Transportation contract for GANGER TROLLEYS awarded to MODERN TRACK MACHINERY INC for over $9.9 million

Contract Overview

Contract Amount: $9,929,412 ($9.9M)

Contractor: Modern Track Machinery Inc

Awarding Agency: Department of Transportation

Start Date: 2004-09-10

End Date: 2008-06-03

Contract Duration: 1,362 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE

Sector: Transportation

Official Description: GANGER TROLLEYS

Place of Performance

Location: ILLINOIS

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $9.9 million to MODERN TRACK MACHINERY INC for work described as: GANGER TROLLEYS Key points: 1. The contract value of $9.9 million for GANGER TROLLEYS suggests a significant investment in rail infrastructure. 2. Competition dynamics for this contract are favorable, indicating potential for competitive pricing. 3. The fixed-price contract type generally transfers risk to the contractor, potentially benefiting the government. 4. The duration of 1362 days (approximately 3.7 years) indicates a long-term need for these specialized rail components. 5. The product service code (PSC) is not specified, making direct comparisons to similar procurements challenging. 6. The contract was awarded by the Department of Transportation, highlighting its focus on national transportation infrastructure.

Value Assessment

Rating: fair

The total contract value of $9.9 million for GANGER TROLLEYS is substantial. Without specific details on the number and type of trolleys procured, a direct value-for-money assessment is difficult. However, the fixed-price contract type suggests that the government has a defined cost expectation. Benchmarking against similar procurements for specialized rail equipment would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of two bids suggests a moderate level of competition for this specialized equipment. While full and open competition is generally preferred, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price for goods and services through a competitive bidding process.

Public Impact

The primary beneficiaries are likely entities involved in rail transportation and infrastructure maintenance, such as transit authorities or freight rail operators. The services delivered involve the manufacturing and supply of specialized rail components (GANGER TROLLEYS). The geographic impact is likely concentrated in areas with active rail networks where these trolleys are deployed. Workforce implications may include employment opportunities in manufacturing and specialized technical roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the quantity and technical specifications of the GANGER TROLLEYS makes it difficult to fully assess value for money.
The absence of a specified Product Service Code (PSC) hinders comparative analysis with similar procurements.
While competition was full and open, only two bids were received, which might indicate a niche market or limited supplier base for this specific equipment.

Positive Signals

The contract was awarded through full and open competition, suggesting a fair and transparent procurement process.
The use of a fixed-price contract type generally provides cost certainty for the government.
The contract duration of over 1300 days indicates a sustained need and potential for a stable supply chain.

Sector Analysis

The procurement of GANGER TROLLEYS falls within the broader rail transportation equipment manufacturing sector. This sector is characterized by specialized engineering and manufacturing capabilities, often serving government agencies and large private rail operators. The market size for such specialized components can be niche, with a limited number of qualified manufacturers. Comparable spending benchmarks would typically involve other procurements for rolling stock components or specialized rail maintenance equipment.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of specialized rail equipment manufacturing often involves large, established firms. The impact on the small business ecosystem is likely minimal unless specific components or services were sourced from smaller suppliers by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Transportation. Accountability measures are embedded in the contract terms, including delivery schedules and specifications. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Rail Car Manufacturing
Transportation Infrastructure Equipment
Rolling Stock Components
Mass Transit Systems

Risk Flags

Limited Competition
Potential for Cost Overruns (if fixed-price risks materialize)
Lack of Detailed Technical Specifications in public data

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.9 million to MODERN TRACK MACHINERY INC. GANGER TROLLEYS

Who is the contractor on this award?

The obligated recipient is MODERN TRACK MACHINERY INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2004-09-10. End: 2008-06-03.

What is the specific technical definition and function of 'GANGER TROLLEYS' in the context of rail operations?

GANGER TROLLEYS, also known as maintenance-of-way (MOW) trolleys or rail grinders, are specialized rail vehicles used for track maintenance and inspection. They are equipped with grinding stones or other tools to resurface the rails, remove defects, and maintain the proper profile of the railhead. These trolleys are crucial for ensuring the safety, efficiency, and longevity of railway infrastructure by addressing wear and tear, and correcting surface imperfections on the tracks. Their operation requires skilled personnel and adherence to strict safety protocols.

How does the $9.9 million contract value compare to typical spending on similar rail maintenance equipment?

The $9.9 million contract value for GANGER TROLLEYS is a significant sum, reflecting the specialized nature and potentially high cost of such equipment. Without knowing the exact quantity and specific capabilities of the trolleys procured, a precise comparison is challenging. However, major rail maintenance vehicles, including specialized units like rail grinders or track inspection platforms, can range from hundreds of thousands to several million dollars each, depending on their sophistication, technology, and manufacturer. This contract value suggests the procurement of multiple units or highly advanced equipment, aligning with substantial investments typically seen in national or large regional transit authority infrastructure projects.

What are the potential risks associated with a fixed-price contract for specialized rail equipment?

While fixed-price contracts generally offer cost certainty to the buyer, risks can still arise. For specialized equipment like GANGER TROLLEYS, the primary risk for the government is that the contractor may cut corners on quality or performance to maintain profitability if unforeseen production issues occur, especially if the initial price was set too low or based on incomplete specifications. Conversely, if the contractor underestimated costs significantly, they might seek change orders or face financial distress, potentially delaying delivery. The government also risks paying a premium if competition was insufficient to drive the price down to its lowest feasible level. Thorough technical specifications and robust quality assurance are critical to mitigate these risks.

What does the fact that only two bids were received imply about the market for GANGER TROLLEYS?

Receiving only two bids for a full and open competition suggests that the market for GANGER TROLLEYS may be relatively niche or concentrated. This could indicate a limited number of manufacturers capable of producing this specific type of specialized rail equipment to the required standards and specifications. It might also imply high barriers to entry, such as significant capital investment, specialized technical expertise, or proprietary technology. While two bidders still represent competition, it is less robust than if numerous bids were received, potentially impacting the government's ability to achieve the most aggressive pricing. Further investigation into potential suppliers and market dynamics could clarify this.

What is the historical spending pattern for GANGER TROLLEYS or similar rail maintenance equipment by the Department of Transportation?

Analyzing historical spending patterns for GANGER TROLLEYS specifically is difficult without more precise contract data, such as specific contract numbers or more detailed product service codes. However, the Department of Transportation (DOT) consistently invests significant funds in maintaining and upgrading national transportation infrastructure, including rail systems. Procurements for rolling stock, track maintenance equipment, and related services are common. Over the years, the DOT has allocated billions towards rail safety, modernization, and expansion projects. The $9.9 million awarded here represents a specific investment within this broader category of rail infrastructure spending, likely for a particular project or fleet upgrade.

Industry Classification

NAICS: Manufacturing › Railroad Rolling Stock Manufacturing › Railroad Rolling Stock Manufacturing

Product/Service Code: RAILWAY EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIXED PRICE (J)

Contractor Details

Parent Company: SOC Anciens Etabl L Geismar (UEI: 275371755)

Address: 1415 DAVIS ROAD, ELGIN, IL, 60123

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,929,412

Exercised Options: $9,929,412

Current Obligation: $9,929,412

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline