DoD Awards $5.7M for Veeder Root 450Plus Systems to Heidelberg Resources, LLC

Contract Overview

Contract Amount: $5,741,158 ($5.7M)

Contractor: Heidelberg Resources, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2027-06-22

Contract Duration: 630 days

Daily Burn Rate: $9.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PURCHASE AND INSTALLATION OF VEEDER ROOT 450PLUS

Place of Performance

Location: MINOT AFB, WARD County, NORTH DAKOTA, 58704

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to HEIDELBERG RESOURCES, LLC for work described as: PURCHASE AND INSTALLATION OF VEEDER ROOT 450PLUS Key points: 1. Spending focuses on specialized control devices for the Air Force. 2. Heidelberg Resources, LLC, a single awardee, suggests limited competition. 3. The contract value is moderate, but specific performance metrics are absent. 4. The sector involves manufacturing of measuring and controlling devices.

Value Assessment

Rating: fair

The contract value of $5.7M for specialized control devices appears reasonable given the niche nature of the product. Benchmarking is difficult without detailed specifications and comparison to similar sole-source or limited-competition procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), indicating an expectation of lower value or simpler procurements. However, the award to a single entity suggests limited competition, potentially impacting price discovery and overall value.

Taxpayer Impact: Taxpayer funds are used for specialized equipment, with potential for overpayment due to limited competition.

Public Impact

Ensures operational readiness for Air Force assets requiring specific control systems. Supports a niche manufacturing sector, potentially impacting domestic supply chains. Limited public visibility into the specific application and necessity of the Veeder Root 450Plus.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may lead to higher costs.
  • Lack of detailed performance metrics.
  • Potential for vendor lock-in with specialized equipment.

Positive Signals

  • Procurement supports critical Air Force operational needs.
  • Utilizes established procurement procedures (SAP).

Sector Analysis

This contract falls within the 'Other Measuring and Controlling Device Manufacturing' sector. Spending in this area is typically driven by defense and industrial needs for precise monitoring and control systems. Benchmarks are difficult without specific product comparisons.

Small Business Impact

No indication of small business involvement in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist or if the prime contractor is a small business.

Oversight & Accountability

Standard contract oversight by the Department of the Air Force is expected. The use of SAP suggests a streamlined process, but requires diligence to ensure fair pricing and performance.

Related Government Programs

  • Other Measuring and Controlling Device Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for inflated pricing due to limited competition.
  • Lack of transparency regarding the specific need and alternatives.
  • Absence of defined performance metrics for accountability.
  • Reliance on a single vendor for specialized equipment.

Tags

other-measuring-and-controlling-device-m, department-of-defense, nd, purchase-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to HEIDELBERG RESOURCES, LLC. PURCHASE AND INSTALLATION OF VEEDER ROOT 450PLUS

Who is the contractor on this award?

The obligated recipient is HEIDELBERG RESOURCES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2025-09-30. End: 2027-06-22.

What is the specific operational requirement driving the need for the Veeder Root 450Plus system, and are there alternative solutions?

The specific operational requirement is not detailed in the provided data. The Veeder Root 450Plus is a specialized fuel management system. Understanding the exact application within the Air Force (e.g., aircraft refueling, storage tank monitoring) is crucial. Investigating alternative systems or manufacturers could reveal opportunities for better pricing or enhanced functionality, especially if this is a sole-source or limited-competition award.

How does the awarded price compare to industry benchmarks for similar fuel management or control systems, considering the limited competition?

Benchmarking is challenging without detailed specifications and a clear understanding of the system's capabilities. Given the limited competition indicated, the awarded price of $5.7M might be higher than if full and open competition were pursued. A thorough review of similar contracts, especially those with more competitive bidding, would be necessary to assess if the price is fair and reasonable for the value received.

What are the key performance indicators (KPIs) and success metrics for this contract to ensure effective delivery and taxpayer value?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. To ensure effectiveness and taxpayer value, the contract should ideally outline measurable objectives related to system reliability, installation timeliness, post-installation support, and any performance improvements achieved. Without these, assessing the true value and effectiveness of the $5.7M expenditure becomes difficult.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingOther Measuring and Controlling Device Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: FA452825QSP02

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1609 ANTOINETTE DR, CORPUS CHRISTI, TX, 78418

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,799,582

Exercised Options: $5,799,582

Current Obligation: $5,741,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2025-09-30

Current End Date: 2027-06-22

Potential End Date: 2027-06-22 00:00:00

Last Modified: 2025-12-19

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