DoD awards $34.6M for CPU Hardware to Anduril Industries, Inc., with a $189K benchmark price

Contract Overview

Contract Amount: $34,663,020 ($34.7M)

Contractor: Anduril Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-22

End Date: 2022-12-22

Contract Duration: 183 days

Daily Burn Rate: $189.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CPU HARDWARE

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to ANDURIL INDUSTRIES, INC. for work described as: CPU HARDWARE Key points: 1. Value for money appears fair, with a benchmark price of $189,415 for the contract. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a fixed-firm price contract type and a 183-day duration. 4. Performance context is limited, as this is a delivery order for CPU hardware. 5. Sector positioning is within defense IT and hardware manufacturing.

Value Assessment

Rating: fair

The contract's value of $34.6 million for CPU hardware is benchmarked against a price of $189,415. While this specific benchmark might represent a unit or a bundle, it suggests a significant investment. Comparing this to similar contracts for specialized defense hardware would be necessary for a more precise value assessment. The firm fixed-price contract type provides cost certainty for the government.

Cost Per Unit: $189,415

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and allows the government to select the most advantageous offer based on price and other factors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down prices through market forces and encourage a wider range of innovative solutions.

Public Impact

The U.S. Special Operations Command is the primary beneficiary, receiving critical CPU hardware. The services delivered include the provision of essential computing components for defense systems. The geographic impact is likely concentrated within the operational areas of U.S. Special Operations Command. Workforce implications may involve specialized technical roles for hardware integration and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized hardware is not interoperable with existing systems.
Dependence on a single contractor for critical hardware components could pose supply chain risks.
The specific application of the CPU hardware is not detailed, which could mask potential performance risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contractor, Anduril Industries, Inc., is known for its work in defense technology, suggesting relevant expertise.

Sector Analysis

This contract falls within the defense sector, specifically focusing on the procurement of advanced CPU hardware. The market for defense-related IT and hardware is substantial, driven by the need for cutting-edge technology to maintain military superiority. Comparable spending benchmarks would typically involve analyzing the cost of similar high-performance computing components procured by various defense agencies for specialized applications.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Anduril Industries, Inc. engages small businesses as subcontractors. Further investigation into subcontracting goals would be needed to assess the broader impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command contracting office, with potential involvement from the Department of Defense Inspector General for audits and investigations. Transparency is facilitated through contract award databases, but detailed performance metrics and specific oversight mechanisms are not publicly available in this summary.

Related Government Programs

Defense IT Procurement
Special Operations Command Hardware
CPU and Computing Hardware
Anduril Industries Contracts

Risk Flags

Limited information on specific application
Potential supply chain dependencies
Need for detailed performance benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to ANDURIL INDUSTRIES, INC.. CPU HARDWARE

Who is the contractor on this award?

The obligated recipient is ANDURIL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $34.7 million.

What is the period of performance?

Start: 2022-06-22. End: 2022-12-22.

What is the track record of Anduril Industries, Inc. in fulfilling similar defense hardware contracts?

Anduril Industries, Inc. has established a significant presence in the defense technology sector, known for its innovative approach to hardware and software solutions for military applications. While specific details on past CPU hardware contracts are not provided in this data, the company has been awarded numerous contracts for autonomous systems, intelligence, surveillance, and reconnaissance (ISR) platforms, and other advanced defense technologies. Their track record generally indicates a capacity to deliver complex technological solutions to government agencies, including the Department of Defense and its various branches. However, a deeper dive into their performance history on contracts of similar scale and technical complexity would be necessary to fully assess their reliability for this specific CPU hardware requirement.

How does the awarded price of $189,415 per unit/bundle compare to market rates for similar high-performance CPUs in the defense sector?

The provided benchmark price of $189,415 is a critical data point for assessing value. To determine its competitiveness, it needs to be contextualized. This figure could represent a single high-performance unit, a specialized module, or a bundle of components. A thorough comparison would involve researching current market prices for comparable CPUs used in defense applications, considering factors like processing power, specialized features (e.g., radiation hardening, ruggedization), quantity discounts, and the supplier's reputation. Without knowing the exact specifications and quantity associated with this benchmark, a definitive comparison is challenging. However, if this represents a standard high-end CPU, it might be within a reasonable range for specialized defense applications, but if it's for a more common component, it could indicate a premium price.

What are the primary risks associated with this contract, considering the limited information on the specific application of the CPU hardware?

The primary risks associated with this contract stem from the limited information available regarding the specific application of the CPU hardware. Firstly, there's a risk of performance mismatch if the chosen CPUs are not optimally suited for the intended tasks within the U.S. Special Operations Command's systems, potentially leading to inefficiencies or system failures. Secondly, supply chain risks could arise if the hardware is highly specialized or sourced from a limited number of suppliers, making it vulnerable to disruptions. Thirdly, integration risks are possible, as incorporating new CPU hardware into existing complex defense systems can be challenging and may require significant modifications or troubleshooting. Finally, without clear performance metrics tied to the hardware's application, assessing the true effectiveness and potential for obsolescence is difficult.

What does the 'FULL AND OPEN COMPETITION' designation imply for the overall effectiveness and cost-efficiency of this contract?

The designation 'FULL AND OPEN COMPETITION' is a positive indicator for both effectiveness and cost-efficiency. It signifies that the Department of Defense actively sought bids from all qualified sources, fostering a competitive environment. This typically leads to better price discovery, as multiple vendors vie to offer the most attractive terms. Consequently, taxpayers are more likely to benefit from competitive pricing and potentially innovative solutions that meet the government's requirements. Furthermore, a broad competition increases the likelihood of selecting a contractor that offers the best combination of technical capability, past performance, and price, thereby enhancing the overall effectiveness of the procurement in meeting the U.S. Special Operations Command's needs for CPU hardware.

How does this $34.6 million award compare to historical spending patterns for CPU hardware within the Department of Defense or U.S. Special Operations Command?

Analyzing this $34.6 million award in the context of historical spending requires access to detailed procurement data for CPU hardware within the Department of Defense (DoD) and specifically the U.S. Special Operations Command (SOCOM). Without that granular data, it's difficult to provide a precise comparison. However, the DoD is a massive consumer of technology, and significant investments in computing hardware are routine, especially for specialized applications like those used by SOCOM. Awards in the tens of millions for critical hardware components are not uncommon, particularly when dealing with high-performance, secure, or ruggedized systems. To assess if this award is an outlier or typical, one would need to examine trends in contract values, quantities, and the types of CPU hardware procured by these entities over several fiscal years.

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: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9240221R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2722 MICHELSON DR, IRVINE, CA, 92612

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,663,020

Exercised Options: $34,663,020

Current Obligation: $34,663,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240222D0001

IDV Type: IDC

Timeline