DoD's $21.7M Allison Transmission Upgrade Kits Contract Awarded to Sole Source
Contract Overview
Contract Amount: $21,736,193 ($21.7M)
Contractor: Allison Transmission, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-22
End Date: 2010-12-31
Contract Duration: 830 days
Daily Burn Rate: $26.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: X1100 TRANSMISSION UPGRADE KITS.
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46222
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to ALLISON TRANSMISSION, INC. for work described as: X1100 TRANSMISSION UPGRADE KITS. Key points: 1. Contract awarded for transmission upgrade kits, totaling $21.7 million. 2. Sole source award to Allison Transmission, Inc. raises competition concerns. 3. The contract spans over two years, ending in December 2010. 4. This falls under Motor Vehicle Body Manufacturing, with a PSC of 336211.
Value Assessment
Rating: questionable
The contract's value of $21.7 million for transmission upgrade kits appears high given the sole-source nature. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar contracts or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may lead to higher costs for taxpayers as the awarded vendor faces no market pressure to offer competitive pricing.
Taxpayer Impact: The sole-source award potentially results in a higher cost to taxpayers due to the absence of competitive bidding and price negotiation.
Public Impact
Military readiness may be impacted if upgrade kits are essential for vehicle fleet maintenance. Taxpayers may be overpaying for these critical transmission components due to the lack of competition. The Department of the Army's procurement process for specialized vehicle parts is highlighted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Specific upgrade kits procured
- Contract awarded to established vendor
Sector Analysis
The Department of Defense frequently procures specialized vehicle components. Spending benchmarks for transmission upgrade kits vary widely based on complexity and volume, but sole-source awards often exceed competitive pricing.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. This procurement appears to bypass opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Documentation justifying the sole-source decision is crucial for accountability.
Related Government Programs
- Motor Vehicle Body Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Missed opportunities for small business participation.
- Questionable value for taxpayer dollars.
Tags
motor-vehicle-body-manufacturing, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to ALLISON TRANSMISSION, INC.. X1100 TRANSMISSION UPGRADE KITS.
Who is the contractor on this award?
The obligated recipient is ALLISON TRANSMISSION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2008-09-22. End: 2010-12-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions or vendors ever considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirement. Without specific documentation, it's impossible to confirm if alternatives were considered, but the lack of competition suggests a potential gap in market research or a reliance on a single supplier.
How does the per-unit cost of these transmission upgrade kits compare to industry benchmarks or previous procurements of similar items?
Benchmarking the per-unit cost is challenging without access to specific pricing details and the exact specifications of the upgrade kits. However, sole-source contracts are inherently at a disadvantage regarding price discovery. A comparative analysis against competitively procured similar items would likely reveal a higher cost in this instance.
What is the long-term impact on the Army's fleet maintenance and operational readiness due to this specific procurement strategy?
The long-term impact depends on the criticality of these upgrade kits. If they are essential for maintaining the operational readiness of a significant portion of the Army's vehicle fleet, then securing a reliable supply, even via sole-source, might be prioritized. However, the cost implications could strain maintenance budgets over time.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body 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
Parent Company: Allison Transmission Inc (UEI: 804407463)
Address: 4700 W 10TH ST, INDIANAPOLIS, IN, 46222
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,736,193
Exercised Options: $21,736,193
Current Obligation: $21,736,193
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV08D0159
IDV Type: IDC
Timeline
Start Date: 2008-09-22
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 12:12:00
Last Modified: 2018-10-24
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