DOT awards $233,600 for specialized tires to Michelin, citing a sole-source procurement

Contract Overview

Contract Amount: $23,360 ($23.4K)

Contractor: Michelin North America, Inc

Awarding Agency: Department of Transportation

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $64/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCUREMENT OF RADIAL PLY TREADWEAR COURSE MONITORING TIRES (CMT) THIS IS A REQUEST TO PURCHASE UNIROYAL TIGER PAW ASTM F2493 STANDARD REFERENCE TEST TIRE SIZE P225/60R16 FOR UTQG TREADWEAR TESTING AS OUTLINED IN THE UTQG STANDARD, PART 575.104. T

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $23,360 to MICHELIN NORTH AMERICA, INC for work described as: PROCUREMENT OF RADIAL PLY TREADWEAR COURSE MONITORING TIRES (CMT) THIS IS A REQUEST TO PURCHASE UNIROYAL TIGER PAW ASTM F2493 STANDARD REFERENCE TEST TIRE SIZE P225/60R16 FOR UTQG TREADWEAR TESTING AS OUTLINED IN THE UTQG STANDARD, PART 575.104. T Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics are absent, as the contract was not competed. 3. Risk indicators are low given the specific, standardized nature of the product required. 4. Performance context is tied to UTQG treadwear testing standards. 5. Sector positioning is within tire manufacturing for automotive safety testing.

Value Assessment

Rating: fair

The contract value of $233,600 for specialized tires appears reasonable for a niche product. However, without competitive bidding, it's challenging to benchmark against market rates or determine if the best possible price was achieved. The fixed-price nature of the purchase order provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific nature of the Uniroyal Tiger Paw ASTM F2493 standard reference test tire for UTQG treadwear testing likely led to this determination. The lack of competition means there was no opportunity for multiple vendors to bid, potentially limiting price discovery.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not solicit bids from multiple suppliers.

Public Impact

The National Highway Traffic Safety Administration (NHTSA) benefits from access to standardized tires for critical safety testing. Services delivered include the provision of specialized tires essential for UTQG treadwear testing. Geographic impact is primarily within the District of Columbia, where NHTSA is located. Workforce implications are minimal, likely affecting a small team within NHTSA responsible for tire testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Sole-source awards can limit innovation by not exploring alternative suppliers or products.

Positive Signals

The specific requirement for a standardized test tire ensures consistency in testing protocols.
The fixed-price contract provides cost predictability for the agency.

Sector Analysis

The tire manufacturing sector is a mature industry. This contract falls within the specialized segment of producing reference test tires for regulatory compliance and safety standards. The market for such specific testing equipment is likely limited, potentially justifying a sole-source approach if only one manufacturer meets the precise specifications.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities. The award to Michelin North America, Inc., a large corporation, suggests that small businesses were not a primary consideration for this specific procurement.

Oversight & Accountability

The contract is a purchase order, which is a standard procurement instrument. Oversight would typically be managed by the National Highway Traffic Safety Administration's contracting officers. Transparency is limited due to the sole-source nature, but the product and its intended use are publicly documented.

Related Government Programs

Automotive Safety Standards
Tire Performance Testing
Federal Automotive Supply Contracts

Risk Flags

Sole-source procurement limits price competition.
Lack of competitive bidding may result in higher costs for taxpayers.
Dependence on a single supplier for critical testing materials poses supply chain risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23,360 to MICHELIN NORTH AMERICA, INC. PROCUREMENT OF RADIAL PLY TREADWEAR COURSE MONITORING TIRES (CMT) THIS IS A REQUEST TO PURCHASE UNIROYAL TIGER PAW ASTM F2493 STANDARD REFERENCE TEST TIRE SIZE P225/60R16 FOR UTQG TREADWEAR TESTING AS OUTLINED IN THE UTQG STANDARD, PART 575.104. T

Who is the contractor on this award?

The obligated recipient is MICHELIN NORTH AMERICA, INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (National Highway Traffic Safety Administration).

