Air Force awards $57.6M for F-16 Heads Up Display systems to ElbitAmerica, Inc
Contract Overview
Contract Amount: $57,574,836 ($57.6M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-23
End Date: 2029-09-21
Contract Duration: 1,824 days
Daily Burn Rate: $31.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-16 WIDE ANGLE CONVENTIONAL HEADS UP DISPLAY
Place of Performance
Location: MADISON, MADISON County, ALABAMA, 35758
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $57.6 million to ELBITAMERICA, INC. for work described as: F-16 WIDE ANGLE CONVENTIONAL HEADS UP DISPLAY Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. The contract duration of approximately 5 years suggests a long-term need for these critical aircraft components. 3. ElbitAmerica, Inc. is the sole awardee, indicating a potential lack of market competition for this specific system. 4. The fixed-price contract type aims to control costs, but the absence of competition limits benchmarking. 5. This award falls under the broader category of aerospace system manufacturing, a significant sector for defense spending. 6. The contract is for a specific component, the Wide Angle Conventional Heads Up Display, crucial for pilot situational awareness.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to assess if the $57.6 million price represents a fair market value or if it could have been lower with open competition. The fixed-price structure provides some cost certainty, but the lack of comparative pricing data from other potential suppliers limits a thorough value-for-money assessment. Further analysis would require understanding the specific technological advancements and unique capabilities this system offers compared to alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, ElbitAmerica, Inc., was solicited. This approach is typically used when a unique capability is required, or when only one source is capable of meeting the requirement. The lack of competition means that the government did not benefit from a bidding process that could drive down prices through market forces. This raises concerns about whether the government secured the best possible price and terms.
Taxpayer Impact: Taxpayers may be paying a premium for this system due to the absence of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
Pilots operating F-16 aircraft will benefit from enhanced situational awareness provided by the new heads-up display systems. The contract supports the continued modernization and operational readiness of the U.S. Air Force's F-16 fleet. The contract is expected to support jobs within ElbitAmerica, Inc. and its supply chain, potentially in Alabama where the contractor is located. The delivery of these systems will ensure F-16 pilots have access to critical flight and targeting information directly in their line of sight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Lack of competition raises questions about whether alternative, potentially more cost-effective solutions were overlooked.
- Long contract duration could lock the government into a specific technology without opportunities for re-evaluation.
Positive Signals
- Fixed-price contract type provides cost certainty for the government.
- Award supports critical operational capabilities for the F-16 fighter fleet.
- Contract ensures continued availability of essential pilot interface technology.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on avionics and aircraft systems manufacturing. The market for such specialized components is often characterized by high barriers to entry due to technological complexity and stringent qualification requirements. While the overall defense electronics market is substantial, contracts for specific, integrated systems like heads-up displays may involve a limited number of qualified suppliers. Benchmarking against similar avionics contracts would be necessary for a comprehensive assessment of ElbitAmerica's pricing.
Small Business Impact
There is no indication in the provided data that this contract includes a small business set-aside. Given the specialized nature of avionics manufacturing and the sole-source award to ElbitAmerica, Inc., it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available through this specific contract vehicle. Further investigation into ElbitAmerica's subcontracting plans would be needed to assess any potential impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. As a sole-source award, there may be increased scrutiny to ensure the justification for sole-sourcing is robust and that the pricing is fair and reasonable. Transparency regarding the specific justification for the sole-source award and any subsequent modifications would be key to assessing accountability. Inspector General involvement would typically be triggered by specific allegations of fraud, waste, or abuse.
Related Government Programs
- F-16 Sustainment Programs
- Avionics Modernization Contracts
- Defense Procurement of Aircraft Components
- Aerospace System Manufacturing Contracts
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns without competition
- Long-term contract duration
Tags
defense, department-of-defense, department-of-the-air-force, f-16, avionics, heads-up-display, elbitamerica-inc, sole-source, fixed-price, aircraft-component, alabama, search-detection-navigation-guidance-aeronautical-and-nautical-system-and-instrument-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.6 million to ELBITAMERICA, INC.. F-16 WIDE ANGLE CONVENTIONAL HEADS UP DISPLAY
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 Air Force).
What is the total obligated amount?
The obligated amount is $57.6 million.
