DoD Spends $12.6M on Fuel System Icing Inhibitor via Full and Open Competition
Contract Overview
Contract Amount: $12,626,481 ($12.6M)
Contractor: Chemical Specialists and Development, LLC
Awarding Agency: Department of Defense
Start Date: 2008-12-19
End Date: 2010-01-30
Contract Duration: 407 days
Daily Burn Rate: $31.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: FUEL SYSTEM ICING INHIBITOR FSII
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90810
Plain-Language Summary
Department of Defense obligated $12.6 million to CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC for work described as: FUEL SYSTEM ICING INHIBITOR FSII Key points: 1. Contract awarded to CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC for $12.6M. 2. Procurement falls under 'Other Chemical and Allied Products Merchant Wholesalers' sector. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Fixed Price with Economic Price Adjustment contract type indicates potential price fluctuations. 5. Awarded by Defense Logistics Agency for the Department of Defense.
Value Assessment
Rating: fair
The contract value of $12.6M for FSII over approximately 1.3 years appears reasonable given the nature of specialized chemical products. Benchmarking against similar defense chemical procurements would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, though economic price adjustments could lead to higher final costs than initially anticipated.
Public Impact
Ensures operational readiness of military aircraft and vehicles by preventing fuel line freezing. Supports the Department of Defense's logistical supply chain for essential operational fluids. The use of economic price adjustment clauses warrants monitoring to control potential cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment could increase final cost.
- Limited contract duration (407 days) may necessitate future competitive procurements.
- Small business participation not explicitly detailed.
Positive Signals
- Full and open competition utilized.
- Awarded to a single vendor, indicating a clear selection.
- Addresses a critical operational need for the DoD.
Sector Analysis
This contract falls within the 'Other Chemical and Allied Products Merchant Wholesalers' sector. Spending in this area is crucial for maintaining military readiness, with benchmarks often tied to specific chemical types and volume requirements.
Small Business Impact
The data does not explicitly indicate whether small businesses were involved in this specific contract. Further analysis would be needed to determine the extent of small business participation in the supply chain for this product.
Oversight & Accountability
The award was made by the Defense Logistics Agency, a key component of DoD oversight for supply chain management. The fixed-price nature with EPA requires monitoring to ensure accountability for spending.
Related Government Programs
- Other Chemical and Allied Products Merchant Wholesalers
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost overruns due to Economic Price Adjustment.
- Contract duration is relatively short, requiring future procurement efforts.
- Lack of explicit small business participation data.
- Specific performance metrics and quality control details are not provided in the summary data.
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 $12.6 million to CHEMICAL SPECIALISTS AND DEVELOPMENT, LLC. FUEL SYSTEM ICING INHIBITOR 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 $12.6 million.
What is the period of performance?
Start: 2008-12-19. End: 2010-01-30.
What is the typical unit cost for Fuel System Icing Inhibitor (FSII) in similar defense contracts, and how does this contract's implied unit cost compare?
Without specific quantity data for this $12.6M contract, calculating an exact unit cost is not possible. However, FSII is typically priced per gallon. Benchmarking against historical DoD contracts for FSII, considering factors like volume discounts and specific formulations, would reveal if this $12.6M award represents a competitive price point or if potential savings were missed.
What are the primary risks associated with the 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type for this FSII procurement?
The main risk of an FP-EPA contract for FSII is cost escalation. Fluctuations in raw material prices, manufacturing costs, or transportation expenses can lead to increased final expenditure for the government, potentially exceeding initial budget projections. This necessitates robust monitoring and justification for any price adjustments claimed by the contractor.
How effectively does the 'Full and Open Competition' strategy ensure the best value for taxpayers in procuring specialized chemicals like FSII?
Full and open competition is designed to maximize value by encouraging a wide range of qualified vendors to submit bids, fostering price reductions through market forces. For specialized chemicals like FSII, this approach increases the likelihood of obtaining competitive pricing and ensures that the chosen contractor meets stringent technical requirements, ultimately benefiting taxpayers through cost-efficiency and quality.
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: SP060008R0067
Offers Received: 2
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, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,626,481
Exercised Options: $12,626,481
Current Obligation: $12,626,481
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060009D0751
IDV Type: IDC
Timeline
Start Date: 2008-12-19
Current End Date: 2010-01-30
Potential End Date: 2010-01-30 00:00:00
Last Modified: 2009-12-09
More Contracts from Chemical Specialists and Development, LLC
- Fuel System Icing Inhibitor (fsii) — $12.3M (Department of Defense)
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