DoD's $23.5M Laser Spot Imager Contract Awarded to Elbit America, Inc
Contract Overview
Contract Amount: $23,494,663 ($23.5M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-12-21
End Date: 2012-12-20
Contract Duration: 1,826 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LASER SPOT IMAGER
Place of Performance
Location: MERRIMACK, HILLSBOROUGH County, NEW HAMPSHIRE, 03054
Plain-Language Summary
Department of Defense obligated $23.5 million to ELBITAMERICA, INC. for work described as: LASER SPOT IMAGER Key points: 1. Contract value represents a significant investment in advanced optical instrumentation. 2. Competition dynamics for specialized defense equipment can influence pricing and innovation. 3. Contract duration of five years suggests a long-term need for the specified technology. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award falls within the broader category of defense procurement for surveillance and targeting systems.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more granular data on comparable laser spot imagers. The total award of $23.5 million over five years averages to approximately $4.7 million annually. This figure needs to be assessed against the technological sophistication and capabilities of the Elbit America Laser Spot Imager. Without direct comparisons to similar systems procured by the DoD or other agencies, it's difficult to definitively state if this represents excellent or questionable value. The firm fixed-price nature suggests an attempt to lock in costs, but the ultimate value depends on the system's performance and operational effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specialized defense technology. While two bidders are better than one, a higher number of competitors typically drives prices down further and encourages more innovative solutions. The specific details of the bidding process and the evaluation criteria would provide a clearer picture of how effectively competition was leveraged.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality through a wide range of potential suppliers. Even with two bidders, the process ensures that the government is not limited to a single source, promoting a more competitive environment.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, who will utilize the laser spot imagers for operational purposes. The services delivered include the provision of advanced optical instruments crucial for surveillance, targeting, or reconnaissance missions. The geographic impact is likely concentrated within naval operations and potentially deployed units globally. Workforce implications may include specialized training for military personnel on the operation and maintenance of this equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the technology is highly proprietary and difficult to integrate with other systems.
- Risk of cost overruns if the fixed-price contract did not adequately account for unforeseen technical challenges or inflation over the five-year period.
- Dependence on a single contractor for sustainment and upgrades could limit future flexibility.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Firm fixed-price contract type provides cost certainty for the government.
- Long-term contract duration indicates a sustained need and potential for stable supply.
- Award to a known defense contractor like Elbit America suggests a level of established capability and reliability.
Sector Analysis
The defense sector, particularly within the optical and electro-optical instrument manufacturing sub-sector, is characterized by high R&D investment and stringent performance requirements. Contracts like this are crucial for maintaining technological superiority. Spending in this area is often driven by evolving threat landscapes and the need for advanced surveillance and targeting capabilities. Comparable spending benchmarks would involve looking at other procurements for similar advanced optical systems, such as thermal imagers, night vision devices, or advanced targeting pods, across various defense agencies.
Small Business Impact
This contract does not appear to have a specific small business set-aside component, as indicated by 'ss': false. The prime contractor, Elbit America, Inc., is a significant defense technology company. While the contract itself is not set aside for small businesses, there may be opportunities for small businesses to participate as subcontractors to Elbit America. The extent of small business subcontracting would depend on Elbit's procurement practices and the specific components or services required for the laser spot imagers.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.
Related Government Programs
- Defense Procurement
- Optical and Electro-Optical Systems
- Naval Warfare Technology
- Surveillance and Reconnaissance Equipment
- Advanced Manufacturing Contracts
Risk Flags
- Potential for technological obsolescence
- Contractor performance risk
- Sustainment and support dependency
Tags
defense, department-of-defense, department-of-the-navy, elbit-america-inc, laser-spot-imager, optical-instrument-and-lens-manufacturing, full-and-open-competition, firm-fixed-price, new-hampshire, large-contract, surveillance-technology, electro-optics
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to ELBITAMERICA, INC.. LASER SPOT IMAGER
Who is the contractor on this award?
