DoD's $263.8M Night Vision Equipment Contract Awarded to ITT Industries Inc. for Virginia-Based Operations

Contract Overview

Contract Amount: $263,815,243 ($263.8M)

Contractor: Harris Corporation

Awarding Agency: Department of Defense

Start Date: 2002-05-03

End Date: 2011-04-30

Contract Duration: 3,284 days

Daily Burn Rate: $80.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200208!002972!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CJ009 !A!N! !N! !20020503!20081231!003123072!003123072!001216845!N!ITT INDUSTRIES INC !7635 PLANTATION RD !ROANOKE !VA!24019!68000!770!51!ROANOKE !ROANOKE (CITY) !VIRGINIA !+000017276588!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!B! !A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001!

Place of Performance

Location: ROANOKE, ROANOKE County, VIRGINIA, 24019

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $263.8 million to HARRIS CORPORATION for work described as: 200208!002972!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CJ009 !A!N! !N! !20020503!20081231!003123072!003123072!001216845!N!ITT INDUSTRIES INC !7635 PLANTATION RD !ROANOKE !VA!24019!68000!770!51!ROANOKE !ROANO… Key points: 1. Contract awarded for night vision equipment, a critical component for military operations. 2. Significant value suggests a substantial need for advanced surveillance and targeting capabilities. 3. The contract was competed, indicating potential for competitive pricing and value. 4. The duration of the contract (over 8 years) points to a long-term strategic requirement. 5. Virginia location suggests a concentration of defense-related industry and workforce in the region. 6. The specific product classification (334511) relates to instrument manufacturing, highlighting the technological nature of the procurement.

Value Assessment

Rating: good

The total award amount of $263.8 million over approximately 8 years represents a significant investment in night vision technology. Benchmarking this against similar large-scale procurements for advanced optics and electronic systems is challenging without more granular data on specific capabilities. However, the firm-fixed-price contract type suggests that the government aimed to lock in costs, which can be advantageous if the contractor's bid was competitive. The contract's value, while substantial, needs to be assessed against the evolving technological landscape and the specific performance requirements for night vision equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders is not explicitly stated in the provided data, but the 'limited' competition designation suggests fewer than a fully open process. This could impact price discovery, potentially leading to higher prices than if all potential sources were allowed to compete.

Taxpayer Impact: A limited competition may mean taxpayers did not benefit from the lowest possible price achievable through maximum market participation. The exclusion of certain sources warrants scrutiny to ensure it was justified and did not unduly restrict competition.

Public Impact

Military personnel operating in low-light or nighttime conditions will benefit from enhanced situational awareness and operational effectiveness. The contract supports the development, manufacturing, and delivery of advanced night vision equipment. The geographic impact is primarily in Virginia, where the contractor ITT Industries Inc. is located, potentially creating or sustaining jobs in the region. The procurement impacts the defense industrial base, specifically companies involved in electronics, optics, and defense manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources may have inflated costs.
Long contract duration could lead to risks associated with technological obsolescence if not managed proactively.
Reliance on a single contractor for a critical technology could pose supply chain risks.

Positive Signals

Awarding a contract for essential night vision equipment enhances military readiness.
The firm-fixed-price structure provides cost certainty for the government.
The contract supports a significant defense contractor, potentially bolstering the defense industrial base.

Sector Analysis

The procurement falls within the broader defense electronics and systems manufacturing sector. This sector is characterized by high R&D investment, long product development cycles, and significant government spending. The market for night vision equipment is specialized, driven by military requirements for advanced surveillance, targeting, and navigation. Comparable spending benchmarks would involve looking at other large-scale procurements for electro-optical systems, sensors, and related defense technologies, often involving billions of dollars annually across various agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the substantial value and specialized nature of night vision equipment, it is likely that larger defense contractors would be the primary awardees. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed here. The impact on the small business ecosystem would depend on whether ITT Industries Inc. actively engages small businesses for components or specialized services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and acquisition regulations. The Defense Contract Management Agency (DCMA) would likely be involved in monitoring performance and compliance. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though specific performance details might be sensitive.

