Dod Awards $18.8M for Bradley Tracks to Contitech USA, Inc. Under Sole-Source Contract

Contract Overview

Contract Amount: $18,839,827 ($18.8M)

Contractor: Contitech USA, Inc

Awarding Agency: Department of Defense

Start Date: 2006-11-07

End Date: 2008-04-30

Contract Duration: 540 days

Daily Burn Rate: $34.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BRADLEY TRACK

Place of Performance

Location: FAIRLAWN, SUMMIT County, OHIO, 44333

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to CONTITECH USA, INC for work described as: BRADLEY TRACK Key points: 1. Significant award for a critical vehicle component. 2. Single awardee suggests potential lack of competition. 3. Long-term contract duration may indicate ongoing need. 4. Firm Fixed Price contract shifts risk to contractor.

Value Assessment

Rating: questionable

The contract value of $18.8M for 1 unit over 540 days appears high. Without comparable contract data or a breakdown of unit cost, it's difficult to assess pricing against similar armored vehicle component procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Ensures continued operational readiness for Bradley Fighting Vehicles. Supports a specific manufacturer, potentially impacting market dynamics. Taxpayers may be paying a premium due to the absence of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High unit cost potential
Sole-source award

Positive Signals

Firm Fixed Price contract
Ensures supply chain for critical component

Sector Analysis

This award falls within the Defense sector, specifically military vehicle manufacturing. Spending benchmarks for armored vehicle components can vary widely based on complexity and quantity, but sole-source awards often deviate from competitive norms.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further reduces opportunities for small business participation.

Oversight & Accountability

The lack of competition raises questions about the effectiveness of oversight in ensuring the best value for taxpayer dollars. Further review of the justification for the sole-source award is warranted.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in cost justification
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to CONTITECH USA, INC. BRADLEY TRACK

Who is the contractor on this award?

The obligated recipient is CONTITECH USA, 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 $18.8 million.

What is the period of performance?

Start: 2006-11-07. End: 2008-04-30.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without specific documentation, it's impossible to determine the precise reason. However, the absence of competition inherently limits the government's ability to secure the most favorable pricing and terms.

How does the per-unit cost of these BRADLEY TRACKs compare to industry benchmarks or previous competitive procurements?

The provided data lists a total award of $18.8M for 1 unit, making the per-unit cost extremely high and likely unrepresentative of actual unit pricing. Without a breakdown of the quantity procured or more granular cost data, a meaningful comparison to industry benchmarks or past competitive procurements is not possible. This lack of transparency hinders value assessment.

What is the potential long-term financial impact on the Department of Defense due to the lack of competition for this component?

The long-term financial impact of a sole-source award can be substantial. By foregoing competition, the DoD may be paying a premium for the BRADLEY TRACKs, leading to increased overall program costs. This could necessitate budget adjustments or reductions in other areas to accommodate the higher-than-necessary expenditure over the life of the contract.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 703 S CLEVELAND MASSILLON RD, FAIRLAWN, OH, 13

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,839,827

Exercised Options: $18,839,827

Current Obligation: $18,839,827

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DAAE0703DN080

IDV Type: IDC

Timeline