DoD awards $19.6M for EFS-LITE packages to Anduril Industries, Inc

Contract Overview

Contract Amount: $19,653,457 ($19.7M)

Contractor: Anduril Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-26

End Date: 2025-10-31

Contract Duration: 339 days

Daily Burn Rate: $58.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE EFS-LITE PACKAGES

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92612

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to ANDURIL INDUSTRIES, INC. for work described as: PURCHASE EFS-LITE PACKAGES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is for EFS-LITE packages, indicating a need for specialized search and detection systems. 3. Anduril Industries, Inc. is the sole awardee, raising questions about the breadth of competition. 4. The contract duration is approximately one year, suggesting a focused, short-term requirement. 5. The award is a delivery order, implying it's part of a larger contract vehicle. 6. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: fair

The contract value of $19.6 million for EFS-LITE packages appears to be a specific procurement for specialized equipment. Without detailed cost breakdowns or comparisons to similar systems, it's difficult to definitively assess value for money. However, the fixed-price structure provides some cost certainty. Benchmarking against other advanced sensor or detection systems would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which typically means that all responsible sources were permitted to submit bids. The data does not specify the number of bids received, but the fact that it was competed openly is a positive indicator for price discovery. The award to a single entity, Anduril Industries, Inc., warrants further investigation into whether only one viable bid was submitted or if other aspects of the competition limited the field.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

The U.S. Special Operations Command is the primary beneficiary, receiving specialized EFS-LITE packages. These packages are likely to enhance search, detection, navigation, guidance, and related system capabilities for special operations. The geographic impact is primarily within the operational areas of U.S. Special Operations Command. The contract supports the defense industrial base, particularly in advanced systems manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited visibility into the number of bidders and the specific technical requirements could obscure potential cost savings.
The sole award to Anduril Industries, Inc. may indicate limited market competition for this specific package, potentially impacting future pricing.
The fixed-price contract type, while providing cost certainty, could lead to less incentive for cost reduction if the initial price is not aggressively negotiated.

Positive Signals

Awarded under full and open competition, suggesting a structured and accessible bidding process.
The fixed-price contract type transfers performance risk to the contractor, ensuring cost predictability for the government.
The contract supports advanced technology development and procurement for critical national security missions.

Sector Analysis

The procurement falls within the defense sector, specifically focusing on advanced systems and instrumentation for search, detection, and navigation. The market for such specialized defense technology is characterized by high R&D investment, stringent performance requirements, and a limited number of specialized contractors. Comparable spending benchmarks would likely involve other procurements for advanced sensor suites, intelligence, surveillance, and reconnaissance (ISR) systems, or specialized operational equipment for special forces.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Anduril Industries, Inc., is a significant defense technology company, and its subcontracting practices would need to be assessed separately to understand any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Special Operations Command, the contracting agency. Accountability measures are embedded in the contract terms, including performance requirements and delivery schedules. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Special Operations Forces Equipment
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Advanced Sensor Technology
Navigation and Guidance Systems

Risk Flags

Sole awardee in a 'full and open' competition may warrant further review.
Limited public information on specific system capabilities and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to ANDURIL INDUSTRIES, INC.. PURCHASE EFS-LITE PACKAGES

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 $19.7 million.

What is the period of performance?

Start: 2024-11-26. End: 2025-10-31.

What is the specific functionality and intended use of the 'EFS-LITE PACKAGES' being procured?

The EFS-LITE PACKAGES are procured under the North American Industry Classification System (NAICS) code 334511, which pertains to Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. While the specific details of 'EFS-LITE' are not publicly disclosed in the provided data, it is reasonable to infer that these packages are advanced systems designed to enhance the capabilities of U.S. Special Operations Command in areas such as intelligence gathering, situational awareness, target detection, and potentially navigation in complex environments. The 'LITE' designation might suggest a more portable, modular, or cost-optimized version of a larger system, tailored for specific operational needs where weight, power, or deployability are critical factors. These systems likely integrate various sensor technologies, data processing capabilities, and communication links to provide actionable intelligence to operators.

How does the $19.6 million award compare to Anduril Industries' typical contract values with the DoD?

To assess how the $19.6 million award compares to Anduril Industries' typical contract values with the DoD, one would need to analyze historical contract data for Anduril. Anduril Industries has secured numerous contracts with various branches of the military, often for advanced defense technologies like autonomous systems, sensors, and integrated platforms. Their contract values can range significantly, from smaller R&D awards to multi-million dollar procurements for operational systems. A $19.6 million award for specialized packages is within the plausible range for a company of Anduril's size and focus within the defense sector. However, without a comprehensive review of their entire contract portfolio, it's difficult to definitively state if this is a typical, large, or small award relative to their overall business with the DoD. Further analysis would involve examining the frequency and magnitude of their past awards for similar types of equipment.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or metrics for this specific contract. However, for a procurement of 'EFS-LITE PACKAGES' by U.S. Special Operations Command, typical KPIs would likely revolve around system performance, reliability, and operational effectiveness. These could include metrics such as detection range and accuracy, data processing speed, system uptime and Mean Time Between Failures (MTBF), power consumption, weight and size constraints, ease of integration with existing platforms, and user feedback on operability. Given the fixed-price nature of the contract, adherence to delivery schedules and specifications would also be critical performance metrics. The success of the contract would ultimately be measured by the extent to which these packages meet the operational requirements of the special operations forces and enhance their mission capabilities.

What is the historical spending trend for similar 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' procurements by the DoD?

Historical spending trends for NAICS code 334511 procurements by the DoD indicate a significant and generally increasing investment in advanced systems. This sector encompasses a wide array of critical technologies, including radar, sonar, navigation systems, electronic warfare components, and sophisticated sensor suites. The DoD's continuous need for technological superiority in areas like intelligence, surveillance, reconnaissance (ISR), and force protection drives consistent demand. Spending in this category often fluctuates based on specific modernization programs, emerging threats, and technological advancements. Over the past decade, there has been a notable trend towards more integrated, networked, and AI-enabled systems, which can command higher unit costs but offer enhanced capabilities. Factors such as geopolitical tensions and the evolving nature of warfare also influence the volume and value of these procurements, suggesting a sustained high level of spending in this domain.

What is the risk associated with Anduril Industries, Inc. as a contractor for this type of specialized equipment?

Assessing the risk associated with Anduril Industries, Inc. for this specialized equipment requires considering their track record, financial stability, and experience in delivering similar technologies. Anduril is a relatively young but rapidly growing company known for its innovative approach to defense technology, particularly in areas like autonomous systems and AI-powered sensors. While their innovative capabilities are a strength, their shorter history compared to established defense giants might present certain risks related to long-term sustainment, scalability, or navigating complex bureaucratic processes. However, they have secured significant contracts and demonstrated the ability to deliver advanced solutions. Risks could include potential production delays, integration challenges with existing military systems, or the need for ongoing technological updates. The fixed-price contract structure helps mitigate financial risk for the government, but performance risk remains dependent on Anduril's execution capabilities. Overall, while Anduril represents a modern, agile defense contractor, a thorough risk assessment would involve deeper due diligence on their program management and supply chain.

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: $19,653,457

Exercised Options: $19,653,457

Current Obligation: $19,653,457

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