Related Government Programs

Night Vision Systems
Electro-Optical Systems
Defense Electronics Manufacturing
Military Surveillance Equipment
Tactical Equipment Procurement

Risk Flags

Limited competition may have impacted price.
Potential for technological obsolescence over the contract's long duration.
Need for clear justification for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $263.8 million to HARRIS CORPORATION. 200208!002972!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0702CJ009 !A!N! !N! !20020503!20081231!003123072!003123072!001216845!N!ITT INDUSTRIES INC !7635 PLANTATION RD !ROANOKE !VA!24019!68000!770!51!ROANOKE !ROANOKE (CITY) !VIRGINIA !+000017276588!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is HARRIS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $263.8 million.

What is the period of performance?

Start: 2002-05-03. End: 2011-04-30.

What is the specific type and capability of the night vision equipment procured under this contract?

The contract data specifies the National Item Identification Number (NIIN) as '003123072' and the Product Service Code (PSC) as '334511', which falls under 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing'. The description mentions 'NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA'. While the exact technical specifications and capabilities (e.g., generation of night vision, range, resolution, thermal imaging integration) are not detailed in the provided summary data, the substantial award value suggests procurement of advanced systems likely incorporating modern image intensification or thermal imaging technologies critical for military operations in various light conditions.

How does the awarded amount of $263.8 million compare to historical spending on similar night vision equipment by the DoD?

Comparing the $263.8 million award to historical spending requires access to comprehensive historical contract databases. However, this figure represents a significant, multi-year investment. Large-scale procurements for advanced military hardware, especially specialized systems like night vision, often run into hundreds of millions or even billions of dollars over their lifecycle. For context, major programs for aircraft, ships, or complex weapon systems can easily exceed this amount. This particular contract, awarded in the early 2000s and spanning nearly a decade, suggests a sustained need for this technology during that period. Without specific historical data points for comparable night vision procurements from the same era, a precise benchmark is difficult, but the value indicates a high-priority capability.

What were the key factors that led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award?

The specific reasons for excluding certain sources are not detailed in the provided summary data. Typically, exclusions in 'full and open competition after exclusion of sources' (often referred to as sole-source justifications or limited competition) occur when only one or a very limited number of responsible sources can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, extensive testing and qualification already completed by a specific vendor, or urgent and compelling needs where only one source can meet the timeline. The contracting agency would have had to document and justify these exclusions to ensure fair and reasonable procurement practices, even within a limited scope.

What is the track record of ITT Industries Inc. in delivering complex defense electronics and night vision systems prior to this contract?

ITT Industries Inc. (prior to its various divestitures and restructurings) was a well-established defense contractor with a significant history in developing and manufacturing complex electronic systems, including those for defense applications. They had a known presence in areas like avionics, communication systems, and potentially electro-optical systems. While specific details of their night vision program performance prior to this 2002 award are not in the provided data, their status as a major defense supplier suggests they possessed the technical expertise and manufacturing capacity required for such a substantial contract. Their broader track record in delivering complex defense hardware would have been a key consideration during the source selection process.

What are the potential risks associated with the long duration (over 8 years) of this night vision equipment contract?

The primary risks associated with a long contract duration, such as this one spanning from 2002 to 2011, include technological obsolescence, potential for cost overruns if not managed tightly, and contractor performance degradation over time. Technology, especially in electronics and optics, evolves rapidly. Equipment delivered early in the contract might become outdated before the contract ends. Furthermore, maintaining consistent quality and performance from a contractor over many years can be challenging. The firm-fixed-price nature helps mitigate cost overrun risks for the government, but the risk of acquiring less-than-state-of-the-art technology remains a significant concern that requires proactive program management and potential contract modifications or future procurements.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

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, 06

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline