DoD awards $20.6M contract for valves and vents to Vacco Industries, with no competition

Contract Overview

Contract Amount: $20,607,767 ($20.6M)

Contractor: Vacco Industries

Awarding Agency: Department of Defense

Start Date: 2023-09-11

End Date: 2027-09-13

Contract Duration: 1,463 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VALVE,VENT

Place of Performance

Location: SOUTH EL MONTE, LOS ANGELES County, CALIFORNIA, 91733

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to VACCO INDUSTRIES for work described as: VALVE,VENT Key points: 1. Contract awarded to a single vendor, raising questions about price discovery. 2. The contract is for essential components, indicating a critical need. 3. No small business participation noted in this award. 4. The sector is manufacturing, specifically metal valve and pipe fittings.

Value Assessment

Rating: questionable

The contract value of $20.6M for valves and vents is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This 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 valves and vents.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Essential military hardware components are being procured. The long contract duration suggests a sustained need for these parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business involvement

Positive Signals

Definitive contract
Firm fixed price

Sector Analysis

This contract falls within the Other Metal Valve and Pipe Fitting Manufacturing sector. Spending in this niche manufacturing area can vary, but competitive procurement is key to ensuring value for money.

Small Business Impact

There is no indication of small business participation in this contract. Efforts to include small businesses in sole-source awards are often limited, potentially missing opportunities for economic inclusion.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable, given the lack of competitive benchmarking.

Related Government Programs

Other Metal Valve and Pipe Fitting Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpayment
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to VACCO INDUSTRIES. VALVE,VENT

Who is the contractor on this award?

The obligated recipient is VACCO INDUSTRIES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2023-09-11. End: 2027-09-13.

What is the justification for the sole-source award of this contract?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details, it's impossible to confirm the validity of this justification and whether it truly prevented competitive bidding.

How does the $20.6M price compare to industry benchmarks for similar valve and vent contracts?

Without access to competitive bids or market research data, a direct comparison is challenging. However, the absence of competition suggests a risk that the price may not be as favorable as it could be if multiple suppliers had vied for the contract.

What is the potential impact on military readiness if these valves and vents are not procured efficiently?

Efficient procurement ensures that critical components are available when needed, supporting operational readiness. Delays or cost overruns due to non-competitive awards could potentially impact program timelines and budget allocation for other defense needs.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Metal Valve and Pipe Fitting Manufacturing

Product/Service Code: PIPE, TUBING, HOSE, AND FITTINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0010423RND34

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Esco Technologies Inc.

Address: 10350 VACCO ST, SOUTH EL MONTE, CA, 91733

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,607,767

Exercised Options: $20,607,767

Current Obligation: $20,607,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline