DoD awards $2.5M contract for explosives manufacturing to Precision Hose, Inc

Contract Overview

Contract Amount: $2,497,136 ($2.5M)

Contractor: Precision Hose,Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2027-03-08

Contract Duration: 1,071 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: WW97

Place of Performance

Location: STONE MOUNTAIN, GWINNETT County, GEORGIA, 30087

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $2.5 million to PRECISION HOSE,INC. for work described as: WW97 Key points: 1. Contract awarded on a firm fixed-price basis, indicating clear cost expectations. 2. The contract duration of 1071 days suggests a long-term need for these specialized services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The North American Industry Classification System (NAICS) code 325920 points to a specific niche within chemical manufacturing. 5. The contract is a definitive contract, suggesting a clear scope of work. 6. The contract is not set aside for small businesses, indicating a focus on larger or specialized firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the explosives manufactured and their intended use. The fixed-price nature provides some cost certainty. However, the raw dollar amount of $2.5 million over approximately three years does not inherently signal exceptional value without context on the quantity, quality, and criticality of the explosives. Further analysis would require comparing unit costs to similar defense procurements or commercial market rates for comparable explosive materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This process typically allows for the widest possible participation from qualified vendors, which can lead to more competitive pricing and a broader range of technical solutions. The fact that it was competed openly implies that the Department of Defense sought the best value available in the market for these explosives.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of goods and services procured.

Public Impact

The primary beneficiaries are likely components of the Department of the Navy requiring specialized explosives for operational or training purposes. The services delivered involve the manufacturing of explosives, a critical component for various defense applications. The geographic impact is centered around the contractor's facilities in Georgia, with potential downstream effects on military bases or deployed units. Workforce implications may include job creation or retention at Precision Hose, Inc. and its supply chain within Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the type and quantity of explosives makes it difficult to assess true value for money.
Potential for price escalation if raw material costs fluctuate significantly over the contract's duration, despite the fixed-price nature.
Dependence on a single contractor for a critical defense material could pose supply chain risks if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable terms.
Firm fixed-price contract provides cost certainty for the government.
Contract duration indicates a stable, long-term requirement, allowing for efficient production planning.

Sector Analysis

The explosives manufacturing sector is a specialized segment of the broader chemical industry, critical for defense, mining, and construction. Within the defense sector, the demand for explosives is driven by military readiness, training exercises, and the development of new ordnance. The market size for defense-related explosives is substantial, though often classified due to national security implications. This contract fits within the defense industrial base, supporting the Navy's operational capabilities.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb': false field. This suggests that the scope, technical requirements, or scale of the explosives manufacturing needed were likely beyond the typical capabilities or capacity of small businesses, or that larger, specialized firms were deemed more suitable. There is no explicit mention of subcontracting requirements for small businesses within the provided data, which could limit opportunities for smaller players in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract award databases, though specific details regarding the explosives themselves may be restricted due to national security. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Ordnance Procurement
Navy Ammunition and Explosives Programs
Chemical Manufacturing Contracts
Defense Industrial Base Support

Risk Flags

Potential supply chain vulnerabilities for specialized raw materials.
Safety and environmental compliance risks inherent in explosives manufacturing.
Dependence on a single contractor for critical defense materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.5 million to PRECISION HOSE,INC.. WW97

Who is the contractor on this award?

The obligated recipient is PRECISION HOSE,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 $2.5 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-08.

What is the specific type and quantity of explosives being manufactured under this contract?

The provided data does not specify the exact type or quantity of explosives to be manufactured. The NAICS code 325920, 'Explosives Manufacturing,' indicates the general industry category. Without further details, it is impossible to determine the precise nature of the explosives, their intended application (e.g., training, operational, demolition), or the volume required. This information is crucial for a comprehensive assessment of the contract's value, risk, and strategic importance.

How does the awarded amount of $2.5 million compare to historical spending on similar explosives by the Department of the Navy?

Comparing the $2.5 million award to historical spending requires access to detailed historical procurement data for similar explosives by the Department of the Navy. The provided data does not include this historical context. A thorough analysis would involve identifying comparable contracts based on the type of explosives, quantity, and duration, and then benchmarking the current award against those past expenditures. Factors such as inflation, technological advancements, and changes in operational requirements would need to be considered for a meaningful comparison.

What are the key performance indicators (KPIs) and quality assurance measures for this explosives manufacturing contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or quality assurance measures for this contract. However, given the critical nature of explosives, stringent quality control and adherence to military specifications are expected. These would typically be outlined in the contract's statement of work and performance work statement, covering aspects like material purity, manufacturing processes, safety protocols, and timely delivery. The firm fixed-price nature implies that the contractor bears the risk of meeting these quality standards within the agreed budget.

What is the track record of Precision Hose, Inc. in manufacturing defense-related explosives or similar chemical products?

The provided data identifies Precision Hose, Inc. as the contractor but does not offer details on their specific track record in manufacturing defense-related explosives or similar chemical products. A comprehensive assessment would require researching the company's past performance on government contracts, their certifications, safety records, and any history of quality issues or successful deliveries in this specialized field. Their ability to meet the stringent requirements for explosives manufacturing is a key factor in evaluating the risk associated with this award.

Are there any identified risks associated with the supply chain or production capabilities of Precision Hose, Inc. for this contract?

The provided data does not explicitly identify any risks associated with Precision Hose, Inc.'s supply chain or production capabilities. However, the manufacturing of explosives inherently involves risks related to hazardous materials, specialized equipment, and regulatory compliance. Potential risks could include raw material availability, transportation of volatile substances, and adherence to strict safety and environmental regulations. A thorough risk assessment would necessitate examining the contractor's operational history, financial stability, and contingency plans for potential disruptions.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0010423RK051

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 CENTRE PARK CT, STONE MOUNTAIN, GA, 30087

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,497,136

Exercised Options: $2,497,136

Current Obligation: $2,497,136

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline