DoD's $139M contract for barcode label printers awarded to Intermec Technologies Corporation

Contract Overview

Contract Amount: $13,923,840 ($13.9M)

Contractor: Intermec Technologies Corporation

Awarding Agency: Department of Defense

Start Date: 2008-08-19

End Date: 2009-03-02

Contract Duration: 195 days

Daily Burn Rate: $71.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSIT CASE ONLY - CK61G PDCT-E AND PM4I STATIONERY BAR CODE LABEL PRINTER

Place of Performance

Location: EVERETT, SNOHOMISH County, WASHINGTON, 98203

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to INTERMEC TECHNOLOGIES CORPORATION for work described as: TRANSIT CASE ONLY - CK61G PDCT-E AND PM4I STATIONERY BAR CODE LABEL PRINTER Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially leading to better pricing. 3. Risk indicators are being monitored, with a focus on performance and delivery timelines. 4. Performance context is evaluated against historical contract data for similar equipment. 5. Sector positioning places this contract within the broader electronic computer manufacturing industry.

Value Assessment

Rating: fair

The contract value of $139.2 million for barcode label printers appears substantial. Benchmarking against similar contracts for electronic computer manufacturing equipment is necessary to determine if the pricing is competitive. Without specific per-unit cost data or comparison to market rates for these specific printers, a definitive value-for-money assessment is challenging. The duration of the contract (195 days) also needs to be considered in relation to the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of three bidders, as indicated, implies a degree of market interest. A competitive process generally allows for price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: A full and open competition is generally beneficial for taxpayers as it encourages a wider range of offers, potentially driving down costs and increasing the likelihood of receiving the best value.

Public Impact

The Department of Defense benefits from the acquisition of essential equipment for inventory and logistics management. Services delivered include the provision of barcode label printers crucial for tracking and identification. The geographic impact is likely concentrated around military installations where these printers will be deployed. Workforce implications may involve training for personnel on the use and maintenance of the new printing systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology within the contract's performance period.
Ensuring adequate training and support for end-users across various DoD locations.
Monitoring contractor performance to ensure timely delivery and quality of printers.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract type is Firm Fixed Price, providing cost certainty for the government.
The contractor, Intermec Technologies Corporation, is an established player in the manufacturing sector.

Sector Analysis

This contract falls within the Electronic Computer Manufacturing (NAICS 334111) sector, which encompasses establishments primarily engaged in manufacturing computers and related electronic equipment. The market for such equipment is large and competitive, with significant government spending driven by the need for efficient logistics and asset tracking. This specific contract addresses a critical need for identification and labeling within the Department of Defense's operational framework.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Department of Defense Logistics and Supply Chain Management
Military Equipment Procurement
Information Technology Hardware Acquisition
Federal Supply Schedule Contracts

Risk Flags

Potential for technology obsolescence
Contractor performance risk
Integration with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to INTERMEC TECHNOLOGIES CORPORATION. TRANSIT CASE ONLY - CK61G PDCT-E AND PM4I STATIONERY BAR CODE LABEL PRINTER

Who is the contractor on this award?

The obligated recipient is INTERMEC TECHNOLOGIES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2008-08-19. End: 2009-03-02.

What is the track record of Intermec Technologies Corporation in fulfilling government contracts, particularly for similar electronic equipment?

Intermec Technologies Corporation, now part of Honeywell, has a history of supplying rugged mobile computers, barcode scanners, and printers to various government agencies. Their experience in providing such solutions suggests a capability to meet the demands of this contract. However, a detailed review of their past performance on similar-sized or complex DoD contracts would be beneficial to assess their reliability, on-time delivery rates, and quality of products. Analyzing past contract awards and any associated performance reviews or disputes would provide a clearer picture of their track record.

How does the awarded price compare to industry benchmarks for similar barcode label printers, considering the quantity and specifications?

A precise comparison of the awarded price ($139.2 million) to industry benchmarks is challenging without specific details on the exact models of printers, their technical specifications, and the quantities ordered. However, given the substantial total value, it suggests either a very large quantity of printers or the inclusion of advanced, high-specification models. Benchmarking would require identifying comparable government or commercial procurements of similar equipment from the same period. Factors like warranty, support services, and software included in the contract also influence the overall price and its comparability to market rates.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential technological obsolescence of the printers within their lifecycle, contractor performance issues (delays, quality defects), and integration challenges with existing DoD systems. Mitigation strategies likely involve robust contract oversight by the Department of the Army, clear performance standards and deliverables outlined in the contract, and potentially phased delivery schedules. The Firm Fixed Price nature of the contract shifts some financial risk to the contractor. Ensuring adequate testing and validation before full deployment would also mitigate integration risks.

How effective has Intermec Technologies Corporation (Honeywell) been in delivering similar equipment to the Department of Defense in the past?

Assessing the effectiveness of Intermec Technologies Corporation (now Honeywell) in delivering similar equipment to the DoD requires analyzing historical contract data. This would involve looking at metrics such as on-time delivery, product reliability, adherence to specifications, and customer satisfaction ratings from previous contracts. While the company is a known supplier in this space, the scale and specific requirements of this $139 million contract warrant a close examination of their performance history to ensure successful execution and value delivery for the DoD.

What is the historical spending pattern for barcode label printers or similar identification equipment within the Department of Defense?

Historical spending on barcode label printers and related identification equipment by the Department of Defense is likely substantial and consistent, driven by the need for efficient logistics, asset tracking, and inventory management across its global operations. Annual spending can fluctuate based on modernization efforts, deployment cycles, and specific operational requirements. Analyzing past five to ten years of spending data for similar equipment categories would reveal trends, identify major suppliers, and provide context for the current contract's value relative to the DoD's ongoing investment in such technologies.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unova, Inc (UEI: 799246558)

Address: 6001 36TH AVE W, EVERETT, WA, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,923,840

Exercised Options: $13,923,840

Current Obligation: $13,923,840

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ04D0009

IDV Type: IDC

Timeline