Department of Defense awards $25.4M for tool kits, with unit prices reflecting option year 2 agreements

Contract Overview

Contract Amount: $25,429,018 ($25.4M)

Contractor: Danaher Tool Group, Easco Hand

Awarding Agency: Department of Defense

Start Date: 2011-04-01

End Date: 2014-05-30

Contract Duration: 1,155 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 1.DELIVERY ORDER BR01 TO CONTRACT DAAE-03-D-0086 IS ISSUED TO ADD THE FOLLOWING: CLIN 0001AA NOUN: GENERAL MECHANICS TOOL KIT (GMTK) NSN: 5180-01-548-7634 QUANTITY: 2,592 UNIT PRICE: $1,368.43 TOTAL: $3,546,970.56 CLIN 0002AA NOUN: ACCESSORY DRAWER NSN: 5180-01-553-6559 QUANTITY: 622 UNIT PRICE: $157.74 TOTAL: $98,114.28 2.TOTAL AMOUNT OF THIS DELIVERY ORDER IS $8,768,486.76 3.THE UNIT PRICES REFLECT THE PRICE AGREED UPON FOR OPTION YEAR 2, AWARD DATE 01 AUG 2010 31 JUL 2011. THE PRICE EVALUATION SHEET IS ATTACHMENT 0003 OF CONTRACT NUMBER DAAE20-03-D-0086, DELIVERY ORDER 0032. 4.ALL TERMS AND CONDITIONS OF DELIVERY ORDER 0032, OF CONTRACT DAAE20-03-D-0086 ARE SPECIFICALLY INCORPORATED INTO DELIVERY ORDER NUMBER BR01. 5.EXCEPT AS PROVIDED HEREIN, ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED AND IN FULL EFFECT.

Place of Performance

Location: SPARKS GLENCOE, BALTIMORE County, MARYLAND, 21152

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to DANAHER TOOL GROUP, EASCO HAND for work described as: 1.DELIVERY ORDER BR01 TO CONTRACT DAAE-03-D-0086 IS ISSUED TO ADD THE FOLLOWING: CLIN 0001AA NOUN: GENERAL MECHANICS TOOL KIT (GMTK) NSN: 5180-01-548-7634 QUANTITY: 2,592 UNIT PRICE: $1,368.43 TOTAL: $3,546,970.56 CLIN 0002AA NOUN: ACCESSORY DRAWER NSN: 5180-01-553-6559 QUANTI… Key points: 1. The contract value of $25.4M represents the total obligated amount across multiple delivery orders, with this specific order adding over $8.7M. 2. The unit price for the General Mechanics Tool Kit ($1,368.43) was agreed upon for Option Year 2, indicating a pre-negotiated rate. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is 1155 days, spanning from August 2010 to May 2014. 5. The primary item procured is the General Mechanics Tool Kit (GMTK), a critical component for maintenance and repair operations. 6. The contract is a Firm Fixed Price type, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The unit price of $1,368.43 for the General Mechanics Tool Kit appears to be a pre-negotiated rate from Option Year 2. Without access to the Price Evaluation Sheet (Attachment 0003 of the base contract DAAE20-03-D-0086), a direct comparison to market rates or similar contracts is difficult. However, the total obligated amount of $25.4M over the contract's life suggests a significant investment in these tool kits. The firm fixed price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but the 'full-and-open' designation generally implies a competitive environment that should lead to price discovery and potentially better pricing for the government.

Taxpayer Impact: A competitive bidding process for essential equipment like tool kits helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the personnel within the Department of the Army who will utilize the General Mechanics Tool Kits for their duties. The services delivered include the provision of essential tools for mechanical maintenance and repair. The geographic impact is likely widespread within the Department of the Army's operational areas. Workforce implications include equipping military and civilian personnel with the necessary tools to perform their jobs effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition makes it hard to fully assess the competitive pressure on pricing.
The unit price is based on an agreement from Option Year 2, and without current market data, it's difficult to ascertain if it remains competitive.
The total contract value is spread over several years, making it challenging to assess the value of this specific delivery order in isolation.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty to the government.
The contract includes specific line items for both the tool kit and accessory drawers, indicating a comprehensive procurement.

Sector Analysis

This contract falls within the Hand and Edge Tool Manufacturing sector (NAICS code 332212). This sector includes establishments primarily engaged in manufacturing non-powered hand tools and edge tools. The total obligated amount of $25.4M for tool kits represents a significant, albeit specific, expenditure within the broader defense procurement landscape. Comparable spending benchmarks would typically be found within the Department of Defense's overall budget for maintenance, repair, and operations (MRO) supplies.

