DoD's $20M artillery shop set contract awarded to IDSC HOLDINGS LLC for hand and edge tool manufacturing

Contract Overview

Contract Amount: $20,094,775 ($20.1M)

Contractor: Idsc Holdings LLC

Awarding Agency: Department of Defense

Start Date: 2009-08-12

End Date: 2010-08-12

Contract Duration: 365 days

Daily Burn Rate: $55.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARTILLERY SHOP SETS

Place of Performance

Location: KENOSHA, KENOSHA County, WISCONSIN, 53143

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to IDSC HOLDINGS LLC for work described as: ARTILLERY SHOP SETS Key points: 1. The contract value of $20M for artillery shop sets appears to be a significant investment in military readiness. 2. Competition dynamics for this contract are favorable, indicating potential for competitive pricing. 3. The fixed-price contract type suggests a degree of cost certainty for the government. 4. The contract duration of one year provides a defined period for delivery and performance. 5. The North American Industry Classification System (NAICS) code 332212 points to a specialized manufacturing sector.

Value Assessment

Rating: fair

Benchmarking the value of this $20M contract is challenging without more specific details on the 'artillery shop sets' and their components. The awarded amount of $20,000,947.75 for a one-year duration suggests a substantial per-unit cost or a large quantity of items. Further analysis would require comparing the scope of work and deliverables to similar contracts for military equipment or specialized tool sets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders is better than one, a higher number of bidders would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: A full and open competition, even with two bidders, generally provides a better opportunity for taxpayers to receive competitive pricing compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units requiring artillery maintenance and support. The contract delivers essential tools and equipment for maintaining artillery systems, contributing to operational readiness. The geographic impact is likely centered around military installations where artillery units are stationed. Workforce implications include potential employment opportunities within IDSC HOLDINGS LLC and its supply chain for manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed specifications for 'artillery shop sets' makes it difficult to assess the exact value and necessity of the awarded items.
The relatively short one-year duration might indicate a need for frequent re-competition or potential supply chain disruptions if not managed effectively.
Limited competition (two bidders) could mean that the government did not achieve the lowest possible price.
The specific nature of 'artillery shop sets' could imply a niche market with limited supplier options, potentially increasing costs.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential suppliers could bid.
The firm fixed-price contract type provides cost predictability for the Department of Defense.
The contractor, IDSC HOLDINGS LLC, has secured a significant contract, suggesting a level of capability and trust from the agency.
The contract addresses a critical need for specialized equipment for military operations.

Sector Analysis

The defense industrial base relies on specialized manufacturers to produce critical equipment. This contract falls within the manufacturing sector, specifically focusing on tools and equipment for military applications. The market for such specialized defense-related manufacturing can be competitive, but often involves a limited number of firms with the necessary certifications and expertise. Benchmarking against similar contracts for specialized tool kits or maintenance equipment for other military platforms would provide further context.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The primary focus is on the prime contractor's ability to fulfill the requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Artillery Systems Procurement
Military Maintenance Equipment
Defense Tooling Contracts
Department of the Army Logistics

Risk Flags

Limited competition (2 bidders)
Lack of detailed product specification
Potential for price inflation due to limited bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to IDSC HOLDINGS LLC. ARTILLERY SHOP SETS

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 $20.1 million.

What is the period of performance?

Start: 2009-08-12. End: 2010-08-12.

What specific items constitute an 'artillery shop set' under this contract, and what is their intended use?

The provided data does not specify the exact contents of the 'artillery shop sets'. However, based on the term and the contractor's NAICS code (Hand and Edge Tool Manufacturing), these sets likely contain specialized tools, gauges, cleaning equipment, and potentially repair components necessary for the maintenance, repair, and operational readiness of artillery systems. Their intended use is to ensure that artillery pieces can be effectively serviced and deployed by military personnel in various operational environments. Without a detailed statement of work or product description, the precise nature and quantity of items remain undefined in the available data.

How does the awarded price of $20,000,947.75 compare to market rates for similar military tool sets?

Directly comparing the awarded price of approximately $20 million to market rates for similar military tool sets is difficult without specific details on the quantity, quality, and exact composition of the 'artillery shop sets'. The term 'artillery shop set' is broad and could encompass a wide range of tools and equipment. Furthermore, military procurement often involves specialized, high-reliability components that command premium pricing compared to commercial equivalents. To benchmark effectively, one would need to identify comparable contracts for specialized military maintenance kits or tool sets, analyze their scope, quantity, and pricing, and then adjust for differences in specifications, contract type, and economic conditions. The current data does not provide sufficient granularity for a precise market rate comparison.

What is the track record of IDSC HOLDINGS LLC in fulfilling defense contracts, particularly those involving specialized equipment?

The provided data indicates that IDSC HOLDINGS LLC was awarded this $20 million contract for artillery shop sets by the Department of the Army. While this award signifies a certain level of capability and trust from the agency, the data itself does not offer a comprehensive track record of the company's past performance on defense contracts. To assess their track record, one would need to examine historical contract awards to IDSC HOLDINGS LLC, their performance ratings on those contracts (if publicly available), any past issues or disputes, and their experience with similar types of equipment or military logistics. A deeper dive into contract databases and performance assessment reports would be necessary to fully evaluate their history.

Given the 'full and open competition' with only two bidders, what are the potential risks to the government regarding price and innovation?

A 'full and open competition' with only two bidders presents a moderate risk to the government. On the price front, limited competition can reduce the downward pressure on bids, potentially leading to a higher-than-optimal price for the artillery shop sets. The government might not have achieved the best possible value if more suppliers could have entered the competition. Regarding innovation, a duopoly or near-monopoly situation might disincentivize suppliers from investing heavily in developing novel solutions or cost-saving technologies, as their market share is less dependent on continuous improvement compared to a more crowded field. However, the fixed-price nature of the contract does provide some cost certainty, and the government still benefits from the competitive process that did occur.

How does this $20 million contract fit into the broader context of Department of Defense spending on maintenance and readiness?

This $20 million contract for artillery shop sets represents a specific allocation within the Department of Defense's vast budget, which often runs into hundreds of billions of dollars annually. Spending on maintenance, repair, and operations (MRO), including tools and equipment, is a critical component of ensuring military readiness. While $20 million is a substantial sum for a single contract, it is a relatively small fraction of the overall defense budget. Its significance lies in its direct contribution to the operational capability of artillery units. Understanding its place requires comparing it to total MRO spending, spending on similar equipment for other weapon systems, and the overall budget allocated to ground forces readiness.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Snap-On Incorporated (UEI: 006090294)

Address: 2801 80TH ST, KENOSHA, WI, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,094,775

Exercised Options: $20,094,775

Current Obligation: $20,094,775

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE2003D0087

IDV Type: IDC

Timeline