DoD Awards $42M for TACNAV Systems to Emcore Chicago, Facing Limited Competition
Contract Overview
Contract Amount: $42,158,809 ($42.2M)
Contractor: Emcore Chicago Inertial Corporation
Awarding Agency: Department of Defense
Start Date: 2012-06-15
End Date: 2015-11-30
Contract Duration: 1,263 days
Daily Burn Rate: $33.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TACNAV SYSTEMS
Place of Performance
Location: TINLEY PARK, COOK County, ILLINOIS, 60487
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $42.2 million to EMCORE CHICAGO INERTIAL CORPORATION for work described as: TACNAV SYSTEMS Key points: 1. Significant award of $42.16M for TACNAV systems. 2. Sole source award to Emcore Chicago Inertial Corporation. 3. Contract duration of 1263 days indicates a substantial project. 4. High value award in the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $42.16M is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value against industry benchmarks is difficult. The firm fixed price structure aims to control costs, but the lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential inefficiencies and higher costs for taxpayers, as competitive pressures were absent.
Public Impact
Impacts military navigation and guidance capabilities. Potential for increased costs due to lack of competition. Supports a specific defense contractor in Illinois.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency on cost justification for sole-source.
- Long contract duration without competitive re-evaluation.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Supports critical defense navigation systems.
Sector Analysis
This award falls within the specialized sector of aeronautical and nautical system manufacturing. Spending in this sector is often driven by defense needs and can involve high R&D costs and limited supplier bases, making sole-source awards more common but still requiring scrutiny.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. The prime contractor is Emcore Chicago Inertial Corporation, and further analysis would be needed to determine subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price paid is fair and reasonable. Accountability would involve reviewing the justification for the sole-source award and tracking performance against contract requirements.
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 limits competition.
- Potential for inflated pricing due to lack of competition.
- Lack of transparency regarding justification for sole-sourcing.
- Long contract duration without competitive re-evaluation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.2 million to EMCORE CHICAGO INERTIAL CORPORATION. TACNAV SYSTEMS
Who is the contractor on this award?
The obligated recipient is EMCORE CHICAGO INERTIAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.2 million.
What is the period of performance?
Start: 2012-06-15. End: 2015-11-30.
What was the justification for awarding this contract on a sole-source basis, and were alternatives explored?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of other responsible sources. Without access to the specific justification documentation, it's impossible to confirm the reasons. However, the absence of competition inherently limits the government's ability to explore alternatives and secure the best possible pricing.
How does the unit cost of these TACNAV systems compare to similar systems procured competitively?
Direct comparison of unit costs is challenging without knowing the specific system configurations and quantities. However, given the sole-source nature of this award, it is reasonable to question whether the unit price reflects the best value achievable through a competitive process. A benchmark analysis against similar, competitively procured systems would be necessary to assess this.
What is the long-term strategic value of relying on a single source for these critical navigation systems?
While sole-sourcing can ensure access to specialized technology, it creates a dependency that can be a strategic risk. It limits future competition, potentially drives up long-term costs, and reduces leverage in negotiations. The government should continuously assess the market for potential alternative suppliers or develop internal capabilities to mitigate this long-term reliance.
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: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
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
Parent Company: KVH Industries Inc
Address: 8412 185TH ST, TINLEY PARK, IL, 60487
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $42,158,809
Exercised Options: $42,158,809
Current Obligation: $42,158,809
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-06-15
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2023-03-28
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