Except Airborne. The North American Industry Classification System (NAICS) code is 541512, 'Computer Systems Design Services,' which suggests the radar system may involve significant software or integrated system design components. However, the specific technical specifications, capabilities (e.g., range, resolution, frequency bands), and intended operational use are not detailed in the provided data. This level of detail is typically found in the contract's statement of work or technical exhibits, which are not included here. Understanding these specifics is crucial for a comprehensive value assessment.

What was the justification for awarding this contract sole-source?

The provided data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. The specific justification for this sole-source determination is not detailed in the abbreviated data. Common reasons for sole-source awards in defense procurement include: the existence of unique capabilities or proprietary technology held by only one source, a critical need for compatibility with existing systems where only one vendor can provide the required interface, or a follow-on contract to a previously competed effort where only the original contractor can provide necessary upgrades or sustainment. Without the official justification document, the precise reason remains speculative.

How does the contract value compare to similar radar equipment procurements by the DoD?

Comparing the $11.5 million contract value for radar equipment to similar procurements is difficult without more specific details about the radar's capabilities and intended use. The contract is for 'RADAR EQUIPMENT, EXCEPT AIRBORNE' and was awarded in 2005. The market for radar systems varies widely, from relatively simple ground-based surveillance units to highly complex, multi-function systems. A $11.5 million award could represent a significant number of units or a few highly advanced systems. To make a meaningful comparison, one would need to identify contracts for radar systems with comparable technical specifications, intended applications (e.g., air defense, ground surveillance, weather monitoring), and awarded around the same time period. The lack of competition also complicates direct value comparisons, as market prices may not have been fully explored.

What is the track record of EDO Reconnaissance and Surveillance Systems, Inc. with similar government contracts?

EDO Reconnaissance and Surveillance Systems, Inc. (now part of The Boeing Company) has a history of providing advanced systems to the U.S. military, including reconnaissance, surveillance, and electronic warfare solutions. While this specific contract focuses on radar equipment, the company's broader portfolio suggests experience with complex defense electronics and integrated systems. A deeper dive into their contract history would reveal their performance on other similar contracts, including any issues related to delivery, quality, or cost overruns. Their established presence in the defense sector implies a certain level of capability and familiarity with government procurement processes, though specific performance metrics for this particular contract are not detailed here.

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

Sole-source awards for critical defense equipment carry several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved in a competitive bidding process, resulting in less value for taxpayer money. Secondly, it can stifle innovation, as the government is not exposed to potentially better or more cost-effective solutions that other companies might offer. Thirdly, it can create vendor lock-in, making it difficult and expensive to switch providers in the future. Lastly, without the scrutiny of multiple bidders, there's a potential risk of inadequate oversight or less rigorous performance standards being applied, although robust government program management can mitigate this. For critical equipment, reliance on a single source also poses a supply chain risk if that source encounters production issues.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ITT Corporation (UEI: 001216845)

Address: 18705 MADRONE PKWY, MORGAN HILL, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline