DoD's $28.7M contract for hand-held signals awarded to Security Signals, Inc. raises value questions
Contract Overview
Contract Amount: $28,726,616 ($28.7M)
Contractor: Security Signals, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-03-20
End Date: 2012-08-31
Contract Duration: 1,260 days
Daily Burn Rate: $22.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VARIOUS HAND HELD SIGNALS AWARDED ON DELIVERY ORDER 0013
Place of Performance
Location: CORDOVA, SHELBY County, TENNESSEE, 38016
Plain-Language Summary
Department of Defense obligated $28.7 million to SECURITY SIGNALS, INC. for work described as: VARIOUS HAND HELD SIGNALS AWARDED ON DELIVERY ORDER 0013 Key points: 1. The contract's value appears high relative to the limited scope of hand-held signals. 2. Competition was restricted, potentially impacting price discovery and taxpayer value. 3. The contractor has a history of receiving significant federal awards. 4. The contract duration and fixed-price nature suggest predictable costs. 5. The product falls under miscellaneous chemical manufacturing, an unusual category for signals. 6. Lack of detailed performance metrics makes assessing effectiveness difficult.
Value Assessment
Rating: questionable
The contract value of $28.7 million for hand-held signals seems disproportionately high when compared to typical procurements for similar items. While specific unit costs are not provided, the overall award amount suggests a potential overpayment or a scope of work that extends beyond simple signal devices. Benchmarking against commercial off-the-shelf (COTS) products or similar government contracts for signaling equipment would be necessary to definitively assess value for money. The absence of detailed cost breakdowns further complicates this assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed, but this approach typically results in fewer bidders than true full and open competition. With only two bidders indicated in the data, the level of competition was likely limited, which can lead to less aggressive pricing and potentially higher costs for the government.
Taxpayer Impact: The limited competition suggests that taxpayers may not have received the most competitive pricing available, as the pool of potential suppliers was restricted. This could translate to higher overall spending for the same or similar goods.
Public Impact
The Department of Defense benefits from the supply of hand-held signals for its operations. These signals are likely used for communication, signaling, or marking purposes in various military contexts. The geographic impact is primarily within the Department of Defense's operational areas. The contract supports jobs within the manufacturing sector, specifically in chemical product and preparation manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have led to inflated pricing.
- Lack of transparency regarding source exclusion hinders full value assessment.
- The broad 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' NAICS code is vague for signaling devices.
- Performance metrics and specific use cases are not clearly defined, making effectiveness evaluation challenging.
Positive Signals
- The contract was awarded under a fixed-price structure, providing cost predictability.
- The contractor, Security Signals, Inc., has a history of federal contract awards, suggesting some level of established capability.
- The contract was awarded by the Department of the Army, a major component of the DoD.
Sector Analysis
The contract falls under the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' sector (NAICS 325998). This is a broad category that encompasses a wide range of chemical products not elsewhere classified. While hand-held signals might involve chemical components (e.g., pyrotechnics), classifying them solely under this sector is unusual and suggests a potential miscategorization or a very specific type of signal. The market for signaling devices is diverse, ranging from simple visual markers to complex electronic systems, and this contract's specific niche within the broader chemical manufacturing landscape is unclear.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this contract. There is no indication of small business set-asides or subcontracting goals. This means the contract likely did not directly benefit the small business ecosystem through direct awards or mandated subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight structures. The Inspector General's office within the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is limited by the available data, particularly concerning the rationale for excluding certain sources during the competition phase.
Related Government Programs
- Department of Defense Procurement
- Chemical Manufacturing Contracts
- Signaling and Illumination Equipment
- Miscellaneous Manufacturing Contracts
Risk Flags
- Limited Competition
- Potentially High Unit Cost
- Vague Product Classification
- Lack of Performance Metrics
Tags
department-of-defense, department-of-the-army, security-signals-inc, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, miscellaneous-chemical-product-and-preparation-manufacturing, hand-held-signals, tennessee, defense-procurement, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to SECURITY SIGNALS, INC.. VARIOUS HAND HELD SIGNALS AWARDED ON DELIVERY ORDER 0013
Who is the contractor on this award?
