Defense contract for night vision equipment awarded to ITT Industries for $35.8M, with a 2-year duration

Contract Overview

Contract Amount: $35,816,912 ($35.8M)

Contractor: Harris Corporation

Awarding Agency: Department of Defense

Start Date: 2005-09-16

End Date: 2007-09-16

Contract Duration: 730 days

Daily Burn Rate: $49.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TAS::21 2020::TAS 200512!502191!2100!W9124Q!ACA, WHITE SANDS MISSILE RANGE !W9124Q05D0821 !A!N! !N!0002 ! !20050916!20090930!003123072!003123072!001216845!N!ITT INDUSTRIES, INC !7635 PLANTATION RD !ROANOKE !VA!24019!68000!770!51!ROANOKE !ROANOKE (CITY) !VIRGINIA !+000040000000!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !333314!E! !5!B!S! ! !D!20090930!B! ! !A! !A!U!J!2!002!B! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! !W81C39!0001! !

Place of Performance

Location: ROANOKE, ROANOKE County, VIRGINIA, 24019

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to HARRIS CORPORATION for work described as: TAS::21 2020::TAS 200512!502191!2100!W9124Q!ACA, WHITE SANDS MISSILE RANGE !W9124Q05D0821 !A!N! !N!0002 ! !20050916!20090930!003123072!003123072!001216845!N!ITT INDUSTRIES, INC !7635 PLANTATION RD !ROANOKE !VA!24019!68000!770!51!ROANOKE… Key points: 1. Value for money appears fair given the firm-fixed-price contract type and 2-year duration. 2. Competition dynamics indicate full and open competition, suggesting a potentially competitive pricing environment. 3. Risk indicators are moderate, with a firm-fixed-price contract and a 2-year term. 4. Performance context is within the scope of night vision equipment for defense applications. 5. Sector positioning is within the defense electronics and communication equipment industry.

Value Assessment

Rating: fair

The contract value of $35.8 million for a 2-year period for night vision equipment seems within a reasonable range for specialized defense procurements. Without specific benchmark data for comparable night vision systems, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator 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 data does not specify the number of bidders, but full and open competition generally fosters a more competitive environment, potentially leading to better pricing and innovation. The government's decision to use this procurement method suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it maximizes the pool of potential suppliers, driving down prices through market forces and increasing the likelihood of obtaining the best value.

Public Impact

The primary beneficiaries are likely military personnel requiring advanced night vision capabilities. The services delivered include the provision of specialized night vision equipment. The geographic impact is likely concentrated around military installations where this equipment is deployed. Workforce implications may involve specialized manufacturing and technical support roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of night vision technology over time.
Dependence on a single contractor for delivery and potential sustainment.
Ensuring interoperability with existing military systems.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market.
Clear product description for night vision equipment.

Sector Analysis

This contract falls within the defense electronics sector, specifically focusing on optical instruments and related equipment. The market for night vision technology is highly specialized, driven by defense and security needs. Spending in this area is often characterized by high research and development costs and stringent performance requirements. Comparable spending benchmarks would typically be found within other defense procurements for similar advanced optical or surveillance systems.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large prime contract, it is possible that ITT Industries may engage small businesses as subcontractors. However, without explicit subcontracting plans or data, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small business participation was encouraged or mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and specifications. Accountability measures are inherent in the firm-fixed-price structure, where the contractor is responsible for delivering the specified goods within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Night Vision and Electronic Sensors Directorate
Advanced Persistent Threats (APT) Defense Programs
Tactical Communications Equipment Procurement
Department of Defense Optical Systems

Risk Flags

Potential for technology obsolescence
Contractor performance history not fully detailed
Lack of specific unit cost benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to HARRIS CORPORATION. TAS::21 2020::TAS 200512!502191!2100!W9124Q!ACA, WHITE SANDS MISSILE RANGE !W9124Q05D0821 !A!N! !N!0002 ! !20050916!20090930!003123072!003123072!001216845!N!ITT INDUSTRIES, INC !7635 PLANTATION RD !ROANOKE !VA!24019!68000!770!51!ROANOKE !ROANOKE (CITY) !VIRGINIA !+000040000000!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !333314!E

Who is the contractor on this award?

