DoD awards $49.1M for vehicle kits and training to LOC Performance Products LLC

Contract Overview

Contract Amount: $49,102,602 ($49.1M)

Contractor: LOC Performance Products LLC

Awarding Agency: Department of Defense

Start Date: 2015-06-26

End Date: 2019-04-30

Contract Duration: 1,404 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER 0002 FOR KIT INSTALLATION, NET TRAINING, TRAINING MATERIAL AND ASL, BII, STTE

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $49.1 million to LOC PERFORMANCE PRODUCTS LLC for work described as: DELIVERY ORDER 0002 FOR KIT INSTALLATION, NET TRAINING, TRAINING MATERIAL AND ASL, BII, STTE Key points: 1. Contract value represents a significant investment in military vehicle modernization and readiness. 2. The award to a single vendor suggests a focused procurement strategy, potentially for specialized equipment. 3. Performance period spans nearly four years, indicating a long-term need for these supplies and services. 4. The contract type (Firm Fixed Price) aims to transfer cost risk to the contractor. 5. This award falls within the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' NAICS code, highlighting its specific industrial focus. 6. The contract was awarded under full and open competition, suggesting a broad market search.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the kits, training modules, and associated services. The total award amount of $49.1 million over approximately 3.5 years suggests a substantial investment per year. However, without comparable contract data for similar vehicle modernization efforts or training packages, it's difficult to definitively assess if this represents excellent or questionable value for money. The firm fixed-price structure is a positive indicator for cost control, but the ultimate value depends on the quality and effectiveness of the delivered items and training.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that the Department of the Army sought proposals from all responsible sources. The specific number of bidders is not provided, but this competitive approach generally fosters price discovery and encourages multiple vendors to offer their best terms. The intention is to secure the most advantageous solution for the government.

Taxpayer Impact: A full and open competition process is intended to ensure taxpayers receive the best possible value by allowing a wide range of qualified contractors to bid, driving down prices through market forces.

Public Impact

Military personnel operating armored vehicles will benefit from enhanced equipment and training. The contract supports the readiness and operational capabilities of the U.S. Army. Services are likely delivered to military installations where these vehicles are deployed or maintained. The contract may have implications for the defense manufacturing workforce, particularly in areas related to vehicle components and specialized training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for all project complexities.
Risk of performance issues if the delivered kits or training do not meet stringent military specifications.
Dependence on a single contractor for critical vehicle upgrades and training could pose supply chain risks.

Positive Signals

Firm fixed-price contract structure helps manage cost certainty for the government.
Full and open competition suggests a robust market evaluation was conducted.
Long performance period indicates a sustained commitment to improving vehicle capabilities and personnel proficiency.

Sector Analysis

This contract falls within the defense industrial base, specifically focusing on armored vehicle manufacturing and support. The market for military vehicle components and associated training is characterized by specialized manufacturers, high technological requirements, and significant government investment. Spending in this sector is driven by national security needs, modernization programs, and geopolitical factors. Comparable spending benchmarks would typically involve other large-scale vehicle upgrade or sustainment contracts within the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, LOC Performance Products LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside suggests that the competition was open to all responsible sources, and the focus was on the best overall proposal rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Accountability measures are embedded within the contract terms, including delivery schedules, performance specifications, and payment milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Vehicle Modernization Programs
Armored Vehicle Component Manufacturing
Defense Training Services
Tactical Vehicle Support Contracts
Department of Defense Procurement

Risk Flags

Potential for performance issues
Risk of supply chain disruption
Adequacy of training effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.1 million to LOC PERFORMANCE PRODUCTS LLC. DELIVERY ORDER 0002 FOR KIT INSTALLATION, NET TRAINING, TRAINING MATERIAL AND ASL, BII, STTE

Who is the contractor on this award?

The obligated recipient is LOC PERFORMANCE PRODUCTS 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 $49.1 million.

What is the period of performance?

Start: 2015-06-26. End: 2019-04-30.

What is the specific type of military vehicle this contract pertains to, and what are the key components included in the 'kit installation'?

The provided data indicates the contract falls under NAICS code 336992 (Military Armored Vehicle, Tank, and Tank Component Manufacturing). While the specific vehicle model is not detailed, the 'kit installation' likely refers to upgrades or modifications for existing armored vehicles to enhance their capabilities, survivability, or maintainability. These kits could include components such as improved armor plating, advanced sensor systems, upgraded communication equipment, or new weapon mounts. The 'net training, training material and ASL, BII, STTE' suggests comprehensive support, including operator and maintenance training, documentation, and potentially specialized tools or test equipment (ASL, BII, STTE are acronyms often related to support equipment and logistics).

How does the awarded price of $49.1 million compare to similar contracts for armored vehicle upgrades and training within the Department of Defense?

Direct comparison of the $49.1 million award to similar contracts is challenging without access to a detailed database of comparable procurements. However, the amount suggests a significant investment, typical for major platform upgrades or sustainment efforts for armored vehicles. Factors influencing price include the complexity of the kits, the number of vehicles being modified, the scope and duration of training, and the specific technological advancements incorporated. Contracts for upgrading main battle tanks or infantry fighting vehicles, especially those involving advanced systems, can easily reach tens or hundreds of millions of dollars. The firm fixed-price nature of this contract implies that the contractor bears the risk of cost overruns, which is a common practice for well-defined scopes of work in defense procurement.

What are the potential risks associated with awarding this contract to LOC Performance Products LLC, considering their track record and the nature of the work?

Potential risks associated with this contract include performance-related issues, such as delays in kit delivery or installation, or failure to meet stringent military specifications for the components and training. Given the firm fixed-price nature, there's also a risk that the contractor may cut corners to maintain profitability, potentially impacting quality. The long performance period (over three years) increases the exposure to potential supply chain disruptions or unforeseen technical challenges. A thorough review of LOC Performance Products LLC's past performance on similar government contracts, including any history of defaults, significant delays, or quality issues, would be crucial for a comprehensive risk assessment. Without specific past performance data, it's assumed the award was made based on a favorable assessment during the full and open competition.

What is the expected impact of this contract on the operational readiness and effectiveness of the U.S. Army's armored vehicle fleet?

This contract is expected to significantly enhance the operational readiness and effectiveness of the U.S. Army's armored vehicle fleet. The 'kit installation' likely involves upgrades that improve the vehicles' protection, lethality, situational awareness, or mobility. Enhanced protection can reduce casualties, while improved systems can increase mission success rates. The accompanying training ensures that soldiers are proficient in operating and maintaining the upgraded vehicles and their new systems, maximizing the return on investment for the hardware. Ultimately, this contract contributes to a more capable and resilient armored force, better prepared to meet current and future operational demands.

How has federal spending in the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector evolved over the past five years, and where does this contract fit in?

Federal spending in the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector (NAICS 336992) is generally driven by the Army's modernization priorities, including upgrades to existing platforms and the development of new ones. Over the past five years, spending in this sector has likely fluctuated based on budget allocations, geopolitical events, and the specific phases of major vehicle programs (e.g., Abrams tank upgrades, Bradley Fighting Vehicle modernization, or development of next-generation vehicles). This $49.1 million contract represents a specific, mid-sized award within this sector, likely contributing to ongoing sustainment and upgrade efforts rather than a massive new platform procurement. It fits into the broader trend of maintaining and enhancing the capabilities of the existing armored fleet to address evolving threats.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13505 N HAGGERTY RD, PLYMOUTH, MI, 48170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,102,602

Exercised Options: $49,102,602

Current Obligation: $49,102,602

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV14D0074

IDV Type: IDC

Timeline