DoD awards $15.8M for Night Vision Goggles to Harris Corporation, raising competition concerns

Contract Overview

Contract Amount: $15,817,603 ($15.8M)

Contractor: Harris Corporation

Awarding Agency: Department of Defense

Start Date: 2009-04-16

End Date: 2011-02-28

Contract Duration: 683 days

Daily Burn Rate: $23.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/PVS NIGHT VISION GOGGLES AND AN/PVS-7D NIGHT VISION GOGGLES

Place of Performance

Location: ROANOKE, ROANOKE County, VIRGINIA, 24019

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to HARRIS CORPORATION for work described as: AN/PVS NIGHT VISION GOGGLES AND AN/PVS-7D NIGHT VISION GOGGLES Key points: 1. Significant award for specialized optical equipment. 2. Sole-source award to Harris Corporation limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Sector: Defense - Optical Instrument Manufacturing.

Value Assessment

Rating: questionable

Pricing is not assessed due to limited competition. The firm fixed price contract type suggests price was determined prior to award, but without competitive bids, its reasonableness is difficult to ascertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited source award. This significantly impacts price discovery, as the government did not leverage multiple bids to secure the best value.

Taxpayer Impact: Taxpayers may have paid a premium for these night vision goggles due to the absence of a competitive bidding process.

Public Impact

Military readiness potentially impacted by specialized equipment procurement. Defense spending on optical instruments represents a critical but potentially costly area. Lack of transparency in sole-source awards can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmark
Sole-source award

Positive Signals

Essential military equipment
Firm fixed price contract

Sector Analysis

The Department of Defense frequently procures optical instruments for various military applications. Spending in this sector can be substantial, especially for advanced technologies like night vision.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large corporation.

Oversight & Accountability

The limited competition and sole-source nature of this award warrant further oversight to ensure the government obtained fair pricing and that such awards are justified.

Related Government Programs

Optical Instrument and Lens Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for overpayment
Limited transparency
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to HARRIS CORPORATION. AN/PVS NIGHT VISION GOGGLES AND AN/PVS-7D NIGHT VISION GOGGLES

Who is the contractor on this award?

The obligated recipient is HARRIS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2009-04-16. End: 2011-02-28.

What was the justification for awarding this contract on a limited or sole-source basis?

The justification for a limited or sole-source award is crucial for understanding the value received. Without competition, it's difficult to determine if the government secured the best possible price and terms. Further investigation into the specific circumstances and documentation supporting the limited competition is needed to assess the rationale and potential impact on cost.

How does the unit cost of these goggles compare to similar procurements or commercial equivalents?

Benchmarking the unit cost is challenging without competitive data. If comparable government contracts or commercial sales data exist, they would be essential for assessing value. The absence of such comparisons makes it difficult to ascertain if the price paid was reasonable or if taxpayers bore an unnecessary cost due to the procurement method.

What is the long-term strategic value of procuring these specific night vision goggles from a single source?

The long-term strategic value hinges on whether this specific technology offers unique capabilities essential for national security that only Harris Corporation can provide. If alternatives exist or could be developed competitively, the sole-source approach might not be strategically optimal. Evaluating the necessity of this specific vendor and technology is key to assessing its strategic worth.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T08RD072

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ITT Corporation (UEI: 001216845)

Address: 7635 PLANTATION RD, ROANOKE, VA, 06

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

Financial Breakdown

Contract Ceiling: $17,346,946

Exercised Options: $15,817,603

Current Obligation: $15,817,603

Contract Characteristics

Cost or Pricing Data: NO

Timeline