Construction machinery manufacturing contract awarded to BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI for over $10 million
Contract Overview
Contract Amount: $10,085,460 ($10.1M)
Contractor: Biltek Uluslararasi Insaat Limited Sirketi
Awarding Agency: Department of Defense
Start Date: 2007-05-05
End Date: 2008-11-01
Contract Duration: 546 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DFAC ANACONDA
Plain-Language Summary
Department of Defense obligated $10.1 million to BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI for work described as: DFAC ANACONDA Key points: 1. The contract value of $10.09 million for construction machinery manufacturing appears to be a significant investment in specialized equipment. 2. Full and open competition was utilized, suggesting a robust bidding process that should have yielded competitive pricing. 3. The contract duration of 546 days indicates a substantial project requiring sustained equipment provision. 4. The award was made by the Department of Defense, highlighting the critical nature of the machinery for military operations. 5. The North American Industry Classification System (NAICS) code 333120 points to the manufacturing of construction machinery, a specialized industrial sector.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the type and quantity of construction machinery procured. The $10.09 million award for a 546-day period suggests a significant acquisition. However, without comparable contract data for similar machinery or detailed cost breakdowns, it's difficult to definitively assess value for money. The fixed-price nature of the contract shifts some risk to the contractor, which can be a positive indicator if the price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. With 3 bids received, the competition level was moderate. While open competition is generally favorable for price discovery, the limited number of bidders might suggest a niche market or specific requirements that narrowed the field of potential suppliers. Further analysis would be needed to determine if this level of competition was sufficient to drive optimal pricing.
Taxpayer Impact: A full and open competition, even with a moderate number of bidders, generally benefits taxpayers by encouraging multiple companies to offer their best prices to secure the contract.
Public Impact
The Department of Defense is the primary beneficiary, receiving essential construction machinery. The services delivered involve the manufacturing and provision of specialized construction equipment. The geographic impact is likely concentrated around military installations or operational areas requiring construction. Workforce implications may include jobs in manufacturing and logistics related to the production and delivery of the machinery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders (3) in a full and open competition could indicate potential market concentration or high barriers to entry.
- The specific type and quantity of machinery are not detailed, making it hard to assess if the $10.09 million represents optimal value.
- Contract duration of 546 days is substantial; performance monitoring will be key to ensuring timely delivery and quality.
Positive Signals
- Awarded under full and open competition, which promotes a fair and accessible bidding environment.
- The contract is firm fixed price, providing cost certainty for the government.
- The contractor, BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI, was selected through a competitive process.
Sector Analysis
The contract falls within the Construction Machinery Manufacturing sector (NAICS 333120). This industry is characterized by the production of heavy equipment used in construction, mining, and infrastructure projects. The global market for construction machinery is substantial, driven by infrastructure development and urbanization. This specific contract, awarded to a Turkish company (indicated by the name), suggests international sourcing or a specialized capability that may not be readily available domestically. Comparable spending benchmarks would depend heavily on the specific types of machinery procured.
Small Business Impact
The data indicates that small business participation was not a specific set-aside (ss: false) and there is no indication of subcontracting goals (sb: false). This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor is not obligated to subcontract with them under this award. The impact on the small business ecosystem would be minimal unless the prime contractor voluntarily engages small businesses in its supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed price. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Procurement
- Construction Equipment Acquisition
- Heavy Machinery Manufacturing
- International Contractor Awards
Risk Flags
- International Sourcing Risk
- Limited Bidder Pool
- Lack of Specific Machinery Details
Tags
construction, department-of-defense, department-of-the-army, full-and-open-competition, firm-fixed-price, machinery-manufacturing, international-contractor, large-contract, defense-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.1 million to BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI. DFAC ANACONDA
Who is the contractor on this award?
The obligated recipient is BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.1 million.
What is the period of performance?
Start: 2007-05-05. End: 2008-11-01.
What specific types of construction machinery were procured under this contract?
The provided data does not specify the exact types of construction machinery procured under this contract. The NAICS code 333120 indicates 'Construction Machinery Manufacturing,' which encompasses a broad range of equipment such as excavators, bulldozers, cranes, loaders, and concrete mixers. Without further details from the contract award documentation, it is impossible to determine the specific items purchased. This lack of specificity makes it challenging to perform a detailed value analysis or compare it to market rates for particular machinery.
How does the $10.09 million contract value compare to typical spending for similar construction machinery by the Department of Defense?
Comparing the $10.09 million contract value to typical spending for similar construction machinery by the Department of Defense is difficult without knowing the specific machinery. The Department of Defense procures a wide array of equipment, and the cost of individual pieces of heavy machinery can vary dramatically. For instance, a single specialized crane could cost hundreds of thousands or even millions of dollars, while a fleet of smaller equipment would also add up. The 546-day duration suggests a significant acquisition, but without itemized lists or quantities, a direct benchmark against historical spending patterns for identical or comparable equipment is not feasible from the provided data alone.
What is the track record of BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI with federal contracts?
The provided data indicates that BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI received this specific contract award (ID: DFAC ANACONDA) from the Department of the Army. However, this single data point does not provide a comprehensive track record. To assess their broader federal contracting history, one would need to query federal procurement databases for all contracts awarded to this entity. This would reveal the number of awards, their values, agencies involved, performance history, and any past performance issues or accolades. Without this broader search, their overall reliability and experience with federal agencies remain largely unknown.
What are the potential risks associated with awarding a large contract to an international company like BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI?
Awarding a large contract to an international company like BILTEK ULUSLARARASI INSAAT LIMITED SIRKETI can introduce several risks. These may include logistical challenges related to shipping and delivery across borders, potential delays due to customs and international regulations, and currency exchange rate fluctuations if payments are not in a stable currency. There can also be differences in quality control standards, intellectual property protection concerns, and geopolitical risks that might affect supply chains or contract fulfillment. Furthermore, enforcing contract terms or seeking remedies in a foreign jurisdiction can be more complex and costly compared to domestic contracts.
How does the 'full and open competition' with 3 bidders impact price discovery and taxpayer value?
The 'full and open competition' designation means that all interested and capable companies were allowed to bid. Receiving 3 bids suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower prices for taxpayers, 3 bidders indicate that the market for this specific type of construction machinery, or the requirements of the contract, may be somewhat specialized or concentrated. This level of competition is generally considered adequate to drive some price pressure, but it might not be as robust as if there were 5 or more bidders. Taxpayers benefit from the competitive process, but the optimal price might have been lower with broader participation.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W916QW04R0057
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: CEYHUN ATIF KANSU CAD. 133 BALGAT, ANKARA
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,085,460
Exercised Options: $10,085,460
Current Obligation: $10,085,460
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W916QW05D0008
IDV Type: IDC
Timeline
Start Date: 2007-05-05
Current End Date: 2008-11-01
Potential End Date: 2008-11-01 00:00:00
Last Modified: 2012-06-28
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