DoD Awards $33M for AH-1W Helicopter Parts, Lacking Competition
Contract Overview
Contract Amount: $33,169,439 ($33.2M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-05-09
End Date: 2015-12-31
Contract Duration: 966 days
Daily Burn Rate: $34.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AH-1W HDTS FULL RATE PRODUCTION, INSTALLATIONS, AND NRE
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $33.2 million to ELBITAMERICA, INC. for work described as: AH-1W HDTS FULL RATE PRODUCTION, INSTALLATIONS, AND NRE Key points: 1. Contract awarded to Elbit America for AH-1W helicopter parts and NRE. 2. Significant spending of $33.17M on aircraft parts. 3. Sole-source award raises concerns about price discovery and value. 4. Limited competition in the specialized aircraft parts sector.
Value Assessment
Rating: questionable
The contract value of $33.17M for AH-1W helicopter parts and NRE is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar contracts for specialized aircraft components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government compared to a fully competed procurement.
Taxpayer Impact: The absence of competition for this $33.17M contract potentially leads to increased taxpayer expenditure due to the lack of price pressure.
Public Impact
Taxpayers may be overpaying for critical helicopter components due to the sole-source award. The Department of the Navy's reliance on a single vendor for these parts could create future supply chain vulnerabilities. Lack of transparency in the procurement process hinders public understanding of defense spending efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Definitive contract type
- Fixed price contract
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area can be high due to specialized requirements and limited manufacturers, making competitive bidding crucial.
Small Business Impact
The data does not indicate if small businesses were involved in this sole-source contract, suggesting a missed opportunity for small business participation in defense contracting.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable and to explore future competitive opportunities.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price gouging
- Limited vendor options
- No small business participation indicated
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.2 million to ELBITAMERICA, INC.. AH-1W HDTS FULL RATE PRODUCTION, INSTALLATIONS, AND NRE
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 $33.2 million.
What is the period of performance?
Start: 2013-05-09. End: 2015-12-31.
What is the justification for the sole-source award of this $33.17M contract for AH-1W helicopter parts?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available sources meeting the government's requirements. Without specific documentation, it's presumed the Department of the Navy determined Elbit America, Inc. was the only viable source for these specific AH-1W helicopter parts and NRE at the time of procurement.
What are the potential risks associated with awarding a $33.17M contract on a sole-source basis for critical aircraft components?
The primary risks include inflated pricing due to the absence of competitive pressure, potential for reduced innovation, and increased dependency on a single supplier. This can lead to higher long-term costs for maintenance and upgrades, and create vulnerabilities in the supply chain if the sole source encounters production issues or goes out of business.
How does the lack of competition in this $33.17M contract impact the overall effectiveness of defense spending?
The lack of competition directly impacts the effectiveness of defense spending by potentially leading to suboptimal resource allocation. When contracts are not competed, the government may not achieve the best possible value, meaning funds that could be used for other critical defense needs might be spent inefficiently on this single procurement.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: 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: $39,444,837
Exercised Options: $33,169,439
Current Obligation: $33,169,439
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Timeline
Start Date: 2013-05-09
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2017-04-12
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