DoD Awards $11.5M for Helmets to Gentex Corp, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $11,540,224 ($11.5M)
Contractor: Gentex Corporation
Awarding Agency: Department of Defense
Start Date: 2007-02-28
End Date: 2008-01-12
Contract Duration: 318 days
Daily Burn Rate: $36.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 4503896301!HELMET,AD
Place of Performance
Location: SIMPSON, LACKAWANNA County, PENNSYLVANIA, 18407
Plain-Language Summary
Department of Defense obligated $11.5 million to GENTEX CORPORATION for work described as: 4503896301!HELMET,AD Key points: 1. Contract Value: $11.5 million awarded to Gentex Corporation. 2. Competition: Full and open competition was utilized. 3. Risk: Firm Fixed Price contract type suggests moderate risk. 4. Sector: Defense sector, specifically textile product mills.
Value Assessment
Rating: good
The $11.5 million award for helmets appears reasonable given the firm fixed price structure. Benchmarking against similar defense contracts for specialized headwear would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to competitive pricing by allowing multiple vendors to bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value and price.
Public Impact
Ensures supply of essential protective gear for military personnel. Supports a key defense contractor, Gentex Corporation. Demonstrates adherence to competitive procurement practices. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for detailed analysis.
- Contract duration is relatively short, potentially impacting long-term supply chain stability.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type provides cost certainty.
- Awarded to a known defense contractor.
Sector Analysis
This contract falls within the defense sector, specifically for textile products used in military applications. Spending benchmarks for similar personal protective equipment (PPE) in defense are typically high due to specialized requirements and quality standards.
Small Business Impact
While this specific contract was awarded to Gentex Corporation, it's important to analyze if small businesses were involved as subcontractors. The data does not indicate direct small business participation in this award.
Oversight & Accountability
The Department of Defense and the Defense Logistics Agency are responsible for oversight. The firm fixed price contract and full and open competition suggest established oversight mechanisms are in place.
Related Government Programs
- All Other Miscellaneous Textile Product Mills
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract awarded to a single entity (Gentex Corporation).
- Limited duration of the contract.
- No explicit mention of small business subcontracting.
- Specific performance metrics not detailed in the provided data.
Tags
all-other-miscellaneous-textile-product-, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.5 million to GENTEX CORPORATION. 4503896301!HELMET,AD
Who is the contractor on this award?
The obligated recipient is GENTEX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2007-02-28. End: 2008-01-12.
What is the average per-unit cost for these helmets compared to industry standards?
Without specific unit quantity and total price breakdown, a precise per-unit cost cannot be calculated. However, given the $11.5 million award and the nature of military-grade helmets, the per-unit cost is likely to be significantly higher than commercial equivalents due to stringent material, testing, and performance requirements mandated by the Department of Defense.
What are the primary risks associated with this firm fixed price contract for helmets?
The primary risk with a firm fixed price contract is that the contractor (Gentex Corporation) bears the risk of cost overruns. If their production costs exceed estimates, their profit margin will decrease. Conversely, the government benefits from cost certainty. Risks for the government could include potential quality compromises if the contractor seeks to reduce costs, though this is mitigated by contract specifications and oversight.
How effective is the full and open competition in ensuring value for taxpayer money in this helmet procurement?
Full and open competition is generally considered highly effective in ensuring value for taxpayer money. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process helps the Defense Logistics Agency secure the best possible combination of price, quality, and delivery for the helmets, maximizing the return on investment for public funds.
Industry Classification
NAICS: Manufacturing › Other Textile Product Mills › All Other Miscellaneous Textile Product Mills
Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY
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)
Evaluated Preference: NONE
Contractor Details
Address: 324 MAIN ST, SIMPSON, PA, 18407
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,540,224
Exercised Options: $11,540,224
Current Obligation: $11,540,224
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911QY05D0003
IDV Type: IDC
Timeline
Start Date: 2007-02-28
Current End Date: 2008-01-12
Potential End Date: 2008-01-12 00:00:00
Last Modified: 2021-08-21
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