Department of Defense awards $20.8M for RG33 Cat II lighting kits to Light of Mine LLC
Contract Overview
Contract Amount: $20,839,624 ($20.8M)
Contractor: Light of Mine LLC
Awarding Agency: Department of Defense
Start Date: 2009-05-29
End Date: 2010-10-28
Contract Duration: 517 days
Daily Burn Rate: $40.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LIGHTING KIT FOR BAE SYSTEMS RG33 CAT II
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60611, UNITED STATES OF AMERICA
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to LIGHT OF MINE LLC for work described as: LIGHTING KIT FOR BAE SYSTEMS RG33 CAT II Key points: 1. Value for money appears fair given the firm-fixed-price contract type and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract potentially shifting some risk to the contractor. 4. Performance context is within motor vehicle parts manufacturing, a standard industrial sector. 5. Sector positioning is within defense procurement for specialized vehicle components.
Value Assessment
Rating: fair
The contract value of $20.8 million for lighting kits over approximately 1.5 years suggests a significant investment. Benchmarking against similar specialized vehicle component contracts is challenging without more specific data on the complexity and quantity of the lighting kits. The firm-fixed-price nature of the award implies that the contractor assumed the risk of cost overruns, which can be a positive indicator for the government if the price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a reasonable level of competition for this specialized defense requirement. This competitive environment is generally expected to drive more favorable pricing for the government compared to sole-source or limited competition scenarios.
Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that can lead to lower prices and better value.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Navy, receiving essential lighting components for RG33 Cat II vehicles. The services delivered include the manufacturing and supply of specialized lighting kits. The geographic impact is primarily within Illinois, where the contractor is located. Workforce implications are likely within the manufacturing sector, supporting jobs in specialized automotive parts production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract did not adequately account for all production complexities.
- Dependence on a single contractor for a critical component could pose supply chain risks if not managed proactively.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Awarded under full and open competition, suggesting a competitive pricing environment.
- Contractor is in the 'All Other Motor Vehicle Parts Manufacturing' NAICS code, indicating relevant industry experience.
Sector Analysis
This contract falls within the defense industrial base, specifically focusing on the manufacturing of specialized components for armored vehicles. The market for such components is niche, driven by defense spending priorities and the specific requirements of military vehicle platforms like the RG33. Comparable spending benchmarks would typically be found within other contracts for vehicle sub-systems and parts for similar military applications.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity or that small business participation was not a specific focus of this procurement action. Further analysis would be needed to determine if small businesses were involved in the supply chain.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight mechanisms. Accountability is maintained through the firm-fixed-price contract terms and delivery schedules. Transparency is generally provided through contract award databases, though specific performance details may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- BAE Systems RG33 Armored Vehicle Program
- Department of the Navy Vehicle Procurement
- Military Vehicle Parts Manufacturing
- Defense Lighting Systems
Risk Flags
- Potential for supply chain disruption if contractor performance falters.
- Need for detailed review of contractor's past performance on similar defense contracts.
- Lack of specific data on unit cost makes value-for-money assessment difficult.
Tags
defense, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, motor-vehicle-parts, specialized-components, illinois, lighting-kits, rg33-cat-ii
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to LIGHT OF MINE LLC. LIGHTING KIT FOR BAE SYSTEMS RG33 CAT II
Who is the contractor on this award?
The obligated recipient is LIGHT OF MINE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $20.8 million.
What is the period of performance?
Start: 2009-05-29. End: 2010-10-28.
What is the track record of Light of Mine LLC in fulfilling defense contracts?
Information regarding the specific track record of Light of Mine LLC in fulfilling defense contracts is not detailed in the provided data. The award itself indicates they were selected for this specific contract. To assess their track record, one would need to examine past performance reviews, on-time delivery rates, and quality control metrics from previous government contracts. Without this historical data, it's difficult to definitively gauge their reliability and past success in similar engagements. Further research into contract databases and performance penilaian reports would be necessary.
How does the awarded price compare to market rates for similar lighting kits?
Direct comparison of the awarded price ($20.8 million) to market rates for similar lighting kits is challenging without detailed specifications of the kits themselves. The provided data lacks information on the technical requirements, quantity, and complexity of the lighting systems. However, the contract type (Firm Fixed Price) and the number of bidders (3) under full and open competition suggest that the government aimed for competitive pricing. A thorough market analysis would involve comparing the unit price (if calculable) against industry benchmarks for specialized automotive or military vehicle lighting, considering factors like durability, environmental resistance, and specific functionalities required for the RG33 Cat II.
What are the primary risks associated with this contract for the Department of Defense?
The primary risks for the Department of Defense in this contract revolve around potential supply chain disruptions and the contractor's ability to meet quality and delivery specifications. Although it's a firm-fixed-price contract, which shifts cost risk to the contractor, there's still a risk of performance issues, such as delays or defects in the lighting kits. Given that these are specialized components for military vehicles, any failure in quality or timely delivery could impact vehicle readiness and operational capabilities. The government also faces the risk of the contractor going out of business or facing financial instability, which could jeopardize the supply of these critical parts.
How effective is the competition level in ensuring value for taxpayer money?
The fact that this contract was awarded under 'full and open competition' with three bidders is a positive indicator for ensuring value for taxpayer money. This level of competition generally drives down prices as contractors vie for the award. It also encourages innovation and efficiency as companies seek to offer the most attractive proposal. The presence of multiple bidders suggests that the market has sufficient capacity and interest to meet the government's needs, preventing a situation where a single supplier could dictate terms and prices. This competitive dynamic is a key mechanism for achieving cost-effectiveness in government procurement.
What is the historical spending pattern for RG33 Cat II lighting kits or similar components?
The provided data does not include historical spending patterns for RG33 Cat II lighting kits or similar components. To establish such a pattern, one would need to analyze contract awards over several fiscal years for the same or comparable items, from the same or similar agencies. This would involve looking at the total dollar amounts awarded, the number of contracts, the duration of these contracts, and the contractors involved. Understanding historical spending can reveal trends in pricing, identify potential cost increases or decreases over time, and highlight any shifts in procurement strategies or market dynamics for these specialized parts.
What is the significance of the 'All Other Motor Vehicle Parts Manufacturing' NAICS code for this contract?
The NAICS code '336399 - All Other Motor Vehicle Parts Manufacturing' signifies that Light of Mine LLC operates within a broad category of companies that produce various motor vehicle parts not specified elsewhere. For this contract, it indicates that the lighting kits for the BAE Systems RG33 Cat II fall under this general classification. This suggests that the required components are specialized but fit within the established industrial framework for automotive parts production. It implies the contractor likely has experience in manufacturing components that meet the rigorous standards of the automotive industry, which can be adapted for military applications, though specific defense-grade requirements might necessitate additional certifications or modifications.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › All Other Motor Vehicle Parts Manufacturing
Product/Service Code: LIGHTING FIXTURES, LAMPS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785408R5010
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1737 WEST CRYSTAL STREET, CHICAGO, IL, 60622
Business Categories: Black American Owned Business, Category Business, Manufacturer of Goods, Minority Owned Business, Small Business, Sole Proprietorship, Woman Owned Business
Financial Breakdown
Contract Ceiling: $20,839,624
Exercised Options: $20,839,624
Current Obligation: $20,839,624
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785408D5010
IDV Type: IDC
Timeline
Start Date: 2009-05-29
Current End Date: 2010-10-28
Potential End Date: 2010-10-28 00:00:00
Last Modified: 2015-09-24
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