DoD's $14.5M Contract for Circuit Assemblies Awarded to Elbit America Amidst Full and Open Competition
Contract Overview
Contract Amount: $14,508,903 ($14.5M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-27
End Date: 2008-06-30
Contract Duration: 642 days
Daily Burn Rate: $22.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200612!700150!1700!M67854!COMMANDING GENERAL !M6785406D7003 !A!N! !N!0005 ! !20060927!20070531!800765331!800765331!514421098!N!EFW INC !4700 MARINE CREEK PKWY !FORT WORTH !TX!76179!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000002747720!N!N!000000000000!5810!COMMUNICATIONS SECURITY EQUIP AND COMPS !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !5!B!S! ! !D!20060530!B! ! !N!A!A!U!J!2!002!N!2A!Z!N!D! ! !Y!C!N! ! ! !Z!A!A!A!000!A!B!N! ! ! ! !1727!M67854!0001! !
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to ELBITAMERICA, INC. for work described as: 200612!700150!1700!M67854!COMMANDING GENERAL !M6785406D7003 !A!N! !N!0005 ! !20060927!20070531!800765331!800765331!514421098!N!EFW INC !4700 MARINE CREEK PKWY !FORT WORTH !TX!76179!27000!439!48!FORT WORTH !TARR… Key points: 1. The contract value of $14.5 million for Printed Circuit Assembly manufacturing appears reasonable given the duration and scope. 2. Elbit America, a known defense contractor, secured this award through a competitive process. 3. Potential risks include supply chain disruptions for specialized electronic components and ensuring long-term obsolescence management. 4. The IT and Defense sectors are heavily reliant on such components for advanced systems.
Value Assessment
Rating: good
The contract value of $14.5 million over approximately 21 months suggests a monthly expenditure of around $690,000. This seems within a reasonable range for specialized electronic assembly manufacturing, especially considering the potential complexity and quality requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was utilized. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, with pricing driven by market forces rather than sole-source limitations.
Public Impact
Ensures the availability of critical electronic components for Department of Defense systems. Supports advanced manufacturing capabilities within the defense industrial base. Contributes to the operational readiness of military platforms requiring these specialized assemblies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for component obsolescence over the contract lifecycle.
- Dependence on a single supplier for critical sub-assemblies.
- Geopolitical risks impacting global supply chains for electronic parts.
Positive Signals
- Awarded through full and open competition.
- Contractor has a strong track record in defense electronics.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Electronics and Communication Equipment sector, specifically focusing on Printed Circuit Assembly manufacturing. Spending in this area is crucial for modern defense systems, encompassing everything from communication devices to complex weapon platforms.
Small Business Impact
While the primary awardee is Elbit America, a large business, the contract may indirectly benefit small businesses through subcontracting opportunities for specialized components or manufacturing processes. Further analysis would be needed to confirm the extent of small business participation.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.
Related Government Programs
- Printed Circuit Assembly (Electronic Assembly) Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for supply chain disruptions.
- Risk of component obsolescence.
- Dependence on specific manufacturing expertise.
- Ensuring long-term sustainment and supportability.
Tags
printed-circuit-assembly-electronic-asse, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to ELBITAMERICA, INC.. 200612!700150!1700!M67854!COMMANDING GENERAL !M6785406D7003 !A!N! !N!0005 ! !20060927!20070531!800765331!800765331!514421098!N!EFW INC !4700 MARINE CREEK PKWY !FORT WORTH !TX!76179!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000002747720!N!N!000000000000!5810!COMMUNICATIONS SECURITY EQUIP AND COMPS !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !5!B!S! ! !D!200
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 Navy).
What is the total obligated amount?
The obligated amount is $14.5 million.
What is the period of performance?
Start: 2006-09-27. End: 2008-06-30.
What is the specific technical complexity of the printed circuit assemblies being procured, and how does this influence the contract value?
The provided data indicates the PSC code is 5810 (Communications Security Equipment and Components) and the NAICS code is 334418 (Printed Circuit Assembly (Electronic Assembly) Manufacturing). This suggests the assemblies are likely complex, potentially involving specialized components for secure communications or other high-reliability defense applications. The complexity directly impacts manufacturing costs, testing requirements, and quality assurance, justifying a significant contract value.
What are the key performance metrics and quality assurance measures stipulated in the contract to ensure the reliability of these critical electronic assemblies?
While specific performance metrics are not detailed in the provided data, contracts for defense electronics typically include stringent quality assurance protocols, such as ISO certifications, adherence to MIL-SPEC standards, and rigorous testing procedures. Key performance indicators would likely focus on defect rates, on-time delivery, and compliance with technical specifications to ensure the reliability and effectiveness of the assemblies in demanding operational environments.
How does the 'Full and Open Competition After Exclusion of Sources' process ensure optimal value and prevent potential price inflation compared to a standard full and open competition?
This procurement method suggests that initial market research identified potential sources, but perhaps only a subset met specific technical qualifications or were deemed capable of meeting the requirement. By excluding sources that clearly do not meet criteria, the competition is narrowed to qualified bidders, potentially streamlining the evaluation process. However, it's crucial that the exclusion criteria were justified and did not unduly limit competition, ensuring that the remaining bidders still competed vigorously to offer the best value.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd (UEI: 514421098)
Address: 4700 MARINE CREEK PKWY, 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: M6785406D7003
IDV Type: IDC
Timeline
Start Date: 2006-09-27
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2008-10-03
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