DoD's Special Operations Command Spends $21.3M on Armored Land Cruisers from Ultra Armoring, LLC
Contract Overview
Contract Amount: $21,296,910 ($21.3M)
Contractor: Ultra Armoring, LLC
Awarding Agency: Department of Defense
Start Date: 2012-03-07
End Date: 2012-07-16
Contract Duration: 131 days
Daily Burn Rate: $162.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF LAND CRUISERS/SPARES PACKAGES AND SHIPPING
Place of Performance
Location: SHELBY, CLEVELAND County, NORTH CAROLINA, 28152
Plain-Language Summary
Department of Defense obligated $21.3 million to ULTRA ARMORING, LLC for work described as: PURCHASE OF LAND CRUISERS/SPARES PACKAGES AND SHIPPING Key points: 1. Significant expenditure on specialized vehicles for operational use. 2. Competition method raises questions about price discovery and potential cost inflation. 3. Risk of overpayment due to limited competition and potential lack of market research. 4. Sector context involves specialized defense contracting with unique requirements.
Value Assessment
Rating: questionable
The contract value of $21.3M for armored vehicles and spares is substantial. Without detailed cost breakdowns or benchmarks for similar specialized armored vehicles, it's difficult to definitively assess value. The 'after exclusion of sources' competition method suggests potential for higher pricing than a fully open process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that some initial sources were excluded before competition. This limited approach can restrict the number of bidders, potentially leading to less competitive pricing and reduced pressure on the contractor to offer the lowest possible price.
Taxpayer Impact: Taxpayer funds are used for specialized defense equipment. The limited competition method may result in a higher overall cost to taxpayers compared to a fully open and unrestricted bidding process.
Public Impact
Procurement of specialized armored vehicles for high-risk operational environments. Potential impact on readiness and operational capabilities depending on vehicle effectiveness and availability. Questions surrounding the justification for excluding certain sources from the competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Lack of transparency in source exclusion
- Potential for cost overruns
Positive Signals
- Acquisition of critical operational assets
- Use of firm-fixed-price contract type
Sector Analysis
This contract falls within the defense sector, specifically focusing on specialized vehicle manufacturing and modification. Spending benchmarks in this niche area are hard to establish due to unique requirements, but large sums are typical for high-security, custom-built vehicles.
Small Business Impact
The data indicates the awardee is 'ULTRA ARMORING, LLC'. There is no explicit information provided regarding small business participation or subcontracting in this specific award notice.
Oversight & Accountability
Oversight would typically involve contract management by the U.S. Special Operations Command to ensure delivery, quality, and adherence to contract terms. The 'exclusion of sources' aspect warrants scrutiny to ensure fair and justified procurement practices.
Related Government Programs
- Motor Vehicle Body Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Potential for higher costs due to exclusion of sources.
- Lack of detailed cost breakdown for value assessment.
- Need for justification of source exclusion.
- Unclear small business participation.
Tags
motor-vehicle-body-manufacturing, department-of-defense, nc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.3 million to ULTRA ARMORING, LLC. PURCHASE OF LAND CRUISERS/SPARES PACKAGES AND SHIPPING
Who is the contractor on this award?
The obligated recipient is ULTRA ARMORING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $21.3 million.
What is the period of performance?
Start: 2012-03-07. End: 2012-07-16.
What was the specific justification for excluding sources prior to the competition, and did this exclusion limit the potential for cost savings?
The justification for excluding sources is not detailed in the provided data. However, excluding potential bidders typically limits the competitive pool. This can reduce price pressure on the awarded contractor, potentially leading to higher costs for the government and taxpayers than if a broader range of qualified suppliers had been allowed to compete.
How does the per-unit cost of these armored Land Cruisers compare to similar specialized vehicles procured by other government agencies or allies?
Without specific per-unit cost breakdowns and detailed specifications for the armor and modifications, a direct comparison is challenging. Benchmarking requires identifying contracts for similarly armored vehicles with comparable protection levels and features. The limited competition suggests a higher likelihood of the price being at the upper end of the market range.
What measures were in place to ensure the effectiveness and operational suitability of the armored vehicles beyond the initial purchase?
The award notice focuses on the purchase and shipping. Post-award measures for ensuring effectiveness, such as testing, training, maintenance protocols, and operational feedback mechanisms, are not detailed here. These would typically be managed through separate performance metrics and oversight activities by the U.S. Special Operations Command.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: H9222211R0040
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ultra Machine & Fabrication, Inc. (UEI: 626381800)
Address: 2501 W DIXON BLVD, SHELBY, NC, 14
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,296,910
Exercised Options: $21,296,910
Current Obligation: $21,296,910
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9222211D0027
IDV Type: IDC
Timeline
Start Date: 2012-03-07
Current End Date: 2012-07-16
Potential End Date: 2012-07-16 00:00:00
Last Modified: 2012-09-04
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