DoD awards $35.6M for vehicle kits, with LOC Performance Products LLC securing the contract

Contract Overview

Contract Amount: $35,576,010 ($35.6M)

Contractor: LOC Performance Products LLC

Awarding Agency: Department of Defense

Start Date: 2016-07-20

End Date: 2018-02-15

Contract Duration: 575 days

Daily Burn Rate: $61.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER 0003 FOR KIT INSTALLATION AND ASL, BII, STTE

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to LOC PERFORMANCE PRODUCTS LLC for work described as: DELIVERY ORDER 0003 FOR KIT INSTALLATION AND ASL, BII, STTE Key points: 1. Contract value represents a significant investment in military vehicle modernization. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. The duration of the contract (575 days) indicates a medium-term project. 5. The specific nature of the kits (installation, BII, STTE) points to specialized military equipment needs. 6. The award falls within the manufacturing sector for armored vehicles and components.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without more granular data on the kits and installation services. However, the total award amount of $35.6 million for vehicle kits and associated services suggests a substantial investment. Comparing this to similar contracts for military vehicle upgrades or component manufacturing would provide better context for value for money. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if priced appropriately.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and innovation. The government's ability to solicit bids from a wide range of potential contractors suggests that the market for these specialized vehicle kits is robust.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially driving down costs.

Public Impact

The primary beneficiaries are the U.S. Army units that will receive the upgraded vehicles, enhancing their operational capabilities. The contract delivers specialized kits for installation, along with associated components (BII) and support equipment (STTE). The geographic impact is likely concentrated where the Army units receiving these upgrades are stationed or deployed. Workforce implications may include jobs in manufacturing, logistics, and installation services, potentially supporting skilled labor in the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the kits and installation services makes it difficult to fully assess value for money.
Potential for cost creep if the scope of 'installation' is broader than anticipated, despite the fixed-price nature.
Dependence on a single contractor (LOC Performance Products LLC) for this specific delivery order, though the initial competition was open.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm fixed-price contract type helps control costs for the government.
The contract addresses a specific need for military vehicle enhancement, contributing to readiness.
The contractor, LOC Performance Products LLC, is involved in manufacturing related to military vehicles.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on armored vehicle components and upgrades. The market for such specialized military equipment is driven by government defense spending and evolving operational requirements. Comparable spending benchmarks would involve analyzing other contracts for vehicle modernization, armor upgrades, or the supply of specialized military vehicle kits. The size of the overall market for military vehicle manufacturing and upgrades is substantial, reflecting ongoing investments in national defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, the prime contractor may engage small businesses as subcontractors, depending on their own supply chain needs and capabilities, which is not detailed in this award data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering specified goods and services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

Military Vehicle Modernization Programs
Armored Vehicle Component Manufacturing
Defense Logistics Support
Tactical Vehicle Upgrades
Army Equipment Procurement

Risk Flags

Potential for scope creep in installation services.
Dependence on specific component availability for manufacturing.
Integration challenges with existing vehicle fleet.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to LOC PERFORMANCE PRODUCTS LLC. DELIVERY ORDER 0003 FOR KIT INSTALLATION 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 $35.6 million.

What is the period of performance?

Start: 2016-07-20. End: 2018-02-15.

What is the specific nature and technical specification of the 'KIT INSTALLATION AND ASL, BII, STTE' being procured?

The provided data abbreviates the item as 'KIT INSTALLATION AND ASL, BII, STTE'. 'ASL' likely refers to 'Assembly', 'BII' typically stands for 'Basic Issue Items' (essential equipment for operating a vehicle), and 'STTE' often means 'Support, Test, and Training Equipment'. The 'KIT INSTALLATION' aspect suggests that the contract covers not only the provision of these components but also their integration into existing military vehicles. Without access to the full contract statement of work (SOW), the precise technical specifications, quantities, and exact nature of the installation services remain unspecified in this summary data. This level of detail is crucial for a comprehensive understanding of the contract's scope and value.

How does the awarded price of $35.6 million compare to historical spending on similar vehicle kits or upgrades by the Department of the Army?

Direct historical spending comparisons for this specific 'KIT INSTALLATION AND ASL, BII, STTE' are not readily available from the provided data. To conduct such a comparison, one would need to identify prior contracts for similar vehicle upgrade kits, installation services, and associated basic issue items for comparable military vehicles. Analyzing the unit cost, total contract value, and duration of previous awards would be necessary. Factors such as inflation, technological advancements, and changes in military requirements would also need to be considered to ensure a fair comparison. Without this broader context, assessing whether $35.6 million represents a favorable or unfavorable price point is difficult.

What are the key performance indicators (KPIs) and quality assurance measures associated with this delivery order for LOC Performance Products LLC?

The provided data does not specify the key performance indicators (KPIs) or quality assurance (QA) measures for this delivery order. Typically, for a firm fixed-price contract involving hardware and installation, KPIs might include on-time delivery of kits, successful installation completion rates, adherence to technical specifications, and defect-free performance post-installation. QA measures would likely involve government inspections of delivered kits, verification of installation procedures, and acceptance testing. The effectiveness of these measures would be detailed in the contract's statement of work and quality assurance surveillance plan (QASP), which are not included in the summary data.

What is the track record of LOC Performance Products LLC in fulfilling similar defense contracts, particularly regarding on-time delivery and quality?

Information regarding the specific track record of LOC Performance Products LLC for this particular type of delivery order is not detailed in the provided data. To assess their track record, one would need to review their past performance on similar contracts, looking at factors such as adherence to schedule, quality of deliverables, and overall customer satisfaction ratings (e.g., from past performance questionnaires). A review of the Federal Awardee Performance and Integrity Information System (FAPIIS) or similar databases might offer insights into their performance history, including any past issues or commendations. Without this external data, evaluating their suitability based on past performance is speculative.

What is the anticipated impact of these vehicle kits on the operational readiness and capabilities of the receiving Army units?

The anticipated impact of these vehicle kits on operational readiness and capabilities is significant, though specific details depend on the exact nature of the kits. 'BII' (Basic Issue Items) ensures vehicles have essential operational equipment, while 'STTE' (Support, Test, and Training Equipment) implies enhancements for maintenance, diagnostics, or crew proficiency. 'Kit Installation' suggests upgrades to existing platforms. Collectively, these elements are designed to improve vehicle reliability, maintainability, performance, and potentially survivability or mission effectiveness. Enhanced readiness means units are better prepared for deployment and sustained operations, reducing downtime and improving mission success rates.

Are there any known risks or challenges associated with the manufacturing or installation of these specific vehicle kits?

Potential risks associated with the manufacturing and installation of these vehicle kits could include supply chain disruptions for specialized components, manufacturing defects, challenges in integrating kits with diverse vehicle platforms, and potential delays in installation schedules. The firm fixed-price nature of the contract shifts the financial risk of cost overruns to the contractor, but performance risks related to quality and timeliness remain. The complexity of military vehicle modifications often introduces unforeseen technical challenges during integration. The specific nature of 'ASL, BII, STTE' might involve sensitive technologies or require specialized expertise for installation, adding to potential risks if not managed effectively.

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: $35,576,010

Exercised Options: $35,576,010

Current Obligation: $35,576,010

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV14D0074

IDV Type: IDC

Timeline