GSA awards $20.4M for armored vehicle parts, with 5 bidders competing

Contract Overview

Contract Amount: $20,463,841 ($20.5M)

Contractor: Parts Express International, Inc.

Awarding Agency: General Services Administration

Start Date: 2011-09-28

End Date: 2015-09-27

Contract Duration: 1,460 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMORED VEHICLE PURCHASE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20192

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $20.5 million to PARTS EXPRESS INTERNATIONAL, INC. for work described as: ARMORED VEHICLE PURCHASE Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition among five bidders suggests effective price discovery. 3. Contract performance duration of four years indicates a stable, long-term need. 4. This contract falls within the manufacturing sector for military vehicles. 5. The award is a delivery order against an existing contract. 6. Fixed-price contract type helps mitigate cost overrun risks.

Value Assessment

Rating: good

The total award amount of $20.4 million for armored vehicle parts over four years suggests a unit cost of approximately $4.1 million per year. Without specific details on the quantity or type of parts, a direct comparison is difficult. However, the presence of five bidders in a full and open competition indicates that the pricing was likely competitive and reflects market rates for specialized military vehicle components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bidders participating. This level of competition is generally favorable as it allows multiple vendors to propose solutions, driving down prices and encouraging innovation. The agency received multiple offers, suggesting a healthy market for these specialized parts.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently, as the government likely secured the best possible pricing through the bidding process.

Public Impact

The primary beneficiaries are military units requiring maintenance and operational readiness for armored vehicles. The services delivered involve the supply of critical components for armored vehicle upkeep. The geographic impact is likely national, supporting military readiness across various bases. Workforce implications include supporting manufacturing jobs in the defense supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long lead times on specialized parts impacting readiness if not managed.
Dependence on a limited number of manufacturers for critical components could pose supply chain risks.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm fixed-price contract type provides cost certainty.
Delivery order against an existing contract suggests a streamlined procurement process.

Sector Analysis

This contract operates within the defense manufacturing sector, specifically focusing on components for military armored vehicles. The market for such specialized parts is often characterized by a limited number of qualified manufacturers due to stringent technical and security requirements. Comparable spending benchmarks would typically be found within other defense procurement contracts for vehicle parts and maintenance, where pricing is heavily influenced by production volume, material costs, and technological complexity.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (sb: false). While there's no explicit mention of subcontracting goals for small businesses, the competitive nature of the award might indirectly benefit small businesses if they are part of the supply chain for the prime contractor. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Oversight mechanisms would include contract administration, performance monitoring, and financial audits. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Vehicle Procurement
Defense Logistics Support
Armored Vehicle Maintenance
Tactical Vehicle Components

Risk Flags

Long contract duration may increase risk of obsolescence or market shifts.
Dependence on specialized manufacturing could create supply chain vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.5 million to PARTS EXPRESS INTERNATIONAL, INC.. ARMORED VEHICLE PURCHASE

Who is the contractor on this award?

The obligated recipient is PARTS EXPRESS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2011-09-28. End: 2015-09-27.

What is the specific type and quantity of armored vehicle parts being procured under this contract?

The provided data identifies the contract as 'ARMORED VEHICLE PURCHASE' with the Product Service Code (PSC) '336992' for Military Armored Vehicle, Tank, and Tank Component Manufacturing. However, the specific types and quantities of parts are not detailed in the summary data. This information would typically be found in the contract's statement of work or delivery order details. Understanding the exact components is crucial for assessing the value and necessity of the expenditure, as well as for benchmarking against similar procurements.

How does the unit cost of these armored vehicle parts compare to similar items purchased by other military branches or allied nations?

Benchmarking the unit cost requires detailed specifications of the parts. Without knowing if these are engines, tracks, armor plating, or smaller components, a direct comparison is challenging. However, the fact that this contract was awarded under full and open competition with five bidders suggests that the pricing achieved was likely competitive within the US defense market. To perform a robust comparison, one would need access to detailed specifications and pricing data from comparable contracts, potentially including international defense sales data if available and relevant.

What is the track record of PARTS EXPRESS INTERNATIONAL, INC. in fulfilling similar defense contracts?

The data indicates PARTS EXPRESS INTERNATIONAL, INC. is the contractor for this $20.4 million award. To assess their track record, one would need to examine their past performance on similar government contracts, particularly those involving military vehicle components. This includes reviewing contract histories for on-time delivery, quality of goods, adherence to specifications, and any past performance issues or disputes. A positive history on comparable contracts would increase confidence in their ability to successfully execute this current award.

What are the potential risks associated with the long duration (4 years) of this contract?

A four-year contract duration for specialized parts can present several risks. Firstly, technology obsolescence is a concern; newer or improved components might become available during the contract period, making the procured parts less effective or harder to integrate with future upgrades. Secondly, market prices for raw materials or manufacturing processes could fluctuate significantly over four years, potentially impacting the long-term cost-effectiveness if not adequately managed through contract clauses. Lastly, a long duration might reduce flexibility if the military's needs or threat assessments change, requiring modifications or early termination.

How does this spending compare to overall GSA spending on vehicle parts or defense manufacturing?

This $20.4 million contract represents a specific expenditure within the broader GSA and defense manufacturing landscape. To contextualize it, one would need to compare it against GSA's total annual spending on vehicle parts, or the Department of Defense's overall budget for vehicle maintenance and component acquisition. For instance, if GSA procures billions annually in vehicle-related items, this contract would be a relatively small portion. Conversely, if it's a significant portion of a specific niche category, its importance increases. This comparison helps determine if the spending level is typical or anomalous.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 9Q1ZFSNDW003

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8300 N W 30TH TERRACE, MIAMI, FL, 33122

Business Categories: Category Business, Community Development Corporation, Corporate Entity Not Tax Exempt, Nonprofit Organization, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,424,572

Exercised Options: $20,463,841

Current Obligation: $20,463,841

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F0307V

IDV Type: FSS

Timeline