DoD awards $23.9M for urban operation platoon sets, raising questions on value and competition

Contract Overview

Contract Amount: $23,871,883 ($23.9M)

Contractor: Federal Resources Supply Company, LLC

Awarding Agency: Department of Defense

Start Date: 2015-05-27

End Date: 2016-06-20

Contract Duration: 390 days

Daily Burn Rate: $61.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR 180 URBAN OPERATION PLATOON SETS.

Place of Performance

Location: STEVENSVILLE, QUEEN ANNES County, MARYLAND, 21666

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC for work described as: DELIVERY ORDER FOR 180 URBAN OPERATION PLATOON SETS. Key points: 1. The contract's value appears reasonable given the specialized nature of the equipment, but a deeper dive into unit cost is needed. 2. Competition was limited, suggesting potential for higher prices than a fully open market. 3. The fixed-price contract type mitigates some cost overrun risks for the government. 4. Performance duration is relatively short, indicating a focus on immediate operational needs. 5. This contract falls within the broader defense manufacturing sector, specifically for navigation and guidance systems. 6. The award to a single vendor warrants scrutiny regarding market dynamics and potential alternatives.

Value Assessment

Rating: fair

The total award of $23.9 million for 180 platoon sets averages to approximately $132,616 per set. Without specific details on the components and capabilities of each set, a direct comparison to similar contracts is difficult. However, the price per unit seems within a plausible range for specialized military equipment. Further analysis would require benchmarking against other procurements of similar operational kits or individual system costs.

Cost Per Unit: Approximately $132,616 per platoon set.

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded. The data indicates 4 bids were received. This level of competition, while not fully open, suggests some market interest. However, the exclusion of sources may have limited the competitive landscape, potentially impacting price discovery and the government's ability to secure the most advantageous pricing.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers compared to what might have been achieved in a fully open and unrestricted bidding process.

Public Impact

The primary beneficiaries are U.S. Army units requiring specialized equipment for urban operations. The contract delivers 180 complete urban operation platoon sets, enhancing soldier capabilities in complex environments. The geographic impact is likely concentrated where these Army units are deployed or training. Workforce implications include the manufacturing and assembly jobs supported by this contract, primarily within the defense supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
The exclusion of sources in the competition process needs further clarification to ensure fairness and optimal value.
Lack of detailed specifications for the platoon sets makes independent value assessment challenging.

Positive Signals

The firm fixed-price contract type offers cost certainty to the government.
The award was made to a single vendor, potentially indicating specialized capabilities or a streamlined acquisition process.
The equipment directly supports critical urban warfare training and readiness.

Sector Analysis

This contract falls within the broader defense industrial base, specifically the manufacturing of systems and instruments for navigation, guidance, and aeronautical/nautical applications. The market for such specialized military equipment is often characterized by high barriers to entry, technological sophistication, and significant government procurement. Comparable spending benchmarks would typically involve other large-scale procurements of soldier systems, tactical gear, or specialized operational kits for various military branches.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. The award was made to Federal Resources Supply Company, LLC. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear, though larger prime contractors often engage small businesses for component manufacturing or specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which shifts cost risk to the contractor. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Combat Systems
Soldier Modernization Programs
Tactical Equipment Procurement
Navigation and Guidance Systems Manufacturing
Urban Warfare Training Equipment

Risk Flags

Limited competition
Exclusion of sources
Lack of detailed specifications for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC. DELIVERY ORDER FOR 180 URBAN OPERATION PLATOON SETS.

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES SUPPLY 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 $23.9 million.

What is the period of performance?

Start: 2015-05-27. End: 2016-06-20.

What specific components and capabilities are included in an 'urban operation platoon set'?

The provided data does not detail the specific components or capabilities included in the 180 'urban operation platoon sets.' These sets likely comprise a combination of specialized gear, communication equipment, navigation tools, protective elements, and potentially sensor or surveillance devices tailored for operations within urban environments. The exact configuration would depend on the Army's specific operational requirements and threat assessments at the time of procurement. Understanding the precise contents is crucial for a thorough value-for-money assessment and for comparing this procurement to similar acquisitions.

How does the price per unit compare to similar military equipment procurements?

The average price per platoon set is approximately $132,616. Direct comparison is challenging without detailed specifications of the sets. However, if these sets include advanced communication suites, integrated navigation systems, and specialized protective gear, the price could be considered competitive. If they are primarily composed of more basic tactical equipment, the price might be on the higher side. Benchmarking against other procurements for similar soldier systems or specialized operational kits, adjusted for inflation and technological advancements, would be necessary for a definitive assessment.

What were the reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process?

The specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award are not detailed in the provided data. This contracting method typically involves a justification, such as technical requirements that only a limited number of vendors can meet, or prior performance issues with potential bidders. The exclusion implies that the contracting activity determined that only specific vendors possessed the necessary capabilities or that other vendors were deemed unsuitable for reasons documented in the procurement file. Understanding these justifications is key to assessing whether the competition was appropriately limited.

What is the track record of Federal Resources Supply Company, LLC in fulfilling defense contracts?

Federal Resources Supply Company, LLC has a history of receiving and fulfilling defense contracts, primarily supplying equipment and logistical support to various branches of the U.S. military. Their contract portfolio often includes items related to tactical gear, survival equipment, and operational support systems. While this specific award is for urban operation platoon sets, their broader experience suggests familiarity with military procurement processes and product delivery. A deeper analysis of their past performance, including on-time delivery rates, quality of goods, and any past disputes or contract modifications, would provide further insight into their reliability for this particular contract.

What is the historical spending trend for similar 'urban operation platoon sets' or related equipment by the Department of Defense?

Historical spending on 'urban operation platoon sets' or analogous equipment by the Department of Defense can fluctuate based on evolving military doctrine, operational needs, and technological advancements. Spending in this category may have increased in recent years due to the emphasis on operations in complex terrain, including urban environments. Analyzing past awards for similar kits, individual components (like advanced communication or navigation gear), and training programs would reveal trends. Without access to comprehensive historical spending data specifically for these sets, it's difficult to establish a precise trend, but it's likely part of a broader investment in modernizing soldier systems for diverse operational theaters.

What are the potential risks associated with the limited competition and exclusion of sources for this contract?

The primary risks associated with limited competition and the exclusion of sources include potential price inflation, reduced incentive for innovation from the contractor, and a narrower range of available solutions. When fewer vendors participate, or when potential competitors are barred, the government may not achieve the best possible price or the most technologically advanced product. There's also a risk that the excluded sources might have offered superior value or unique capabilities. This situation can lead to taxpayers potentially overpaying for the acquired goods and services, and it may limit the government's strategic options in future procurements.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 235-G LOG CANOE CIR, STEVENSVILLE, MD, 21666

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

Financial Breakdown

Contract Ceiling: $23,871,883

Exercised Options: $23,871,883

Current Obligation: $23,871,883

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV15D0015

IDV Type: IDC

Timeline