State Department awards $33.7M hardware contract to Multistack LLC for facility maintenance parts

Contract Overview

Contract Amount: $33,724 ($33.7K)

Contractor: Multistack LLC

Awarding Agency: Department of State

Start Date: 2024-05-24

End Date: 2024-05-24

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISB-MH-FAC-FY24-DHRC PARTS-LIST-2-FWP 513-528- 7901-RSTR

Place of Performance

Location: SPARTA, MONROE County, WISCONSIN, 54656

State: Wisconsin Government Spending

Plain-Language Summary

Department of State obligated $33,724.28 to MULTISTACK LLC for work described as: ISB-MH-FAC-FY24-DHRC PARTS-LIST-2-FWP 513-528- 7901-RSTR Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller, efficient procurements. 2. The firm fixed-price contract type indicates a clear understanding of scope and cost, transferring risk to the contractor. 3. Awarded to a single vendor, Multistack LLC, for specific hardware components. 4. The contract duration is immediate, with an award and expected completion date within the same day. 5. This procurement falls under the Hardware Manufacturing NAICS code. 6. The contract is categorized as 'Other' for sector analysis due to its specific nature.

Value Assessment

Rating: fair

The contract value of $33.7 million for hardware parts is substantial, but without specific itemization or comparison to similar facility maintenance contracts, a precise value-for-money assessment is difficult. The use of SAP suggests an effort to streamline procurement for potentially lower administrative costs. However, the lack of competitive bidding information makes it challenging to benchmark pricing against market rates or identify potential cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less formal bidding process than full and open competition. While the specific number of bidders is not provided, SAP often involves a limited number of quotes or proposals. This approach is generally used for procurements below certain thresholds, aiming for efficiency. The limited competition may mean less price discovery compared to a broader solicitation.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes lead to higher prices than if a wider range of vendors had competed. However, it can also result in faster delivery and reduced administrative overhead, which may offer some cost efficiencies.

Public Impact

This contract directly benefits the Department of State by ensuring the availability of necessary hardware parts for facility maintenance. The services delivered are critical for the upkeep and operational readiness of state facilities. The geographic impact is primarily focused on the facilities managed by the Department of State, likely within the United States and potentially overseas. Workforce implications are minimal for this specific contract, as it focuses on parts procurement rather than direct labor services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information hinders assessment of optimal pricing.
Short contract duration may indicate a need for immediate parts, potentially limiting long-term strategic sourcing.
Reliance on a single awardee for a significant value contract warrants scrutiny of performance and delivery.

Positive Signals

Use of SAP suggests an attempt at efficient procurement for necessary supplies.
Firm Fixed Price contract type provides cost certainty for the government.
Award to a single vendor simplifies contract management for this specific requirement.

Sector Analysis

This contract falls within the broader hardware manufacturing and distribution sector, which supports various government functions. The Department of State's need for facility maintenance parts is a recurring requirement for maintaining its infrastructure. Comparable spending benchmarks are difficult to establish without more granular data on the specific types of hardware procured, but government spending on facility maintenance and related supplies is a significant category across federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The procurement likely utilized larger suppliers or manufacturers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a purchase order awarded under SAP, it is subject to standard procurement regulations and internal controls. Transparency is facilitated by public contract databases, but detailed performance monitoring and inspector general jurisdiction would depend on the specific terms and any subsequent performance issues.

Related Government Programs

Department of State Facilities Management
Federal Procurement of Hardware
Government Purchase Orders
Simplified Acquisition Procedures Contracts

Risk Flags

Potential misapplication of Simplified Acquisition Procedures (SAP) due to high contract value.
Limited competition information raises concerns about price discovery and value for money.
Short contract duration may indicate urgent need, potentially impacting strategic sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $33,724.28 to MULTISTACK LLC. ISB-MH-FAC-FY24-DHRC PARTS-LIST-2-FWP 513-528- 7901-RSTR

Who is the contractor on this award?

The obligated recipient is MULTISTACK LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33,724.28.

What is the period of performance?

Start: 2024-05-24. End: 2024-05-24.

What specific types of hardware parts were procured under this contract?

The provided data does not specify the exact types of hardware parts included in this $33.7 million contract. The NAICS code 332510 (Hardware Manufacturing) suggests components related to manufactured hardware, such as fasteners, fittings, or specialized parts for building systems. Without a detailed line-item breakdown or product description, it is impossible to ascertain the precise nature of the goods. Further inquiry with the Department of State would be necessary to obtain this granular information, which is crucial for understanding the scope and necessity of the procurement.

How does the $33.7 million value compare to typical Department of State hardware procurement for facility maintenance?

Assessing the $33.7 million value against typical Department of State hardware procurement requires historical spending data and a breakdown of specific hardware categories. The provided data indicates this is a single purchase order awarded under Simplified Acquisition Procedures (SAP), which are generally for smaller procurements. A value of $33.7 million is exceptionally high for a single SAP award, suggesting either a consolidation of many smaller needs into one large order or a misunderstanding of the SAP threshold. Typically, SAP awards are significantly lower. If this indeed represents a single procurement event, its value is substantial and warrants further investigation into whether it should have been competed under larger contract vehicles or full and open competition to ensure best value.

What are the potential risks associated with awarding a contract of this value under Simplified Acquisition Procedures (SAP)?

Awarding a contract valued at $33.7 million under Simplified Acquisition Procedures (SAP) presents several potential risks. SAP is designed for smaller procurements, typically below $250,000 (or higher thresholds for certain categories), to streamline the acquisition process. A contract of this magnitude significantly exceeds standard SAP limits, raising concerns about whether the appropriate procurement procedures were followed. Risks include inadequate competition, potentially leading to inflated prices; insufficient vetting of the contractor's capabilities and past performance; and a lack of transparency compared to full and open competition. If this award was indeed made under SAP inappropriately, it could indicate a procedural error or an attempt to bypass more rigorous oversight, potentially compromising the government's ability to secure the best value and manage risks effectively.

What is Multistack LLC's track record with federal contracts, particularly with the Department of State?

Information regarding Multistack LLC's specific track record with federal contracts, especially with the Department of State, is not detailed in the provided data. The data only shows this single award. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for a comprehensive history of awards, contract types, values, and performance ratings. A thorough review would examine past performance on similar contracts, any history of disputes or terminations, and their overall compliance with federal acquisition regulations. Without this broader context, it's difficult to gauge their reliability and experience beyond this specific purchase order.

How does the 'Hardware Manufacturing' NAICS code align with the Department of State's facility maintenance needs?

The 'Hardware Manufacturing' NAICS code (332510) aligns with the Department of State's facility maintenance needs by covering the production of manufactured hardware products. This can include a wide range of items essential for building upkeep, such as plumbing fixtures, structural components, fasteners, fittings, and specialized parts for mechanical or electrical systems within facilities. While the Department of State's needs are broad, encompassing services and supplies, hardware manufacturing directly addresses the requirement for physical components used in repairs, renovations, and ongoing maintenance of its infrastructure. This code suggests the contract is for the procurement of such manufactured goods rather than installation or broader maintenance services.

Industry Classification

NAICS: Manufacturing › Hardware Manufacturing › Hardware Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Multistack, LLC

Address: 1065 MAPLE AVE, SPARTA, WI, 54656

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,724

Exercised Options: $33,724

Current Obligation: $33,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline