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
- Lack of specific performance metrics or quality assurance details.
- No indication of small business participation.
- Limited insight into the specific technology or innovation within the TVDL system.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type for cost certainty.
- Awarded to a known defense contractor.
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
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed performance metrics.
- No information on small business subcontracting.
- Limited insight into technological specifics.
- Contract duration is lengthy, increasing risk of obsolescence or changing requirements.
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: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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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