Army awards $92.6M for GOV OF INDIA FCR SYSTEMS to LONGBOW LLC, raising competition concerns

Contract Overview

Contract Amount: $92,610,384 ($92.6M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2016-04-29

End Date: 2021-12-31

Contract Duration: 2,072 days

Daily Burn Rate: $44.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GOVERNMENT OF INDIA FCR SYSTEMS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $92.6 million to LONGBOW LLC for work described as: GOVERNMENT OF INDIA FCR SYSTEMS Key points: 1. Significant contract value of $92.6M awarded. 2. Sole-source award to LONGBOW LLC limits competitive pricing. 3. Contract duration of 2072 days suggests long-term need. 4. Lack of competition may lead to inflated costs for taxpayers.

Value Assessment

Rating: questionable

The contract value of $92.6M is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar aircraft parts contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, LONGBOW LLC, was considered. This lack of competition significantly hinders price discovery and potentially leads to higher costs.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure to secure the best possible price for these aircraft parts.

Public Impact

Potential for higher costs for military readiness due to sole-source award. Limited transparency in pricing due to lack of competitive bidding. Impact on small businesses in the aerospace parts sector is unclear without competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Definitive contract awarded
Long-term commitment established

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but competitive sourcing is key to cost efficiency.

Small Business Impact

The contract was not awarded to a small business, and the sole-source nature limits opportunities for small businesses that might otherwise compete for subcontracts or similar work.

Oversight & Accountability

The sole-source justification and the lack of competitive bidding warrant close oversight to ensure the government is receiving fair value for taxpayer dollars.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.6 million to LONGBOW LLC. GOVERNMENT OF INDIA FCR SYSTEMS

Who is the contractor on this award?

The obligated recipient is LONGBOW 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 $92.6 million.

What is the period of performance?

Start: 2016-04-29. End: 2021-12-31.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price was reasonable?

The justification for a sole-source award is typically based on specific circumstances, such as the uniqueness of the product or service, or the lack of available competition. Without detailed documentation, it's impossible to confirm the rationale. However, the absence of competition inherently makes price reasonableness harder to ascertain, often requiring extensive negotiation and market research by the contracting agency.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risk is financial: the government may pay a premium due to the lack of competitive pressure. Other risks include vendor lock-in, potential for complacency from the sole provider regarding quality or innovation, and limited opportunities for alternative solutions to emerge. The long duration amplifies these risks over time.

How does this sole-source award impact the overall effectiveness and cost-efficiency of the Department of the Army's procurement strategy for aircraft parts?

Sole-source awards, especially for significant amounts, can reduce overall procurement effectiveness by bypassing potentially more innovative or cost-effective solutions from a competitive market. While it ensures a specific capability is met, it may not be the most efficient use of funds, potentially diverting resources from other critical needs or leading to higher overall spending on aircraft parts.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52P1J16R0072

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5600 W SAND LAKE RD, ORLANDO, FL, 32819

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,712,931

Exercised Options: $92,712,931

Current Obligation: $92,610,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline