DoD awards $35.6M to Triverus LLC for Miscellaneous Machinery Manufacturing, raising competition concerns
Contract Overview
Contract Amount: $35,647,560 ($35.6M)
Contractor: Triverus LLC
Awarding Agency: Department of Defense
Start Date: 2018-09-28
End Date: 2024-01-12
Contract Duration: 1,932 days
Daily Burn Rate: $18.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MCRRS
Place of Performance
Location: PALMER, MATANUSKA SUSITNA County, ALASKA, 99645
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $35.6 million to TRIVERUS LLC for work described as: MCRRS Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition raises questions about price discovery. 3. Potential for higher costs due to sole-source nature. 4. Sector: Manufacturing - General Purpose Machinery.
Value Assessment
Rating: questionable
The contract value of $35.6M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for miscellaneous general-purpose machinery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces for better pricing and terms.
Taxpayer Impact: The absence of competition may lead to taxpayers paying a premium for the goods or services procured under this contract.
Public Impact
Taxpayers may be overpaying due to the sole-source award. Limited visibility into the justification for sole-source procurement. Potential impact on the broader market for general-purpose machinery manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in justification
- Long contract duration
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
This contract falls under the 'All Other Miscellaneous General Purpose Machinery Manufacturing' sector. Spending benchmarks for this specific niche are hard to establish without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as the prime contractor is Triverus LLC and the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering value and that the pricing remains fair throughout the contract's lifecycle. Documentation justifying the sole-source decision is critical.
Related Government Programs
- All Other Miscellaneous General Purpose Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for inflated pricing due to lack of competition.
- Limited transparency regarding the necessity of sole-sourcing.
- Long contract duration (1932 days) increases long-term risk.
- No indication of small business participation.
Tags
all-other-miscellaneous-general-purpose-, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.6 million to TRIVERUS LLC. MCRRS
Who is the contractor on this award?
The obligated recipient is TRIVERUS 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 $35.6 million.
What is the period of performance?
Start: 2018-09-28. End: 2024-01-12.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research report conducted to confirm the absence of viable alternatives?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. However, the specific rationale and any supporting market research are not detailed. A thorough review of the contract file would be necessary to understand the justification and confirm if alternatives were indeed non-existent or impractical.
How does the awarded price of $35.6 million compare to industry benchmarks for similar miscellaneous general-purpose machinery, considering the contract's duration and scope?
Without specific details on the machinery procured and comparable market data, a direct price comparison is challenging. The lack of competition makes it difficult to ascertain if the $35.6 million represents a fair market price. Benchmarking would require detailed specifications and analysis of similar sole-source or competitive contracts in the manufacturing sector.
What mechanisms are in place to ensure effective performance and accountability from Triverus LLC, given the sole-source nature of this significant contract?
Accountability for sole-source contracts typically relies on strong government oversight, including performance monitoring, regular progress reports, and adherence to contract terms. The firm fixed price structure provides some cost certainty. However, the government must actively manage the contract to ensure deliverables meet requirements and that the contractor maintains high performance standards.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002418R4449
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1960 S EKLUTNA ST, PALMER, AK, 99645
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,210,680
Exercised Options: $48,780,700
Current Obligation: $35,647,560
Actual Outlays: $6,463,715
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-28
Current End Date: 2024-01-12
Potential End Date: 2024-01-12 00:00:00
Last Modified: 2023-09-29
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