DoD awards $19.98M contract for missile guidance set batteries, with a 5-year performance period

Contract Overview

Contract Amount: $19,982,445 ($20.0M)

Contractor: Eaglepicher Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2025-03-11

End Date: 2030-03-31

Contract Duration: 1,846 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MISSILE GUIDANCE SET BATTERY

Place of Performance

Location: JOPLIN, JASPER County, MISSOURI, 64801

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to EAGLEPICHER TECHNOLOGIES LLC for work described as: MISSILE GUIDANCE SET BATTERY Key points: 1. The contract's cost-plus-fixed-fee structure suggests potential for cost overruns, requiring close monitoring. 2. Competition was full and open, indicating a healthy market for this defense component. 3. The contract duration of over 5 years presents long-term supply chain considerations. 4. Performance is managed by the Defense Contract Management Agency, a key oversight body. 5. The North American Industry Classification System (NAICS) code 335910 points to battery manufacturing. 6. The award was a definitive contract, suggesting a firm commitment from the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The cost-plus-fixed-fee (CPFF) pricing structure can sometimes lead to higher costs than fixed-price contracts if not managed diligently. However, CPFF is often used when the scope of work is not fully defined or involves significant uncertainty, which can be the case in defense procurement. The raw dollar amount of $19.98 million over approximately 5 years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, but the 'full and open' designation implies a robust bidding process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining goods and services at the most advantageous prices, reducing the potential for inflated costs.

Public Impact

The primary beneficiary is the Department of Defense, ensuring the availability of critical missile guidance set batteries. The services delivered are essential for maintaining and enhancing the operational readiness of missile systems. The contract is geographically focused on Missouri (MO), where the contractor is located. This contract supports jobs within the battery manufacturing sector, specifically within EaglePicher Technologies LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur higher costs to maximize their fee.
Long contract durations may introduce risks related to technological obsolescence or changes in military requirements.
Reliance on a single contractor for a critical component could pose supply chain risks if not managed proactively.

Positive Signals

Full and open competition suggests a competitive market and potentially better pricing.
Awarding to an established contractor like EaglePicher Technologies LLC may indicate a track record of reliability.
The Defense Contract Management Agency's involvement suggests a level of oversight for performance and cost.

Sector Analysis

The defense industry relies heavily on specialized component manufacturers like EaglePicher Technologies LLC. This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on electronic components for weapon systems. The market for such specialized batteries is often characterized by high barriers to entry due to technical expertise and stringent quality requirements. Comparable spending benchmarks would typically be found within other DoD procurements for similar electronic or power components for defense platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary focus is on the prime contractor, EaglePicher Technologies LLC. The impact on the broader small business ecosystem would be indirect, potentially through the supply chain if EaglePicher utilizes small businesses as suppliers, which is not specified in the provided data.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract type, Cost Plus Fixed Fee (CPFF), necessitates robust financial oversight to monitor costs and ensure the fixed fee is appropriately earned. Transparency is typically facilitated through contract reporting mechanisms within the federal procurement system. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Missile Systems Procurement
Defense Electronics Manufacturing
Aerospace Component Supply
Strategic Weapon Systems Support

Risk Flags

Cost-Plus-Fixed-Fee contract type may lead to cost overruns.
Long contract duration increases risk of technological obsolescence.
Potential supply chain disruptions for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to EAGLEPICHER TECHNOLOGIES LLC. MISSILE GUIDANCE SET BATTERY

Who is the contractor on this award?

The obligated recipient is EAGLEPICHER TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2025-03-11. End: 2030-03-31.

What is EaglePicher Technologies LLC's track record with the Department of Defense for similar battery systems?

EaglePicher Technologies LLC has a long history of supplying batteries and power solutions to the Department of Defense and other government agencies. They specialize in high-reliability power sources for demanding applications, including aerospace, defense, and medical devices. While specific details on past contracts for 'missile guidance set batteries' are not provided in this data snippet, their general expertise in advanced battery chemistries and manufacturing for defense applications suggests a relevant track record. A deeper dive into their contract history with the DoD would reveal the volume, types, and success rates of previous awards for similar components, providing a clearer picture of their performance and reliability in this specific niche.

How does the $19.98 million award compare to historical spending on missile guidance set batteries by the DoD?

Comparing the $19.98 million award to historical spending requires access to broader DoD procurement data for missile guidance set batteries. Without this comparative data, it's difficult to definitively state whether this award is high, low, or average. However, the award covers a period of approximately 5 years (1846 days), suggesting an average annual spend of roughly $4 million. This figure can be benchmarked against previous annual expenditures for similar components. If historical annual spending has been significantly higher or lower, it could indicate changes in demand, pricing, or the number of systems being supported. The 'full and open competition' aspect suggests the government sought competitive pricing, which might imply an effort to control or reduce historical spending levels.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for battery manufacturing?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for battery manufacturing is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. For the government, this means less cost certainty compared to fixed-price contracts. Effective risk mitigation requires stringent cost monitoring, clear definition of allowable costs, and robust oversight by the contracting agency to ensure efficiency and prevent unnecessary expenditures. Technological uncertainty in battery development can also contribute to cost increases.

How effective is the Defense Contract Management Agency (DCMA) in overseeing contracts of this nature?

The Defense Contract Management Agency (DCMA) is a critical component of the DoD's acquisition process, responsible for ensuring that contracted goods and services meet requirements and are delivered on time and at the best value. DCMA's effectiveness in overseeing contracts like this one hinges on its resources, expertise, and the specific oversight plan developed for the contract. They typically provide contract administration, quality assurance, and financial surveillance. For a CPFF contract, DCMA's role in monitoring costs, verifying expenditures, and ensuring compliance with contract terms is particularly crucial. Their established processes and experienced personnel are designed to manage the complexities of defense contracting, aiming to protect taxpayer interests and ensure program success.

What are the implications of the 5-year duration (1846 days) for the supply chain and technological relevance of these batteries?

A 5-year duration for a contract involving advanced technology like missile guidance set batteries presents both opportunities and risks for the supply chain and technological relevance. On the positive side, it provides EaglePicher Technologies LLC with a stable demand forecast, allowing for better production planning, inventory management, and potential investment in manufacturing capabilities. This stability can lead to efficiencies and cost savings over the long term. However, the risk lies in the potential for technological obsolescence. Over five years, advancements in battery technology could render the contracted components less effective or efficient compared to newer alternatives. Furthermore, geopolitical events or shifts in raw material availability could disrupt the supply chain. Proactive supply chain management and contingency planning are essential to mitigate these long-term risks.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Battery Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA820623R0012

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1215 W C ST, JOPLIN, MO, 64801

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

Financial Breakdown

Contract Ceiling: $19,982,445

Exercised Options: $19,982,445

Current Obligation: $19,982,445

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline