Department of the Navy awarded $25M for helicopter helmet kits and support equipment to Elbitamerica, Inc
Contract Overview
Contract Amount: $24,989,520 ($25.0M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-11
End Date: 2016-03-31
Contract Duration: 1,297 days
Daily Burn Rate: $19.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AH-1W HDTS P KITS, HELMET KITS, HELMET FIXTURES, SUPPORT EQUIPMENT, NRE, AND TECHNICAL DATA
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $25.0 million to ELBITAMERICA, INC. for work described as: AH-1W HDTS P KITS, HELMET KITS, HELMET FIXTURES, SUPPORT EQUIPMENT, NRE, AND TECHNICAL DATA Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of over three years suggests a need for sustained support. 3. Fixed-price contract type shifts performance risk to the contractor. 4. No small business set-aside noted, potentially impacting small business participation. 5. Contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 6. Delivery order indicates this is part of a larger contract vehicle.
Value Assessment
Rating: fair
The contract value of $24.99 million for helicopter helmet kits and support equipment appears to be a significant investment. Without specific benchmarks for these specialized kits, a direct value-for-money assessment is challenging. However, the sole-source nature of the award raises concerns about whether the government secured the most competitive pricing. Further analysis would require comparing pricing for similar helmet systems or components from other manufacturers or previous contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one bidder, Elbitamerica, Inc., was solicited. This approach is typically used when only one source is capable of meeting the government's needs, often due to proprietary technology, unique capabilities, or urgent requirements. The lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects the lowest possible cost for the required equipment and services.
Public Impact
Naval aviators benefit from the provision of essential helmet kits and support equipment. Services delivered include the supply of helmet kits, fixtures, support equipment, and technical data. The contract's geographic impact is primarily linked to the contractor's location in Texas (st) and the operational bases of the Department of the Navy. Workforce implications may include specialized manufacturing and technical support roles within Elbitamerica, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
- Lack of transparency in the procurement process due to non-competitive award.
- Potential for contractor lock-in given the specialized nature of the equipment.
Positive Signals
- Fixed-price contract shifts cost overrun risk to the contractor.
- Contract duration suggests a stable, long-term need for these critical aviation components.
- Award to an established company with likely experience in defense contracting.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized niche within the broader aerospace and defense industry. The market for such components is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this sector is driven by military modernization, aircraft sustainment, and the development of new aviation technologies. Benchmarking would involve comparing this contract's value to other procurements of similar specialized aircraft components or systems.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of subcontracting goals for small businesses. This suggests that opportunities for small businesses to participate in this specific procurement may have been limited, unless they were direct suppliers or partners to Elbitamerica, Inc. The impact on the broader small business ecosystem is neutral to negative, as this significant award did not directly channel funds to small enterprises.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring the contractor to deliver specified goods and services. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of the Navy Aircraft Procurement
- Defense Helicopter Support Equipment
- Aerospace Parts Manufacturing
- Military Aviation Safety Equipment
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
Tags
defense, department-of-the-navy, helicopter-parts, helmet-kits, sole-source, firm-fixed-price, aircraft-parts-manufacturing, elbitamerica, texas, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to ELBITAMERICA, INC.. AH-1W HDTS P KITS, HELMET KITS, HELMET FIXTURES, SUPPORT EQUIPMENT, NRE, AND TECHNICAL DATA
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 $25.0 million.
What is the period of performance?
Start: 2012-09-11. End: 2016-03-31.
What is Elbitamerica, Inc.'s track record with the Department of Defense for similar procurements?
Elbitamerica, Inc. has a history of contracting with the Department of Defense, including the Department of the Navy, for various defense systems and components. While specific data on prior awards for identical helmet kits is not detailed here, their presence in the defense sector suggests experience in meeting military specifications and delivery requirements. A deeper dive into their contract history would reveal the volume and types of previous awards, their performance ratings, and any past issues or successes related to similar equipment procurements. This context is crucial for understanding their capability and reliability in fulfilling the current contract.
How does the $24.99 million contract value compare to similar helicopter helmet kit procurements?
Direct comparison of the $24.99 million contract value for these specific AH-1W HDTS P KITS and helmet fixtures is challenging without access to a broader market analysis or a database of comparable sole-source awards. Typically, sole-source contracts may not reflect the most competitive market pricing. To benchmark this value, one would ideally compare it against: 1) previous awards for the same or similar kits if they were competed previously, 2) awards for comparable helmet systems from different manufacturers, or 3) industry estimates for the cost of advanced helicopter helmet systems and associated support equipment. The absence of competition in this award makes a definitive value-for-money assessment difficult based solely on the provided data.
What are the primary risks associated with this sole-source contract award?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without multiple offers, the government may not have achieved the lowest possible cost for the required helmet kits and support equipment. Another risk is contractor dependency; if Elbitamerica, Inc. is the sole provider of these critical components, the Department of the Navy could face challenges if the contractor experiences production issues, price increases, or decides to discontinue the product line. Furthermore, the limited transparency inherent in sole-source awards can obscure potential inefficiencies or cost overruns that might be exposed in a competitive environment.
How effective is the fixed-price contract type in managing program costs for this procurement?
The Firm Fixed Price (FFP) contract type is generally effective in managing program costs by shifting the financial risk of cost overruns to the contractor, Elbitamerica, Inc. This means the contractor is obligated to deliver the specified goods and services for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and control production costs. For the government, this provides cost certainty, assuming the initial price negotiated was fair. However, the effectiveness is contingent on the initial price negotiation and the contractor's ability to meet the requirements within that price.
What are the historical spending patterns for helicopter helmet kits and support equipment by the Department of the Navy?
Historical spending patterns for helicopter helmet kits and support equipment by the Department of the Navy are not detailed in the provided data. However, it is reasonable to infer that such procurements are recurring needs tied to the operation and maintenance of naval aviation fleets, particularly helicopters like the AH-1W. Spending levels would likely fluctuate based on fleet size, modernization programs, operational tempo, and the lifecycle of existing equipment. Analyzing past contracts for similar items, including their values, durations, and competition levels, would be necessary to establish a comprehensive historical spending trend and identify any significant deviations or patterns.
What is the significance of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code (336413) in relation to this contract?
The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' signifies the specific industry sector to which this contract belongs. This code categorizes establishments primarily engaged in manufacturing aircraft parts and auxiliary equipment, not elsewhere classified. For this contract, it indicates that Elbitamerica, Inc. is providing specialized components and support equipment for aircraft, likely falling outside the scope of more common categories like engines or airframes. This classification helps in understanding the market landscape, identifying potential competitors, and benchmarking spending against similar manufacturing activities within the defense aerospace sector.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd (UEI: 514421098)
Address: 4700 MARINE CREEK PKWY, FORT WORTH, TX, 76179
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,989,520
Exercised Options: $24,989,520
Current Obligation: $24,989,520
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001912D0012
IDV Type: IDC
Timeline
Start Date: 2012-09-11
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2016-01-22
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