DoD awards $30M for shelter and ship systems to Technical Products Group Inc
Contract Overview
Contract Amount: $30,044,681 ($30.0M)
Contractor: Technical Products Group Incorporated
Awarding Agency: Department of Defense
Start Date: 2011-05-17
End Date: 2012-12-28
Contract Duration: 591 days
Daily Burn Rate: $50.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY11 HARDWARE BUY - 10 SHELTER SYSTEMS, 31 SHIP SYSTEMS AND SPARES FOR ROCK ISLAND.
Place of Performance
Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28273
Plain-Language Summary
Department of Defense obligated $30.0 million to TECHNICAL PRODUCTS GROUP INCORPORATED for work described as: FY11 HARDWARE BUY - 10 SHELTER SYSTEMS, 31 SHIP SYSTEMS AND SPARES FOR ROCK ISLAND. Key points: 1. Spending focused on specialized hardware for military applications. 2. Technical Products Group Inc. secured the contract. 3. Potential risks include long delivery times and specialized nature of the equipment. 4. The IT sector is not directly involved, but related to defense logistics.
Value Assessment
Rating: fair
The contract value of $30M for 10 shelter and 31 ship systems over 591 days appears reasonable given the specialized nature of the equipment. Benchmarking is difficult without more specific system details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. The firm fixed price contract type aims to control costs, but the final price is influenced by the specialized requirements.
Taxpayer Impact: Taxpayer funds are used for essential defense infrastructure, with competition aiming for value. The fixed price nature helps manage budget predictability.
Public Impact
Ensures operational readiness for naval and ground forces. Supports critical military logistics and deployment capabilities. Investment in specialized defense hardware.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (591 days) may indicate complex manufacturing or integration.
- Sole supplier for specific components could be a risk.
- Potential for cost overruns if initial estimates are inaccurate.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical defense infrastructure.
Sector Analysis
This spending falls within the defense manufacturing sector, specifically for specialized shelter and ship systems. Benchmarks for such niche procurements are highly variable and depend on system complexity and quantity.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The prime contractor, Technical Products Group Inc., is not identified as a small business in this context.
Oversight & Accountability
The Department of the Army, under the Department of Defense, managed this procurement. Standard oversight mechanisms for defense contracts would apply, focusing on delivery and quality.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Specialized equipment may have limited market alternatives.
- Potential for supply chain disruptions.
- Dependence on a single contractor for specific components.
Tags
analytical-laboratory-instrument-manufac, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to TECHNICAL PRODUCTS GROUP INCORPORATED. FY11 HARDWARE BUY - 10 SHELTER SYSTEMS, 31 SHIP SYSTEMS AND SPARES FOR ROCK ISLAND.
Who is the contractor on this award?
The obligated recipient is TECHNICAL PRODUCTS GROUP INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $30.0 million.
What is the period of performance?
Start: 2011-05-17. End: 2012-12-28.
What is the specific functionality and technological sophistication of these shelter and ship systems to justify the $30M cost?
The provided data lacks specifics on the shelter and ship systems' functionality. However, given the context of defense procurement and the significant investment, these systems likely incorporate advanced materials, environmental controls, communication integration, and potentially specialized power or survivability features required for military operations in diverse environments.
What are the primary risks associated with the long delivery period and the specialized nature of these systems?
The primary risks include potential delays in manufacturing or supply chain disruptions for specialized components, leading to extended operational readiness gaps. Furthermore, the specialized nature might limit future usability or require significant modification if military requirements evolve, potentially leading to obsolescence or increased sustainment costs.
How effectively does the firm fixed price contract mitigate cost overruns for such complex, long-term defense procurements?
A firm fixed price contract is designed to transfer cost risk to the contractor, providing budget certainty for the government. However, for highly specialized and long-duration projects, the initial price may be inflated to account for contractor risk. Significant cost overruns are less likely unless scope creep occurs or unforeseen technical challenges necessitate contract modifications.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911SR07R0022
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 4205 WESTINGHOUSE COMMONS DR, CHARLOTTE, NC, 28273
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: $30,044,681
Exercised Options: $30,044,681
Current Obligation: $30,044,681
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911SR10D0026
IDV Type: IDC
Timeline
Start Date: 2011-05-17
Current End Date: 2012-12-28
Potential End Date: 2012-12-28 00:00:00
Last Modified: 2019-02-26
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