DoD awards $21M for 81 Chemical Biological Mass Spectrometers, with no competition
Contract Overview
Contract Amount: $20,959,478 ($21.0M)
Contractor: Hamilton Sundstrand Space Systems International, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-02-22
End Date: 2016-09-30
Contract Duration: 1,316 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: FINAL PRODUCTION OF CHEMICAL BIOLOGICAL MASS SPECTROMETER II, 81 UNITS.
Place of Performance
Location: POMONA, LOS ANGELES County, CALIFORNIA, 91767
Plain-Language Summary
Department of Defense obligated $21.0 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC. for work described as: FINAL PRODUCTION OF CHEMICAL BIOLOGICAL MASS SPECTROMETER II, 81 UNITS. Key points: 1. High dollar value for specialized analytical instruments. 2. Sole-source award raises concerns about price discovery. 3. Long contract duration (1316 days) for production. 4. Sector: Analytical Laboratory Instrument Manufacturing.
Value Assessment
Rating: questionable
The contract value of $20,959,478 for 81 units suggests a per-unit cost of approximately $258,759. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market rates for similar advanced analytical instruments.
Cost Per Unit: $258,759
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to achieve the best possible price.
Taxpayer Impact: The lack of competition for this significant procurement could result in inflated costs, directly impacting taxpayer funds.
Public Impact
Procurement of critical chemical and biological detection equipment for national security. Potential for advanced scientific research and development enabled by this technology. Ensures readiness for the Department of Defense in identifying hazardous agents.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost
- Long contract duration
Positive Signals
- Essential technology for defense
- Firm fixed price contract
Sector Analysis
The Department of Defense is a major purchaser of advanced scientific and analytical instruments. Spending in this sector often involves high R&D costs and specialized manufacturing, making competitive benchmarking challenging but crucial.
Small Business Impact
The awardee, Hamilton Sundstrand Space Systems International, Inc., is a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Further review of the justification for not competing the award is recommended.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Potential for overpricing
- Lack of transparency in price determination
- Long contract duration may indicate production inefficiencies or extended need
- Limited visibility into small business participation
Tags
analytical-laboratory-instrument-manufac, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC.. FINAL PRODUCTION OF CHEMICAL BIOLOGICAL MASS SPECTROMETER II, 81 UNITS.
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 $21.0 million.
What is the period of performance?
Start: 2013-02-22. End: 2016-09-30.
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'. A thorough review would require accessing the contract file to understand the specific justification (e.g., unique capabilities, urgent need) and whether any market research was conducted to explore competitive options before resorting to a sole-source award.
How does the per-unit cost of $258,759 compare to similar mass spectrometers available on the commercial market or procured by other government agencies?
Benchmarking this per-unit cost requires detailed comparison with similar high-end mass spectrometers, considering specifications, features, and intended use. Without access to specific technical requirements and market data, it's difficult to definitively state if $258,759 is high or low. However, the absence of competition suggests potential for inflated pricing.
What are the long-term implications of relying on a single supplier for such critical defense technology, particularly regarding sustainment and future upgrades?
Sole-source reliance can create vendor lock-in, potentially leading to higher sustainment costs and limited options for future upgrades or replacements. It also poses a risk if the supplier faces financial difficulties or decides to exit the market, impacting the DoD's operational capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical 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, 91767
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,959,478
Exercised Options: $20,959,478
Current Obligation: $20,959,478
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W911SR12D0011
IDV Type: IDC
Timeline
Start Date: 2013-02-22
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2018-10-17
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