DoD's $11.6M Chemical Contract Awarded to CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC Amidst Full and Open Competition
Contract Overview
Contract Amount: $11,609,787 ($11.6M)
Contractor: Chemical Specialists and Development, LLC
Awarding Agency: Department of Defense
Start Date: 2008-01-18
End Date: 2009-01-30
Contract Duration: 378 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: FSII
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90810
Plain-Language Summary
Department of Defense obligated $11.6 million to CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC for work described as: FSII Key points: 1. Contract value of $11.6 million for chemical products. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with fixed-price contracts with economic price adjustment clauses. 4. Spending falls within the 'Other Chemical and Allied Products Merchant Wholesalers' sector.
Value Assessment
Rating: fair
The contract value of $11.6 million is moderate. Without specific unit pricing or comparison data for similar chemical products, a precise valuation is difficult. The fixed-price with economic price adjustment structure introduces potential for cost overruns if market prices for raw materials increase significantly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives fair market value. The price discovery process is likely robust due to the competitive nature of the award.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness. The economic price adjustment clause introduces a variable that could impact the final taxpayer cost if market conditions fluctuate unfavorably.
Public Impact
Ensures availability of essential chemical products for defense operations. Supports the chemical supply chain and related industries. Potential for price volatility due to economic price adjustment clause. Transparency in procurement through full and open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may increase costs.
- Lack of specific unit cost benchmarks.
- Contract duration of over a year.
Positive Signals
- Awarded via full and open competition.
- Supports critical defense logistics.
Sector Analysis
This contract falls under the 'Other Chemical and Allied Products Merchant Wholesalers' sector. Spending in this sector can vary widely based on defense needs and raw material costs. Benchmarks are difficult without more specific product details.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.
Oversight & Accountability
The award process through full and open competition suggests a degree of oversight. However, ongoing monitoring of the economic price adjustment clause and adherence to contract terms by the Defense Logistics Agency is crucial for accountability.
Related Government Programs
- Other Chemical and Allied Products Merchant Wholesalers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Economic Price Adjustment Clause
- Lack of Specific Unit Cost Data
- No Small Business Participation
- Contract Duration (378 days)
- Potential for Market Price Volatility
Tags
other-chemical-and-allied-products-merch, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.6 million to CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC. FSII
Who is the contractor on this award?
The obligated recipient is CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $11.6 million.
What is the period of performance?
Start: 2008-01-18. End: 2009-01-30.
What is the specific breakdown of chemical products and their quantities to assess value more accurately?
A detailed breakdown of the specific chemical products, their quantities, and the unit prices would allow for a more precise valuation. Without this granular data, it's challenging to benchmark against market rates or identify potential overpricing. The current $11.6 million figure represents the total contract value, which is less informative for detailed value analysis.
What are the historical price trends for the chemicals covered under this contract to mitigate economic price adjustment risks?
Analyzing historical price trends for the specific chemicals procured is essential to understand the potential impact of the economic price adjustment clause. If historical data shows significant volatility, the risk of cost overruns for the government increases. Proactive monitoring and potentially renegotiation clauses could mitigate this risk.
How does the performance of CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC compare to other suppliers in this sector?
Assessing the past performance of CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC, alongside that of other potential suppliers in the 'Other Chemical and Allied Products Merchant Wholesalers' sector, is key to understanding effectiveness. Information on delivery timeliness, product quality, and responsiveness would provide a clearer picture of the value and reliability of this award.
Industry Classification
NAICS: Wholesale Trade › Chemical and Allied Products Merchant Wholesalers › Other Chemical and Allied Products Merchant Wholesalers
Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP060007R0067
Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 9733 MEADOR RD, CONROE, TX, 08
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $11,609,787
Exercised Options: $11,609,787
Current Obligation: $11,609,787
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060008D0754
IDV Type: IDC
Timeline
Start Date: 2008-01-18
Current End Date: 2009-01-30
Potential End Date: 2009-01-30 00:00:00
Last Modified: 2009-10-30
More Contracts from Chemical Specialists and Development, LLC
- Fuel System Icing Inhibitor Fsii — $12.6M (Department of Defense)
- Fuel System Icing Inhibitor (fsii) — $12.3M (Department of Defense)
View all Chemical Specialists and Development, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)