The obligated recipient is SECURITY SIGNALS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $28.7 million.
What is the period of performance?
Start: 2009-03-20. End: 2012-08-31.
What is the specific nature and intended use of the 'VARIOUS HAND HELD SIGNALS' procured under this contract?
The provided data offers limited insight into the specific nature and intended use of the 'VARIOUS HAND HELD SIGNALS.' The NAICS code '325998 - All Other Miscellaneous Chemical Product and Preparation Manufacturing' suggests a chemical basis, potentially involving pyrotechnics or chemical light sources. However, hand-held signals can also encompass non-chemical devices like flares, smoke signals, or even electronic signaling devices. Without further documentation, such as the Statement of Work (SOW) or product specifications, it is difficult to ascertain the precise application. These signals could be for battlefield illumination, marking, signaling between units, or emergency signaling. The significant contract value implies a substantial quantity or a highly specialized type of signal.
How does the $28.7 million contract value compare to historical spending on similar signaling devices by the DoD?
Comparing the $28.7 million award to historical spending on similar signaling devices requires access to historical procurement databases and the ability to identify comparable contract line items or product descriptions. The provided data does not include historical spending figures for this specific item or category. However, the sheer magnitude of the award for 'hand-held signals' suggests it is either a very large quantity purchase, a highly specialized and expensive type of signal, or potentially an outlier. A thorough analysis would involve searching for contracts with similar Product Service Codes (PSCs) or keywords related to signaling devices over several fiscal years to establish a benchmark and identify any significant deviations.
What were the specific reasons for excluding other potential sources in the 'Full and Open Competition After Exclusion of Sources' award type?
The data indicates the contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This contract type implies that a solicitation was issued, but only a limited number of sources were considered, with others being excluded. The specific reasons for these exclusions are not detailed in the provided data. Typically, such exclusions might be based on factors like national security concerns, proprietary technology, specific technical capabilities not met by other vendors, or prior performance issues. However, without explicit documentation outlining the justification for excluding other sources, it is difficult to assess whether these exclusions were valid and served the government's best interest, or if they unduly restricted competition and potentially increased costs for taxpayers.
What is the track record of Security Signals, Inc. in fulfilling large federal contracts, particularly within the defense sector?
Security Signals, Inc. has a history of receiving federal contracts, as indicated by its presence as the awardee in this $28.7 million DoD contract. To assess their track record for large defense contracts, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary. This would involve examining the total value and number of contracts awarded to the company, the agencies they have served, the types of goods or services provided, and their performance history (e.g., any contract terminations, disputes, or negative past performance reviews). A company that has successfully managed multiple large-value contracts, especially within the defense sector, generally demonstrates a capacity to handle complex procurements, though each contract carries its own unique risks and performance requirements.
Does the NAICS code '325998 - All Other Miscellaneous Chemical Product and Preparation Manufacturing' accurately reflect the nature of hand-held signals, and what are the implications of this classifi
The classification of 'VARIOUS HAND HELD SIGNALS' under NAICS code 325998 ('All Other Miscellaneous Chemical Product and Preparation Manufacturing') is somewhat unusual and warrants scrutiny. While some signaling devices, like flares or certain types of chemical lights, do involve chemical processes, many other types of hand-held signals (e.g., electronic beacons, visual markers) do not. This broad NAICS code is a catch-all for chemical products not specified elsewhere. If the signals are primarily chemical-based, the classification is appropriate. However, if they are more technologically advanced or non-chemical, this classification might be inaccurate, potentially affecting how the contract is categorized, benchmarked, and understood within the broader industrial landscape. It could also indicate that the government is procuring a specific type of chemical signal.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9509 MACON RD, CORDOVA, TN, 09
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $28,726,616
Exercised Options: $28,726,616
Current Obligation: $28,726,616
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J05D0040
IDV Type: IDC
Timeline
Start Date: 2009-03-20
Current End Date: 2012-08-31
Potential End Date: 2012-08-31 00:00:00
Last Modified: 2011-08-11
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