DoD awards $22.2M contract for chemical/biological mass production to Hamilton Sundstrand

Contract Overview

Contract Amount: $22,204,114 ($22.2M)

Contractor: Hamilton Sundstrand Space Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-26

End Date: 2014-08-28

Contract Duration: 701 days

Daily Burn Rate: $31.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRODUCTION OF CHEMICAL BIOLOGICAL MASS

Place of Performance

Location: POMONA, LOS ANGELES County, CALIFORNIA, 91767

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC. for work described as: PRODUCTION OF CHEMICAL BIOLOGICAL MASS Key points: 1. Contract value of $22.2 million for specialized production. 2. No competition was identified for this procurement. 3. Potential risk associated with sole-source awards and lack of price discovery. 4. Spending falls under the 'Analytical Laboratory Instrument Manufacturing' sector.

Value Assessment

Rating: fair

The contract value of $22.2 million for analytical laboratory instruments is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar instruments or production runs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to achieve the lowest possible price.

Taxpayer Impact: The lack of competition on this $22.2 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. Ensuring the quality and necessity of the produced items is crucial given the sole-source nature. Future procurements in this area should explore competitive strategies to ensure value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Department of Defense's spending on analytical laboratory instrument manufacturing is critical for research and testing capabilities. Benchmarks for this specific niche are hard to establish without competitive data, but the value suggests a significant requirement.

Small Business Impact

There is no indication that small businesses were involved in this sole-source procurement, suggesting a missed opportunity for small business participation.

Oversight & Accountability

Oversight is needed to ensure the justification for the sole-source award was robust and that the contractor delivers on the contract requirements effectively and efficiently.

Related Government Programs

Risk Flags

Tags

analytical-laboratory-instrument-manufac, department-of-defense, ca, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC.. PRODUCTION OF CHEMICAL BIOLOGICAL MASS

Who is the contractor on this award?

The obligated recipient is HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, 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 $22.2 million.

What is the period of performance?

Start: 2012-09-26. End: 2014-08-28.

What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly documented?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Thorough documentation is essential to demonstrate that competition was not feasible or would not serve the government's best interest. Without access to the specific justification documents, it's impossible to verify the validity of this sole-source decision.

How can the government ensure fair pricing and value for money when awarding contracts without competition?

Ensuring fair pricing without competition requires robust price analysis techniques, including historical price data, commercial price lists, and independent cost estimates. Government negotiators must possess strong analytical skills to challenge contractor proposals and negotiate the best possible terms. Regular market research and pre-award strategy planning can also help identify potential competitors.

What are the long-term implications of relying on sole-source contracts for critical production needs?

Sole-source contracts can lead to a lack of innovation, reduced competition, and potentially higher costs over time as contractors face less pressure to improve efficiency or offer competitive pricing. It can also create dependency on a single supplier, posing risks if that supplier faces financial difficulties or production issues. Diversifying suppliers and actively seeking competitive opportunities are crucial for long-term stability.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingAnalytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911SR12R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 2771 N GAREY AVE, POMONA, CA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,719,107

Exercised Options: $49,719,107

Current Obligation: $22,204,114

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911SR12D0011

IDV Type: IDC

Timeline

Start Date: 2012-09-26

Current End Date: 2014-08-28

Potential End Date: 2014-08-28 00:00:00

Last Modified: 2014-01-23

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