DoD Awards $18.4M for Single Band ESM System, Competition Limited by Source Exclusion

Contract Overview

Contract Amount: $18,378,153 ($18.4M)

Contractor: W S Darley & CO

Awarding Agency: Department of Defense

Start Date: 2025-03-20

End Date: 2026-07-28

Contract Duration: 495 days

Daily Burn Rate: $37.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4567655316!SINGLE 3 BAND ESM SYSTEM, W/ GROUND ILA,

Place of Performance

Location: ITASCA, DUPAGE County, ILLINOIS, 60143

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to W S DARLEY & CO for work described as: 4567655316!SINGLE 3 BAND ESM SYSTEM, W/ GROUND ILA, Key points: 1. Contract awarded to W S Darley & Co for a critical defense system. 2. Spending is concentrated within the Defense Logistics Agency, a key DoD entity. 3. The contract's limited competition raises questions about optimal price discovery. 4. The sector is Defense, specifically Service Establishment Equipment and Supplies.

Value Assessment

Rating: fair

The award amount of $18.4M for a single band ESM system appears within a reasonable range for specialized defense equipment. However, without specific technical details and comparable contract data, a precise valuation is difficult. The firm fixed price contract offers cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific reason for limiting the pool of potential bidders. This method can sometimes lead to higher prices if the excluded sources represent significant competition.

Taxpayer Impact: Taxpayer funds are being used for a specialized defense system. While necessary for national security, the limited competition warrants scrutiny to ensure value for money.

Public Impact

Enhances electronic warfare capabilities for the Department of Defense. Supports military readiness and operational effectiveness. Procurement process may limit broader industry participation and innovation. Potential for higher costs due to restricted competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises price concerns.
Lack of transparency in source exclusion.
Potential for vendor lock-in.

Positive Signals

Addresses a specific defense need.
Firm fixed price contract provides cost predictability.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on electronic warfare systems. Spending benchmarks in this niche area are highly variable, depending on technological sophistication and specific system requirements. The $18.4M award is significant for a single system.

Small Business Impact

The data does not indicate if W S Darley & Co is a small business. The contract's nature and value suggest it may be awarded to larger, specialized defense contractors, potentially limiting opportunities for small businesses in this specific procurement.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, is responsible for oversight. The 'exclusion of sources' clause requires careful justification and documentation to ensure accountability and prevent potential impropriety.

Related Government Programs

Service Establishment Equipment and Supplies Merchant Wholesalers
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency regarding source exclusion.
Potential for sole-source dependency if not managed.
Need for robust performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to W S DARLEY & CO. 4567655316!SINGLE 3 BAND ESM SYSTEM, W/ GROUND ILA,

Who is the contractor on this award?

The obligated recipient is W S DARLEY & CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2025-03-20. End: 2026-07-28.

What specific technical capabilities does this 'SINGLE 3 BAND ESM SYSTEM' offer, and how do they justify the $18.4M price tag compared to alternative solutions?

The specific technical capabilities of the 'SINGLE 3 BAND ESM SYSTEM' are not detailed in the provided data. A comprehensive analysis would require access to the system's specifications, its intended operational environment, and its unique functionalities. Without this, it's challenging to definitively justify the $18.4M price tag or compare it against alternative solutions that might offer similar or superior performance at a different cost point.

What were the specific reasons for excluding other potential sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' scenario, and were these reasons adequately documented and justified

The provided data does not specify the reasons for excluding other sources. Typically, such exclusions are based on factors like unique technical requirements, proprietary technology, or urgent needs where only a limited number of vendors can meet the criteria. Adequate documentation and justification are crucial for accountability and to ensure that the exclusion was necessary and did not unduly restrict competition, thereby potentially inflating costs.

How will the effectiveness and value for money of this ESM system be measured throughout its operational life, particularly given the limited initial competition?

Effectiveness and value for money will be measured through performance metrics defined in the contract, such as system uptime, detection rates, and operational impact on mission objectives. Post-delivery reviews and user feedback will be critical. Given the limited initial competition, ongoing monitoring and potential future competitive procurements for upgrades or replacements are essential to ensure long-term value and encourage market competition.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Service Establishment Equipment and Supplies Merchant Wholesalers

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 325 SPRING LAKE DR, ITASCA, IL, 60143

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,378,153

Exercised Options: $18,378,153

Current Obligation: $18,378,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1025

IDV Type: IDC

Timeline