DoD's $16.2M Contract for Printed Circuit Assembly Manufacturing Awarded to Elbit America
Contract Overview
Contract Amount: $16,189,549 ($16.2M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-12
End Date: 2010-12-30
Contract Duration: 931 days
Daily Burn Rate: $17.4K/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: NEW REQUIREMENT FOR FSR/CLS SUPPORT.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.2 million to ELBITAMERICA, INC. for work described as: NEW REQUIREMENT FOR FSR/CLS SUPPORT. Key points: 1. Contract value of $16.2 million for electronic assembly manufacturing. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Potential risk associated with the exclusion of sources in the competition. 4. Spending falls within the broader IT and Defense sectors.
Value Assessment
Rating: fair
The contract value of $16.2 million for printed circuit assembly manufacturing appears moderate. Benchmarking against similar contracts would be necessary to definitively assess pricing, but the exclusion of sources might have limited price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method, while allowing some competition, inherently limits the pool of potential bidders and may impact the government's ability to secure the lowest possible price.
Taxpayer Impact: The exclusion of sources could potentially lead to higher costs for taxpayers compared to a truly open competition, though the extent depends on the justification for exclusion and the competitiveness of the remaining bidders.
Public Impact
Ensures supply of critical electronic components for the Department of the Navy. Supports domestic manufacturing capabilities for defense-related electronics. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources.
- Potential for higher costs.
- Contract duration of over 3 years.
Positive Signals
- Requirement for essential defense components.
- Awarded to a known entity (Elbit America).
Sector Analysis
This contract falls under the manufacturing of electronic assemblies, a key component within the broader Defense and IT sectors. Spending benchmarks for such specialized manufacturing can vary widely based on complexity and volume.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small business participation was considered or achieved.
Oversight & Accountability
The contract was awarded by the Department of the Navy, implying oversight from this agency. The 'exclusion of sources' clause warrants scrutiny to ensure it was justified and properly documented.
Related Government Programs
- Printed Circuit Assembly (Electronic Assembly) Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition.
- Potential for inflated pricing.
- Lack of transparency regarding source exclusion.
- Long-term contract duration.
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 $16.2 million to ELBITAMERICA, INC.. NEW REQUIREMENT FOR FSR/CLS SUPPORT.
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 $16.2 million.
What is the period of performance?
Start: 2008-06-12. End: 2010-12-30.
What was the specific justification for excluding certain sources from this competition, and how did it impact the final price?
The justification for excluding sources is critical for understanding the competitive landscape and its effect on pricing. If the exclusion was based on specialized capabilities or national security concerns, it might be warranted. However, without this information, it's difficult to assess if the government received fair value. The impact on price is likely negative, as a smaller pool of bidders generally leads to less aggressive pricing.
How does the unit cost of these printed circuit assemblies compare to industry benchmarks, considering the limited competition?
A direct comparison of unit costs against industry benchmarks is essential for value assessment. Given the 'exclusion of sources,' the achieved unit cost might be higher than what could have been obtained in a fully open and competitive environment. Analyzing the awarded price against comparable contracts for similar complexity and volume is crucial to determine if the pricing is reasonable.
What is the long-term strategic value of awarding this contract to Elbit America, considering the competitive limitations?
The long-term strategic value hinges on Elbit America's performance and the necessity of their specific capabilities. If they possess unique or critical expertise vital for national security, the award might be strategically sound despite limited competition. However, reliance on a single or limited source can create future vulnerabilities and potentially stifle innovation within the broader defense industrial base.
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
Financial Breakdown
Contract Ceiling: $16,189,549
Exercised Options: $16,189,549
Current Obligation: $16,189,549
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: M6785406D7003
IDV Type: IDC
Timeline
Start Date: 2008-06-12
Current End Date: 2010-12-30
Potential End Date: 2010-12-30 00:00:00
Last Modified: 2011-11-20
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