DoD's $10.75M Grip Pods Contract Awarded to U.S. Tactical Supply Raises Value-for-Money Questions

Contract Overview

Contract Amount: $10,752,608 ($10.8M)

Contractor: U.S. Tactical Supply, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-02

End Date: 2008-09-28

Contract Duration: 576 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GRIP PODS CAMP LEJEUNE, NC

Place of Performance

Location: ALBANY, LINN County, OREGON, 97322

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to U.S. TACTICAL SUPPLY, INC. for work described as: GRIP PODS CAMP LEJEUNE, NC Key points: 1. The contract's value-for-money is questionable given the short duration and the lack of detailed performance metrics. 2. Competition dynamics show a full and open competition, but the number of bidders (3) is on the lower side for such a contract. 3. Risk indicators include a firm fixed-price contract, which shifts risk to the contractor, but the overall performance risk is unclear. 4. Performance context is limited, with the award being a delivery order under a larger contract. 5. Sector positioning places this within military equipment manufacturing, a critical but often high-cost area for defense spending.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the 'Grip Pods' and their intended use. The total award of over $10.75 million for a period of approximately 1.5 years suggests a significant per-unit cost. Comparing this to similar military equipment contracts requires understanding the specific technological capabilities and production volumes. The firm fixed-price nature indicates a negotiated price, but the absence of detailed cost breakdowns or performance benchmarks makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, with only three bidders, the level of competition might not have been as robust as ideal for driving down prices. While open competition is a positive sign, a limited number of bidders could suggest barriers to entry or a niche market for these specific components.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to solicit the best prices and terms. However, the low number of bidders in this instance may have limited the potential for significant cost savings that could have been achieved with broader participation.

Public Impact

The primary beneficiaries are the U.S. military personnel who will utilize the Grip Pods, likely enhancing weapon system stability and performance. The services delivered involve the manufacturing and supply of specialized military equipment. The geographic impact is primarily within the Department of Defense's operational theaters, with the contractor based in Oregon. Workforce implications include jobs supported at U.S. Tactical Supply, Inc. and potentially its subcontractors, contributing to the defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the Grip Pods.
The limited number of bidders (3) in a full and open competition raises questions about market competitiveness and potential price inflation.
The contract is a delivery order, suggesting it might be part of a larger, potentially less transparent, contracting vehicle.
The specific nature and necessity of 'Grip Pods' are not detailed, making it hard to evaluate their criticality and cost-effectiveness.

Positive Signals

Awarded under full and open competition, adhering to principles of broad market solicitation.
Firm fixed-price contract structure shifts cost overrun risk to the contractor.
Contract awarded to a specific entity (U.S. Tactical Supply, Inc.) implies a selection based on some form of evaluation.
The contract supports the Department of the Navy, indicating a direct contribution to military readiness.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on components for military vehicles. The defense industrial base is characterized by specialized suppliers, high R&D costs, and significant government oversight. Comparable spending benchmarks would involve looking at other contracts for weapon system accessories or vehicle upgrades, which often represent substantial investments due to stringent quality and performance requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). U.S. Tactical Supply, Inc. is listed as the contractor, and its size status is not provided. Without specific subcontracting plans or set-aside requirements, the direct impact on the small business ecosystem is unclear, though large defense contracts can sometimes create opportunities for smaller suppliers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense. Accountability measures are typically embedded in the contract terms, including delivery schedules and quality standards. Transparency is facilitated through contract award databases, but detailed operational performance and cost justifications may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Vehicle Components
Weapon System Accessories
Department of Defense Procurement
Naval Supply Contracts
Tactical Equipment Manufacturing

Risk Flags

Limited Competition Indicators
Unclear Value for Money
Lack of Performance Specificity
Potential for Overpriced Components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to U.S. TACTICAL SUPPLY, INC.. GRIP PODS CAMP LEJEUNE, NC

Who is the contractor on this award?

The obligated recipient is U.S. TACTICAL SUPPLY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2007-03-02. End: 2008-09-28.

What is the specific function and technical advantage of the 'Grip Pods' awarded under this contract?

The provided data does not specify the exact function or technical advantages of the 'Grip Pods.' Generally, 'grip pods' in a military context refer to devices that integrate a vertical foregrip with a bipod for firearms, offering enhanced stability and control during firing. Their specific application within armored vehicles, as suggested by the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' NAICS code, could imply a specialized version designed for mounting on or integration with vehicle weapon systems. Without further details, it's difficult to ascertain their unique benefits or why they commanded a contract value of over $10.75 million.

How does the $10.75 million contract value compare to historical spending on similar military equipment by the Department of the Navy?

Comparing this $10.75 million contract value to historical spending requires access to broader defense procurement databases and analysis of similar items. The Department of the Navy procures a vast array of equipment, and the cost of specialized components like weapon system accessories can vary significantly based on technology, quantity, and supplier. This specific contract, being a delivery order under a larger vehicle, might represent a portion of a broader procurement strategy. To provide a meaningful comparison, one would need to identify contracts for comparable items (e.g., advanced bipods, weapon stabilization systems, vehicle-mounted grips) awarded over similar timeframes and assess their unit costs and total values.

What are the key performance indicators (KPIs) and quality assurance measures associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or quality assurance measures for this contract. As a firm fixed-price delivery order, the primary performance expectations would revolve around timely delivery of the specified 'Grip Pods' and adherence to any technical specifications outlined in the contract's statement of work. Quality assurance would likely involve inspection and testing by the Department of the Navy upon receipt. However, without access to the full contract documentation, the granular details of performance metrics, defect reporting, or acceptance criteria remain unknown, making a thorough assessment of quality assurance challenging.

What is the track record of U.S. Tactical Supply, Inc. in fulfilling defense contracts, particularly those involving specialized military equipment?

Information regarding the specific track record of U.S. Tactical Supply, Inc. in fulfilling defense contracts is not provided in the given data. To assess their reliability and past performance, one would need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for details on their history with government contracts. This would include examining past awards, delivery performance, quality ratings, and any instances of contract disputes or terminations. Without this background information, it is difficult to gauge their experience and capability in delivering specialized military equipment effectively.

Given the $10.75 million award, what is the estimated unit cost for the 'Grip Pods', and how does it benchmark against industry standards?

The provided data does not include the quantity of 'Grip Pods' ordered, making it impossible to calculate an estimated unit cost. The total award is $10,752,607.57 over a period of 576 days (approximately 1.5 years). To determine a unit cost, the number of units procured would be essential. Benchmarking against industry standards would then require comparing this calculated unit cost to market prices for similar tactical accessories or components, considering factors like material, manufacturing complexity, and technological features. Without the quantity, any unit cost estimation or benchmarking is purely speculative.

What is the strategic importance of 'Grip Pods' to the U.S. military, and how does this contract align with broader defense modernization efforts?

The strategic importance of 'Grip Pods' likely relates to enhancing the operational effectiveness and survivability of military personnel and equipment, particularly within armored vehicles. Devices that improve weapon handling and stability can contribute to mission success in demanding combat environments. This contract's alignment with broader defense modernization efforts would depend on whether these 'Grip Pods' represent an upgrade to existing systems, incorporate new technologies, or are part of a larger initiative to equip forces with advanced capabilities. The NAICS code suggests a focus on vehicle components, indicating a potential role in upgrading or maintaining the armored vehicle fleet.

Industry Classification

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

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34653 RANCHERO AVE SE, ALBANY, OR, 97322

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,752,608

Exercised Options: $10,752,608

Current Obligation: $10,752,608

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F0259N

IDV Type: FSS

Timeline