Dod's $23.5M Test Article Vehicle Transfer System Contract Awarded to Cargotec USA
Contract Overview
Contract Amount: $23,539,019 ($23.5M)
Contractor: Cargotec USA
Awarding Agency: Department of Defense
Start Date: 2008-01-31
End Date: 2011-03-18
Contract Duration: 1,142 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TEST ARTICLE VEHICLE TRANSFER SYSTEM (TAVTS) DETAIL DESIGN, FABRICATION, INSTALLATION, AND DOCUMENTATION
Plain-Language Summary
Department of Defense obligated $23.5 million to CARGOTEC USA for work described as: TEST ARTICLE VEHICLE TRANSFER SYSTEM (TAVTS) DETAIL DESIGN, FABRICATION, INSTALLATION, AND DOCUMENTATION Key points: 1. Contract awarded for a complex fabrication and installation project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is substantial, indicating a significant investment by the Navy. 4. The project falls under the 'Fabricated Structural Metal Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $23.5M for a custom system seems within a reasonable range for specialized fabrication and installation. Benchmarking against similar complex structural metal projects would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified vendors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: Taxpayer funds are being utilized for a critical defense system, with the competitive process aiming to maximize value for money.
Public Impact
Enhances naval capabilities through advanced vehicle transfer technology. Supports military logistics and operational readiness. Represents a significant investment in defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex fabrication projects.
- Schedule delays are common in multi-year installation contracts.
- Integration challenges with existing naval systems.
Positive Signals
- Utilized full and open competition.
- Clear contract duration and award type.
- Specific NAICS code provides sector clarity.
Sector Analysis
The contract falls under Fabricated Structural Metal Manufacturing (NAICS 332312), a sector involving the production of metal components for various structures. Spending in this sector for defense applications can vary widely based on project complexity and material costs.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation or subcontracting goals. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Navy managed this award, implying standard oversight procedures for defense contracts. The firm fixed-price nature suggests a focus on cost control by the contractor.
Related Government Programs
- Fabricated Structural Metal Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded under full and open competition.
- Firm fixed-price contract type.
- Specific project details and duration provided.
- Clear awarding agency and sector identification.
Tags
fabricated-structural-metal-manufacturin, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to CARGOTEC USA. TEST ARTICLE VEHICLE TRANSFER SYSTEM (TAVTS) DETAIL DESIGN, FABRICATION, INSTALLATION, AND DOCUMENTATION
Who is the contractor on this award?
The obligated recipient is CARGOTEC USA.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2008-01-31. End: 2011-03-18.
What was the specific performance criteria that CARGOTEC USA had to meet for the TEST ARTICLE VEHICLE TRANSFER SYSTEM?
The article does not specify the exact performance criteria for the TEST ARTICLE VEHICLE TRANSFER SYSTEM. However, given the nature of the contract (design, fabrication, installation, documentation), performance likely includes meeting technical specifications for functionality, durability, safety standards, and successful integration into the intended naval platform. The firm fixed-price contract suggests that meeting these defined performance metrics was crucial for the contractor to achieve full payment.
What are the primary risks associated with the fabrication and installation of such a specialized system for the Department of Defense?
Primary risks include technical challenges in designing and fabricating a novel system, potential cost overruns due to unforeseen material or labor issues, and schedule delays impacting operational readiness. Integration with existing military infrastructure and ensuring cybersecurity for the system's documentation and control components also pose significant risks. Furthermore, the long-term maintenance and sustainment of specialized equipment can be a challenge.
How does the firm fixed-price contract structure impact the government's risk and the contractor's incentive for cost efficiency?
A firm fixed-price contract places the majority of the cost risk on the contractor. This incentivizes CARGOTEC USA to manage costs effectively and complete the project within budget to maximize profit. For the government, this structure provides cost certainty, reducing the risk of unexpected expenditure increases. However, it may also lead contractors to cut corners on quality if not adequately monitored, necessitating robust oversight.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002407R2214
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cargotec OYJ (UEI: 459906959)
Address: 14 RIDGEDALE AVE STE 205, CEDAR KNOLLS, NJ, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,883,409
Exercised Options: $23,739,509
Current Obligation: $23,539,019
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-01-31
Current End Date: 2011-03-18
Potential End Date: 2011-03-18 00:00:00
Last Modified: 2010-03-18
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