DoD Awards $17.4M for CORAL SD Search Systems to Elbit Systems, Sole Source
Contract Overview
Contract Amount: $17,424,665 ($17.4M)
Contractor: Elbit Systems Electro-Optics Elop Ltd
Awarding Agency: Department of Defense
Start Date: 2008-09-19
End Date: 2011-09-18
Contract Duration: 1,094 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: CORAL SD
Place of Performance
Location: WACO, MCLENNAN County, TEXAS, 76703
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to ELBIT SYSTEMS ELECTRO-OPTICS ELOP LTD for work described as: CORAL SD Key points: 1. Significant award for specialized search and detection systems. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of nearly three years suggests a substantial project. 4. Focus on aeronautical and nautical systems indicates a niche but critical application.
Value Assessment
Rating: fair
The award amount of $17.4M for CORAL SD systems appears to be a significant investment. Without specific per-unit cost data or benchmarks for similar systems, it's difficult to definitively assess its value. The lack of competition in the award process makes price discovery challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and limiting opportunities for other qualified vendors. The rationale for sole-source is not provided, which is a concern for price discovery.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these specialized systems, as there was no market pressure to drive down costs.
Public Impact
Enhances military capabilities in search, detection, and navigation for aeronautical and nautical operations. Supports advanced technology development within the defense sector. Potential impact on the operational readiness and effectiveness of deployed units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency regarding the justification for sole-source procurement.
- Potential for overpayment due to absence of competitive bidding.
Positive Signals
- Addresses a specific and critical need for advanced search and detection systems.
- Award to a known entity (Elbit Systems) may imply established performance or technology.
Sector Analysis
This contract falls within the defense sector, specifically in the manufacturing of advanced navigation and guidance systems. Spending in this area is often driven by technological advancement and operational requirements, with benchmarks varying widely based on system complexity and quantity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no indication of subcontracting opportunities for small businesses within this award, which could limit their participation in defense contracts.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable. Accountability for the decision not to compete the contract should be clearly established.
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.
- Lack of documented justification for sole-source.
- Potential for inflated pricing.
- No small business participation indicated.
- Long contract duration without clear performance milestones.
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to ELBIT SYSTEMS ELECTRO-OPTICS ELOP LTD. CORAL SD
Who is the contractor on this award?
The obligated recipient is ELBIT SYSTEMS ELECTRO-OPTICS ELOP LTD.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $17.4 million.
What is the period of performance?
Start: 2008-09-19. End: 2011-09-18.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions or vendors considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or lack of viable alternatives. Without this information, it's impossible to assess if the government received the best possible value or if opportunities for innovation and cost savings were missed.
How does the awarded price compare to industry benchmarks for similar search and detection systems, considering the sole-source nature of the procurement?
Assessing the price fairness is challenging without competitive data. If benchmarks exist for comparable systems, they should be rigorously compared. However, sole-source awards inherently lack the price discovery mechanism of competition, making it imperative to rely on robust cost analysis and independent government estimates to ensure taxpayer funds are used efficiently.
What are the long-term implications of relying on sole-source contracts for critical defense systems like CORAL SD in terms of technological advancement and vendor dependency?
Sole-source contracts can foster dependency on a single vendor, potentially stifling broader technological innovation within the defense industrial base. While they can ensure access to specific capabilities, a consistent reliance may limit the government's ability to leverage competitive advancements and could lead to higher lifecycle costs over time.
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: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd (UEI: 514421098)
Address: ADVANCED TECHNOLOGY PARK, REHOVOT
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,424,665
Exercised Options: $17,424,665
Current Obligation: $17,424,665
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-19
Current End Date: 2011-09-18
Potential End Date: 2011-09-18 00:00:00
Last Modified: 2012-04-03
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