DoD Awards $28M for EI2 Cameras and Depot Services to Intevac Photonics Inc
Contract Overview
Contract Amount: $28,055,018 ($28.1M)
Contractor: Intevac Photonics Inc
Awarding Agency: Department of Defense
Start Date: 2013-06-11
End Date: 2016-03-30
Contract Duration: 1,023 days
Daily Burn Rate: $27.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 2 AND 3 FOR EI2 CAMERAS, LAY IN MATERIAL AND DEPOT SERVICES
Place of Performance
Location: SANTA CLARA, SANTA CLARA County, CALIFORNIA, 95054
Plain-Language Summary
Department of Defense obligated $28.1 million to INTEVAC PHOTONICS INC for work described as: LOT 2 AND 3 FOR EI2 CAMERAS, LAY IN MATERIAL AND DEPOT SERVICES Key points: 1. Significant award for specialized camera systems and related materials. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (1023 days) may indicate complex requirements. 4. Focus on Aircraft Manufacturing sector suggests defense-related application.
Value Assessment
Rating: questionable
The contract value of $28M for EI2 cameras and depot services lacks direct comparable benchmarks without further detail on the specific camera technology and service scope. The absence of competition makes a precise pricing assessment 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 as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these specialized camera systems and services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The specific application of these cameras within Aircraft Manufacturing is unclear to the public. Dependence on a single supplier for critical components could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Specific technology acquisition
- Potential for specialized capabilities
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically NAICS code 336411. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a large business, and there's no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability would involve reviewing the justification for the sole-source award and monitoring contract performance and costs.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- Long-term supply chain risk.
- No small business participation noted.
- Limited public information on specific technology.
Tags
aircraft-manufacturing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.1 million to INTEVAC PHOTONICS INC. LOT 2 AND 3 FOR EI2 CAMERAS, LAY IN MATERIAL AND DEPOT SERVICES
Who is the contractor on this award?
The obligated recipient is INTEVAC PHOTONICS 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 $28.1 million.
What is the period of performance?
Start: 2013-06-11. End: 2016-03-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's impossible to confirm if alternatives were explored, but a thorough review would be necessary to validate the necessity of a sole-source approach and ensure taxpayer value.
How does the unit cost of these EI2 cameras compare to similar systems in the market, considering the lack of competition?
Directly comparing the unit cost is challenging due to the sole-source nature and lack of publicly available pricing details for comparable systems. A comprehensive analysis would require access to the contractor's cost breakdown and market research data used to establish the 'fair and reasonable' price, if any was conducted.
What are the long-term implications of relying on a single supplier for these critical aircraft manufacturing components?
Long-term reliance on a single supplier can create significant supply chain risks, including potential price increases, production delays if the supplier faces issues, and limited options for upgrades or replacements. It also reduces leverage for the government in future negotiations and could stifle innovation if the supplier does not face competitive pressure.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ12R0494
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Intevac, Inc. (UEI: 622670529)
Address: 3560 BASSETT ST, SANTA CLARA, CA, 95054
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,055,018
Exercised Options: $28,055,018
Current Obligation: $28,055,018
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-06-11
Current End Date: 2016-03-30
Potential End Date: 2016-03-30 12:03:00
Last Modified: 2017-05-10
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)