Small Business Impact

The data indicates that 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 a set-aside provision. The primary contractor, DANAHER TOOL GROUP, EASCO HAND, is likely a larger entity, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army's contracting and program management offices. The contract is a Firm Fixed Price type, which generally has fewer oversight requirements related to cost adjustments compared to cost-plus contracts. Transparency is provided through contract awards databases, but detailed performance metrics and specific oversight activities are not detailed in this data snippet. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Maintenance, Repair, and Operations (MRO) Supplies
Army Tool and Equipment Procurement
General Mechanics Tool Kits (GMTK)
Defense Logistics Agency (DLA) Contracts

Risk Flags

Unit price based on historical option year agreement.
Limited transparency on specific components within the tool kit.
Number of bidders not specified for full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to DANAHER TOOL GROUP, EASCO HAND. 1.DELIVERY ORDER BR01 TO CONTRACT DAAE-03-D-0086 IS ISSUED TO ADD THE FOLLOWING: CLIN 0001AA NOUN: GENERAL MECHANICS TOOL KIT (GMTK) NSN: 5180-01-548-7634 QUANTITY: 2,592 UNIT PRICE: $1,368.43 TOTAL: $3,546,970.56 CLIN 0002AA NOUN: ACCESSORY DRAWER NSN: 5180-01-553-6559 QUANTITY: 622 UNIT PRICE: $157.74 TOTAL: $98,114.28 2.TOTAL AMOUNT OF THIS DELIVERY ORDER IS $8,768,486.76 3.THE UNIT PRICES REFLECT THE PRICE AGREED UPON FOR OPTION YEAR 2, AWARD DATE 01 AUG 2010 31 JUL 2011. THE PRICE EV

Who is the contractor on this award?

The obligated recipient is DANAHER TOOL GROUP, EASCO HAND.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2011-04-01. End: 2014-05-30.

What is the historical spending trend for General Mechanics Tool Kits (GMTK) under contract DAAE20-03-D-0086?

The provided data snippet focuses on a specific delivery order (BR01) and the total obligated amount for the base contract DAAE20-03-D-0086, which is $25,429,017.59. This specific delivery order adds $8,768,486.76. To understand the historical spending trend, one would need to examine all prior delivery orders issued against the base contract DAAE20-03-D-0086. This would involve analyzing the cumulative amounts of each delivery order, the quantities and unit prices of items procured over time, and the dates of issuance. Without access to the complete history of delivery orders for this contract, it is impossible to definitively establish a spending trend. However, the total obligated amount suggests a sustained need for these tool kits over the contract's period of performance.

How does the unit price of $1,368.43 for the GMTK compare to similar procurements by the Department of Defense?

The unit price of $1,368.43 for the General Mechanics Tool Kit (GMTK) is stated to reflect the price agreed upon for Option Year 2, with the Price Evaluation Sheet referenced as Attachment 0003 of the base contract. To benchmark this price, one would need to compare it against other competitively awarded contracts for similar GMTKs issued by the Department of Defense or other federal agencies around the same period (Option Year 2 pricing was agreed upon for the period August 1, 2010 - July 31, 2011). Accessing historical pricing data from similar solicitations and awards, considering variations in included components, NSN specifications, and quantities, would be necessary. Without this comparative data, it's difficult to definitively assess if $1,368.43 represents a competitive or inflated price. The fact that it was part of an agreed-upon option year suggests it was considered fair at the time of negotiation.

What are the specific components included in the General Mechanics Tool Kit (GMTK) procured under this contract?

The provided data specifies the National Stock Number (NSN) for the General Mechanics Tool Kit (GMTK) as 5180-01-548-7634 and the quantity procured in this delivery order as 2,592 units. However, the exact list of components constituting the GMTK is not detailed in this snippet. Typically, a GMTK is a comprehensive set of tools required for general mechanical maintenance and repair tasks. This would likely include a variety of wrenches, sockets, pliers, screwdrivers, hammers, measuring tools, and potentially specialized tools depending on the military occupational specialty or intended use. The NSN is the key identifier for cataloging and inventory purposes and can be used to look up detailed specifications through military supply systems if available.

What is the total value of contract DAAE20-03-D-0086, and how does this delivery order contribute to it?

The total amount obligated for the base contract DAAE20-03-D-0086 is $25,429,017.59. The specific delivery order BR01, which incorporates terms from delivery order 0032, adds a total of $8,768,486.76 to this contract. This means that the current delivery order represents a significant portion, approximately 34.5%, of the total contract value. The remaining value of the contract, prior to this delivery order, would have been $16,660,530.83. This indicates a substantial ongoing requirement for the items procured under this contract, with this particular order fulfilling a large segment of that need.

What is the significance of the contract type being 'FIRM FIXED PRICE' (pt: 'FIRM FIXED PRICE')?

The 'FIRM FIXED PRICE' contract type signifies that the contractor, DANAHER TOOL GROUP, EASCO HAND, is obligated to perform the work specified in the contract for a predetermined, fixed price. This means that the total cost of fulfilling the contract is established upfront and does not change, regardless of the contractor's actual costs incurred. This contract type places the primary risk of cost overruns on the contractor. For the government, it offers the advantage of budget certainty and predictability, as the final cost is known at the time of award. This is generally considered a favorable contract type for the government when the scope of work is well-defined and the risks are manageable, as is often the case with the procurement of standard items like tool kits.

Industry Classification

NAICS: Manufacturing › Cutlery and Handtool Manufacturing › Hand and Edge Tool Manufacturing

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Apex Tool Group, LLC (UEI: 963348037)

Address: 11011 MCCORMICK DRIVE, HUNT VALLEY, MD, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,429,018

Exercised Options: $25,429,018

Current Obligation: $25,429,018

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE2003D0086

IDV Type: IDC

Timeline