DoD's $31.9M BLU-111 ECP Contract with MAJOR TOOL & MACHINE INC Raises Questions on Value and Competition

Contract Overview

Contract Amount: $31,931,995 ($31.9M)

Contractor: Major Tool & Machine Inc

Awarding Agency: Department of Defense

Start Date: 2019-07-24

End Date: 2021-10-17

Contract Duration: 816 days

Daily Burn Rate: $39.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLU-111 ECP

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46218

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to MAJOR TOOL & MACHINE INC for work described as: BLU-111 ECP Key points: 1. The contract awarded to MAJOR TOOL & MACHINE INC for BLU-111 ECP totals $31.9 million. 2. Competition was listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential limitations. 3. The contract type is 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' which can offer cost certainty. 4. The product service code is missing, hindering detailed sector analysis. 5. The awardee is not a small business, and the contract does not appear to prioritize small business participation.

Value Assessment

Rating: questionable

The total award of $31.9 million for the BLU-111 ECP requires further scrutiny. Without specific unit costs or detailed scope of work, it's difficult to benchmark against similar contracts. The lack of a PSC code further complicates this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, specific sources were excluded. This could limit the pool of potential bidders and impact price discovery, potentially leading to higher costs.

Taxpayer Impact: The exclusion of sources in an otherwise open competition raises concerns about whether the government achieved the best possible price for taxpayers. Further analysis is needed to determine the full impact.

Public Impact

The BLU-111 is a component used in munitions, impacting defense readiness. The significant contract value suggests a substantial investment in this specific munition enhancement program. The nature of the competition method warrants public attention to ensure fair and effective use of defense funds. The lack of small business set-asides or participation could mean missed opportunities for smaller, innovative companies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ambiguous competition method
Missing Product Service Code
No Small Business Participation

Positive Signals

Firm Fixed Price contract type
Awarded by Department of the Air Force

Sector Analysis

The contract falls under Ammunition (except Small Arms) Manufacturing. Without a specific PSC, it's hard to benchmark against industry standards. However, defense manufacturing contracts can be substantial, and this $31.9M award is significant within its niche.

Small Business Impact

The data indicates that the awardee, MAJOR TOOL & MACHINE INC, is not a small business, and the contract was not set aside for small businesses. This suggests a lack of specific focus on engaging small businesses for this particular procurement.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method requires careful oversight to ensure that the exclusion of sources was justified and did not unduly restrict competition. Accountability for the pricing and performance rests with the Department of the Air Force.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition due to source exclusion
Lack of detailed product service code hinders analysis
No clear small business participation strategy
Potential for suboptimal price discovery
Unclear justification for excluding sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to MAJOR TOOL & MACHINE INC. BLU-111 ECP

Who is the contractor on this award?

The obligated recipient is MAJOR TOOL & MACHINE 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 $31.9 million.

What is the period of performance?

Start: 2019-07-24. End: 2021-10-17.

What was the justification for excluding specific sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for the BLU-111 ECP contract?

The justification for excluding sources typically relates to specific technical requirements, existing relationships, or unique capabilities that only a limited number of contractors possess. Without further documentation, it's difficult to ascertain the precise reasons. This exclusion could impact the competitive landscape and potentially the final price paid by the government.

How does the $31.9 million contract value compare to the typical cost of similar munition enhancement programs, and what is the per-unit cost if available?

Benchmarking the $31.9 million contract value is challenging without a specific Product Service Code (PSC) or detailed breakdown of the scope of work. The 'Ammunition (except Small Arms) Manufacturing' category is broad. A per-unit cost is not provided, making direct comparison to similar contracts difficult and raising questions about cost-effectiveness.

What is the expected impact of this contract on the overall readiness and technological advancement of the Air Force's munition capabilities?

The BLU-111 ECP contract aims to enhance existing munition capabilities, suggesting an effort to improve performance, safety, or lifespan. The $31.9 million investment indicates a significant commitment to upgrading these assets. The effectiveness will be measured by the successful implementation of the enhancements and their subsequent performance in the field.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1458 E 19TH ST, INDIANAPOLIS, IN, 46218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,931,995

Exercised Options: $31,931,995

Current Obligation: $31,931,995

Actual Outlays: $1,785,300

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline