State Department awards $3.3M for armored vehicles, with 2 bidders competing under full and open competition

Contract Overview

Contract Amount: $3,322,008 ($3.3M)

Contractor: THE Armored Group LLC

Awarding Agency: Department of State

Start Date: 2021-09-14

End Date: 2026-03-20

Contract Duration: 1,648 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMORED SPRINTERS MODEL 4500

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85018

State: Arizona Government Spending

Plain-Language Summary

Department of State obligated $3.3 million to THE ARMORED GROUP LLC for work described as: ARMORED SPRINTERS MODEL 4500 Key points: 1. Value appears reasonable given the specialized nature of armored vehicles. 2. Full and open competition suggests a healthy market for these goods. 3. Contract duration extends over five years, indicating a long-term need. 4. Fixed-price contract type mitigates cost overrun risks for the government. 5. The contractor has prior experience with government contracts. 6. Geographic location of awardee is Arizona.

Value Assessment

Rating: good

The contract value of $3.32 million for armored vehicles over approximately 5.5 years suggests a per-unit cost that needs further benchmarking. However, given the specialized nature of armored vehicles, especially those likely intended for diplomatic or security purposes, the overall value seems within a reasonable range. The firm fixed-price structure helps control costs. Without specific model details or performance requirements, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. Two bidders participated in this competition, which, while not a large number, suggests that there is more than one capable provider in the market for these specialized vehicles. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition with two bidders helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that can drive down prices compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are likely personnel requiring secure transportation, potentially in high-risk environments. The services delivered include the provision of specialized armored vehicles. The geographic impact is centered in Arizona, where the contractor is located, but the vehicles' ultimate use could be global. Workforce implications may include specialized manufacturing and assembly jobs within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) could indicate potential market concentration or high barriers to entry for this niche product.
Lack of detailed performance metrics in the provided data makes it difficult to assess long-term effectiveness.
The specific model 'ARMORED SPRINTERS MODEL 4500' is not widely recognized, raising questions about standardization and potential proprietary technology.

Positive Signals

Awarded under full and open competition, suggesting a broad market approach.
Firm fixed-price contract type helps manage budget certainty.
Contract duration of over five years indicates a stable, long-term requirement being met.
The contractor, The Armored Group LLC, has prior experience, suggesting familiarity with government procurement processes.

Sector Analysis

The procurement falls within the broader manufacturing sector, specifically focusing on specialized vehicles and protective equipment. The market for armored vehicles is niche, often serving government, law enforcement, and private security sectors. Spending in this area is driven by security needs and geopolitical factors. Comparable spending benchmarks would typically involve other government contracts for similar protective vehicles, which are often sensitive due to security implications.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. The contractor, The Armored Group LLC, is likely a mid-to-large-sized entity given the nature of armored vehicle manufacturing. Without specific subcontracting requirements or goals, the direct impact on the small business ecosystem from this particular award is unclear, though the overall defense and security supply chain often involves smaller specialized component suppliers.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of State Vehicle Procurement
Armored Vehicle Manufacturing
Specialized Transportation Services
Government Fleet Management

Risk Flags

Limited competition (2 bidders)
Specialized equipment procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.3 million to THE ARMORED GROUP LLC. ARMORED SPRINTERS MODEL 4500

Who is the contractor on this award?

The obligated recipient is THE ARMORED GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2021-09-14. End: 2026-03-20.

What is the specific operational purpose and threat environment for these armored vehicles?

The specific operational purpose and threat environment for the ARMORED SPRINTERS MODEL 4500 are not detailed in the provided award data. However, given the contractor is 'THE ARMORED GROUP LLC' and the agency is the 'Department of State', it is highly probable these vehicles are intended for diplomatic security, protection of personnel in potentially hostile or high-risk overseas locations, or secure transport of sensitive materials. Armored vehicles are designed to withstand ballistic threats, explosions, and other attacks, suggesting the operational context involves significant security concerns and potential exposure to danger. Further details on the vehicle's specific protection levels (e.g., NIJ standards, STANAG ratings) and intended deployment regions would clarify the exact threat environment.

How does the per-unit cost of these armored vehicles compare to similar government procurements?

Benchmarking the per-unit cost of these armored vehicles is challenging without more specific details on the model, its armor specifications, and the quantity purchased. The total award is $3.32 million over approximately 5.5 years. If we assume a purchase of, for example, 10 vehicles, the average cost per vehicle would be around $332,000. This figure needs to be compared against other government contracts for similar types of armored personnel carriers or security vehicles procured by agencies like the Department of Defense or other State Department contracts. Factors such as the level of ballistic protection, blast resistance, payload capacity, and specific modifications significantly influence pricing. A preliminary search for comparable contracts suggests that prices for armored vehicles can range widely, from under $100,000 for lighter-duty options to over $1 million for highly specialized, mine-resistant vehicles (MRAPs).

What is the track record of The Armored Group LLC in fulfilling government contracts, particularly for armored vehicles?

The Armored Group LLC has a history of receiving government contracts, including those related to armored vehicles. The provided data indicates a prior award in 2016 (BR: 2016), suggesting established experience. A deeper analysis of their contract history with federal agencies would reveal their performance record, including on-time delivery, quality of products, and any past performance issues or disputes. Companies specializing in armored vehicles often have a strong track record within their niche, as the manufacturing process requires specific expertise and adherence to stringent safety and security standards. Examining past performance evaluations (if publicly available) would provide a clearer picture of their reliability and capability in meeting government requirements for such critical equipment.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or the specific methods for measuring performance for this contract. However, for a contract involving the supply of physical goods like armored vehicles, typical performance metrics would include adherence to delivery schedules, compliance with technical specifications (e.g., armor ratings, vehicle performance standards), quality control, and warranty provisions. The firm fixed-price nature of the contract implies that the contractor is obligated to deliver the specified vehicles meeting all requirements by the contract's end date. The Department of State's contracting officer and relevant program managers would be responsible for monitoring these aspects throughout the contract period, potentially through inspections, acceptance testing, and review of delivery documentation.

How does the five-year duration of this contract align with the expected lifespan and operational needs for armored vehicles?

A contract duration of approximately 5.5 years (September 2021 to March 2026) for armored vehicles is a reasonable timeframe, often reflecting a multi-year procurement strategy or a series of calls against a Basic Ordering Agreement (BOA) or Indefinite Delivery/Indefinite Quantity (IDIQ) contract, indicated by 'BPA CALL'. This duration allows for consistent supply and potentially volume discounts. The operational lifespan of armored vehicles can vary significantly based on usage, maintenance, and the threat environment, but typically extends well beyond five years with proper upkeep. This contract likely covers the initial acquisition phase or a significant portion of the vehicles' service life, ensuring the Department of State can meet its security and transportation needs over this period. Subsequent contracts might be needed for sustainment, upgrades, or replacement.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Other Apparel Accessories and Other Apparel Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM21Q0081

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5221 N SADDLE ROCK DR, PHOENIX, AZ, 85018

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,777,520

Exercised Options: $6,777,520

Current Obligation: $3,322,008

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Parent Contract

Parent Award PIID: SAQMMA16A0286

IDV Type: BPA

Timeline