DoD's Navy awards $24.4M for RAM GMRP Block 2B production, facing limited competition
Contract Overview
Contract Amount: $24,421,510 ($24.4M)
Contractor: Ram-System Gmbh
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2023-11-30
Contract Duration: 912 days
Daily Burn Rate: $26.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RAMSYS RAM GUIDED MISSILE ROUND PACK(GMRP), BLOCK 2B(BLK2B) TRANSITION TO PRODUCTION (T2P)
Plain-Language Summary
Department of Defense obligated $24.4 million to RAM-SYSTEM GMBH for work described as: RAMSYS RAM GUIDED MISSILE ROUND PACK(GMRP), BLOCK 2B(BLK2B) TRANSITION TO PRODUCTION (T2P) Key points: 1. Significant investment in advanced missile technology. 2. Sole-source nature raises concerns about price discovery. 3. Potential for cost overruns due to limited competition. 4. Focus on defense sector, specifically naval weaponry.
Value Assessment
Rating: questionable
The contract value of $24.4M for GMRP Block 2B is difficult to assess without comparable data. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential pricing inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded under a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition could result in inflated prices, impacting the efficient use of taxpayer funds for this critical defense system.
Public Impact
Ensures continued availability of advanced missile defense capabilities for the Navy. Supports the defense industrial base and specialized manufacturing. Potential for future upgrades and sustainment contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
Positive Signals
- Acquisition of critical defense technology
- Supports naval readiness
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense industrial production. Benchmarks for similar sole-source missile production contracts are not readily available but typically involve high unit costs due to R&D and specialized manufacturing.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses for this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Regular performance reviews and cost audits are crucial.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Lack of transparency in price justification.
- Potential for cost overruns during production.
- Dependency on a single supplier for critical defense capability.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.4 million to RAM-SYSTEM GMBH. RAMSYS RAM GUIDED MISSILE ROUND PACK(GMRP), BLOCK 2B(BLK2B) TRANSITION TO PRODUCTION (T2P)
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 $24.4 million.
What is the period of performance?
Start: 2021-06-01. End: 2023-11-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single vendor. To ensure fair pricing, the Department of Defense often employs techniques like cost realism analysis, benchmarking against historical data, and negotiation with the contractor. However, without transparency into these specific actions for this contract, the effectiveness of price discovery remains a concern.
What are the long-term cost implications of relying on a sole-source provider for this critical missile system?
Long-term reliance on a sole-source provider can lead to sustained higher costs due to the absence of competitive pressure to innovate or reduce prices. The government may face increased sustainment, upgrade, and future production costs. This can also create a dependency that limits future strategic sourcing options and potentially impacts the overall defense budget.
How does the transition to production (T2P) phase impact the overall value and risk profile of this contract?
The transition to production phase signifies a shift from development to manufacturing. While it aims to bring a proven design to scale, it also introduces risks related to manufacturing efficiency, supply chain stability, and quality control. The value is realized through fielding the system, but the risk lies in potential production delays, cost overruns, and ensuring consistent quality at higher volumes.
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
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: $24,421,510
Exercised Options: $24,421,510
Current Obligation: $24,421,510
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002418G5440
IDV Type: BOA
Timeline
Start Date: 2021-06-01
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2025-05-14
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