DoD's $34.3M Elbit America Contract for MFC Hardware Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $34,325,183 ($34.3M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-07-31
End Date: 2023-04-21
Contract Duration: 1,725 days
Daily Burn Rate: $19.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF DELIVERY ORDER 0009 IS TO PURCHASE MFC HARDWARE.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $34.3 million to ELBITAMERICA, INC. for work described as: THE PURPOSE OF DELIVERY ORDER 0009 IS TO PURCHASE MFC HARDWARE. Key points: 1. The contract is for the purchase of Mission Family Computer (MFC) hardware. 2. Elbit America, Inc. is the sole contractor for this delivery order. 3. The contract was awarded under full and open competition. 4. The contract duration is 1725 days, ending in April 2023.
Value Assessment
Rating: fair
The contract value of $34.3 million for MFC hardware over approximately 4.7 years appears reasonable given the nature of defense hardware procurement. Benchmarking against similar complex electronic hardware contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven price discovery. The specific details of the competition and the number of bids received are not provided.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.
Public Impact
Ensures the Department of the Army has necessary MFC hardware. Supports military readiness and operational capabilities. Procurement of specialized hardware can impact the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown.
- Limited information on specific MFC hardware functionality.
- Contract duration is lengthy, potentially leading to obsolescence concerns.
Positive Signals
- Awarded under full and open competition.
- Clear purpose for hardware acquisition.
Sector Analysis
This contract falls within the defense sector, specifically related to electronic hardware manufacturing and integration. Spending in this area is critical for maintaining military technological superiority, with benchmarks varying widely based on system complexity and quantity.
Small Business Impact
The data indicates the prime contractor is Elbit America, Inc., a significant defense contractor. There is no explicit information provided regarding subcontracting opportunities for small businesses within this delivery order.
Oversight & Accountability
The contract is a delivery order under a larger award, implying some level of pre-existing oversight. Further review of the parent contract and the specific oversight mechanisms for this order would be beneficial.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for hardware obsolescence due to long contract duration.
- Lack of detailed cost breakdown for transparency.
- Limited information on specific hardware capabilities.
- Need to verify effectiveness of competition for best value.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.3 million to ELBITAMERICA, INC.. THE PURPOSE OF DELIVERY ORDER 0009 IS TO PURCHASE MFC HARDWARE.
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 $34.3 million.
What is the period of performance?
Start: 2018-07-31. End: 2023-04-21.
What is the specific functionality and criticality of the MFC hardware being procured, and how does its cost align with industry standards for similar systems?
The specific functionality of the Mission Family Computer (MFC) hardware is not detailed in the provided data. However, MFCs are typically integral components in military platforms, often handling critical mission-related computations and control. A precise cost assessment against industry standards is challenging without knowing the exact specifications, required performance, and quantity. Benchmarking would require comparing it to similar complex electronic systems within the defense sector, considering factors like processing power, ruggedization, and specialized software integration.
Given the 5-year duration, what measures are in place to mitigate the risk of hardware obsolescence and ensure continued supportability?
The 5-year duration (July 2018 - April 2023) for this hardware purchase presents a potential risk of obsolescence, especially in rapidly evolving technology sectors. Mitigation strategies typically include clauses for technology refresh, provisions for long-term sustainment and repair, and potentially sourcing components with extended availability. The contract may also include requirements for the contractor to manage obsolescence proactively, ensuring that replacement parts remain available throughout the system's lifecycle.
How effectively did the 'full and open competition' process ensure the best value for taxpayers, considering the single award to Elbit America, Inc.?
While awarded under 'full and open competition,' the fact that it resulted in a single award to Elbit America, Inc. warrants further examination to confirm optimal taxpayer value. This process should have allowed multiple qualified vendors to bid, theoretically driving down prices. However, the specific details of the bidding process, the number of proposals received, and the evaluation criteria used are crucial to determining if the competition truly yielded the best possible price and technical solution for the government.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd
Address: 4700 MARINE CREEK PKWY, FORT WORTH, TX, 76179
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,325,183
Exercised Options: $34,325,183
Current Obligation: $34,325,183
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN17D0007
IDV Type: IDC
Timeline
Start Date: 2018-07-31
Current End Date: 2023-04-21
Potential End Date: 2023-04-21 12:04:00
Last Modified: 2025-03-27
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