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

State: Wisconsin Government Spending

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: ManufacturingCutlery and Handtool ManufacturingHand 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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