DoD awards $48.5M for Vehicle/Cargo Scanners, raising questions on competition and value

Contract Overview

Contract Amount: $48,524,029 ($48.5M)

Contractor: Alutiiq 3SG, LLC

Awarding Agency: Department of Defense

Start Date: 2010-07-16

End Date: 2012-03-02

Contract Duration: 595 days

Daily Burn Rate: $81.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VEHICLE/CARGO SCANNER AND PERSONNEL SCANNERS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $48.5 million to ALUTIIQ 3SG, LLC for work described as: VEHICLE/CARGO SCANNER AND PERSONNEL SCANNERS Key points: 1. Significant award for specialized scanning equipment. 2. Sole-source award limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Sector: Manufacturing of irradiation apparatus.

Value Assessment

Rating: questionable

The award of $48.5M for scanners, with a reported base value of $815K, lacks sufficient data for a robust pricing assessment. Without comparable contract data or detailed cost breakdowns, it's difficult to determine if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the scanning equipment.

Public Impact

Enhanced security screening capabilities for military operations. Potential for improved cargo inspection efficiency. Impact on supply chain security and personnel safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited transparency on pricing
Potential for cost overruns

Positive Signals

Addresses critical security needs
Procurement of specialized equipment

Sector Analysis

The procurement falls under the manufacturing of irradiation apparatus, a niche sector. Benchmarking spending in this specific area is challenging without more detailed contract information and market analysis.

Small Business Impact

The data indicates the awardee is ALUTIIQ 3SG, LLC. There is no specific information provided regarding small business participation or subcontracting goals within this contract.

Oversight & Accountability

Oversight of sole-source contracts is crucial to ensure fair pricing and prevent waste. The limited competition necessitates rigorous review of the contractor's performance and cost justifications.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competitive pricing
Limited cost transparency
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.5 million to ALUTIIQ 3SG, LLC. VEHICLE/CARGO SCANNER AND PERSONNEL SCANNERS

Who is the contractor on this award?

The obligated recipient is ALUTIIQ 3SG, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $48.5 million.

What is the period of performance?

Start: 2010-07-16. End: 2012-03-02.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or a lack of other qualified sources. Without specific documentation, it's presumed the Army determined ALUTIIQ 3SG, LLC possessed the sole ability to meet the stringent requirements for these specialized scanners.

How does the $48.5M total value compare to similar scanner procurements?

Direct comparison is difficult due to the sole-source nature and lack of publicly available pricing details for comparable systems. However, large sole-source awards often carry a risk of inflated costs compared to competitively bid contracts for similar technology.

What measures are in place to ensure the effectiveness and value of these scanners?

Effectiveness is likely measured through performance metrics outlined in the contract, such as detection rates and operational uptime. Value is harder to assess without competition, but oversight should focus on ensuring the equipment meets stated requirements and is maintained appropriately.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911QY10R0045

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD, STE 400, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,524,029

Exercised Options: $48,524,029

Current Obligation: $48,524,029

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline