DoD's $20.5M Symetrics Industries contract for navigation instruments awarded without competition

Contract Overview

Contract Amount: $20,529,378 ($20.5M)

Contractor: Symetrics Industries, LLC

Awarding Agency: Department of Defense

Start Date: 2011-08-09

End Date: 2013-06-30

Contract Duration: 691 days

Daily Burn Rate: $29.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FROM COOLEST 5137,5200,5306,AND 5446 PROCURING TOTAL OF 319 IDM304 AND 100 PUT ON OPTIONS FOR THIS FIRM FIXED PRICE CONTRACT.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32901

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to SYMETRICS INDUSTRIES, LLC for work described as: FROM COOLEST 5137,5200,5306,AND 5446 PROCURING TOTAL OF 319 IDM304 AND 100 PUT ON OPTIONS FOR THIS FIRM FIXED PRICE CONTRACT. Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Firm Fixed Price contract type suggests price certainty but may limit flexibility. 3. Contract duration of nearly two years indicates a significant, ongoing need. 4. Awarded to a Florida-based company, potentially impacting regional economic development. 5. The specific product category (Search, Detection, Navigation, Guidance Systems) is critical for military operations. 6. Lack of competition may lead to higher costs for taxpayers compared to a competed award.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed price contract provides cost certainty for the government, but the absence of multiple bids means there's no market validation of the price. Comparing this to similar contracts for navigation systems would be necessary to assess if the $20.5 million expenditure is reasonable, but such data is not readily available in this context. The lack of competition is the primary concern regarding value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific reasons for not competing are not detailed, but this approach bypasses the standard process of soliciting bids from multiple vendors. Consequently, there were no competing offers to drive down prices or encourage innovation. The lack of a competitive environment means the government did not benefit from the price discovery mechanisms inherent in open solicitations.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing bids, there is less assurance that the price reflects the best possible value achievable in the market.

Public Impact

The Department of the Army is the primary beneficiary, receiving critical navigation instruments. The contract supports the manufacturing and delivery of specialized navigation systems. The geographic impact is primarily in Florida, where Symetrics Industries is located. The contract supports jobs within Symetrics Industries and its supply chain.

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 stifle innovation by not encouraging multiple vendors to propose solutions.
Limited transparency into the justification for not competing the contract.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
The contract addresses a specific and likely critical need for navigation systems.
Award to a US-based company supports domestic manufacturing.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a specialized area of defense manufacturing. The market for such systems is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. While specific market size data for this niche is not provided, it is a critical component of the broader aerospace and defense industry, which represents billions in annual federal spending.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it is less likely to have specific provisions for small business participation unless Symetrics Industries voluntarily engages in subcontracting with small businesses. The impact on the small business ecosystem is therefore unclear and likely minimal without explicit set-aside requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. Accountability measures are inherent in the firm fixed price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification for the non-competitive procurement.

Related Government Programs

Defense Logistics Agency (DLA) procurements
Naval Air Systems Command (NAVAIR) contracts
Army Aviation and Missile Command (AMCOM) contracts
Aerospace and Defense Manufacturing

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for overpayment due to lack of competition.
Dependency on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to SYMETRICS INDUSTRIES, LLC. FROM COOLEST 5137,5200,5306,AND 5446 PROCURING TOTAL OF 319 IDM304 AND 100 PUT ON OPTIONS FOR THIS FIRM FIXED PRICE CONTRACT.

Who is the contractor on this award?

The obligated recipient is SYMETRICS INDUSTRIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2011-08-09. End: 2013-06-30.

What is the specific justification provided by the Department of the Army for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' but it does not include the specific justification for this decision. Typically, sole-source awards require a formal justification, such as the existence of only one responsible source, urgent and compelling circumstances, or a specific national security need that only one contractor can fulfill. Without this justification, it is impossible to assess the validity of the non-competitive award. Further investigation into the contract file or agency procurement records would be necessary to uncover the official rationale.

How does the $20.5 million total contract value compare to historical spending on similar navigation systems by the Department of Defense?

Direct comparison of the $20.5 million total contract value to historical spending on similar navigation systems is challenging without more specific data on the types of instruments procured and the contract's scope. The data provided indicates the contract covers 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' To perform a meaningful comparison, one would need to identify other contracts for comparable systems, analyze their value, duration, and the number of bidders. The fact that this contract was sole-source further complicates direct value benchmarking, as competitive awards often yield lower prices.

What are the key performance indicators (KPIs) or deliverables expected under this firm fixed price contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, as a firm fixed price contract for navigation system instruments, the primary deliverable would be the timely delivery of the specified hardware meeting all technical specifications and quality standards. Performance would likely be assessed based on adherence to delivery schedules, product quality (e.g., defect rates), and compliance with contractual technical requirements. The contract number 'IDM304' and options suggest a structured delivery plan over its duration.

What is Symetrics Industries, LLC's track record with the Department of Defense and other federal agencies, particularly regarding navigation systems?

The data indicates Symetrics Industries, LLC was awarded this $20.5 million contract by the Department of the Army. To assess their track record, a broader search of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal the number and value of previous contracts awarded to Symetrics Industries, the agencies they've contracted with, and the types of goods or services provided. Information on past performance, including any issues with delivery, quality, or contract disputes, would be crucial for a comprehensive assessment of their reliability in delivering navigation systems.

What is the potential risk associated with relying on a single contractor for critical navigation system components?

Relying on a single contractor for critical navigation system components presents several risks. Firstly, it creates a dependency that can be problematic if the contractor experiences financial difficulties, production issues, or goes out of business, potentially disrupting the supply chain for essential military equipment. Secondly, the lack of competition can lead to complacency and potentially lower quality or less innovation over time. Thirdly, as noted, it removes the downward price pressure that competition provides, potentially leading to higher costs for the government and taxpayers. This risk is amplified for components that are vital to mission success.

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: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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: 1615 W NASA BLVD, MELBOURNE, FL, 08

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,529,378

Exercised Options: $20,529,378

Current Obligation: $20,529,378

Contract Characteristics

Cost or Pricing Data: YES

Timeline