The obligated recipient is ELBITAMERICA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2007-12-21. End: 2012-12-20.
What is Elbit America, Inc.'s track record with similar defense contracts, particularly for optical systems?
Elbit America, Inc. is a subsidiary of Elbit Systems Ltd., a global defense electronics company. They have a substantial history of providing advanced technological solutions to the U.S. military across various domains, including electro-optics, intelligence, surveillance, and reconnaissance (ISR) systems, as well as command and control systems. Their portfolio often includes products like targeting systems, night vision devices, and other specialized optical equipment. While specific contract details for laser spot imagers may vary, their general track record suggests experience in developing and delivering complex defense-related optical hardware. A deeper dive into their past performance ratings and any past issues on similar contracts would provide more specific insights into their reliability for this particular award.
How does the $23.5 million contract value compare to other DoD procurements for laser spot imagers or similar optical devices?
Direct comparison of the $23.5 million value for this specific 'LASER SPOT IMAGER' contract is challenging without more precise definitions of 'similar optical devices' and access to detailed historical pricing data for comparable systems. The DoD procures a wide array of optical and electro-optical systems, ranging from relatively simple components to highly complex integrated systems. The average annual value of this contract is approximately $4.7 million. To assess value, one would need to compare this figure against the unit cost, technological capabilities, and intended operational use of the Elbit America system against other systems procured for similar functions, such as laser designators, rangefinders, or advanced targeting pods. Without such granular data, it's difficult to benchmark this specific award definitively.
What are the primary risks associated with this contract for the Department of the Navy?
The primary risks associated with this contract for the Department of the Navy include potential performance issues if the delivered laser spot imagers do not meet the stringent operational requirements for surveillance or targeting. There's also a risk of technological obsolescence, as defense technology evolves rapidly; the system procured might become outdated before the contract's end date. Furthermore, reliance on a single contractor for a critical piece of equipment can pose sustainment and support risks. If Elbit America faces production delays, financial instability, or decides to discontinue the product line, the Navy could face significant disruption. Finally, the risk of cost growth, although mitigated by the firm fixed-price structure, could still materialize if contract modifications are required due to unforeseen circumstances or scope changes.
How effective is the firm fixed-price contract type in ensuring value for money for this specific laser spot imager procurement?
The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money by shifting the risk of cost overruns to the contractor. For this $23.5 million Laser Spot Imager contract, the FFP structure means Elbit America, Inc. is obligated to deliver the specified goods at the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and deliver the product within budget. For the Department of the Navy, this provides significant budget certainty. However, the effectiveness hinges on the initial price negotiation and the clarity of the contract's scope. If the initial price was set too high due to inadequate competition or poor negotiation, or if the scope was poorly defined leading to change orders, the value for money might be compromised despite the FFP structure.
What are the historical spending patterns for optical instruments and laser systems within the Department of Defense?
Historical spending patterns for optical instruments and laser systems within the Department of Defense are substantial and generally trend upwards, driven by continuous technological advancements and evolving mission requirements. The DoD consistently invests billions annually across various categories, including electro-optical/infrared (EO/IR) systems, targeting pods, night vision devices, and specialized sensors. Spending is often concentrated within major defense contractors who possess the R&D capabilities and manufacturing infrastructure. Trends show a move towards more integrated, networked, and intelligent systems, incorporating AI and advanced data processing. Specific spending on laser spot imagers would be a subset of this broader category, influenced by the perceived tactical advantage and operational necessity of such technologies in current and future conflict scenarios.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785407R6036
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd (UEI: 514421098)
Address: 220 DANIEL WEBSTER HWY, MERRIMACK, NH, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,494,663
Exercised Options: $23,494,663
Current Obligation: $23,494,663
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785408D6006
IDV Type: IDC
Timeline
Start Date: 2007-12-21
Current End Date: 2012-12-20
Potential End Date: 2012-12-20 00:00:00
Last Modified: 2012-08-01
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