DoD's $20.6M contract for hoses and belting awarded to GTA Containers, LLC, with 11 bids received

Contract Overview

Contract Amount: $20,613,434 ($20.6M)

Contractor: GTA Containers, LLC

Awarding Agency: Department of Defense

Start Date: 2013-02-21

End Date: 2014-02-21

Contract Duration: 365 days

Daily Burn Rate: $56.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AAFS COMPONENT

Place of Performance

Location: ARLINGTON HEIGHTS, COOK County, ILLINOIS, 60005

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to GTA CONTAINERS, LLC for work described as: AAFS COMPONENT Key points: 1. The contract value of $20.6 million represents a significant investment in essential rubber and plastics components. 2. Competition was robust, with 11 bids indicating a healthy market for these specialized manufacturing services. 3. The firm-fixed-price contract type suggests predictable costs for the government, mitigating cost overrun risks. 4. Awarded by the Department of the Navy, this contract supports critical operational needs within the defense sector. 5. The duration of one year points to a focused requirement rather than a long-term strategic sourcing agreement. 6. The contract was awarded under 'full and open competition after exclusion of sources,' a specific procurement method.

Value Assessment

Rating: good

The contract value of $20.6 million for hoses and belting appears reasonable given the competitive bidding process which involved 11 offers. While specific per-unit cost data is not provided, the presence of multiple bidders suggests that pricing was likely benchmarked against market rates. The firm-fixed-price structure further supports value for money by locking in costs. Without direct comparisons to similar large-scale procurements for specialized hoses and belting, a definitive value assessment is challenging, but the competitive landscape is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' procurement method. This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, which warrants further investigation. The fact that 11 bids were received suggests a competitive market, which generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The high number of bids in this 'full and open' competition indicates that taxpayers likely benefited from competitive pricing. The government was able to solicit offers from a wide range of qualified vendors, driving down costs through market forces.

Public Impact

The primary beneficiaries are the various branches and operations within the Department of Defense that require specialized rubber and plastic hoses and belting for their equipment and infrastructure. The services delivered include the manufacturing and supply of critical components essential for military operations, maintenance, and logistics. The geographic impact is likely nationwide, supporting defense installations and operations across the United States and potentially overseas. Workforce implications include jobs in manufacturing, quality control, and logistics within the companies that successfully bid on and fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific reasons for 'exclusion of sources' in an otherwise 'full and open' competition are not detailed, which could obscure potential limitations on competition.
Lack of detailed performance metrics or quality assurance reporting makes it difficult to assess the contractor's execution beyond basic delivery.
The contract's one-year duration might indicate a short-term need, potentially leading to less strategic sourcing and higher unit costs over time compared to longer-term agreements.

Positive Signals

The award to GTA Containers, LLC, under a firm-fixed-price contract provides cost certainty for the Department of Defense.
Receiving 11 bids signifies a robust and competitive market for these specialized manufacturing products.
The contract supports critical defense supply chains, ensuring the availability of essential components for military readiness.

Sector Analysis

The procurement falls within the broader manufacturing sector, specifically focusing on rubber and plastics products. The market for industrial hoses and belting is characterized by specialized manufacturers catering to various industrial and governmental needs. Benchmarking this $20.6 million contract would involve comparing it to similar procurements for specialized industrial components within the defense or large industrial sectors, considering factors like material specifications, volume, and delivery timelines. The presence of 11 bidders suggests a moderately concentrated market with several capable suppliers.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of specialized manufacturing for defense, it is possible that larger, more established firms dominate this particular market segment. Further analysis would be needed to determine if subcontracting opportunities were mandated or pursued by the prime contractor, potentially benefiting small businesses in the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified goods. Transparency is facilitated by the public nature of contract awards, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) procurement of industrial supplies
Naval Sea Systems Command (NAVSEA) contracts for ship components
General Services Administration (GSA) schedules for industrial products
Other Department of Defense component procurements for operational equipment

Risk Flags

Potential for limited competition due to 'exclusion of sources'
Lack of detailed performance metrics
Need for verification of contractor's past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to GTA CONTAINERS, LLC. AAFS COMPONENT

Who is the contractor on this award?

