Army awards $10.6M for Unmanned Ground Vehicle development to Howe & Howe Technologies
Contract Overview
Contract Amount: $10,621,574 ($10.6M)
Contractor: Howe & Howe Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-25
End Date: 2012-12-01
Contract Duration: 1,894 days
Daily Burn Rate: $5.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UNMANNED GROUND VEHICLE- PHASE 1
Place of Performance
Location: WATERBORO, YORK County, MAINE, 04087
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to HOWE & HOWE TECHNOLOGIES, INC. for work described as: UNMANNED GROUND VEHICLE- PHASE 1 Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests clear scope and cost expectations. 3. Long duration of 1894 days indicates a significant development effort. 4. Focus on engineering services for a novel technology. 5. Contract awarded in 2007, performance concluded in 2012. 6. Geographic concentration in Maine for the contractor.
Value Assessment
Rating: questionable
Benchmarking the value for this specific contract is challenging due to its age and sole-source nature. The $10.6 million awarded over nearly five years for Phase 1 development of an unmanned ground vehicle represents a substantial investment. Without comparable sole-source contracts for similar early-stage R&D in this niche, it's difficult to definitively assess if the pricing was optimal. However, the lack of competition inherently raises concerns about achieving the best possible value for taxpayer funds.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Howe & Howe Technologies, Inc., was solicited. This approach bypasses the competitive bidding process typically used to ensure fair pricing and innovation. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to explore alternative solutions and negotiate the most favorable terms.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings and innovation that typically arise from a competitive bidding environment.
Public Impact
The primary beneficiaries are the Department of the Army, which receives advanced unmanned ground vehicle technology. Services delivered include research, development, and engineering for a specialized defense system. The geographic impact is concentrated in Maine, where the contractor is based. Workforce implications include specialized engineering and technical roles at the contractor's facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Lack of transparency in the justification for sole-source award.
- Contract duration is long, potentially leading to cost overruns if not managed tightly.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Focus on a specific, potentially critical, defense technology.
- Contractor is likely specialized in this niche area.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense research and development. The market for unmanned ground vehicles is a rapidly evolving segment of the defense industry, driven by the need for enhanced situational awareness, reduced risk to personnel, and increased operational efficiency. Spending in this area is highly specialized and often involves significant R&D investment by a limited number of contractors.
Small Business Impact
This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The nature of advanced defense R&D often involves larger, specialized firms. There is no explicit information regarding subcontracting plans with small businesses.
Oversight & Accountability
Oversight for this contract would have been managed by the contracting agency, the Department of the Army. As a sole-source award, the justification and negotiation process would be subject to internal agency review and potentially oversight by the Government Accountability Office (GAO) if protested. Transparency is limited due to the non-competitive nature.
Related Government Programs
- Robotics and Autonomous Systems
- Defense Research and Development
- Unmanned Systems Procurement
- Army Ground Vehicle Programs
Risk Flags
- Sole-source award may limit value for money.
- Lack of competition could stifle innovation.
- Contract duration is long, requiring sustained oversight.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, unmanned-ground-vehicle, sole-source, firm-fixed-price, research-and-development, technology-development, maine, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to HOWE & HOWE TECHNOLOGIES, INC.. UNMANNED GROUND VEHICLE- PHASE 1
Who is the contractor on this award?
The obligated recipient is HOWE & HOWE TECHNOLOGIES, 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 $10.6 million.
What is the period of performance?
Start: 2007-09-25. End: 2012-12-01.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's requirements. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without the official justification document, it is impossible to ascertain the precise reasons. However, sole-source awards are generally scrutinized to ensure they are truly necessary and that competition is not being unfairly excluded.
How does the $10.6 million cost compare to similar unmanned ground vehicle development contracts?
Direct comparison of the $10.6 million cost is difficult due to the contract's age (awarded in 2007) and its sole-source nature for Phase 1 development. The unmanned ground vehicle market has evolved significantly since 2007. Early-stage R&D contracts can vary widely in cost depending on the complexity of the technology, the scope of work, and the specific phase of development. Without access to a database of comparable sole-source R&D contracts from that era for similar systems, a precise benchmark is not feasible. However, for a multi-year, specialized development effort, the amount is substantial.
What are the key risks associated with a sole-source award for a technology development contract?
The primary risk of a sole-source award for technology development is the lack of competitive pressure, which can lead to inflated prices and potentially less innovation. Without competing bids, the government may not achieve the best possible value for its investment. There's also a risk that the chosen contractor may not have explored all possible technological avenues or may lack the incentive to push boundaries as aggressively as they would under competitive pressure. Furthermore, the justification for sole-sourcing needs to be robust to ensure it's not a circumvention of fair procurement practices.
What was the intended outcome or objective of this Phase 1 development contract?
The contract data indicates the objective was the development of an 'UNMANNED GROUND VEHICLE- PHASE 1'. This suggests the contract was focused on the initial stages of research and development for a robotic ground platform. Phase 1 typically involves feasibility studies, concept development, preliminary design, and potentially the creation of prototypes or proof-of-concept demonstrations. The ultimate goal would be to advance the technology towards potential future production or fielding by the Department of the Army.
How has spending on unmanned ground vehicles evolved since this contract was awarded in 2007?
Spending on unmanned ground vehicles (UGVs) has likely increased and become more sophisticated since 2007. The initial award of $10.6 million for Phase 1 development reflects an early investment in this technology. Over the subsequent years, advancements in robotics, artificial intelligence, sensor technology, and power systems have driven further development and procurement of UGVs across various military branches. The market has matured, with increased competition and a wider range of applications, from reconnaissance and logistics to combat support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: 518 TURKEY ST, NORTH BERWICK, ME, 01
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,621,574
Exercised Options: $10,621,574
Current Obligation: $10,621,574
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-25
Current End Date: 2012-12-01
Potential End Date: 2012-12-01 00:00:00
Last Modified: 2012-09-17
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)