DoD awards $20.4M for AN/AVR-2B Laser Detecting Sets to Danbury Mission Technologies, a sole-source contract

Contract Overview

Contract Amount: $20,359,078 ($20.4M)

Contractor: Danbury Mission Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-25

End Date: 2025-07-31

Contract Duration: 1,528 days

Daily Burn Rate: $13.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AN/AVR-2B LASER DETECTING SET - VPS ORDER

Place of Performance

Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to DANBURY MISSION TECHNOLOGIES, LLC for work described as: AN/AVR-2B LASER DETECTING SET - VPS ORDER Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. The contract duration of over 4 years suggests a long-term need for these systems. 3. The specific nature of the AN/AVR-2B system implies a critical defense application. 4. Performance is based on a Cost Plus Fixed Fee structure, which can incentivize cost overruns. 5. The award to a single vendor limits opportunities for market-driven innovation and cost reduction. 6. Lack of competition may lead to higher overall costs for the taxpayer. 7. The contract is a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle, though details of the parent contract are not provided.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without comparable bids. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex or uncertain projects, carries inherent risks of cost escalation. Without competitive pressure, it's difficult to ascertain if the fixed fee adequately reflects the contractor's effort or if the overall cost is optimized. Further analysis would require understanding the cost components and the fixed fee's percentage relative to total costs in similar CPFF contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor possesses the necessary capabilities, technology, or security clearances, or in cases of urgent need. The absence of multiple bidders means there was no direct price comparison or negotiation driven by market forces. This limits the government's ability to secure the best possible price and potentially overlooks innovative solutions from other qualified companies.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding. The government may end up paying a premium for the goods or services, as the contractor faces less pressure to offer competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other branches of the Department of Defense requiring advanced laser detection capabilities. The contract delivers AN/AVR-2B Laser Detecting Sets, crucial components for military aircraft survivability. The geographic impact is primarily within military operations, with potential deployment globally. Workforce implications may include specialized manufacturing and technical support roles at Danbury Mission Technologies and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not closely managed.
Lack of transparency regarding the parent IDIQ contract makes full value assessment difficult.
Limited public information on the specific capabilities and necessity of the AN/AVR-2B system.
The contract's duration suggests a long-term reliance on this specific technology, potentially hindering adoption of newer alternatives.

Positive Signals

Award to an established contractor (Danbury Mission Technologies) suggests existing expertise in defense systems.
The AN/AVR-2B system addresses a critical need for aircraft survivability, enhancing force protection.
Delivery order under an IDIQ vehicle can streamline procurement for recurring needs.
The contract specifies a fixed fee, providing some level of cost predictability for the government.

Sector Analysis

The defense electronics sector is characterized by high R&D costs, stringent quality requirements, and long product lifecycles. Contracts for specialized systems like laser detecting sets are often awarded to a limited number of highly qualified firms due to the technical complexity and security considerations. The market size for such niche defense components can be substantial, driven by continuous modernization and operational needs of military forces worldwide. This contract fits within the 'Other Electronic Component Manufacturing' sub-sector, indicating a focus on specialized, non-mass-produced electronic parts.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a specific small business set-aside component based on the provided data. The prime contractor, Danbury Mission Technologies, LLC, is not explicitly identified as a small business. There is no information available regarding subcontracting plans or performance related to small businesses. This sole-source award limits opportunities for small businesses to participate in this specific procurement, although they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and the fixed fee is justified. Transparency is limited by the sole-source nature and the lack of detailed public reporting on cost breakdowns. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Aircraft Survivability Equipment
Electronic Warfare Systems
Defense Electronics Manufacturing
Department of Defense Procurement
Laser Warning Systems

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to DANBURY MISSION TECHNOLOGIES, LLC. AN/AVR-2B LASER DETECTING SET - VPS ORDER

Who is the contractor on this award?

The obligated recipient is DANBURY MISSION TECHNOLOGIES, 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 $20.4 million.

What is the period of performance?

Start: 2021-05-25. End: 2025-07-31.

What is the specific function and importance of the AN/AVR-2B Laser Detecting Set?

The AN/AVR-2B Laser Detecting Set is a critical component of Aircraft Survivability Equipment (ASE) used by the U.S. military. Its primary function is to detect and identify laser energy directed at an aircraft, such as from laser-guided munitions or targeting systems. Upon detection, it alerts the aircrew, providing crucial situational awareness to take evasive action and deploy countermeasures, thereby increasing the aircraft's survivability in hostile environments. These systems are vital for protecting high-value assets like helicopters and fixed-wing aircraft operating in contested airspace.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types in terms of value for money?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves significant uncertainty, such as in research and development or complex system integration. The government agrees to pay the contractor's actual costs plus a predetermined fixed fee representing profit. While this structure allows for flexibility, it can be less cost-effective than fixed-price contracts if not managed diligently. The government bears the risk of cost overruns, and the contractor has less incentive to control costs compared to fixed-price arrangements. Value for money is highly dependent on robust government oversight, accurate cost estimation, and a reasonable fixed fee negotiation.

What are the potential risks associated with a sole-source award for defense systems?

Sole-source awards for defense systems carry several risks. Primarily, the lack of competition means the government cannot leverage market forces to achieve the lowest possible price, potentially leading to higher costs for taxpayers. It can also stifle innovation, as there is less pressure on the incumbent contractor to improve technology or efficiency. Furthermore, it creates a dependency on a single supplier, which can be problematic if that supplier faces financial difficulties, production issues, or decides to exit the market. This can lead to supply chain vulnerabilities and extended lead times for critical equipment.

What is the historical spending pattern for AN/AVR-2B Laser Detecting Sets or similar systems?

Analyzing historical spending patterns for the AN/AVR-2B Laser Detecting Set specifically is challenging without access to detailed procurement databases beyond this single award. However, spending on Aircraft Survivability Equipment (ASE) and related electronic warfare systems is a consistent and significant part of the Department of Defense budget. These systems are subject to continuous upgrades and replacements due to technological advancements and evolving threats. Spending often occurs through sole-source or limited-competition contracts due to the specialized nature of the technology and the established relationships with prime defense contractors. Overall defense electronics procurement represents billions of dollars annually.

What is Danbury Mission Technologies, LLC's track record with similar defense contracts?

Danbury Mission Technologies, LLC has a history of providing defense-related electronic components and systems. While specific details on their track record with AN/AVR-2B systems or similar laser detection equipment require deeper database access, the company is known to operate within the defense sector, often supplying specialized electronic manufacturing services. Their ability to secure sole-source contracts, like this one, suggests they possess unique capabilities or are a trusted supplier for specific defense needs. A comprehensive review would involve examining past performance evaluations, contract awards, and any reported issues on previous government contracts.

How does this contract's value compare to other similar procurements within the DoD?

Direct comparison of this $20.4 million contract value is difficult without knowing the exact specifications, quantity, and configuration of the AN/AVR-2B Laser Detecting Sets procured. However, the total contract value over its multi-year period (May 2021 - July 2025) suggests a significant investment in this specific survivability technology. Spending on advanced electronic warfare and survivability systems within the DoD frequently runs into tens or hundreds of millions of dollars annually across various platforms and programs. The sole-source nature and CPFF structure mean this value is less a market benchmark and more an agreed-upon cost plus fee.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 WOOSTER HTS, DANBURY, CT, 06810

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,359,078

Exercised Options: $20,359,078

Current Obligation: $20,359,078

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ13D0147

IDV Type: IDC

Timeline