The obligated recipient is GTA CONTAINERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2013-02-21. End: 2014-02-21.

What is the specific nature of the rubber and plastic hoses and belting procured under this contract, and what are their primary applications within the Department of Defense?

The contract (NAICS 326220) covers the manufacturing of rubber and plastics hoses and belting. While specific technical specifications are not detailed in the provided data, these components are critical for a wide range of military applications. This includes fluid transfer systems (fuel, hydraulics, water, coolant) for vehicles, aircraft, and naval vessels; power transmission systems (belts for engines, machinery); and sealing or protective applications. Their use is fundamental to the operational readiness and maintenance of diverse military platforms and infrastructure, ensuring essential systems function correctly under demanding conditions.

How does the $20.6 million contract value compare to historical spending on similar items by the Department of the Navy or DoD?

Without access to a comprehensive historical spending database for this specific product category (NAICS 326220) by the Department of the Navy, a direct comparison is difficult. However, $20.6 million represents a substantial procurement. The number of bids (11) suggests that this is a significant contract size, likely addressing a considerable demand. To provide a robust comparison, one would need to analyze DoD's spending trends for industrial hoses and belting over the past 5-10 years, looking at average contract values, total spending in this category, and the number of awards to gauge if this contract is an outlier, a typical large award, or part of a trend.

What are the potential risks associated with a firm-fixed-price contract for specialized manufacturing, and how might they be mitigated?

The primary risk with firm-fixed-price (FFP) contracts is that the contractor may cut corners on quality or materials to maintain profitability if their initial cost estimates were too low or if unforeseen production issues arise. For specialized manufacturing like hoses and belting, this could lead to premature failure or reduced performance. Mitigation strategies include robust quality assurance and inspection protocols by the government, clear and detailed technical specifications in the contract, and potentially performance-based metrics. The government should also ensure the contractor has a strong track record and adequate financial stability to handle production challenges without compromising quality.

What does the 'full and open competition after exclusion of sources' procurement method imply about the market and potential vendor limitations?

This procurement method is somewhat unusual. 'Full and open competition' implies that all responsible sources were permitted to submit an offer. However, the 'after exclusion of sources' clause suggests that certain potential bidders were intentionally excluded prior to the solicitation. The reasons for exclusion are critical and could range from past performance issues, failure to meet specific pre-qualification criteria, or proprietary technology limitations. While 11 bids were received, indicating a competitive field, the exclusion of certain sources might have limited the overall breadth of competition, potentially impacting the final price or innovation achieved. Understanding the justification for exclusions is key to assessing the true level of competition.

What is the track record of GTA Containers, LLC, in fulfilling government contracts, particularly for defense-related manufacturing?

Information regarding GTA Containers, LLC's specific track record with government contracts, especially within the defense sector for manufacturing items like hoses and belting, is not provided in the summary data. A thorough assessment would require accessing contract databases (like FPDS or SAM.gov) to review their past performance ratings, the types and values of contracts previously awarded to them, and any reported issues or successes. Understanding their history with similar procurements, adherence to delivery schedules, and quality compliance is crucial for evaluating the reliability of this award.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that indicate its effectiveness?

The provided data does not include specific performance metrics or KPIs for this contract. Effectiveness would typically be measured by factors such as on-time delivery, adherence to technical specifications, product durability and reliability in operational environments, and overall customer satisfaction from the Department of the Navy. Without these details, assessing the contract's effectiveness relies heavily on the assumption that the firm-fixed-price structure and competitive award process led to satisfactory outcomes. Post-award performance reports or contract close-out documentation would be necessary for a definitive evaluation.

Industry Classification

NAICS: Manufacturing › Rubber Product Manufacturing › Rubber and Plastics Hoses and Belting Manufacturing

Product/Service Code: WATER PURIFICATION/SEWAGE TREATMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: GTA Containers, Inc. (UEI: 184811222)

Address: 4201 LINDEN AVE, SOUTH BEND, IN, 02

Business Categories: Category Business, Labor Surplus Area Firm, Manufacturer of Goods, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,613,434

Exercised Options: $20,613,434

Current Obligation: $20,613,434

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785412D5050

IDV Type: IDC

Timeline