Army awards $21.8M for Fire Control Computers, with Elbit America Inc. securing the contract
Contract Overview
Contract Amount: $21,765,325 ($21.8M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-06-02
End Date: 2011-10-06
Contract Duration: 856 days
Daily Burn Rate: $25.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FIRE CONTROL COMPUTER (FCC)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to ELBITAMERICA, INC. for work described as: FIRE CONTROL COMPUTER (FCC) Key points: 1. Contract value appears reasonable given the duration and scope of specialized equipment. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract involves specialized ordnance manufacturing, indicating a niche but critical defense capability. 4. Performance context is tied to Army readiness and operational effectiveness. 5. This contract falls within the Defense sector, specifically ordnance manufacturing. 6. The fixed-price nature of the contract shifts some risk to the contractor.
Value Assessment
Rating: good
The contract value of approximately $21.8 million over two years for Fire Control Computers (FCC) seems within a reasonable range for specialized defense equipment. Benchmarking against similar contracts for advanced targeting systems would provide a more precise value-for-money assessment. The firm fixed-price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized requirement. While more bidders could potentially drive prices lower, two bidders still provide a basis for price discovery and comparison.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.
Public Impact
The primary beneficiaries are the U.S. Army personnel who will utilize the Fire Control Computers. The contract delivers critical components for weapon systems, enhancing targeting accuracy and battlefield effectiveness. The contract is geographically focused on Texas, where the contractor is located, but the impact is national defense. Workforce implications include skilled manufacturing and technical roles within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for obsolescence of technology in rapidly evolving defense systems.
- Dependence on a single contractor for critical components could pose supply chain risks if not managed.
- Ensuring long-term supportability and maintenance for specialized equipment.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm fixed-price contract structure provides cost certainty for the government.
- Contractor is based in Texas, potentially supporting domestic manufacturing capabilities.
Sector Analysis
The defense sector, particularly ordnance and accessories manufacturing, is characterized by high technological requirements and stringent quality controls. This contract for Fire Control Computers fits within the broader market for advanced military hardware. Spending in this sub-sector is driven by national security needs and technological advancements in warfare. Comparable spending benchmarks would involve other contracts for targeting systems, sensors, and fire control mechanisms within the Department of Defense.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and the contractor, Elbit America, Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though larger prime contractors often engage small businesses for various components or services.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Army Ammunition Plant Operations
- Ordnance, Guided Missiles and Related Equipment Manufacturing
- Defense Industrial Base
- Tactical Vehicle Systems
Risk Flags
- Potential for technological obsolescence
- Contractor performance risk
- Supply chain dependency
Tags
defense, department-of-the-army, fire-control-computer, ordnance-manufacturing, firm-fixed-price, full-and-open-competition, elbit-america-inc, delivery-order, texas, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to ELBITAMERICA, INC.. FIRE CONTROL COMPUTER (FCC)
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 Army).
What is the total obligated amount?
The obligated amount is $21.8 million.
What is the period of performance?
Start: 2009-06-02. End: 2011-10-06.
What is Elbit America, Inc.'s track record with the Department of Defense for similar ordnance or fire control systems?
Elbit America, Inc. has a significant history of contracting with the Department of Defense, particularly in areas related to electro-optics, avionics, and defense electronics. While specific data on their track record for 'Fire Control Computers (FCC)' under this exact contract number (332995) is limited to this award, the company is known for producing components and systems for various military platforms. Their broader portfolio includes targeting systems, night vision devices, and command and control solutions. Analyzing their past performance on other firm fixed-price contracts for complex electronic systems would provide further insight into their reliability and delivery capabilities. A review of contract performance reports and any past issues or commendations would be necessary for a comprehensive assessment.
How does the $21.8 million contract value compare to market rates for similar Fire Control Computers?
Benchmarking the $21.8 million contract value for Fire Control Computers (FCC) against market rates is challenging without specific technical specifications and quantity details. However, FCCs are highly specialized, technologically advanced components integral to weapon systems, often involving complex electronics, software, and integration. The value reflects not just the hardware but also the research, development, testing, and assurance required for military-grade equipment. Given the firm fixed-price nature and the two-year duration, the average annual spend of approximately $10.9 million suggests a significant investment in critical defense technology. Comparisons would ideally be made with other DoD contracts for similar systems or with commercial equivalents if applicable, though direct commercial parallels for military-grade FCCs are rare.
What are the primary risks associated with this contract for the Department of the Army?
The primary risks for the Department of the Army in this contract revolve around technological obsolescence, contractor performance, and supply chain disruptions. Fire control technology evolves rapidly, and there's a risk that the delivered FCCs could become outdated relatively quickly, requiring costly upgrades or replacements. Ensuring Elbit America, Inc. consistently meets quality standards and delivery schedules under the firm fixed-price contract is crucial; any performance failures could impact operational readiness. Furthermore, reliance on a single source for such critical components, even if competitively procured, can create supply chain vulnerabilities. Mitigating these risks involves robust oversight, clear performance metrics, and potentially exploring options for second-sourcing or technology refresh strategies.
What is the program effectiveness or impact of these Fire Control Computers on Army operations?
The effectiveness and impact of these Fire Control Computers (FCCs) on Army operations are directly tied to enhancing the accuracy, range, and responsiveness of weapon systems. FCCs are critical for calculating firing solutions, taking into account factors like target distance, wind, projectile ballistics, and platform movement. Improved FCCs can lead to reduced collateral damage, increased first-round hit probability, and faster engagement times, all of which contribute to mission success and soldier safety. The specific impact depends on the weapon platforms these FCCs are integrated with (e.g., tanks, artillery, missile systems). This contract ensures the Army maintains a supply of these vital components, supporting its operational readiness and technological edge.
How has the Army's spending on 'Other Ordnance and Accessories Manufacturing' evolved over recent years?
The Army's spending on 'Other Ordnance and Accessories Manufacturing' (NAICS code 332995) can fluctuate based on modernization priorities, geopolitical events, and specific program requirements. While this specific contract award of $21.8 million is a data point, a broader trend analysis would require examining historical spending data for this NAICS code over several fiscal years. Generally, spending in this category is driven by the need to maintain and upgrade existing weapon systems, develop new ordnance capabilities, and ensure readiness. Periods of increased global tension or new strategic initiatives often correlate with higher spending in ordnance manufacturing as the Army replenishes stocks or invests in advanced munitions and related systems.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN08R0336
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd
Address: 4700 MARINE CREEK PKWY, FORT WORTH, TX, 76179
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: $21,765,325
Exercised Options: $21,765,325
Current Obligation: $21,765,325
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN09D0009
IDV Type: IDC
Timeline
Start Date: 2009-06-02
Current End Date: 2011-10-06
Potential End Date: 2011-10-06 12:10:00
Last Modified: 2024-06-28
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