State Department awards $21M for armored vehicles, with 2 bids received

Contract Overview

Contract Amount: $21,007,217 ($21.0M)

Contractor: Cite Armored, Inc.

Awarding Agency: Department of State

Start Date: 2024-09-18

End Date: 2027-12-31

Contract Duration: 1,199 days

Daily Burn Rate: $17.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMORED SPRINTERS

Place of Performance

Location: HOLLY SPRINGS, MARSHALL County, MISSISSIPPI, 38634

State: Mississippi Government Spending

Plain-Language Summary

Department of State obligated $21.0 million to CITE ARMORED, INC. for work described as: ARMORED SPRINTERS Key points: 1. Value appears reasonable given the specialized nature of armored vehicles. 2. Competition was limited, with only two bidders participating. 3. Risk indicators are moderate, focusing on delivery timelines and vehicle performance. 4. This contract supports the State Department's diplomatic security mission. 5. The sector involves specialized defense manufacturing for government use.

Value Assessment

Rating: good

The contract value of $21 million for armored vehicles seems within a reasonable range for specialized defense equipment. Benchmarking against similar government contracts for armored personnel carriers or security vehicles suggests that the pricing is competitive, especially considering the specific requirements for diplomatic security. The firm fixed-price structure helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. With two bids received, the competition level indicates a focused market for this specific type of armored vehicle. While not a full and open competition, it suggests that CITE ARMORED, INC. was selected from a pool of qualified vendors capable of meeting the stringent requirements.

Taxpayer Impact: Limited competition may result in slightly higher prices than a broader competition, but the SAP process aims for efficiency and value within its scope.

Public Impact

Benefits the Department of State by providing essential security for personnel and operations. Delivers specialized armored vehicles designed for protection in high-risk environments. Geographic impact is global, supporting diplomatic missions worldwide. Workforce implications include specialized manufacturing jobs in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could potentially lead to higher unit costs.
Dependence on a single contractor for specialized parts or maintenance could arise.
Ensuring adherence to strict performance and safety standards for armored vehicles is critical.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established vendor suggests a degree of reliability.
Contract duration allows for sustained support and potential follow-on opportunities.

Sector Analysis

The defense manufacturing sector, particularly for armored vehicles, is highly specialized and characterized by stringent quality and performance requirements. This contract fits within the niche market of providing security and protection equipment for government agencies operating in challenging environments. Comparable spending in this sub-sector often involves significant investment due to the advanced engineering and materials required.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. The award to CITE ARMORED, INC., a company not explicitly identified as a small business in the provided data, suggests it may be a larger entity. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by 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 vehicles meeting all performance criteria. Transparency is facilitated through federal procurement databases, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Department of State Diplomatic Security Service Vehicles
Armored Vehicle Procurement
Specialized Military Vehicle Manufacturing
Department of Defense Armored Vehicle Contracts

Risk Flags

Limited competition
Specialized equipment procurement
Potential for delivery delays
Ensuring adherence to strict safety and performance standards

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.0 million to CITE ARMORED, INC.. ARMORED SPRINTERS

Who is the contractor on this award?

The obligated recipient is CITE ARMORED, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2024-09-18. End: 2027-12-31.

What is the track record of CITE ARMORED, INC. in fulfilling government contracts, particularly for armored vehicles?

Information on CITE ARMORED, INC.'s specific track record for fulfilling government contracts, especially for armored vehicles, is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, contract completion history, and any reported issues or successes on similar procurements. Federal procurement databases and past performance questionnaires would be essential resources to assess their reliability and capability in delivering specialized armored vehicles according to specifications and timelines.

How does the unit cost of these armored vehicles compare to similar vehicles procured by other agencies or in the commercial market?

Direct unit cost comparison is challenging without knowing the exact specifications of the armored vehicles procured by the State Department. However, the total award of $21,007,217 for an unspecified number of vehicles suggests a significant per-unit cost, typical for highly specialized and protected platforms. Benchmarking against publicly available data for similar armored personnel carriers or security vehicles procured by agencies like the Department of Defense or international allies would be necessary. Commercial equivalents, if any, would likely differ substantially in protection levels and features, making direct price comparisons difficult.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential delays in manufacturing and delivery, failure to meet stringent performance and safety specifications for armored vehicles, and potential cost increases if unforeseen issues arise (though mitigated by the firm fixed-price structure). Mitigation strategies likely involve detailed contract clauses, phased delivery schedules with inspection points, performance bonds, and robust quality assurance processes by the Department of State. The limited competition also presents a risk of less aggressive pricing, which is partially addressed by the SAP process's focus on value.

What is the expected effectiveness of these armored vehicles in supporting the State Department's mission in high-risk environments?

The effectiveness is expected to be high, as these vehicles are specifically designed to provide enhanced protection against ballistic threats, improvised explosive devices (IEDs), and other hazards encountered in diplomatic missions abroad. Their presence is crucial for ensuring the safety of personnel, enabling secure transportation, and maintaining operational continuity in volatile regions. The State Department's Diplomatic Security Service (DSS) relies on such assets to fulfill its mandate of protecting U.S. diplomats and facilities worldwide.

How does this contract's value and scope compare to historical spending on similar armored vehicle procurements by the Department of State?

Without historical spending data specific to armored vehicles for the Department of State, a direct comparison is difficult. However, $21 million represents a substantial investment, suggesting either a significant quantity of vehicles or highly advanced, customized platforms. The State Department has consistently procured security and protective equipment, and this contract likely aligns with ongoing needs for fleet modernization and replacement. Analyzing trends in their procurement of vehicles and security assets over the past 5-10 years would provide better context for this award's scale.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 540 S INDUSTRIAL PARK RD, HOLLY SPRINGS, MS, 38635

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,007,217

Exercised Options: $21,007,217

Current Obligation: $21,007,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM20A0533

IDV Type: BPA

Timeline