State Dept. Awards $31.5M for MRAPs to Roshel Inc. Amidst Limited Competition

Contract Overview

Contract Amount: $31,508,400 ($31.5M)

Contractor: Roshel Inc.

Awarding Agency: Department of State

Start Date: 2023-08-18

End Date: 2023-10-17

Contract Duration: 60 days

Daily Burn Rate: $525.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INL KYIV - MRAPS

Plain-Language Summary

Department of State obligated $31.5 million to ROSHEL INC. for work described as: INL KYIV - MRAPS Key points: 1. Significant award for armored vehicles highlights critical support needs. 2. Sole-source nature raises questions about price discovery and potential cost savings. 3. Focus on military hardware underscores ongoing geopolitical security concerns. 4. Limited duration suggests a need for rapid deployment or specific mission requirements.

Value Assessment

Rating: questionable

The contract's firm fixed price structure is standard, but without competitive bidding, it's difficult to assess if the $31.5 million price represents fair market value. The benchmark of $52,514 per vehicle is provided, but its accuracy without comparison is uncertain.

Cost Per Unit: $93,775

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition may result in inflated prices, meaning taxpayers could be paying more than necessary for these essential vehicles.

Public Impact

Provides crucial armored vehicles for security operations. Supports international security assistance efforts. Impacts the defense manufacturing sector and supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited contract duration
Potential for overpayment

Positive Signals

Addresses critical need for armored vehicles
Supports international allies

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on armored vehicle manufacturing. Spending in this area is often driven by geopolitical events and national security priorities, with significant government investment.

Small Business Impact

The contract was awarded to Roshel Inc., and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

The Department of State is responsible for this award. Oversight would typically involve contract performance monitoring and financial accountability to ensure the funds are used as intended and the vehicles meet specifications.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award lacks transparency
Potential for inflated pricing
Limited contract duration may indicate urgency or short-term need
No clear small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $31.5 million to ROSHEL INC.. INL KYIV - MRAPS

Who is the contractor on this award?

The obligated recipient is ROSHEL INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2023-08-18. End: 2023-10-17.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?

The justification for a sole-source award is critical for understanding the necessity of bypassing competitive procedures. Agencies must document specific circumstances, such as urgency, unique capabilities, or lack of available sources. Without this documentation, it's challenging to ascertain if the price paid was truly fair and reasonable, potentially leading to taxpayer overspending.

How does the per-unit cost of these MRAPs compare to similar vehicles procured competitively by other agencies or allies?

Benchmarking the per-unit cost against competitively procured similar vehicles is essential for value assessment. If this $93,775 per unit is significantly higher than market rates established through competition, it suggests potential overpricing. This comparison helps identify whether the sole-source nature of this contract led to a less favorable price for the government.

What is the expected operational impact and effectiveness of these MRAPs, and how will their deployment be monitored?

Understanding the operational impact and effectiveness is key to assessing the overall value of this procurement. Monitoring deployment ensures the vehicles are used for their intended purpose and contribute to security objectives. Effective oversight mechanisms should track performance, maintenance, and any reported incidents to gauge the return on investment and justify the expenditure.

Industry Classification

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

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM23R0260

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7381 PACIFIC CIR, MISSISSAUGA

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $31,508,400

Exercised Options: $31,508,400

Current Obligation: $31,508,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline