DoD's $268.6M contract for handstations and circuit cards awarded to Elbit America raises competition concerns
Contract Overview
Contract Amount: $26,859,882 ($26.9M)
Contractor: Elbitamerica, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-04-24
End Date: 2024-10-30
Contract Duration: 1,650 days
Daily Burn Rate: $16.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EH0S0404EH HANDSTATION,COMMAND 1290-01-574-4863 76221A-21 841EA @ $19,743.00 EH0S0403EH HANDSTATION,GUNNERS 1290-01-574-3206 76176A-21 445EA @ $22,783.00 EH0S0369EH CIRCUIT CARD ASSEMBLY 5998-01-621-7332 BR-009A-01 16EA @ $7,349.00
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76179
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.9 million to ELBITAMERICA, INC. for work described as: EH0S0404EH HANDSTATION,COMMAND 1290-01-574-4863 76221A-21 841EA @ $19,743.00 EH0S0403EH HANDSTATION,GUNNERS 1290-01-574-3206 76176A-21 445EA @ $22,783.00 EH0S0369EH CIRCUIT CARD ASSEMBLY 5998-01-621-7332 BR-009A-01 16EA @ $7,349.00 Key points: 1. The contract's significant value of $268.6 million warrants scrutiny, especially given the nature of the items procured. 2. Elbit America is the sole awardee, indicating a lack of broader market competition for these specific components. 3. The 'NOT COMPETED' award type presents a significant risk of inflated pricing and reduced value for taxpayer dollars. 4. This procurement falls within the Defense sector, specifically related to military vehicle components.
Value Assessment
Rating: questionable
Pricing for handstations and circuit cards at $19,743 and $22,783 per unit respectively appears high without competitive benchmarking. Further analysis is needed to compare these costs against industry standards for similar electronic components and military hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was explicitly 'NOT COMPETED,' meaning Elbit America was the only vendor considered. This lack of competition significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition increases the risk that taxpayers are not receiving the best possible value, as prices may not have been driven down by market forces.
Public Impact
Military readiness could be impacted if these components are critical for vehicle operation and maintenance. Taxpayers may be overpaying for essential military hardware due to a lack of competitive bidding. The long contract duration (1650 days) suggests a sustained need, making the lack of competition more impactful over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Sole-Source Award
Positive Signals
- Awarded to a known defense contractor
- Addresses specific military component needs
Sector Analysis
This procurement is within the Defense sector, specifically for components related to armored vehicles. Spending benchmarks in this area are highly variable, but a lack of competition on significant contracts often inflates costs above typical market rates.
Small Business Impact
There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. The sole-source nature of the award further limits opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests that standard competitive oversight processes may have been bypassed. Further review of the justification for sole-source award is necessary to ensure accountability and adherence to procurement regulations.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of Competition
- Potential for Inflated Pricing
- Sole-Source Award
- Limited Transparency
- No Small Business Participation Indicated
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.9 million to ELBITAMERICA, INC.. EH0S0404EH HANDSTATION,COMMAND 1290-01-574-4863 76221A-21 841EA @ $19,743.00 EH0S0403EH HANDSTATION,GUNNERS 1290-01-574-3206 76176A-21 445EA @ $22,783.00 EH0S0369EH CIRCUIT CARD ASSEMBLY 5998-01-621-7332 BR-009A-01 16EA @ $7,349.00
Who is the contractor on this award?
The obligated recipient is ELBITAMERICA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $26.9 million.
What is the period of performance?
Start: 2020-04-24. End: 2024-10-30.
What was the specific justification provided for not competing this contract, and does it align with federal procurement regulations for sole-source awards?
The provided data states the contract was 'NOT COMPETED' but does not include the specific justification. Federal regulations (e.g., FAR Part 6) allow for sole-source procurements under specific circumstances, such as when only one responsible source can provide the supplies or services. A thorough review of the agency's justification documentation is required to determine its validity and ensure compliance.
How does the per-unit cost of these handstations and circuit cards compare to similar items procured competitively by the DoD or other federal agencies?
Without access to a broader database of comparable contract awards, it is difficult to definitively benchmark the per-unit costs of $19,743 for handstations and $22,783 for circuit cards. However, these figures appear substantial for individual components. A comparative analysis against similar electronic assemblies or military vehicle parts procured through competitive means would be necessary to assess potential overpricing.
What is the potential impact on long-term military vehicle sustainment and modernization if critical components are consistently procured through non-competitive means?
Consistently procuring critical components through non-competitive means can lead to several negative impacts on military vehicle sustainment and modernization. It can result in higher acquisition costs, diverting funds from other essential programs. It may also stifle innovation and limit the adoption of newer, potentially more effective technologies. Furthermore, reliance on a single source can create supply chain vulnerabilities and reduce negotiating leverage for future procurements.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Elbit Systems Ltd
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: $26,859,882
Exercised Options: $26,859,882
Current Obligation: $26,859,882
Actual Outlays: $482,112
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $11,704,124
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRDL120D0019
IDV Type: IDC
Timeline
Start Date: 2020-04-24
Current End Date: 2024-10-30
Potential End Date: 2024-10-30 12:10:00
Last Modified: 2025-09-11
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