DoD Awards $903M for Technical & Engineering Support, Lacking Competition
Contract Overview
Contract Amount: $902,866,509 ($902.9M)
Contractor: Jvys
Awarding Agency: Department of Defense
Start Date: 2010-07-08
End Date: 2014-06-30
Contract Duration: 1,453 days
Daily Burn Rate: $621.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TECHNICAL AND ENGINEERING EFFORT IN SUPPORT OF THE PIF.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $902.9 million to JVYS for work described as: TECHNICAL AND ENGINEERING EFFORT IN SUPPORT OF THE PIF. Key points: 1. Significant contract value of $903M awarded for technical and engineering services. 2. Sole-source award indicates a lack of competitive bidding, potentially impacting price. 3. Contract duration of over 4 years suggests a substantial, long-term need. 4. The award falls under 'Other Electronic Component Manufacturing', a broad category.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive pricing data, it's difficult to assess its value. The lack of competition raises concerns about whether the government received the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competition. This method can lead to higher prices and reduced innovation as there is no market pressure to offer competitive terms.
Taxpayer Impact: The lack of competition for a nearly billion-dollar contract raises concerns about taxpayer money being spent efficiently. Without competitive bids, the government may have overpaid for the services rendered.
Public Impact
Taxpayers may have paid a premium due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially inflated costs. Limited transparency into the justification for a sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Specific technical and engineering support provided
- Awarded by Department of Defense
Sector Analysis
The contract is categorized under 'Other Electronic Component Manufacturing,' which is a broad sector. Benchmarking spending in this specific niche is challenging without more granular data, but large sole-source awards warrant scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.
Oversight & Accountability
The sole-source justification for this large contract requires thorough review to ensure it was appropriate and that the government obtained fair value. Post-award oversight should focus on performance and cost control.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- High contract value ($903M)
- Long contract duration (over 4 years)
- Potential for inflated pricing
- Limited small business participation
Tags
other-electronic-component-manufacturing, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $902.9 million to JVYS. TECHNICAL AND ENGINEERING EFFORT IN SUPPORT OF THE PIF.
Who is the contractor on this award?
The obligated recipient is JVYS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $902.9 million.
What is the period of performance?
Start: 2010-07-08. End: 2014-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source award. A thorough review of the contract file would be necessary to ascertain the specific justification (e.g., unique capabilities, urgent need) and verify its adequacy and proper documentation according to federal acquisition regulations.
How was the price determined for this sole-source contract to ensure it represents fair and reasonable value?
Without competition, price determination relies heavily on cost analysis, price negotiation, and comparison to similar historical contracts or market research. The contracting officer must have performed extensive due diligence to establish a fair and reasonable price, potentially involving detailed cost breakdowns from the contractor and independent government cost estimates.
What are the potential risks associated with a sole-source award of this magnitude over a four-year period?
The primary risks include paying a non-competitive price, potentially missing out on innovative solutions from other vendors, and the contractor having less incentive to control costs or improve efficiency. There's also a risk of vendor lock-in and potential over-reliance on a single provider for critical services.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
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
Address: 4906 RESEARCH DRIVE, HUNTSVILLE, AL, 35805
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $902,866,509
Exercised Options: $902,866,509
Current Obligation: $902,866,509
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-07-08
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 12:06:00
Last Modified: 2025-05-14
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