DoD Spends $14.6M on Paxman Valenta Engines via Sole Source Contract
Contract Overview
Contract Amount: $14,592,996 ($14.6M)
Contractor: Everllence USA Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-25
End Date: 2012-01-31
Contract Duration: 1,223 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PAXMAN VALENTA ENGINES
Plain-Language Summary
Department of Defense obligated $14.6 million to EVERLLENCE USA INC. for work described as: PAXMAN VALENTA ENGINES Key points: 1. Significant expenditure on specialized engine equipment. 2. Lack of competition raises concerns about price discovery. 3. Long contract duration suggests potential for cost overruns. 4. Limited small business participation is noted.
Value Assessment
Rating: questionable
The contract value of $14.6 million for engine equipment is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar engine procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Reliance on a single vendor could create supply chain vulnerabilities. Limited transparency in the procurement process hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Specific equipment procured
- Firm fixed price contract type
Sector Analysis
The procurement falls under 'Other Engine Equipment Manufacturing,' a niche sector. Benchmarking spending in this specific area is challenging without more granular data on comparable engine systems.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that opportunities for small businesses in this specialized engine equipment sector may be limited or were not pursued.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the government received fair value. Accountability for the procurement decision and pricing is crucial.
Related Government Programs
- Other Engine Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- No small business participation
Tags
other-engine-equipment-manufacturing, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to EVERLLENCE USA INC.. PAXMAN VALENTA ENGINES
Who is the contractor on this award?
The obligated recipient is EVERLLENCE USA INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2008-09-25. End: 2012-01-31.
What was the justification for the sole-source award, and was it adequately documented?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Adequate documentation would include detailed market research, technical assessments, and legal justifications demonstrating why competition was not feasible or advantageous.
How does the per-unit cost of these engines compare to industry benchmarks, if available?
Without specific unit details or access to industry benchmarks for 'Paxman Valenta Engines,' a direct comparison is difficult. However, given the sole-source nature, it is reasonable to question if the price achieved was optimal compared to what a competitive market might yield.
What is the long-term strategic value of procuring these specific engines, and are there alternatives?
The long-term strategic value depends on the operational requirements of the Department of Defense. If these engines are critical for specific platforms with no viable alternatives, the sole-source procurement might be justified despite the cost implications. However, continuous evaluation of alternatives is essential.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Other Engine Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1600 BRITTMOORE RD, HOUSTON, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $14,592,996
Exercised Options: $14,592,996
Current Obligation: $14,592,996
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-25
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2011-11-01
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