DoD's $39.7M RAM GMRP contract with RAM-SYSTEM GMBH lacks competition, raising cost concerns
Contract Overview
Contract Amount: $39,706,930 ($39.7M)
Contractor: Ram-System Gmbh
Awarding Agency: Department of Defense
Start Date: 2015-12-17
End Date: 2023-12-30
Contract Duration: 2,935 days
Daily Burn Rate: $13.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF FY16-FY23 RAM GMRP
Plain-Language Summary
Department of Defense obligated $39.7 million to RAM-SYSTEM GMBH for work described as: IGF::OT::IGF FY16-FY23 RAM GMRP Key points: 1. Significant spending of $39.7M over 8 years. 2. Sole-source award to RAM-SYSTEM GMBH limits competitive pricing. 3. Potential for inflated costs due to lack of competition. 4. Contract falls under Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: questionable
The contract's value of $39.7M over 8 years is substantial. Without competitive bidding, it's difficult to assess if the pricing is fair compared to similar government contracts for guided missile components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely results in higher prices than could be achieved through a competitive process, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying for critical missile components due to the sole-source award. The Department of Defense relies on a single vendor, creating potential supply chain risks. Lack of transparency in pricing due to the absence of competitive bids.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration without re-competition
Positive Signals
- Definitive contract provides stability for a critical need
Sector Analysis
This contract is within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area. Benchmarks are difficult to establish due to the proprietary nature of such components and the sole-source award.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely excluded them from participation.
Oversight & Accountability
The sole-source nature of this contract warrants further oversight to ensure fair pricing and prevent potential waste, fraud, and abuse. Regular reviews of cost justification are essential.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Sole-source award justification
- Long-term reliance on a single vendor
- Limited transparency in pricing
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.7 million to RAM-SYSTEM GMBH. IGF::OT::IGF FY16-FY23 RAM GMRP
Who is the contractor on this award?
The obligated recipient is RAM-SYSTEM GMBH.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $39.7 million.
What is the period of performance?
Start: 2015-12-17. End: 2023-12-30.
What was the justification for awarding this contract on a sole-source basis, and was a thorough market analysis conducted to confirm no other capable vendors existed?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. A comprehensive justification and market analysis would be required by federal acquisition regulations to validate this determination. Without access to the contract file, it's impossible to confirm the specific reasons or the extent of the market research performed.
How does the unit cost of the components procured under this contract compare to similar, publicly available market prices or components procured through competitive means by other agencies?
Direct comparison is challenging due to the sole-source nature and the specialized 'Guided Missile and Space Vehicle Manufacturing' components. Publicly available market prices for such niche items are scarce. A detailed cost analysis by the agency, comparing the contractor's proposed costs against independent government estimates or historical data for similar, albeit not identical, items, would be necessary to assess value.
What are the potential risks associated with relying on a single vendor for critical missile components over an extended period, particularly concerning supply chain disruptions or technological obsol
Relying on a single vendor creates significant supply chain vulnerability. Any disruption at RAM-SYSTEM GMBH, whether due to geopolitical issues, financial instability, or production problems, could halt the delivery of critical components. Furthermore, without competitive pressure, there's less incentive for the vendor to innovate or upgrade technology, potentially leading to obsolescence.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002415R5421
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: DAIMLERSTR. 11, OTTOBRUNN
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $39,706,930
Exercised Options: $39,706,930
Current Obligation: $39,706,930
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-12-17
Current End Date: 2023-12-30
Potential End Date: 2023-12-30 00:00:00
Last Modified: 2023-06-15
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