DoD Awards $11M for Lighting Kits, High Unit Cost Raises Questions
Contract Overview
Contract Amount: $11,005,565 ($11.0M)
Contractor: Ibis TEK, LLC
Awarding Agency: Department of Defense
Start Date: 2007-11-15
End Date: 2008-04-30
Contract Duration: 167 days
Daily Burn Rate: $65.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 360 DEGREES LIGHTING KITS
Place of Performance
Location: BUTLER, BUTLER County, PENNSYLVANIA, 16002
Plain-Language Summary
Department of Defense obligated $11.0 million to IBIS TEK, LLC for work described as: 360 DEGREES LIGHTING KITS Key points: 1. Significant contract value for specialized lighting kits. 2. Competition was full and open, suggesting market availability. 3. High per-unit cost warrants further investigation. 4. Sector involves manufacturing of plastics pipe and fittings, potentially for naval applications.
Value Assessment
Rating: questionable
The average unit price of $10,086 ($11,005,565 / 1090 units) appears high compared to similar industrial lighting solutions. Further benchmarking against comparable government or commercial contracts is needed.
Cost Per Unit: $10,086
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors could bid. However, the high unit price suggests that either the product is highly specialized or the pricing strategy needs scrutiny.
Taxpayer Impact: Taxpayers may be overpaying due to the elevated per-unit cost, despite competitive bidding.
Public Impact
Potential for inflated costs on specialized equipment. Need for better price validation in competitive solicitations. Impact on readiness if essential equipment is procured inefficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost
- Lack of detailed product specification for cost analysis
- Short contract duration may limit long-term price negotiation
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type limits cost overrun risk
Sector Analysis
The contract falls under the Plastics Pipe and Pipe Fitting Manufacturing sector, with a specific award for lighting kits. Benchmarking against similar manufacturing contracts is difficult without more product detail, but the unit price is notably high for standard industrial components.
Small Business Impact
The data does not indicate if small businesses participated in this contract, either as prime contractors or subcontractors. Further analysis is needed to assess small business inclusion.
Oversight & Accountability
The award was a delivery order under a larger contract, suggesting some level of pre-negotiation and oversight. However, the high unit price warrants a review of the initial contract's pricing structure and the justification for this specific order's cost.
Related Government Programs
- Plastics Pipe and Pipe Fitting Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High unit cost
- Potential lack of market research on pricing
- Limited contract duration may not allow for price optimization
- Insufficient detail on product specifications for cost validation
Tags
plastics-pipe-and-pipe-fitting-manufactu, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to IBIS TEK, LLC. 360 DEGREES LIGHTING KITS
Who is the contractor on this award?
The obligated recipient is IBIS TEK, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2007-11-15. End: 2008-04-30.
What specific features or requirements justify the high per-unit cost of these lighting kits?
The high per-unit cost of $10,086 suggests these lighting kits may possess highly specialized features, such as extreme durability, specific environmental resistance (e.g., for naval use), advanced functionalities, or integration with other complex systems. Without detailed specifications, it's difficult to ascertain the exact drivers. Further investigation into the product's technical data sheet and performance requirements is necessary to validate the pricing.
Given the full and open competition, why did the winning bid result in such a high unit price?
Despite full and open competition, the high unit price could stem from several factors. The market for these specific, potentially niche, lighting kits might be limited, leading to fewer competitive bids than anticipated. Alternatively, the government's requirements might have been so stringent that only a few vendors could meet them, reducing competitive pressure. The firm fixed price nature, while protecting against cost overruns, doesn't inherently guarantee the lowest possible price.
How does this contract's unit cost compare to similar lighting solutions procured by the Department of Defense or other federal agencies?
Benchmarking this $10,086 per-unit cost against similar lighting solutions is crucial. Standard industrial or even specialized LED lighting systems typically range from a few hundred to a couple of thousand dollars per unit. The significant deviation suggests these kits are either exceptionally advanced, designed for unique harsh environments, or potentially overpriced. A comparative analysis with other DoD procurements for similar functional equipment is essential for validation.
Industry Classification
NAICS: Manufacturing › Plastics Product Manufacturing › Plastics Pipe and Pipe Fitting Manufacturing
Product/Service Code: LIGHTING FIXTURES, LAMPS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 912 PITTSBURGH ROAD, BUTLER, PA, 16002
Business Categories: Category Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $11,005,565
Exercised Options: $11,005,565
Current Obligation: $11,005,565
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07F5505R
IDV Type: FSS
Timeline
Start Date: 2007-11-15
Current End Date: 2008-04-30
Potential End Date: 2008-04-30 00:00:00
Last Modified: 2021-12-07
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