DoD's $12.7M contract for SCORING FIELD SERVICES with Meggitt Defense Systems raises concerns over competition and value
Contract Overview
Contract Amount: $12,671,569 ($12.7M)
Contractor: Meggitt Defense Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-16
End Date: 2014-09-18
Contract Duration: 2,285 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SCORING FIELD SERVICES
Place of Performance
Location: IRVINE, ORANGE County, CALIFORNIA, 92618
Plain-Language Summary
Department of Defense obligated $12.7 million to MEGGITT DEFENSE SYSTEMS, INC. for work described as: SCORING FIELD SERVICES Key points: 1. Contract awarded for $12.7M to Meggitt Defense Systems, Inc. 2. No competition was identified for this definitive contract. 3. The contract duration was 2285 days. 4. The North American Industry Classification System (NAICS) code is 334511. 5. The Product Service Code (PSC) is not specified.
Value Assessment
Rating: questionable
The contract value of $12.7M over approximately 6.3 years lacks a clear benchmark due to the absence of competitive bidding. Without comparable contracts, assessing fair pricing is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in inflated prices, impacting taxpayer value.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract limits opportunities for future cost savings through re-competition. Lack of transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
- Limited transparency
Positive Signals
- Contract awarded to a specific company for a defined period.
Sector Analysis
The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this defense-related manufacturing area can be substantial, but competitive bidding is crucial for ensuring efficiency.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to confirm.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps. A review of the justification for sole-source award is recommended to ensure accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in procurement
- Long contract duration without re-competition
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.7 million to MEGGITT DEFENSE SYSTEMS, INC.. SCORING FIELD SERVICES
Who is the contractor on this award?
The obligated recipient is MEGGITT DEFENSE SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $12.7 million.
What is the period of performance?
Start: 2008-06-16. End: 2014-09-18.
What was the justification for not competing this contract, and was it adequately documented?
The provided data states the contract was 'NOT COMPETED'. A thorough review of the contract file would be necessary to determine the specific justification (e.g., sole-source necessity, urgent need) and assess its adequacy and documentation. Without this information, it's impossible to confirm if proper procedures were followed.
How does the $12.7M contract value compare to similar sole-source procurements in the defense sector for navigation systems?
Benchmarking this $12.7M contract against similar sole-source procurements is challenging without more specific details on the services rendered and the exact nature of the systems involved. However, generally, sole-source contracts are expected to be priced carefully to avoid overpayment. A comparative analysis with other sole-source contracts for comparable navigation systems, if available, would be needed to assess value.
What is the potential risk to operational readiness if Meggitt Defense Systems is unable to fulfill its obligations under this long-term contract?
The risk to operational readiness depends heavily on the criticality of the 'SCORING FIELD SERVICES' to the specific defense systems. If these services are essential for the functioning of critical navigation or guidance equipment, a disruption could significantly impact military operations. The long duration (over 6 years) amplifies this risk, as it increases the likelihood of unforeseen issues with the contractor's performance or financial stability.
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: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q08R0275
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Meggitt Aircraft Braking Systems Kentucky Corporation (UEI: 216242784)
Address: 9801 MUIRLANDS BLVD, IRVINE, CA, 92618
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,711,821
Exercised Options: $12,671,569
Current Obligation: $12,671,569
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-06-16
Current End Date: 2014-09-18
Potential End Date: 2014-09-18 00:00:00
Last Modified: 2018-02-23
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