DoD awards $12.68M for guided missile parts, with 2 bidders competing under full and open competition

Contract Overview

Contract Amount: $12,682,650 ($12.7M)

Contractor: Williamsen Manufacturing, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2014-04-24

Contract Duration: 2,031 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRUCK, GUIDED MISSILE

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84104

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to WILLIAMSEN MANUFACTURING, INC. for work described as: TRUCK, GUIDED MISSILE Key points: 1. Contract value appears reasonable given the duration and scope. 2. Full and open competition suggests potential for competitive pricing. 3. Limited number of bidders (2) warrants further investigation into market dynamics. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Contractor has a history of performance in this sector. 6. Geographic concentration in Utah may indicate regional specialization.

Value Assessment

Rating: good

The contract value of $12.68 million over approximately 5.5 years (2031 days) for guided missile parts suggests an average annual spend of roughly $2.3 million. Benchmarking against similar contracts for specialized defense components is challenging without more specific technical details. However, the fixed-price nature of the award indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. With two bidders participating, the competition level was moderate. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The limited number of bidders could suggest a niche market or high barriers to entry for potential competitors.

Taxpayer Impact: The moderate competition level means taxpayers likely benefited from a reasonably competitive price, though there may be room for improvement if more firms could have been encouraged to bid.

Public Impact

The Department of Defense benefits from the supply of critical guided missile components. This contract supports the manufacturing sector, specifically in specialized defense parts. The award has a geographic impact concentrated in Utah, supporting local industry and employment. The contract contributes to the readiness and operational capabilities of the U.S. Air Force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to specialized nature of parts.
Risk of price escalation if market conditions change significantly during contract performance.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, allowing for broad market participation.
Contractor has experience in manufacturing similar defense components.

Sector Analysis

The contract falls within the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' industry, a specialized segment of the broader aerospace and defense sector. This sector is characterized by high technological requirements, stringent quality control, and significant government procurement. Market size for such specialized components can be difficult to ascertain but is directly tied to defense spending priorities and the lifecycle of specific weapon systems. This contract represents a component of the larger defense industrial base.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of small business subcontracting requirements (sb: false). Therefore, this award does not appear to directly benefit small businesses through a set-aside. The implications for small business subcontracting are unknown based on the provided data, but typically, larger prime contracts may include provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Guided Missile Manufacturing
Aerospace Parts Procurement
Defense Industrial Base Support
Air Force Weapon Systems Components

Risk Flags

Moderate Competition Level
Specialized Component Manufacturing
Potential Supply Chain Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to WILLIAMSEN MANUFACTURING, INC.. TRUCK, GUIDED MISSILE

Who is the contractor on this award?

The obligated recipient is WILLIAMSEN MANUFACTURING, INC..

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 $12.7 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-04-24.

What is the track record of WILLIKSEN MANUFACTURING, INC. with similar defense contracts?

WILLEMSEN MANUFACTURING, INC. has a history of performing contracts within the defense sector, specifically related to the manufacturing of parts and equipment for guided missiles and space vehicles. While the provided data indicates this specific contract (ID: DCA) was awarded in 2008 and completed in 2014, further analysis of their contract history would be beneficial. This would involve examining past performance evaluations, any instances of contract modifications, and their success in meeting delivery schedules and quality standards on previous DoD awards. Understanding their broader experience can provide context for their ability to execute current and future defense-related procurements effectively and efficiently.

How does the awarded price compare to market rates for similar guided missile components?

Benchmarking the awarded price of $12.68 million for guided missile parts against current market rates is complex due to the specialized nature of the components and the time elapsed since the contract's award (2008-2014). Without specific details on the exact parts procured, their technical specifications, and the quantities involved, a direct comparison is difficult. However, the fact that the contract was awarded under full and open competition with two bidders suggests that the price was likely within a competitive range at the time of award. To assess current market value, one would need to research contemporary contracts for comparable items, considering factors like inflation, technological advancements, and current supply chain dynamics.

What are the primary risks associated with this type of defense component contract?

The primary risks associated with this type of defense component contract include supply chain disruptions, potential for obsolescence of technology, and the contractor's ability to maintain stringent quality control standards required for military applications. Given that the contract is for guided missile parts, any defects or failures could have significant operational consequences. Furthermore, the specialized nature of the manufacturing may limit the pool of qualified suppliers, increasing reliance on a single or few sources. The firm fixed-price contract type shifts financial risk to the contractor, but performance failures could still lead to delays and necessitate costly corrective actions or re-procurement.

How effective was the competition for this contract in ensuring value for taxpayers?

The competition for this contract, characterized as 'full and open' with two bidders, offers a moderate level of assurance for taxpayer value. Full and open competition is the preferred method for maximizing market participation and driving competitive pricing. However, with only two bidders, the price discovery mechanism might not have been as robust as it could be with a larger number of offers. While the fixed-price nature of the award helps control costs, the ultimate value for taxpayers depends on whether the price achieved truly reflected the lowest possible cost for the required quality and performance. Further analysis would require understanding the bid spread and the government's cost estimates.

What are the historical spending patterns for guided missile parts by the Department of Defense?

Historical spending patterns for guided missile parts by the Department of Defense are substantial and fluctuate based on strategic priorities, modernization programs, and geopolitical events. The DoD consistently invests billions annually in missile systems, encompassing research, development, procurement, and sustainment. Spending on components like those procured under this contract is a critical subset of overall missile program budgets. Trends often show increased spending during periods of heightened global tension or when new missile technologies are being fielded. Analyzing historical data reveals a sustained demand for these specialized parts, underscoring their importance to national defense capabilities.

What is the significance of the contract being awarded in Utah?

The significance of this contract being awarded to a company in Utah (SN: UTAH) lies in its potential economic impact on the state's defense industrial base. Utah has a growing presence in the aerospace and defense sectors, with companies contributing to various aspects of military technology and manufacturing. Awards like this can stimulate local economies by creating or sustaining high-skilled jobs, supporting ancillary businesses, and fostering technological expertise within the region. It also highlights Utah's role as a contributor to national security supply chains, potentially attracting further investment and development in related industries within the state.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gbgh Holdings, Inc. (UEI: 021544689)

Address: 1925 W INDIANA AVE, SALT LAKE CITY, UT, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,682,650

Exercised Options: $12,682,650

Current Obligation: $12,682,650

Contract Characteristics

Cost or Pricing Data: NO

Timeline