What is the period of performance?
Start: 2024-09-23. End: 2029-09-21.
What is ElbitAmerica, Inc.'s track record with the Department of Defense, particularly on F-16 related contracts?
ElbitAmerica, Inc. has a history of supplying various systems and components to the Department of Defense. While specific details on their F-16 related contracts require deeper database searches, their presence in the defense sector suggests experience with military specifications and procurement processes. Their portfolio often includes electro-optics, avionics, and other defense electronics. Analyzing past performance metrics, delivery timeliness, and quality control on previous DoD contracts would provide a clearer picture of their reliability and capability for this specific heads-up display award. A review of contract awards and modifications would reveal the scope and value of their prior engagements.
How does the $57.6 million price compare to similar heads-up display systems for other fighter aircraft?
Directly comparing the $57.6 million price for this F-16 Wide Angle Conventional Heads Up Display system to similar systems on other fighter aircraft is challenging without access to detailed cost breakdowns and specific system capabilities. Factors such as technological sophistication, integration complexity, required performance specifications (e.g., field of view, resolution, symbology), and the number of units procured significantly influence per-unit costs. Furthermore, the sole-source nature of this award limits the ability to benchmark against competitive bids. A comprehensive comparison would necessitate analyzing contracts for comparable avionics systems across different platforms, considering factors like contract type, duration, and the competitive landscape at the time of award.
What are the primary risks associated with a sole-source award for critical aircraft components like this heads-up display?
The primary risks associated with a sole-source award for critical aircraft components include potential overpricing due to a lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of alternative sources should the incumbent contractor face production issues, financial instability, or decide to exit the market. Taxpayers may bear a higher cost without the benefit of competitive bidding driving down prices. Furthermore, the government becomes dependent on a single supplier, potentially limiting its flexibility in future upgrades or modifications. This dependence can also create leverage for the sole-source provider during negotiations.
What is the expected program effectiveness and impact on F-16 pilot performance?
The program is expected to enhance F-16 pilot performance by providing improved situational awareness through the Wide Angle Conventional Heads Up Display. This technology projects critical flight data, navigation information, and targeting symbology directly into the pilot's field of view, reducing the need to look down at cockpit instruments. This allows pilots to maintain better focus on the external environment, potentially leading to quicker threat detection, improved targeting accuracy, and safer flight operations, especially during complex maneuvers or combat scenarios. The effectiveness will be measured by the system's reliability, its seamless integration with existing F-16 systems, and positive feedback from pilots regarding its utility and impact on mission success.
What has been the historical spending trend for F-16 avionics or similar heads-up display systems by the Department of the Air Force?
Historical spending on F-16 avionics and heads-up display systems by the Department of the Air Force would likely show a pattern of continuous investment driven by the need to maintain and modernize a large fleet of aging aircraft. Early spending would have been on initial procurement and basic systems. Over time, as technology advanced and threats evolved, spending would shift towards upgrades, enhancements, and replacements of components like HUDs to incorporate newer capabilities, improve performance, and ensure compatibility with evolving mission requirements. The total spending would fluctuate based on fleet size, modernization program cycles, and the specific technological advancements being integrated. This $57.6 million award represents a segment of that ongoing investment.
Are there any known technological obsolescence risks with the current F-16 heads-up display technology being procured?
The risk of technological obsolescence with the current F-16 heads-up display technology depends on the specific 'Wide Angle Conventional' designation and the system's architecture. If this is an upgrade to an existing, proven system, the risk might be lower in terms of immediate functionality but higher in terms of long-term relevance compared to cutting-edge technologies. However, if the 'conventional' aspect implies older design principles, there could be risks related to integration with future advanced avionics or weapons systems. The sole-source nature of the award could also mean the technology is not being pushed to its latest potential. A thorough technical assessment comparing the procured system against emerging avionics trends would be needed to fully evaluate obsolescence risks.
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: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA823223R0008
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: $57,574,836
Exercised Options: $57,574,836
Current Obligation: $57,574,836
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $4,434,138
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA823224D0004
IDV Type: IDC
Timeline
Start Date: 2024-09-23
Current End Date: 2029-09-21
Potential End Date: 2029-09-21 00:00:00
Last Modified: 2024-12-02
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