DoD awards $10.7M for Hand Tool Kits, Outfits, with Firm Fixed Price Contract
Contract Overview
Contract Amount: $10,689,725 ($10.7M)
Contractor: Idsc Holdings LLC
Awarding Agency: Department of Defense
Start Date: 2006-11-21
End Date: 2009-09-30
Contract Duration: 1,044 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SETS KITS & OUTFITS OF HAND TOOLS
Place of Performance
Location: KENOSHA, KENOSHA County, WISCONSIN, 53143
Plain-Language Summary
Department of Defense obligated $10.7 million to IDSC HOLDINGS LLC for work described as: SETS KITS & OUTFITS OF HAND TOOLS Key points: 1. Contract value of $10.7M for specialized tool kits. 2. Full and open competition was utilized. 3. Potential risk associated with the firm fixed price contract type. 4. Spending falls within the Hand and Edge Tool Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $10.7M for hand tool kits and outfits appears reasonable given the scope. However, without specific details on the quantity and type of tools included, a precise benchmark is difficult. The firm fixed price structure suggests an expectation of stable costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation for bids. This method generally promotes competitive pricing and allows the government to access a wide range of suppliers, potentially leading to better value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages market forces to drive down prices and improve the quality of goods and services.
Public Impact
Ensures availability of essential hand tools for military operations. Supports the Hand and Edge Tool Manufacturing industry. Competition likely resulted in a fair market price for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm Fixed Price contract may not account for unforeseen cost increases.
- Lack of specific unit cost data makes detailed price analysis challenging.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a single entity, potentially simplifying logistics.
Sector Analysis
This contract falls under the Hand and Edge Tool Manufacturing sector (NAICS 332212). Spending in this sector is generally driven by industrial demand, construction, and maintenance needs. Benchmarks would typically compare pricing for similar tool kits across government and commercial entities.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business set-aside goals were considered or if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm fixed price terms.
Related Government Programs
- Hand and Edge Tool Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Firm Fixed Price contract risk.
- Lack of detailed itemization for value assessment.
- No small business participation indicated.
- Long contract duration (over 3 years) with FFP.
Tags
hand-and-edge-tool-manufacturing, department-of-defense, wi, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.7 million to IDSC HOLDINGS LLC. SETS KITS & OUTFITS OF HAND TOOLS
Who is the contractor on this award?
The obligated recipient is IDSC HOLDINGS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.7 million.
What is the period of performance?
Start: 2006-11-21. End: 2009-09-30.
What specific types and quantities of tools are included in these kits to justify the $10.7M award value?
The provided data does not specify the exact contents of the 'SETS KITS & OUTFITS OF HAND TOOLS.' A detailed breakdown of each kit's components, including the number and type of tools, is necessary to fully assess the value proposition and compare it against industry standards or previous procurements. Without this, the $10.7M figure is difficult to contextualize.
What are the potential risks associated with a Firm Fixed Price contract for tool kits, especially given a 3-year duration?
A Firm Fixed Price (FFP) contract for tool kits, particularly over a 3-year period, carries the risk of the contractor absorbing unexpected cost increases in raw materials or manufacturing. Conversely, if costs decrease significantly, the government might overpay. For the government, the primary risk is that the contractor may cut corners on quality to maintain profitability if costs rise unexpectedly, impacting the durability and effectiveness of the tools.
How effectively did the 'full and open competition' process ensure optimal pricing and quality for these hand tool sets?
Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that should lead to optimal pricing and quality. The success of this process hinges on the clarity of the solicitation requirements and the government's ability to evaluate bids effectively. Assuming a robust bidding process, this method likely secured a fair market price and a range of quality options for the Department of the Army.
Industry Classification
NAICS: Manufacturing › Cutlery and Handtool Manufacturing › Hand and Edge Tool Manufacturing
Product/Service Code: HAND TOOLS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Snap-On Incorporated (UEI: 006090294)
Address: 3011 E ROUTE 176, CRYSTAL LAKE, WI
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,689,725
Exercised Options: $10,689,725
Current Obligation: $10,689,725
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE2003D0083
IDV Type: IDC
Timeline
Start Date: 2006-11-21
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2009-07-24
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