DoD's $53M AH-1W TVDL System Contract Awarded to Elbit America Under Full and Open Competition

Contract Overview

Contract Amount: $52,996,875 ($53.0M)

Contractor: Elbitamerica, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-05-29

End Date: 2015-09-30

Contract Duration: 2,315 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AH-1W TVDL SYSTEM

Place of Performance

Location: HURST, TARRANT County, TEXAS, 76053

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to ELBITAMERICA, INC. for work described as: AH-1W TVDL SYSTEM Key points: 1. The contract for the AH-1W TVDL System was awarded to Elbit America, Inc. for $52,996,875.18. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration was 2315 days, spanning from May 2009 to September 2015. 4. The primary sector is Aircraft Manufacturing, with the Department of the Navy as the agency. 5. The contract type was Firm Fixed Price, which typically offers cost certainty.

Value Assessment

Rating: fair

The contract value of approximately $53 million over six years for an aircraft system component appears reasonable given the duration and sector. Benchmarking against similar complex aircraft system procurements would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a fair market price for the AH-1W TVDL System.

Public Impact

This contract supported the operational readiness of the AH-1W helicopter fleet. The procurement likely involved advanced technology for the TVDL system, potentially enhancing aircraft capabilities. The duration of the contract suggests a long-term need for this component within the Navy's aviation programs. The firm fixed price structure provided budget predictability for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the Aircraft Manufacturing sector, specifically for components related to military helicopters. Spending in this area is critical for maintaining defense capabilities and often involves specialized, high-value systems.

Small Business Impact

The provided data does not indicate any specific provisions or participation by small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a major component of the Department of Defense, which has established oversight mechanisms. However, the specific oversight applied to this contract's execution and performance is not detailed in the provided data.

Related Government Programs

Risk Flags

Tags

aircraft-manufacturing, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to ELBITAMERICA, INC.. AH-1W TVDL SYSTEM

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 Navy).

What is the total obligated amount?

The obligated amount is $53.0 million.

What is the period of performance?

Start: 2009-05-29. End: 2015-09-30.

What was the specific function and technological advancement of the AH-1W TVDL System, and how did it enhance the helicopter's capabilities?

The AH-1W TVDL System likely refers to a Target Vehicle Data Link system for the Cobra attack helicopter. Such systems are crucial for transmitting real-time targeting data, sensor information, or command and control signals between the aircraft and ground stations or other assets. Its technological advancement would have contributed to improved situational awareness, precision targeting, and interoperability within the battlefield.

Given the contract's duration and value, what were the key performance indicators (KPIs) and quality assurance measures implemented to ensure the system met DoD standards?

The provided data lacks specific details on KPIs and quality assurance measures. Typically, for defense contracts of this nature, KPIs would focus on system reliability, uptime, data transmission accuracy, and integration with existing platforms. Quality assurance would involve rigorous testing, inspections, and adherence to military specifications throughout the manufacturing and delivery process.

How did the firm fixed price structure impact the contractor's ability to innovate or manage unforeseen technical challenges during the contract period?

A firm fixed price contract places the cost risk on the contractor. While it provides budget certainty for the government, it can incentivize the contractor to minimize costs, potentially limiting investment in innovation or R&D beyond contract requirements. Unforeseen technical challenges could lead to reduced profit margins or necessitate contract modifications if they significantly deviate from the original scope.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Elbit Systems Ltd (UEI: 514421098)

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: $53,522,487

Exercised Options: $52,996,875

Current Obligation: $52,996,875

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2009-05-29

Current End Date: 2015-09-30

Potential End Date: 2015-09-30 00:00:00

Last Modified: 2015-12-03

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