DoD's $173.6M Printed Circuit Assembly Contract for Countermeasures Lacked Competition
Contract Overview
Contract Amount: $173,596,611 ($173.6M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-03-22
End Date: 2009-06-30
Contract Duration: 831 days
Daily Burn Rate: $208.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: Defense
Official Description: CHAMELEON MOBILE COUNTER MEASURES UNITS
Place of Performance
Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $173.6 million to GENERAL DYNAMICS-OTS, INC. for work described as: CHAMELEON MOBILE COUNTER MEASURES UNITS Key points: 1. Significant spending on electronic assemblies for naval countermeasures. 2. Sole-source award to General Dynamics-OTS raises competition concerns. 3. High contract value suggests potential for taxpayer savings through competition. 4. Focus on printed circuit assembly manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $173.6 million for printed circuit assemblies is substantial. Without competitive bidding, it's difficult to ascertain if this price represents fair market value compared to similar contracts for electronic assemblies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition likely means taxpayers did not benefit from potential cost savings that could have been achieved through a more competitive bidding process.
Public Impact
Naval forces receive critical electronic components for countermeasure systems. Taxpayers may have overpaid due to the lack of competitive bidding. The sole-source nature of this award warrants scrutiny of procurement practices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value without competitive justification
Positive Signals
- Essential defense procurement
- Specific component for naval operations
Sector Analysis
This contract falls within the defense sector, specifically for electronic assemblies used in naval countermeasures. Spending on specialized electronic components can be high, but competitive sourcing is crucial for cost efficiency.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses in this sole-source contract. Further analysis would be needed to determine if small businesses were excluded or could have participated.
Oversight & Accountability
The sole-source nature of this large contract suggests potential weaknesses in oversight or justification for not seeking competitive bids. Accountability for the procurement decision is paramount.
Related Government Programs
- Printed Circuit Assembly (Electronic Assembly) Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Supply chain risk
Tags
printed-circuit-assembly-electronic-asse, department-of-defense, vt, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $173.6 million to GENERAL DYNAMICS-OTS, INC.. CHAMELEON MOBILE COUNTER MEASURES UNITS
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS-OTS, 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 $173.6 million.
What is the period of performance?
Start: 2007-03-22. End: 2009-06-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED.' Without further documentation, the specific justification for this sole-source award is unknown. Typically, sole-source awards require a strong justification, such as a unique capability or urgent need, and agencies must demonstrate that competitive options were explored and found unsuitable.
How does the unit cost of these printed circuit assemblies compare to industry benchmarks for similar components, given the lack of competition?
Benchmarking the unit cost is challenging without a competitive baseline. The absence of competition means there's no market-driven price discovery. A thorough cost analysis, comparing the awarded price to commercial equivalents or other government contracts for similar assemblies, would be necessary to assess value for money.
What is the long-term strategic impact of relying on a single supplier for such critical electronic assemblies for naval countermeasures?
Sole-sourcing critical components can create long-term strategic risks, including supply chain vulnerability, potential price escalation over time, and reduced innovation. Dependence on one supplier may limit the Navy's flexibility in adopting newer technologies or responding to geopolitical shifts that affect the supplier's operations.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Printed Circuit Assembly (Electronic Assembly) Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 128 LAKESIDE AVE, BURLINGTON, VT, 05401
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $173,596,611
Exercised Options: $173,596,611
Current Obligation: $173,596,611
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: M6785407D7000
IDV Type: IDC
Timeline
Start Date: 2007-03-22
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2018-10-17
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