Army awards $15.2M contract for pyrotechnics to Security Signals Inc

Contract Overview

Contract Amount: $15,214,817 ($15.2M)

Contractor: Security Signals, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-10-31

End Date: 2004-11-30

Contract Duration: 1,126 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200206!000055!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902C0003 !A!N! !N! !20011031!20030228!007031479!007031479!007031479!N!SECURITY SIGNALS INC !9509 MACON RD !CORDOVA !TN!38018!17100!157!47!CORDOVA !SHELBY !TENNESSEE !+000000546803!Y!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !325998!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!K! !A!N!A! ! !N!B!Y!N! ! !C! !B!A!* !A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: CORDOVA, SHELBY County, TENNESSEE, 38018

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to SECURITY SIGNALS, INC. for work described as: 200206!000055!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902C0003 !A!N! !N! !20011031!20030228!007031479!007031479!007031479!N!SECURITY SIGNALS INC !9509 MACON RD !CORDOVA !TN!38018!17100!157!47!CORDOVA !SHELB… Key points: 1. The contract is for pyrotechnics, a niche but critical component for defense. 2. Security Signals Inc. is the sole awardee, raising questions about competition. 3. The fixed-price contract type suggests some cost certainty for the government. 4. The sector is defense manufacturing, specifically ammunition-related components.

Value Assessment

Rating: fair

The contract value of $15.2M for pyrotechnics appears within a reasonable range for specialized defense components. However, without specific per-unit cost data or benchmarks for similar pyrotechnic devices, a definitive assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was considered, it was limited. This method can sometimes lead to higher prices if fewer qualified bidders participate.

Taxpayer Impact: The limited competition may have resulted in a higher price than if a broader competition had been pursued, potentially impacting taxpayer value.

Public Impact

Ensures supply of critical pyrotechnic components for U.S. Army operations. Supports a specific manufacturer, Security Signals Inc., in the defense supply chain. Potential for increased costs due to limited competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition
  • Lack of detailed cost breakdown
  • Potential for sole-source if competition was truly excluded

Positive Signals

  • Firm fixed price contract
  • Specific product for defense needs

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on pyrotechnics, which are often specialized and high-value items. Spending in this niche area is driven by military requirements and technological advancements.

Small Business Impact

The awardee, Security Signals Inc., is not identified as a small business in this data. The contract does not appear to have specific set-asides for small businesses.

Oversight & Accountability

The contract was awarded by the Department of the Army. Oversight would typically involve contract management and performance monitoring by the Army Contracting Command to ensure delivery and quality.

Related Government Programs

  • All Other Miscellaneous Chemical Product and Preparation Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition raises concerns about potential overpricing.
  • Lack of transparency regarding the exclusion of sources.
  • Potential for price escalation if future needs arise and competition remains limited.
  • Dependence on a single supplier for critical components.

Tags

all-other-miscellaneous-chemical-product, department-of-defense, tn, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to SECURITY SIGNALS, INC.. 200206!000055!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902C0003 !A!N! !N! !20011031!20030228!007031479!007031479!007031479!N!SECURITY SIGNALS INC !9509 MACON RD !CORDOVA !TN!38018!17100!157!47!CORDOVA !SHELBY !TENNESSEE !+000000546803!Y!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !325998!A!A!3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is SECURITY SIGNALS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.2 million.

What is the period of performance?

Start: 2001-10-31. End: 2004-11-30.

What specific pyrotechnic items are being procured, and what are their intended uses?

The data indicates the product is 'PYROTECHNICS' with a Product Service Code (PSC) of '1370' (Ammunition). While the exact nature of the pyrotechnics is not detailed, they are likely used for signaling, illumination, or other tactical purposes within Army operations, supporting the broader 'AMMUNITION' category.

What was the justification for excluding other potential sources in the competition?

The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that a broad solicitation occurred, but only certain sources were deemed capable or eligible to bid, or perhaps a specific requirement limited the pool. A detailed justification would be required to understand why other qualified vendors were excluded.

How does the unit cost of these pyrotechnics compare to industry benchmarks or previous procurements?

The provided data does not include unit cost information or historical pricing for these specific pyrotechnic items. Therefore, a direct comparison to industry benchmarks or previous procurements is not possible with the current information. Further analysis would require access to detailed cost data.

Industry Classification

NAICS: ManufacturingOther Chemical Product and Preparation ManufacturingAll Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 9509 MACON RD, CORDOVA, TN, 09

Business Categories: Category Business, Small Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2001-10-31

Current End Date: 2004-11-30

Potential End Date: 2004-11-30 00:00:00

Last Modified: 2008-06-27

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