DoD's $45M contract for miscellaneous manufacturing services awarded to BAXTERS NORTH AMERICA, INC

Contract Overview

Contract Amount: $29,879,437 ($29.9M)

Contractor: Baxters North America, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2011-02-01

Contract Duration: 1,223 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4505713332!CORNED BE

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45242

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to BAXTERS NORTH AMERICA, INC. for work described as: 4505713332!CORNED BE Key points: 1. The contract's value of $45 million over its period of performance suggests a significant need for the specified miscellaneous manufacturing services. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to favorable pricing. 3. The fixed-price contract type generally shifts performance risk to the contractor, offering cost certainty to the government. 4. The duration of the contract (1223 days) indicates a long-term requirement for these services. 5. The specific North American Industry Classification System (NAICS) code 339999 covers a broad range of 'All Other Miscellaneous Manufacturing,' making direct benchmarking challenging without further detail. 6. The contract was awarded by the Defense Logistics Agency, a key procurement arm for the Department of Defense, highlighting its strategic importance.

Value Assessment

Rating: fair

Benchmarking the value of this $45 million contract is difficult without specific details on the 'miscellaneous manufacturing' services provided. The fixed-price nature offers some cost control, but the broad NAICS code makes direct comparisons to similar contracts challenging. The number of bids received (2) is on the lower side for full and open competition, which could indicate potential limitations in market interest or specialized requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. However, only two bids were received. This limited number of bidders, despite open competition, might suggest a niche market, high barriers to entry, or a lack of widespread interest from potential suppliers for this specific requirement.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by fostering price discovery, the low number of bids here may have limited the extent of cost savings achievable.

Public Impact

The primary beneficiaries are likely components of the Department of Defense requiring the specific manufactured goods or services. The services delivered fall under 'All Other Miscellaneous Manufacturing,' which could encompass a wide array of products essential for military operations or support. The geographic impact is primarily within Ohio, where the contractor is located, but the ultimate use of the manufactured goods could be global. Workforce implications would be within the contractor's facilities in Ohio, supporting manufacturing jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) could indicate potential for higher prices than if more firms had participated.
The broad NAICS code makes it difficult to assess if the most specialized or cost-effective manufacturers were engaged.
Lack of specific details on the manufactured goods or services prevents a thorough assessment of value for money.

Positive Signals

Awarded under full and open competition, which theoretically allows for the widest possible range of suppliers.
Fixed-price contract type shifts cost risk to the contractor, providing budget certainty for the government.
The Defense Logistics Agency's involvement suggests a structured procurement process and adherence to defense contracting standards.

Sector Analysis

The 'All Other Miscellaneous Manufacturing' sector (NAICS 339999) is highly diverse, encompassing a wide range of products not classified elsewhere. This contract likely represents a specific niche within this broad category, potentially involving specialized components or assemblies for defense applications. Comparable spending benchmarks are difficult to establish due to the heterogeneity of this sector. The Department of Defense is a significant consumer of manufactured goods across numerous categories.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this award. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. The prime contractor, BAXTERS NORTH AMERICA, INC., is likely a larger entity, and its engagement with small businesses would depend on its own supply chain strategies rather than contractual obligations from this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) and the Department of Defense's internal audit and contracting oversight mechanisms. As a fixed-price contract, performance monitoring would focus on delivery schedules and quality specifications. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally maintained through contract databases like FPDS, though specific performance details may be sensitive.

Related Government Programs

Department of Defense Procurement
Defense Logistics Agency Contracts
Miscellaneous Manufacturing Services
Fixed-Price Contracts
Federal Supply Schedule (if applicable, though not specified)

Risk Flags

Limited Competition
Broad NAICS Code
Lack of Specific Service Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to BAXTERS NORTH AMERICA, INC.. 4505713332!CORNED BE

Who is the contractor on this award?

The obligated recipient is BAXTERS NORTH AMERICA, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2007-09-27. End: 2011-02-01.

What specific types of 'miscellaneous manufacturing' services were procured under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 339999, 'All Other Miscellaneous Manufacturing.' This is a broad category that includes establishments primarily engaged in manufacturing products not classified elsewhere. Without further details from the contract's statement of work or description, it is impossible to specify the exact nature of the services. This could range from custom fabrication, specialized component manufacturing, assembly of unique items, or production of goods for which no other specific manufacturing classification exists. The Department of Defense, through the Defense Logistics Agency, procures a vast array of goods, so these services could support anything from tactical equipment components to specialized support materials.

How does the price of this contract compare to similar miscellaneous manufacturing contracts awarded by the DoD?

Direct price comparison is challenging due to the broadness of NAICS code 339999 and the lack of specific service details. The total value of $45,057,133 over 1223 days (approximately 3.35 years) yields an average annual value of roughly $13.4 million. However, this is a fixed-price contract, meaning the total cost is agreed upon upfront. To benchmark effectively, one would need to identify contracts with identical or highly similar manufacturing specifications, quantities, and quality standards. Given the limited competition (2 bidders), it's possible that the price may not reflect the most competitive market rates achievable with broader participation. Further analysis would require access to detailed contract line item information and market research reports.

What are the key performance indicators (KPIs) or quality standards expected for this contract?

Specific Key Performance Indicators (KPIs) and quality standards are not detailed in the provided summary data. However, for a Department of Defense contract, especially one involving manufacturing, typical quality standards would likely adhere to military specifications (Mil-Spec) or relevant ISO certifications. Performance would be measured against delivery schedules, product defect rates, adherence to technical drawings and specifications, and potentially warranty provisions. The Defense Logistics Agency (DLA) typically emphasizes reliability and timely delivery for the materiel it procures. Contract close-out procedures would involve verification that all deliverables met the contract's quality and performance requirements.

What is the track record of BAXTERS NORTH AMERICA, INC. with federal contracts, particularly with the Department of Defense?

BAXTERS NORTH AMERICA, INC. has been awarded this specific $45 million contract by the Department of Defense (via DLA). Without access to a comprehensive federal procurement database search for this contractor, it's difficult to provide a detailed track record. However, being awarded a contract of this magnitude suggests they possess the capability and capacity to meet DoD requirements. Further investigation would involve reviewing their past performance on other federal contracts, including any awards, terminations, or performance issues, to assess their reliability and experience within the federal acquisition landscape.

What is the potential risk associated with the limited number of bidders (2) for this full and open competition contract?

The primary risk associated with only two bidders responding to a full and open solicitation is reduced price competition. While the contract type is fixed-price, which shifts cost risk to the contractor, a lack of robust competition can lead to the government potentially paying a higher price than if multiple bidders had vied for the contract. It could also indicate that the market for these specific 'miscellaneous manufacturing' services is limited, or that the requirements were highly specialized, potentially increasing the risk of contractor performance issues if only one of the two bidders had the precise capabilities.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DDJ Capital Management, LLC (UEI: 964928402)

Address: 4700 CREEK ROAD, CINCINNATI, OH, 45242

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,879,437

Exercised Options: $29,879,437

Current Obligation: $29,879,437

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM3S107DZ192

IDV Type: IDC

Timeline