DoD awards $16M contract for measuring devices, raising questions on value and competition
Contract Overview
Contract Amount: $16,049,968 ($16.0M)
Contractor: Smiths Detection Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-20
End Date: 2011-12-30
Contract Duration: 2,080 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Place of Performance
Location: EDGEWOOD, HARFORD County, MARYLAND, 21040
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $16.0 million to SMITHS DETECTION INC. for work described as: Key points: 1. Contract awarded for measuring and controlling devices. 2. Significant award value of $16,049,967.66. 3. Competition method is 'FULL AND OPEN COMPETITION'. 4. Contract type is 'COST PLUS INCENTIVE FEE'. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee structure can incentivize cost control, but the lack of specific performance metrics makes a definitive value assessment challenging without further data. Benchmarking against similar contracts for specialized measuring devices is difficult due to the niche nature of the product.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad search for qualified bidders. However, the specific details of the bidding process and the number of proposals received are not provided, making it difficult to assess the effectiveness of price discovery.
Taxpayer Impact: The full and open competition aims to ensure taxpayer funds are used efficiently by fostering competitive pricing. The final cost will depend on the contractor's ability to meet performance incentives.
Public Impact
Defense spending on specialized equipment impacts national security readiness. Procurement processes influence the availability and cost of critical defense technologies. Contract performance directly affects the operational capabilities of military units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics for value assessment.
- Potential for cost overruns with Cost Plus Incentive Fee structure.
- No small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract aims to provide essential measuring and controlling devices.
Sector Analysis
This contract falls within the 'Other Measuring and Controlling Device Manufacturing' sector, which is crucial for various defense applications requiring precise instrumentation. Benchmarking is difficult due to the specialized nature of the devices.
Small Business Impact
The contract data indicates no small business participation. This suggests that the procurement may have been targeted towards larger, specialized manufacturers, potentially limiting opportunities for smaller businesses in this sector.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The effectiveness of oversight will depend on rigorous monitoring of performance, costs, and adherence to contract terms.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for cost overruns with CPIF contract type.
- No small business participation.
- Limited transparency on competitive bidding process.
Tags
other-measuring-and-controlling-device-m, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.0 million to SMITHS DETECTION INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SMITHS DETECTION INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $16.0 million.
What is the period of performance?
Start: 2006-04-20. End: 2011-12-30.
What specific performance metrics were used to evaluate the value of this contract, and how did they align with the 'COST PLUS INCENTIVE FEE' structure?
The provided data does not detail the specific performance metrics tied to the 'COST PLUS INCENTIVE FEE' structure. This type of contract aims to incentivize cost savings and efficiency by sharing financial outcomes between the government and the contractor. Without knowing the target cost, incentive fees, and performance benchmarks, it's impossible to fully assess the value realized or the effectiveness of the incentive mechanism in this instance.
Given the 'FULL AND OPEN COMPETITION' award, what was the competitive landscape, and how did it influence the final negotiated price?
While the award states 'FULL AND OPEN COMPETITION', the data lacks information on the number of bids received or the range of proposed prices. A robust competitive landscape typically drives down prices. The absence of this detail makes it difficult to determine if the competition effectively secured the best possible price for the taxpayer or if there were factors limiting true price discovery.
How does the 'Other Measuring and Controlling Device Manufacturing' sector typically benchmark for contracts of this size and complexity, and where does this award stand?
Benchmarking within the 'Other Measuring and Controlling Device Manufacturing' sector is challenging due to its diverse and often specialized nature. Contracts can range widely in price and complexity. Without specific details on the devices procured, it's difficult to place this $16M award precisely. However, for specialized defense instrumentation, this value suggests a significant procurement requiring advanced technology and manufacturing capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Smiths Group PLC (UEI: 210273256)
Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 21040
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-04-20
Current End Date: 2011-12-30
Potential End Date: 2011-12-30 00:00:00
Last Modified: 2016-12-21
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