DoD awards $116M contract to Sonic Concepts for wireless communications equipment
Contract Overview
Contract Amount: $11,611,490 ($11.6M)
Contractor: Sonic Concepts, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-12-22
End Date: 2006-02-15
Contract Duration: 786 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: WOODINVILLE, KING County, WASHINGTON, 98072
Plain-Language Summary
Department of Defense obligated $11.6 million to SONIC CONCEPTS, INC. for work described as: Key points: 1. Contract value of $116.1 million. 2. Awarded by the Department of the Army. 3. Procurement method was 'NOT COMPETED'. 4. Contract duration was 786 days.
Value Assessment
Rating: questionable
The contract was not competed, making a direct pricing assessment against similar contracts difficult. The awarded amount of $116.1 million for a 786-day duration requires further scrutiny to determine value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition procurement. This method may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The lack of competition raises concerns about potential overspending of taxpayer funds.
Public Impact
Significant taxpayer investment in wireless communications equipment. Potential for limited vendor options impacting future procurements. Focus on defense-related technology acquisition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Awarded to a specific firm for specialized equipment
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. Spending in this sector is critical for defense communications, but competitive bidding is essential to ensure cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to understand the overall small business participation in this sector for the Department of the Army.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was robust and that fair and reasonable pricing was achieved.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in procurement process
- No small business participation indicated
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, wa, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.6 million to SONIC CONCEPTS, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SONIC CONCEPTS, 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 $11.6 million.
What is the period of performance?
Start: 2003-12-22. End: 2006-02-15.
What was the specific justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is critical for understanding why competition was bypassed. Without this information, it's difficult to assess if the government received the best possible value or if alternative solutions were explored. This information is typically documented in the contract file and should be publicly accessible for transparency.
How does the unit cost of the equipment compare to market rates for similar technology?
Benchmarking the unit cost against market rates is essential for evaluating value. Given the sole-source nature, a thorough independent cost analysis would be required to confirm if the $116.1 million award represented a fair and reasonable price for the wireless communications equipment provided over the 786-day period.
What is the long-term strategic value of this specific wireless communication equipment for the Department of the Army?
Understanding the strategic importance of the acquired equipment helps contextualize the investment. If this equipment provides unique, mission-critical capabilities not available elsewhere, it might partially justify a sole-source award. However, the long-term cost-effectiveness and potential for obsolescence still need consideration.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 20018 163RD AVE NE, WOODINVILLE, WA, 90
Business Categories: Category Business, Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-12-22
Current End Date: 2006-02-15
Potential End Date: 2006-02-15 00:00:00
Last Modified: 2008-02-04
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