DoD awards $27.9M to Elbit America for armored vehicle components, lacking competition
Contract Overview
Contract Amount: $27,911,490 ($27.9M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-01-27
End Date: 2006-09-30
Contract Duration: 1,342 days
Daily Burn Rate: $20.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $27.9 million to ELBITAMERICA, INC. for work described as: Key points: 1. Significant award to a single vendor for critical military components. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract spans over three years, indicating a substantial, long-term need. 4. Focus on armored vehicle manufacturing highlights a specific defense sector investment.
Value Assessment
Rating: questionable
The award amount of $27.9 million for military armored vehicle components is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the price discovery benefits of a competitive process, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential military components.
Public Impact
Ensures continued supply of critical armored vehicle parts for the U.S. Army. Supports a specific segment of the defense industrial base. Potential for higher costs due to the absence of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for price inflation
Positive Signals
- Addresses a specific military need
- Long-term contract duration
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of military armored vehicles and their components. Spending in this area is driven by national security requirements and modernization efforts.
Small Business Impact
The data indicates this contract was awarded to Elbit America, Inc., a firm fixed-price contract. There is no explicit information provided regarding small business participation or subcontracting opportunities within this award.
Oversight & Accountability
The 'NOT COMPETED' designation suggests a potential gap in the standard competitive procurement process. Further review would be needed to understand the justification for this sole-source award and ensure appropriate oversight.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price discovery.
- Dependency on a single supplier.
- No clear indication of small business involvement.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to ELBITAMERICA, INC.. See the official description on USAspending.
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 $27.9 million.
What is the period of performance?
Start: 2003-01-27. End: 2006-09-30.
What was the specific justification for awarding this contract on a sole-source basis rather than through a competitive process?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it's impossible to determine the precise reason. However, such awards warrant scrutiny to ensure they are truly necessary and that the government is not foregoing potential cost savings or innovation.
How does the unit cost of these armored vehicle components compare to industry benchmarks or previous contracts for similar items?
Benchmarking the unit cost is challenging without access to detailed cost breakdowns or comparable contract data. Given the sole-source nature of this award, there's an inherent risk that the price may not be as competitive as it could be in a fully open market. A thorough cost analysis would be required to establish a definitive comparison.
What is the long-term strategic impact of relying on a single vendor for these critical armored vehicle components?
Sole-source reliance can create dependency and limit flexibility. While it ensures a supply chain, it also concentrates risk with one provider. This could impact future pricing negotiations, innovation, and the government's ability to pivot to alternative solutions if needed. Diversifying the supplier base, where feasible, is generally a more resilient strategy.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd (UEI: 514421098)
Address: 4700 MARINE CREEK PARKWAY, FORT WORTH, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAE2002G0006
IDV Type: IDC
Timeline
Start Date: 2003-01-27
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2010-04-24
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