DoD's $14.5M Construction Equipment Contract Awarded to MIC Industries Inc. in 2002
Contract Overview
Contract Amount: $14,563,315 ($14.6M)
Contractor: MIC Industries Inc
Awarding Agency: Department of Defense
Start Date: 2002-05-28
End Date: 2003-11-28
Contract Duration: 549 days
Daily Burn Rate: $26.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 200212!000430!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7802C0018 !A!N! !N! !20020528!20031128!053168449!053168449!053168449!N!M.I.C. INDUSTRIES, INC. !11911 FREEDOM DR STE 1000 !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000014000000!Y!N!000000000000!3895!MISCELLANEOUS CONSTRUCTION EQUIPMENT !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !333120!E! !3! ! ! ! ! !99990909!B!B!N!N!Z!B!U!J!1!001!N!4A!Z!N!Z! ! !Y!B!N!N! ! !Z! !A!A!* !A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to MIC INDUSTRIES INC for work described as: 200212!000430!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7802C0018 !A!N! !N! !20020528!20031128!053168449!053168449!053168449!N!M.I.C. INDUSTRIES, INC. !11911 FREEDOM DR STE 1000 !RESTON !VA!20190!66672!059!51!RESTON !FAIRF… Key points: 1. The contract was awarded for construction machinery manufacturing. 2. MIC Industries Inc. secured the $14.5 million contract. 3. The award was made by the Department of Defense. 4. The contract was for a duration of 549 days. 5. The procurement method was 'Full and Open Competition After Exclusion of Sources'.
Value Assessment
Rating: fair
The contract value of $14.5 million for construction machinery is difficult to benchmark without specific equipment details. However, given the duration and the nature of the goods, the price appears within a reasonable range for a large federal procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process but with specific source exclusions. This method can impact price discovery by limiting the pool of potential bidders.
Taxpayer Impact: Taxpayer funds were used for this procurement. The competitive nature, despite exclusions, aims to secure fair pricing, but the exact impact on taxpayer cost is not fully discernible without further details on the bidding process.
Public Impact
Federal agencies rely on contractors like MIC Industries for essential construction equipment. The procurement process ensures that taxpayer money is spent on necessary goods and services. The award highlights the role of private companies in supporting government operations. The duration of the contract indicates a significant need for the equipment over an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Ambiguity in 'Full and Open Competition After Exclusion of Sources' could mask limited competition.
- Lack of detailed equipment specifications makes price validation challenging.
- Contract duration of 549 days for equipment rental/purchase needs further justification.
Positive Signals
- Awarded by the Department of Defense, indicating a significant operational need.
- MIC Industries Inc. is a known entity in the industry.
- The contract was competitively bid, aiming for best value.
Sector Analysis
The construction machinery manufacturing sector is vital for infrastructure projects and military operations. Federal spending in this area can fluctuate based on defense needs and infrastructure initiatives. Benchmarks are highly dependent on the specific type and quantity of equipment procured.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine if small business participation was sought or achieved.
Oversight & Accountability
Oversight of this contract would typically fall under the Department of Defense's contracting and procurement regulations. Accountability for performance and adherence to contract terms would be managed by the contracting officer and relevant oversight bodies.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed equipment specifications.
- Ambiguity in the 'Exclusion of Sources' rationale.
- Potential for limited competition despite 'Full and Open' designation.
- No clear indication of small business participation.
- Absence of performance and utilization data.
Tags
construction-machinery-manufacturing, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to MIC INDUSTRIES INC. 200212!000430!2100!CA78 !TRANSATLANTIC PROGRAM CENTER !DACA7802C0018 !A!N! !N! !20020528!20031128!053168449!053168449!053168449!N!M.I.C. INDUSTRIES, INC. !11911 FREEDOM DR STE 1000 !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000014000000!Y!N!000000000000!3895!MISCELLANEOUS CONSTRUCTION EQUIPMENT !C2 !CONSTRUCTION !1000!NOT DISCERNABLE OR CLASSIFIED !333120!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is MIC INDUSTRIES 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 $14.6 million.
What is the period of performance?
Start: 2002-05-28. End: 2003-11-28.
What specific types of construction machinery were procured under this contract, and how does their cost compare to market rates for similar equipment during the 2002-2003 period?
The provided data lists the Product Service Code (PSC) as '333120' for Construction Machinery Manufacturing. However, specific details on the types, models, and quantities of machinery are absent. Without this granular information, a precise cost comparison to market rates is not feasible. A thorough analysis would require access to the contract's statement of work and equipment specifications to validate pricing against industry benchmarks from that era.
What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion potentially limit competitive pricing?
The data does not specify the reasons for excluding certain sources. This procurement method implies that while the competition was intended to be open, specific vendors were deliberately not considered, possibly due to specialized capabilities, existing relationships, or security requirements. The impact on competitive pricing is uncertain; it could have led to higher prices if the excluded sources were major competitors, or it might have been necessary to ensure the acquisition of highly specialized equipment.
How effectively was the procured construction machinery utilized by the Department of Defense, and did it meet the operational requirements for which it was acquired?
The provided data focuses on the award and financial aspects of the contract and does not contain information regarding the utilization or effectiveness of the construction machinery. Assessing effectiveness would require post-award performance reports, operational logs, and user feedback from the Department of Defense. Without these details, it's impossible to determine if the equipment met the intended operational requirements or if it was utilized efficiently.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing
Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 11911 FREEDOM DR STE 1000, RESTON, VA, 11
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-05-28
Current End Date: 2003-11-28
Potential End Date: 2003-11-28 00:00:00
Last Modified: 2012-12-19
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)