DoD's $29.2M Integrated Avionics Processor Contract Awarded to Elbit America Without Competition
Contract Overview
Contract Amount: $29,261,275 ($29.3M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-04-17
End Date: 2022-04-30
Contract Duration: 1,109 days
Daily Burn Rate: $26.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INTEGRATED AVIONICS PROCESSOR (IAP)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $29.3 million to ELBITAMERICA, INC. for work described as: INTEGRATED AVIONICS PROCESSOR (IAP) Key points: 1. Significant spending on a critical aircraft component. 2. Sole-source award to Elbit America raises competition concerns. 3. Potential for overpayment given lack of competitive bidding. 4. Aircraft manufacturing sector sees substantial investment.
Value Assessment
Rating: questionable
The contract's value of $29.2 million for an Integrated Avionics Processor is difficult to assess without comparable contract data. The lack of competition suggests potential for inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition likely leads to taxpayers paying a premium for this avionics processor.
Public Impact
Impacts military readiness and technological advancement in naval aviation. Raises questions about the procurement process and cost-effectiveness. Affects the competitive landscape within the defense avionics industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Critical component for defense systems
Sector Analysis
The defense sector, particularly aircraft manufacturing, relies on specialized components like Integrated Avionics Processors. Spending benchmarks for such niche items are often opaque due to proprietary technology and limited suppliers.
Small Business Impact
This contract was not awarded to a small business, indicating a lack of opportunity for smaller players in this specific procurement. Further analysis would be needed to understand overall small business participation in the broader aircraft manufacturing sector.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Documentation justifying the sole-source decision is crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of bidding.
- Lack of transparency in pricing justification.
- Risk of technological obsolescence without competitive pressure.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 million to ELBITAMERICA, INC.. INTEGRATED AVIONICS PROCESSOR (IAP)
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 $29.3 million.
What is the period of performance?
Start: 2019-04-17. End: 2022-04-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competitive means. Without specific documentation, it's impossible to confirm the rationale. However, the absence of competition inherently limits the government's ability to explore alternative strategies that could drive down costs and foster innovation through market forces.
How does the $29.2 million cost compare to industry benchmarks for similar Integrated Avionics Processors, especially considering the lack of competition?
Benchmarking this cost is challenging without access to proprietary pricing data or comparable sole-source awards. However, the lack of competition inherently removes the downward pressure on price that typically occurs in a competitive bidding process. Therefore, it is reasonable to question whether this price represents fair market value or if it includes a premium due to the non-competitive nature of the award.
What is the long-term strategic value and potential obsolescence risk associated with this specific Integrated Avionics Processor?
The long-term strategic value depends on the processor's role in current and future naval aviation platforms and its technological relevance. Risk of obsolescence is a significant concern in rapidly evolving avionics technology. A sole-source award might not incentivize the contractor to proactively address future technological advancements or offer upgrade paths, potentially leading to costly replacements sooner than anticipated.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: $30,454,251
Exercised Options: $29,261,275
Current Obligation: $29,261,275
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001917G0014
IDV Type: BOA
Timeline
Start Date: 2019-04-17
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2021-04-14
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