The obligated recipient is HARRIS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2005-09-16. End: 2007-09-16.

What is the track record of ITT Industries in delivering night vision equipment to the government?

ITT Industries, Inc. has a history of providing defense and aerospace products and services. While this specific contract was awarded to ITT Industries, Inc., it's important to note that the company has undergone significant transformations and divestitures over the years. For instance, ITT's defense electronics and communications business was acquired by Exelis, which was subsequently acquired by Harris Corporation (now L3Harris Technologies). Therefore, when assessing the track record, it's crucial to consider the lineage of the business unit responsible for this contract and the capabilities of its successor entities. Historical performance data for ITT Industries in this specific domain would need to be cross-referenced with the performance of its successor companies to provide a comprehensive view.

How does the awarded price compare to similar night vision equipment contracts?

Direct comparison of the $35.8 million award for night vision equipment is challenging without specific details on the quantity, technical specifications, and exact type of equipment procured. Night vision systems can range from individual soldier-use devices to complex integrated systems for vehicles or aircraft, each with vastly different cost structures. The firm-fixed-price nature of this contract suggests a defined scope and price. To benchmark effectively, one would need to identify contracts with similar equipment types, quantities, and performance requirements awarded around the same period. The fact that it was awarded under full and open competition provides some assurance that the price was vetted against market alternatives, but specific unit costs or cost-per-capability metrics are needed for a robust comparison.

What are the primary risks associated with this contract?

The primary risks associated with this contract include technological obsolescence, as night vision technology evolves rapidly. Dependence on a single contractor for delivery and potential sustainment could also pose a risk if the contractor faces financial difficulties or decides to exit the market. Ensuring the delivered equipment meets stringent military specifications and is interoperable with existing platforms is critical. Furthermore, the firm-fixed-price nature, while beneficial for cost control, places the risk of cost overruns on the contractor, which could incentivize shortcuts if not adequately monitored. Supply chain disruptions for specialized components could also impact timely delivery.

How effective is the competition level in ensuring value for taxpayers?

The contract was awarded under 'full and open competition,' which is generally the most effective method for ensuring value for taxpayers. This approach maximizes the number of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. While the exact number of bidders isn't specified, the commitment to full and open competition suggests that the government sought the best possible solution from the widest possible market. This process helps prevent price gouging and ensures that the government is not locked into a suboptimal solution due to limited supplier options. The resulting price is more likely to reflect true market value.

What is the historical spending trend for night vision equipment within the Department of Defense?

Historical spending on night vision equipment within the Department of Defense (DoD) has been substantial and relatively consistent, driven by ongoing operational needs and technological advancements. While specific aggregate figures for 'night vision equipment' can be difficult to isolate due to varied categorization across different fiscal years and reporting systems, the overall trend indicates significant and sustained investment. This spending is influenced by factors such as troop deployments, modernization programs, and the development of next-generation technologies. The DoD consistently procures a wide array of electro-optical and infrared systems, including various forms of night vision devices, for different platforms and applications. Analyzing trends would require examining procurement data over multiple years, potentially across different service branches and contract types.

What are the implications of the contract duration on technology adoption and sustainment?

A 2-year contract duration for night vision equipment suggests a focus on immediate procurement needs rather than long-term technology development or sustainment. This timeframe is relatively short in the context of defense procurement cycles, implying that the equipment might be intended for specific operational periods or that follow-on contracts are anticipated. Shorter durations can allow for quicker adoption of newer technologies if subsequent contracts are awarded competitively. However, it may also limit opportunities for deep integration or long-term sustainment partnerships with the original contractor, potentially leading to higher transition costs or fragmented support if future contracts go to different vendors. It also implies that the technology itself might be considered mature enough not to require extensive R&D over a longer period.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ITT Corporation (UEI: 001216845)

Address: 7635 PLANTATION RD, ROANOKE, VA, 24019

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W9124Q05D0821

IDV Type: IDC

Timeline