NOAA Spends $77.4K on MacGregor Hydraulic Valve Parts, Citing OEM Source
Contract Overview
Contract Amount: $77,405 ($77.4K)
Contractor: Macgregor USA Inc
Awarding Agency: Department of Commerce
Start Date: 2026-04-02
End Date: 2026-10-31
Contract Duration: 212 days
Daily Burn Rate: $365/day
Competition Type: NOT COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROCUREMENT OF AFT A-FRAME HYDRAULIC CONTROL VALVE AND WINCH PARTS FROM OEM (MACGREGOR).
Place of Performance
Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23661
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $77,404.96 to MACGREGOR USA INC for work described as: PROCUREMENT OF AFT A-FRAME HYDRAULIC CONTROL VALVE AND WINCH PARTS FROM OEM (MACGREGOR). Key points: 1. Spending is concentrated with a single OEM supplier, MacGregor. 2. The contract is for essential repair parts for NOAA's Aft A-Frame. 3. Limited competition raises concerns about potential overpricing. 4. The sector is industrial machinery repair and maintenance.
Value Assessment
Rating: questionable
The $77,404.96 price for specialized OEM parts is difficult to assess without benchmarks. Given the sole-source nature, it's questionable if this represents fair market value compared to potential aftermarket or refurbished options.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award to MacGregor USA Inc. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Taxpayer funds are being spent without competitive bidding, potentially resulting in a higher cost than if multiple suppliers were considered.
Public Impact
Ensures operational readiness of critical NOAA research vessels. Supports specialized equipment maintenance, vital for scientific missions. Highlights reliance on original equipment manufacturers for parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Procurement for essential operational equipment
- Clear end-user agency identified
Sector Analysis
This procurement falls within the industrial machinery repair and maintenance sector. Spending benchmarks for such specialized OEM parts are highly variable and depend on the specific equipment's complexity and rarity.
Small Business Impact
The data indicates this procurement did not involve small businesses, either as the prime contractor or potentially as subcontractors. Further analysis would be needed to determine if small businesses could have supplied these parts.
Oversight & Accountability
The award was a delivery order under an unspecified contract. Oversight should focus on ensuring the justification for sole-source procurement is robust and that future procurements explore competitive options.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Sole-source award
- Lack of documented competition
- Potential for price gouging
- Limited transparency on justification
Tags
commercial-and-industrial-machinery-and-, department-of-commerce, va, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $77,404.96 to MACGREGOR USA INC. PROCUREMENT OF AFT A-FRAME HYDRAULIC CONTROL VALVE AND WINCH PARTS FROM OEM (MACGREGOR).
Who is the contractor on this award?
The obligated recipient is MACGREGOR USA INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $77,404.96.
What is the period of performance?
Start: 2026-04-02. End: 2026-10-31.
What is the justification for awarding this contract sole-source to MacGregor?
The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, such as unique proprietary parts or critical maintenance requiring specialized expertise only available from the OEM.
What is the risk associated with relying solely on OEM parts for critical equipment?
The primary risk is inflated pricing due to the lack of competition. Additionally, reliance on a single OEM can lead to supply chain vulnerabilities, longer lead times, and potential obsolescence if the OEM discontinues support. It also limits opportunities for innovation or cost savings through alternative suppliers.
How effective is this procurement in ensuring the long-term operational capability of NOAA vessels?
This procurement is effective in the short term by ensuring the immediate availability of necessary parts for the Aft A-Frame hydraulic control valve and winch. However, the long-term effectiveness is questionable due to the sole-source nature, which may not be sustainable or cost-effective if competitive alternatives exist or could be developed.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 400 ROTARY ST, HAMPTON, VA, 23661
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $77,405
Exercised Options: $77,405
Current Obligation: $77,405
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 1305M223DNMAN0015
IDV Type: IDC
Timeline
Start Date: 2026-04-02
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-04-02
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