DoD Awards $18M for Helmets to Armorsource LLC Under Full and Open Competition
Contract Overview
Contract Amount: $18,050,449 ($18.1M)
Contractor: Armorsource LLC
Awarding Agency: Department of Defense
Start Date: 2007-09-27
End Date: 2008-12-31
Contract Duration: 461 days
Daily Burn Rate: $39.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ACH SIZE LARGE
Place of Performance
Location: BEAUMONT, JEFFERSON County, TEXAS, 77704
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.1 million to ARMORSOURCE LLC for work described as: ACH SIZE LARGE Key points: 1. Significant contract value of $18 million for helmet manufacturing. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Potential risk associated with a single awardee for a critical defense item. 4. Spending falls within the 'Hat, Cap, and Millinery Manufacturing' sector.
Value Assessment
Rating: good
The contract value of $18 million for helmets appears reasonable given the quantity of 7 units and the firm fixed price structure. Benchmarking against similar defense contracts for headwear would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source procurement.
Public Impact
Provides essential protective gear for military personnel. Supports domestic manufacturing capabilities in the defense supply chain. Ensures availability of critical equipment for armed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single contractor for a critical item.
- Potential for price increases in future contract renewals.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the 'Hat, Cap, and Millinery Manufacturing' sector, which is a niche but critical area for defense procurement. Spending benchmarks for similar specialized protective equipment would be relevant for a deeper analysis.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for procurement. The firm fixed price contract offers some level of cost control.
Related Government Programs
- Hat, Cap, and Millinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High implied cost per unit.
- Potential for supply chain disruption due to single awardee.
- Limited competition for specialized defense equipment.
- Lack of small business participation data.
Tags
hat-cap-and-millinery-manufacturing, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.1 million to ARMORSOURCE LLC. ACH SIZE LARGE
Who is the contractor on this award?
The obligated recipient is ARMORSOURCE 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 $18.1 million.
What is the period of performance?
Start: 2007-09-27. End: 2008-12-31.
What is the typical cost per unit for similar military-grade helmets in the current market?
Determining the precise per-unit cost benchmark for military-grade helmets requires access to detailed specifications and current market data. However, based on the total award of $18,050,448.64 for 7 units, the implied cost per unit is extremely high, suggesting potential issues with the data provided or a highly specialized, low-volume requirement. Typical costs can range from a few hundred to several thousand dollars depending on threat level and features.
What are the specific risks associated with Armorsource LLC being the sole awardee for this helmet contract?
The primary risk of a sole awardee is reduced competition and potential supply chain vulnerability. If Armorsource LLC faces production issues, quality control problems, or financial instability, the Department of Defense could experience delays or shortages in critical helmet supply. This also limits the government's leverage in future negotiations.
How effective is the 'full and open competition' method in ensuring value for money for specialized defense equipment like helmets?
Full and open competition is generally effective in driving value for money by encouraging multiple bidders to offer their best prices and technical solutions. However, for highly specialized or low-volume defense items, the pool of qualified bidders might be small, potentially limiting the competitive pressure. The government must ensure solicitation requirements accurately reflect needs without unduly restricting competition.
Industry Classification
NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Hat, Cap, and Millinery Manufacturing
Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 23 SISAL STREET, NEWARK, OH, 12
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $18,050,449
Exercised Options: $18,050,449
Current Obligation: $18,050,449
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911QY06D0006
IDV Type: IDC
Timeline
Start Date: 2007-09-27
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2010-09-07
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