DoD Awards $31.2M Vaneaxial Fan Contract to Hansome Energy Systems Inc
Contract Overview
Contract Amount: $31,250,522 ($31.3M)
Contractor: Hansome Energy Systems Inc
Awarding Agency: Department of Defense
Start Date: 2023-08-25
End Date: 2027-09-30
Contract Duration: 1,497 days
Daily Burn Rate: $20.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VANEAXIAL FAN
Place of Performance
Location: LINDEN, UNION County, NEW JERSEY, 07036
Plain-Language Summary
Department of Defense obligated $31.3 million to HANSOME ENERGY SYSTEMS INC for work described as: VANEAXIAL FAN Key points: 1. Contract awarded for Vaneaxial Fans, a critical component in air movement systems. 2. Limited competition due to 'NOT COMPETED' status raises questions about price discovery. 3. Potential risk of overpayment exists without competitive bidding. 4. Manufacturing sector for fans and blowers is mature, suggesting available alternatives.
Value Assessment
Rating: questionable
The contract value of $31.2M for 1 unit over approximately 5 years appears high without competitive benchmarking. The 'NOT COMPETED' status prevents a direct comparison to similar recent contracts.
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 potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these fans.
Public Impact
Ensures operational readiness for Department of the Navy by providing essential air movement equipment. Supports a specific manufacturer, potentially impacting market dynamics for fan production. Long-term contract duration suggests a sustained need for this specific equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Addresses a specific defense need
- Firm fixed price contract limits cost escalation
Sector Analysis
The Industrial and Commercial Fan and Blower and Air Purification Equipment Manufacturing sector (NAICS 333413) is a well-established industry. Spending benchmarks for similar specialized fans can vary widely based on specifications and volume, but lack of competition here obscures typical pricing.
Small Business Impact
This contract was awarded to Hansome Energy Systems Inc., a company that does not appear to be a small business based on the contract value and lack of specific designation. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for sole-source procurement was valid and that taxpayer funds were used efficiently.
Related Government Programs
- Industrial and Commercial Fan and Blower and Air Purification Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Sole-source award limits transparency and accountability.
- Potential for inefficient use of taxpayer funds.
- Long contract duration without competitive review increases risk over time.
Tags
industrial-and-commercial-fan-and-blower, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.3 million to HANSOME ENERGY SYSTEMS INC. VANEAXIAL FAN
Who is the contractor on this award?
The obligated recipient is HANSOME ENERGY SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $31.3 million.
What is the period of performance?
Start: 2023-08-25. End: 2027-09-30.
What was the specific justification for not competing this contract, and does it align with federal procurement regulations for sole-source awards?
The justification for not competing this contract is not provided in the data. Federal regulations allow for sole-source procurement under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review would be needed to confirm the validity of the justification and ensure compliance.
What is the estimated cost savings if this contract had been awarded through a competitive bidding process?
Without competitive bidding, it is impossible to accurately estimate cost savings. However, historical data across various industries suggests that competitive procurements can often yield savings of 10-30% compared to sole-source awards. The actual savings would depend on market conditions and the number of bidders.
Are there alternative fan technologies or manufacturers that could meet the Department of the Navy's requirements, and if so, why were they not considered?
The provided data does not specify alternative technologies or manufacturers. The 'NOT COMPETED' status implies that either only one source was identified as capable, or a conscious decision was made not to solicit other bids. Further investigation into the technical requirements and market research conducted would be necessary to answer this.
Industry Classification
NAICS: Manufacturing › Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing › Industrial and Commercial Fan and Blower and Air Purification Equipment Manufacturing
Product/Service Code: REFRIG, AIR CONDIT/CIRCULAT EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0010423RND11
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 365 DALZIEL RD, LINDEN, NJ, 07036
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,250,522
Exercised Options: $31,250,522
Current Obligation: $31,250,522
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-08-25
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-04-22
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