DoD awards $44.5M for track assemblies to Contitech USA, Inc. without competition
Contract Overview
Contract Amount: $44,469,192 ($44.5M)
Contractor: Contitech USA, Inc
Awarding Agency: Department of Defense
Start Date: 2009-01-12
End Date: 2010-08-31
Contract Duration: 596 days
Daily Burn Rate: $74.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: VARIOUS TRACK ASSEMBLIES
Place of Performance
Location: FAIRLAWN, SUMMIT County, OHIO, 44333
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $44.5 million to CONTITECH USA, INC for work described as: VARIOUS TRACK ASSEMBLIES Key points: 1. Significant award value for specialized vehicle components. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Defense sector spending on critical vehicle parts.
Value Assessment
Rating: questionable
The award of $44.5 million for track assemblies lacks a clear benchmark due to the absence of competitive bidding. Without comparison to other offers, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: Taxpayers may bear a higher cost for these essential military vehicle parts due to the lack of competitive pressure.
Public Impact
Military readiness potentially impacted by component availability. Defense budget allocation for vehicle maintenance and upgrades. Contractor performance critical for operational effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
Positive Signals
- Essential military component
- Awarded to established entity
Sector Analysis
This award falls within the defense sector, specifically for military vehicle components. Spending benchmarks for such specialized parts are difficult to establish without competitive data, but significant investments are common for armored vehicle maintenance.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if opportunities were missed for small business participation in this procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Oversight should focus on justification for non-competition and performance monitoring.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.5 million to CONTITECH USA, INC. VARIOUS TRACK ASSEMBLIES
Who is the contractor on this award?
The obligated recipient is CONTITECH USA, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $44.5 million.
What is the period of performance?
Start: 2009-01-12. End: 2010-08-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to confirm the exact reason. However, such awards require rigorous justification to ensure taxpayer funds are used efficiently and competitively where possible.
How can the government ensure fair pricing without competition?
Ensuring fair pricing without competition is challenging. The government can employ techniques like historical price analysis, should-cost modeling, and independent government cost estimates. Robust negotiation strategies and thorough review of the contractor's cost proposals are also crucial to mitigate risks associated with sole-source procurements.
What is the potential impact on military vehicle readiness if these track assemblies are not adequately supplied?
Inadequate supply of critical components like track assemblies can severely impact military vehicle readiness. It could lead to extended downtime for essential vehicles, reduced operational capability, and potential mission failures. Ensuring a consistent and timely supply chain is paramount for maintaining the effectiveness of armored forces.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 703 S CLEVELAND MASSILLON RD, FAIRLAWN, OH, 13
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $44,469,192
Exercised Options: $44,469,192
Current Obligation: $44,469,192
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV08D0072
IDV Type: IDC
Timeline
Start Date: 2009-01-12
Current End Date: 2010-08-31
Potential End Date: 2010-08-31 00:00:00
Last Modified: 2010-08-26
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