What is the total obligated amount?

The obligated amount is $23,360.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the historical spending pattern for these specific test tires by the Department of Transportation?

Historical spending data for these exact Uniroyal Tiger Paw ASTM F2493 standard reference test tires by the Department of Transportation is not readily available in the provided data. However, the nature of the requirement suggests that recurring purchases for treadwear testing would be necessary. Without access to prior contract awards or spending reports specifically for this item, it's difficult to establish a historical spending pattern or trend. The current award is a single purchase order for a 364-day duration, indicating a need for a specific quantity of tires for a defined testing period. Future spending would depend on the continued need for UTQG treadwear testing and the availability of this specific tire model.

How does the price of these tires compare to commercially available tires of similar size and type?

Direct price comparison to commercially available tires of similar size (P225/60R16) is challenging because these are specified as 'standard reference test tires' for UTQG treadwear testing. Commercial tires are designed for general consumer use and vary widely in quality, performance, and price. Reference test tires are manufactured to extremely precise specifications and undergo rigorous quality control to ensure consistency, which often commands a premium. While a standard P225/60R16 tire might be available for under $100 commercially, these specialized test tires, due to their certification and intended use, are likely priced higher. The contract value of $233,600 for an unspecified quantity (implied by '1' in 'no': 1) suggests a significant per-unit cost, reflecting their specialized nature rather than general market pricing.

What are the risks associated with relying on a single supplier for critical testing materials?

Relying on a single supplier for critical testing materials, as is the case with this sole-source award, presents several risks. Firstly, there's a risk of supply chain disruption; if the sole supplier experiences production issues, natural disasters, or other unforeseen events, the government could face delays in obtaining necessary materials, impacting testing schedules. Secondly, the lack of competition can lead to higher prices over time, as the supplier faces no market pressure to offer competitive rates. Thirdly, there's a potential for complacency from the supplier regarding quality or service, as there are no alternative vendors to switch to. Finally, if the supplier decides to discontinue production of this specific reference tire, the government would face the significant challenge of finding a new, certified supplier or revising its testing standards.

What is the effectiveness of UTQG treadwear testing in ensuring tire safety for consumers?

The Uniform Tire Quality Grading (UTQG) system, including treadwear testing, is designed to provide consumers with standardized information to compare tires. Treadwear ratings indicate the relative longevity of a tire under normal driving conditions, with higher numbers suggesting longer potential tread life. While treadwear is an important factor for consumers considering durability and value, it is only one component of tire performance. UTQG also includes traction and temperature resistance ratings. The effectiveness of treadwear testing lies in its ability to offer a comparative benchmark, allowing consumers to make more informed purchasing decisions based on expected wear. However, it's crucial to note that treadwear ratings are relative and based on standardized laboratory testing, which may not perfectly replicate all real-world driving conditions or tire maintenance practices.

Are there any alternative methods or standards for tire treadwear testing that the government could consider?

The government, specifically NHTSA, utilizes the UTQG standard, which includes treadwear testing, as mandated by federal regulation (49 CFR Part 575.104). While this is the current federal standard, alternative methods and standards for tire evaluation exist globally and within the industry. For instance, some European countries and organizations rely on different testing protocols or tire labeling schemes that may emphasize different performance aspects or use different comparative metrics. The industry also continuously develops new testing methodologies. However, adopting alternatives would likely require regulatory changes or extensive research to ensure they meet the government's objectives for consumer information and safety assurance. For the purpose of this specific contract, the requirement is tied to the existing UTQG standard, making alternatives not directly applicable unless the standard itself is revised.

Industry Classification

NAICS: Manufacturing › Rubber Product Manufacturing › Tire Manufacturing (except Retreading)

Product/Service Code: TIRES AND TUBES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie Generale DES Etablissements Michelin

Address: 1 PARKWAY S, GREENVILLE, SC, 29615

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $23,360

Exercised Options: $23,360

Current Obligation: $23,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline