DoD Awards $56.5M for Bradley Engineering Change Proposals, with 345 Units Delivered
Contract Overview
Contract Amount: $56,494,791 ($56.5M)
Contractor: LOC Performance Products LLC
Awarding Agency: Department of Defense
Start Date: 2018-09-21
End Date: 2020-10-15
Contract Duration: 755 days
Daily Burn Rate: $74.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BRADLEY ENGINEERING CHANGE PROPOSAL (ECP) 1 DELIVERY ORDER 0002 FOR 345 EACH.
Place of Performance
Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $56.5 million to LOC PERFORMANCE PRODUCTS LLC for work described as: BRADLEY ENGINEERING CHANGE PROPOSAL (ECP) 1 DELIVERY ORDER 0002 FOR 345 EACH. Key points: 1. Contract awarded to LOC PERFORMANCE PRODUCTS LLC for engineering change proposals on Bradley vehicles. 2. The award represents a significant investment in armored vehicle upgrades. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. The sector is dominated by specialized defense contractors.
Value Assessment
Rating: good
The total award amount is $56.5 million for 345 units. This suggests a per-unit cost of approximately $163,754. This price needs to be benchmarked against similar ECPs for armored vehicles to assess value.
Cost Per Unit: $163,754
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. The specific price discovery mechanism within this competition is not detailed but is expected to be robust.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces.
Public Impact
Enhances the capabilities and longevity of critical military hardware. Supports the modernization of the U.S. Army's armored vehicle fleet. Impacts the defense industrial base and associated supply chains. Ensures warfighters have access to updated and effective equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex engineering changes.
- Long-term sustainment costs not detailed.
- Dependence on a single supplier for specific components.
Positive Signals
- Awarded under full and open competition.
- Addresses critical modernization needs.
- Supports a key defense manufacturing sector.
Sector Analysis
This contract falls within the Defense Industrial Base, specifically focusing on armored vehicle manufacturing and upgrades. Spending in this sector is driven by national security requirements and technological advancements in military hardware. Benchmarks for similar ECPs are highly specialized.
Small Business Impact
The prime contractor, LOC PERFORMANCE PRODUCTS LLC, is not explicitly identified as a small business. Further analysis would be needed to determine if small business participation was incorporated into the subcontracting plan.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The contract type (firm fixed price) and award method (full and open competition) suggest established oversight mechanisms are in place.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep in ECPs.
- Long-term sustainment cost uncertainty.
- Dependence on specific technological advancements.
- Contractor performance history not detailed.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.5 million to LOC PERFORMANCE PRODUCTS LLC. BRADLEY ENGINEERING CHANGE PROPOSAL (ECP) 1 DELIVERY ORDER 0002 FOR 345 EACH.
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 $56.5 million.
What is the period of performance?
Start: 2018-09-21. End: 2020-10-15.
What specific engineering improvements are included in this ECP, and how do they enhance the Bradley Fighting Vehicle's operational effectiveness?
The ECP likely addresses identified deficiencies or incorporates new technologies to improve the Bradley Fighting Vehicle's survivability, lethality, or mobility. Specific improvements could range from upgraded armor packages and fire control systems to enhanced power generation or digital architecture. These enhancements aim to maintain the vehicle's relevance on the modern battlefield and provide warfighters with superior capabilities.
What are the potential risks associated with the long-term sustainment and maintenance of these upgraded Bradley vehicles?
Long-term sustainment risks include the availability of specialized parts, the need for trained maintenance personnel, and the potential for obsolescence of upgraded components over time. The complexity of ECPs can also lead to higher-than-anticipated maintenance costs. Ensuring a robust supply chain and proactive maintenance strategy is crucial to mitigate these risks and maximize the operational lifespan of the upgraded fleet.
How does the per-unit cost of this ECP compare to previous upgrades or similar modifications on other armored vehicles?
Benchmarking this ECP's per-unit cost of approximately $163,754 against historical Bradley upgrades or comparable modifications on vehicles like the Abrams tank or Stryker would provide crucial value assessment. Significant deviations could indicate unique technological challenges, market price fluctuations, or potential inefficiencies in the procurement or execution process, warranting further investigation.
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: $56,494,791
Exercised Options: $56,494,791
Current Obligation: $56,494,791
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV17D0078
IDV Type: IDC
Timeline
Start Date: 2018-09-21
Current End Date: 2020-10-15
Potential End Date: 2020-10-15 12:10:00
Last Modified: 2024-01-04
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