DoD awards $21.2M contract to Kilgore Flares for chemical products, highlighting firm fixed price and full and open competition
Contract Overview
Contract Amount: $21,195,640 ($21.2M)
Contractor: Kilgore Flares Company LLC
Awarding Agency: Department of Defense
Start Date: 2008-03-14
End Date: 2016-02-28
Contract Duration: 2,907 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: M212
Place of Performance
Location: TOONE, HARDEMAN County, TENNESSEE, 38381, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $21.2 million to KILGORE FLARES COMPANY LLC for work described as: M212 Key points: 1. Contract Value: $21.2 million awarded to Kilgore Flares Company LLC. 2. Competition: Full and open competition after exclusion of sources indicates a competitive process. 3. Risk: Firm fixed price contract type generally transfers risk to the contractor. 4. Sector: Manufacturing of chemical products and preparations.
Value Assessment
Rating: good
The contract value of $21.2 million appears reasonable for the specified chemical products. Benchmarking against similar contracts for miscellaneous chemical preparations would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and fair market value.
Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for these chemical products.
Public Impact
Ensures supply of essential chemical products for military operations. Supports a US-based manufacturer in Tennessee. Contract duration spans nearly 8 years, indicating a long-term need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if market conditions change significantly over the long contract duration.
- Dependence on a single contractor for a specific product line.
Positive Signals
- Firm fixed price contract limits cost overruns for the government.
- Full and open competition suggests a competitive market for this product.
- Long contract duration provides stability and predictability for supply.
Sector Analysis
This contract falls within the miscellaneous chemical product manufacturing sector. Spending in this sector can vary based on defense needs and industrial capacity, with typical contract values ranging widely.
Small Business Impact
The contract was awarded to Kilgore Flares Company LLC, located in Tennessee. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply.
Related Government Programs
- All Other Miscellaneous Chemical Product and Preparation Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may expose government to unfavorable market shifts.
- Potential for limited competition if 'exclusion of sources' criteria are restrictive.
- Dependence on a single contractor for critical supplies.
- Lack of specific product details hinders precise value assessment.
Tags
all-other-miscellaneous-chemical-product, department-of-defense, tn, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.2 million to KILGORE FLARES COMPANY LLC. M212
Who is the contractor on this award?
The obligated recipient is KILGORE FLARES COMPANY 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 $21.2 million.
What is the period of performance?
Start: 2008-03-14. End: 2016-02-28.
What specific chemical products are being procured under this contract?
The data indicates the contract is for 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' (NAICS 325998). Without further details, the exact nature of the chemical products remains unspecified, but they are likely related to defense applications such as flares or pyrotechnics, given the contractor's name.
What is the potential impact of the 'exclusion of sources' clause on competition and pricing?
The 'exclusion of sources' clause, when used in conjunction with 'full and open competition,' typically means that while the competition is open, certain sources might be excluded based on specific criteria (e.g., security, technical capability). This could potentially limit the number of bidders, but if well-justified, it ensures only qualified entities participate, potentially leading to better-suited solutions.
How does the long contract duration (2907 days) affect the government's ability to secure competitive pricing over time?
A long contract duration can offer price stability and reduce administrative burden. However, it also carries the risk of market price fluctuations. The firm fixed price structure mitigates direct cost increases for the government, but the initial price must account for potential long-term market shifts. Periodic reviews or options might be necessary to ensure continued value.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chemring Group PLC (UEI: 216244954)
Address: 155 KILGORE DR, TOONE, TN, 38381
Business Categories: Category Business, Labor Surplus Area Firm, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,195,640
Exercised Options: $21,195,640
Current Obligation: $21,195,640
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN08D0428
IDV Type: IDC
Timeline
Start Date: 2008-03-14
Current End Date: 2016-02-28
Potential End Date: 2016-02-28 00:00:00
Last Modified: 2015-06-17
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