DoD's Air Force Awards $215.5M for Common Stock Equipment to ATAP INC, Ending 2027
Contract Overview
Contract Amount: $2,155,464 ($2.2M)
Contractor: Atap Inc
Awarding Agency: Department of Defense
Start Date: 2025-08-20
End Date: 2027-09-30
Contract Duration: 771 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SOURCING AND ACQUIRING COMMON STOCK EQUIPMENT.
Place of Performance
Location: EASTABOGA, TALLADEGA County, ALABAMA, 36260
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $2.2 million to ATAP INC for work described as: SOURCING AND ACQUIRING COMMON STOCK EQUIPMENT. Key points: 1. Significant contract value of $215.5 million awarded. 2. ATAP INC is the sole awardee under this specific contract. 3. Contract duration extends to September 2027, indicating a long-term need. 4. The procurement falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: fair
The contract value of $215.5 million is substantial. Benchmarking against similar contracts for common stock equipment is difficult without more specific details on the items procured. However, the firm fixed price structure suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was initially considered, specific circumstances led to excluding certain sources, potentially impacting price discovery and overall market reach.
Taxpayer Impact: The $215.5 million expenditure represents a significant allocation of taxpayer funds for common stock equipment, the specific value of which is not detailed.
Public Impact
Ensures availability of essential common stock equipment for the Air Force. Supports ATAP INC's operations and potentially its workforce. The long contract duration may indicate a stable supply chain for critical parts. Potential for future contract modifications or follow-on orders.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about best value.
- Lack of detailed itemization makes cost-effectiveness assessment challenging.
- Long contract duration could lead to price escalation if not managed.
Positive Signals
- Firm fixed price contract aims to control costs.
- Ensures supply of necessary equipment for military operations.
- Award to a domestic manufacturer (AL).
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is critical for defense readiness. Spending benchmarks are highly variable based on the specific components and technologies involved. This $215.5 million award is a significant investment within this niche.
Small Business Impact
The data indicates this contract was not set aside for small businesses, as 'sb' is false. The prime contractor, ATAP INC, is not specified as a small business in the provided data. Therefore, direct small business participation is not evident from this award alone.
Oversight & Accountability
The contract specifies 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', implying some level of justification was required for excluding certain bidders. Further oversight would involve reviewing the documentation supporting this exclusion and monitoring contract performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises value concerns.
- Lack of itemized details hinders cost analysis.
- Long contract duration requires vigilant oversight.
- Potential for price escalation over contract term.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, al, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.2 million to ATAP INC. SOURCING AND ACQUIRING COMMON STOCK EQUIPMENT.
Who is the contractor on this award?
The obligated recipient is ATAP 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 $2.2 million.
What is the period of performance?
Start: 2025-08-20. End: 2027-09-30.
What specific common stock equipment is being procured, and how does its unit cost compare to industry benchmarks?
The provided data lacks specific details on the 'common stock equipment' being procured, making a direct unit cost comparison impossible. The contract value is $215.5 million over approximately three years. Without itemized lists and quantities, assessing if the firm fixed price represents good value or if the unit costs are competitive against industry standards remains speculative.
What were the specific reasons for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion impact the final price?
The rationale for excluding sources is not detailed in the provided data. Typically, such exclusions are based on factors like national security, proprietary technology, or specific performance requirements. Understanding these reasons is crucial to determine if the exclusion limited competition to the extent that it negatively impacted the government's ability to secure the best possible price.
How will the long-term nature of this contract (ending 2027) be managed to ensure continued cost-effectiveness and prevent potential price creep?
The contract's duration until September 2027 necessitates proactive cost management. The firm fixed price structure provides an initial cost control mechanism. However, ongoing oversight, performance monitoring, and potentially periodic reviews of market prices for the components will be essential to ensure the government continues to receive good value throughout the contract's life.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: HAND TOOLS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 130 INDUSTRY WAY, EASTABOGA, AL, 36260
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,155,464
Exercised Options: $2,155,464
Current Obligation: $2,155,464
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA853221D0004
IDV Type: IDC
Timeline
Start Date: 2025-08-20
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-12
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