DoD Awards $23.1M for AWACS RSIP Electronics to Telephonics Corp
Contract Overview
Contract Amount: $23,109,547 ($23.1M)
Contractor: Telephonics Corporation
Awarding Agency: Department of Defense
Start Date: 2006-06-15
End Date: 2008-01-30
Contract Duration: 594 days
Daily Burn Rate: $38.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200609!000088!5700!FA8704!ESC/AWK !FA870406C0001 !A!N! !N! ! !20060615!20080130!135230154!081509218!050590710!N!TELEPHONICS CORPORATION !815 BROAD HOLLOW ROAD !FARMINGDALE !NY!11735!25384!059!36!FARMINGDALE !NASSAU !NEW YORK !+000006357243!N!N!000006357243!AC67!RDTE/ELECTRONICS&COMMUNICATION EQ-OP SYSTEM DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !524 !AWACS RSIP (E-3) !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!2A!Z!Y!C! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FARMINGDALE, SUFFOLK County, NEW YORK, 11735
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to TELEPHONICS CORPORATION for work described as: 200609!000088!5700!FA8704!ESC/AWK !FA870406C0001 !A!N! !N! ! !20060615!20080130!135230154!081509218!050590710!N!TELEPHONICS CORPORATION !815 BROAD HOLLOW ROAD !FARMINGDALE !NY!11735!25384!059!36!FARMINGDALE !NASS… Key points: 1. Contract awarded to Telephonics Corporation for AWACS RSIP electronics. 2. Significant portion of contract value is for Research, Development, Test, and Evaluation (RDTE). 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is dominated by large, established defense contractors.
Value Assessment
Rating: fair
The contract value of $23.1M for a 2-year period seems reasonable for specialized defense electronics development. However, without competitive bidding, it's difficult to ascertain optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, likely due to specialized requirements or existing sole-source relationships. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: Lack of competition may lead to higher prices than if multiple vendors were considered, impacting taxpayer funds.
Public Impact
Ensures continued operational capability for the E-3 AWACS aircraft. Supports advanced electronics and communication systems for critical defense platforms. Potential for cost overruns due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Limited transparency in pricing
Positive Signals
- Supports critical defense system
- Established contractor with relevant experience
Sector Analysis
This contract falls within the Defense sector, specifically focusing on electronics and communication equipment for aircraft. Spending in this area is typically high due to the complexity and critical nature of military systems.
Small Business Impact
The awardee, Telephonics Corporation, is a large business. There is no indication of small business participation in this specific contract, which is common for highly specialized defense procurements.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would focus on contract performance, delivery schedules, and adherence to the firm-fixed-price terms to ensure value for money.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Potential for vendor lock-in.
- Limited transparency in cost justification.
- Dependence on a single supplier for critical components.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to TELEPHONICS CORPORATION. 200609!000088!5700!FA8704!ESC/AWK !FA870406C0001 !A!N! !N! ! !20060615!20080130!135230154!081509218!050590710!N!TELEPHONICS CORPORATION !815 BROAD HOLLOW ROAD !FARMINGDALE !NY!11735!25384!059!36!FARMINGDALE !NASSAU !NEW YORK !+000006357243!N!N!000006357243!AC67!RDTE/ELECTRONICS&COMMUNICATION EQ-OP SYSTEM DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !524 !AWACS RSIP (E-3) !336413!E! !3! ! ! ! ! !99990
Who is the contractor on this award?
The obligated recipient is TELEPHONICS CORPORATION.
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 $23.1 million.
What is the period of performance?
Start: 2006-06-15. End: 2008-01-30.
What was the justification for not competing this contract, and were alternative sources considered?
The justification for not competing this contract is not explicitly detailed in the provided data. Typically, non-competitive awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be required to understand the specific rationale and whether any market research was conducted to identify potential competitors.
How does the unit cost of the electronics compare to similar systems developed or procured by other defense agencies?
Without specific unit cost breakdowns and comparative data for similar systems, it is challenging to benchmark. The total contract value of $23.1M over approximately two years for specialized AWACS electronics suggests a significant investment. A detailed cost analysis comparing this contract's pricing structure to other RDTE contracts for similar electronic systems would be necessary for a robust comparison.
What is the long-term impact of relying on a single source for these critical AWACS electronic components?
Relying on a single source can create long-term risks, including potential price increases in future contracts, limited innovation due to lack of competition, and supply chain vulnerabilities if the sole provider faces production issues. It also reduces the government's leverage in negotiations. Strategies to mitigate this could include incentivizing the contractor for cost reductions or exploring alternative technologies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Griffon Corporation (UEI: 050590710)
Address: 815 BROAD HOLLOW ROAD, FARMINGDALE, NY, 11735
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Timeline
Start Date: 2006-06-15
Current End Date: 2008-01-30
Potential End Date: 2008-01-30 00:00:00
Last Modified: 2016-07-19
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