DoD awards $110M for SAL-UHP Kits, with B.E. Meyers & Co. securing the contract

Contract Overview

Contract Amount: $11,000,110 ($11.0M)

Contractor: B.E. Meyers & CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-15

End Date: 2026-07-10

Contract Duration: 694 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SAL-UHP KITS

Place of Performance

Location: REDMOND, KING County, WASHINGTON, 98052

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to B.E. MEYERS & CO., INC. for work described as: SAL-UHP KITS Key points: 1. The contract value of $110 million represents a significant investment in specialized equipment. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The duration of the contract, spanning nearly two years, indicates a sustained need for these kits. 5. The award falls within the Commercial and Service Industry Machinery Manufacturing sector. 6. The geographic location of the contractor in Washington state may have implications for logistics and support.

Value Assessment

Rating: good

Benchmarking the value of this contract requires specific data on the SAL-UHP kits, which are not publicly detailed. However, the $110 million award for a nearly two-year duration suggests a substantial per-unit cost or a large quantity of kits. Without comparable contract data for similar specialized equipment, a precise value-for-money assessment is challenging. The firm fixed-price structure is generally favorable for the government in managing cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach is designed to foster a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, but the use of this method suggests that the government sought the widest possible range of offers to ensure the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a broader pool of suppliers to offer their best terms.

Public Impact

Special Operations Forces personnel are the primary beneficiaries, receiving critical equipment for their missions. The kits are essential for enhancing operational capabilities and ensuring mission success. The contract supports manufacturing jobs within the Commercial and Service Industry Machinery Manufacturing sector. The geographic impact is primarily centered around the contractor's operations in Washington state and the deployment locations of the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the SAL-UHP kits makes it difficult to assess their technological advancement and long-term utility.
The substantial award amount raises questions about the cost-effectiveness and potential for price gouging without detailed cost breakdowns.
Dependence on a single contractor for a critical piece of equipment could pose supply chain risks if not managed proactively.

Positive Signals

The use of full and open competition suggests a commitment to leveraging market efficiencies.
The firm fixed-price contract type provides budget predictability for the Department of Defense.
The award to B.E. Meyers & Co., Inc. indicates a reliance on established industry expertise for specialized defense needs.

Sector Analysis

The Commercial and Service Industry Machinery Manufacturing sector is diverse, encompassing a wide range of equipment production. This contract for SAL-UHP kits likely falls into a niche within this sector, focusing on specialized defense-related machinery. Comparable spending benchmarks would depend on the specific nature of the kits; however, defense procurement often involves high-value, low-volume specialized equipment, making direct comparisons challenging without more granular data.

Small Business Impact

The data indicates that small business participation (sb) is false and there is no indication of small business set-asides (ss) for this contract. This suggests that the procurement was not specifically targeted towards small businesses, and larger, established companies were likely the primary bidders. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Special Operations Command (SOCOM) and the Department of Defense. Accountability measures are inherent in the firm fixed-price contract, which holds the contractor responsible for delivering goods within the agreed-upon price. Transparency is typically facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

Special Operations Equipment Procurement
Defense Industrial Base Manufacturing
Commercial and Service Machinery Contracts
Department of Defense Supply Chain Management

Risk Flags

Potential supply chain disruption risk due to reliance on a single contractor.
Lack of detailed public information on the specific capabilities and cost breakdown of the SAL-UHP Kits.
The substantial contract value warrants close monitoring for cost-effectiveness and value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to B.E. MEYERS & CO., INC.. SAL-UHP KITS

Who is the contractor on this award?

The obligated recipient is B.E. MEYERS & CO., INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-07-10.

What are the specific capabilities and intended uses of the SAL-UHP Kits?

The specific capabilities and intended uses of the SAL-UHP Kits are not detailed in the provided data. SAL-UHP likely refers to a specific type of equipment, possibly related to survival, assault, or utility functions, tailored for high-threat or specialized operational environments. Without further classification or product descriptions, it is difficult to ascertain their precise function. These kits are procured by the U.S. Special Operations Command, suggesting they are intended for elite military units engaged in complex and demanding missions where specialized gear is critical for success and personnel safety.

How does the $110 million award compare to historical spending on similar specialized equipment by SOCOM?

Comparing the $110 million award for SAL-UHP Kits to historical spending on similar specialized equipment by SOCOM requires access to detailed historical procurement data for comparable items. The provided data does not include this context. However, SOCOM often procures high-value, low-volume specialized equipment that can have significant per-unit costs. The duration of the contract (nearly two years) suggests a sustained need, and the total value indicates a substantial investment. To provide a meaningful comparison, one would need to identify other contracts for specialized operational kits or equipment with similar intended uses and assess their award values and quantities over comparable timeframes.

What are the key performance indicators (KPIs) for B.E. Meyers & Co., Inc. under this contract?

The provided data does not specify the key performance indicators (KPIs) for B.E. Meyers & Co., Inc. under this contract. However, for a firm fixed-price contract of this nature, typical KPIs would likely include on-time delivery of the SAL-UHP Kits, adherence to quality specifications and standards, and compliance with any contractual reporting requirements. The U.S. Special Operations Command would be responsible for monitoring these aspects to ensure the government receives the contracted goods as specified. Failure to meet these KPIs could result in penalties or contract termination, depending on the severity of the non-compliance.

What is the risk assessment associated with the supply chain for these SAL-UHP Kits?

The risk assessment for the supply chain of these SAL-UHP Kits involves several factors. Firstly, the reliance on a single contractor, B.E. Meyers & Co., Inc., for a substantial award amount introduces potential single-source dependency risks, although the contract was awarded through full and open competition. Secondly, the nature of specialized defense equipment can involve complex manufacturing processes and potentially limited raw material sources, increasing vulnerability to disruptions. The geographic location in Washington state could also be a factor in logistics and potential impacts from regional events. Mitigation strategies would likely involve close monitoring of the contractor's production capacity, inventory management, and contingency planning for alternative sourcing or expedited production if necessary.

What is the potential impact of this contract on the broader defense industrial base?

This contract has the potential to positively impact the broader defense industrial base by stimulating activity within the Commercial and Service Industry Machinery Manufacturing sector. The $110 million award to B.E. Meyers & Co., Inc. signifies demand for specialized defense equipment, which can lead to increased production, potential job creation, and investment in manufacturing capabilities. It also reinforces the importance of companies capable of producing high-specification equipment for special operations. Furthermore, the competitive nature of the award suggests that other companies in the sector may have been involved in the bidding process, fostering a dynamic market environment. The success of B.E. Meyers & Co. on this contract could also enhance their reputation and capacity for future defense procurements.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Commercial and Service Industry Machinery Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9461 WILLOWS RD NE, REDMOND, WA, 98052

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: $11,000,110

Exercised Options: $11,000,110

Current Obligation: $11,000,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240324D0009

IDV Type: IDC

Timeline