DoD Awards $11.2M for FS-LIDS Parts, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $11,220,000 ($11.2M)
Contractor: SRC Inc
Awarding Agency: Department of Defense
Start Date: 2023-08-30
End Date: 2026-03-31
Contract Duration: 944 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE 6 DEVISION SET 1 FS-LIDS PART NUMBER SRC7118-210B
Place of Performance
Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $11.2 million to SRC INC for work described as: PURCHASE 6 DEVISION SET 1 FS-LIDS PART NUMBER SRC7118-210B Key points: 1. Significant award value of $11.2 million for specialized equipment. 2. Sole-source procurement limits competition and potentially inflates costs. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector: Defense - Manufacturing of navigation and guidance systems.
Value Assessment
Rating: questionable
The contract value of $11.2 million for 6 division sets is substantial. Without competitive data, it's difficult to assess if this price is reasonable compared to similar systems or components in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no competition. This method bypasses the price discovery benefits of a competitive process, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these FS-LIDS parts.
Public Impact
Taxpayers may be overpaying for critical defense components due to a lack of competition. The Department of the Army is acquiring specialized navigation equipment. The long delivery period (944 days) suggests complex manufacturing or supply chain dependencies. Procurement transparency is reduced with sole-source awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Awarded to a specific company, potentially leveraging specialized expertise.
Sector Analysis
This procurement falls within the defense manufacturing sector, specifically for navigation and guidance systems. Spending benchmarks in this niche area are hard to establish without comparable contract data, but sole-source awards often deviate from market norms.
Small Business Impact
The data does not indicate whether small businesses were involved in this sole-source procurement, either as subcontractors or potential competitors bypassed by the award method.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value and that the justification for not competing is robust.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price discovery.
- Long contract duration may indicate supply chain risks.
- No indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.2 million to SRC INC. PURCHASE 6 DEVISION SET 1 FS-LIDS PART NUMBER SRC7118-210B
Who is the contractor on this award?
The obligated recipient is SRC 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 $11.2 million.
What is the period of performance?
Start: 2023-08-30. End: 2026-03-31.
What is the justification for awarding this contract on a sole-source basis, and was a market survey conducted to confirm the absence of other capable sources?
The justification for a sole-source award is critical for ensuring fair pricing and competition. Agencies must typically demonstrate that only one responsible source can provide the required supplies or services. Without this justification, the award raises questions about whether the government missed an opportunity to secure better pricing through a competitive process.
How does the per-unit cost of these FS-LIDS parts compare to similar systems or components available on the open market or through other government contracts?
Benchmarking the per-unit cost is essential for assessing value for money. Given this is a sole-source award, direct comparison is challenging. However, an internal cost analysis or comparison with commercially available, albeit potentially different, navigation components could reveal significant price discrepancies, indicating potential overpayment.
What are the long-term implications of relying on a single supplier for these critical navigation system components, particularly regarding supply chain resilience and future pricing?
Sole-source reliance can create significant long-term risks. It limits the government's leverage in future negotiations, potentially leading to escalating prices. Furthermore, it makes the supply chain vulnerable to disruptions affecting the single supplier, impacting operational readiness and mission effectiveness.
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: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7502 ROUND POND RD, NORTH SYRACUSE, NY, 13212
Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,220,000
Exercised Options: $11,220,000
Current Obligation: $11,220,000
Subaward Activity
Number of Subawards: 68
Total Subaward Amount: $15,459,619
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q20D0032
IDV Type: IDC
Timeline
Start Date: 2023-08-30
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-11-28
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