DK MACHINE INC awarded $5.99M contract for valves and fittings by Department of Defense
Contract Overview
Contract Amount: $5,992,500 ($6.0M)
Contractor: DK Machine Inc
Awarding Agency: Department of Defense
Start Date: 2025-08-26
End Date: 2027-08-26
Contract Duration: 730 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BALL
Place of Performance
Location: FORT EDWARD, WASHINGTON County, NEW YORK, 12828
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $6.0 million to DK MACHINE INC for work described as: BALL Key points: 1. Contract value appears reasonable given the 2-year duration and firm-fixed-price structure. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The number of bids (5) indicates moderate interest, potentially impacting price competitiveness. 4. Contract performance will be crucial for ensuring reliable supply chain operations for the Navy. 5. This contract falls within the 'Other Metal Valve and Pipe Fitting Manufacturing' sector, a niche but essential industrial category.
Value Assessment
Rating: good
The contract value of $5.99M over two years, averaging $2.99M annually, seems aligned with typical procurements for specialized industrial components. Benchmarking against similar contracts for valves and pipe fittings would provide a more precise value-for-money assessment. The firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were initially excluded. With five bidders participating, the competition level was moderate. This suggests that while multiple companies were interested, the specific requirements or pre-qualification criteria may have narrowed the field, potentially influencing the final price.
Taxpayer Impact: A moderate level of competition can lead to competitive pricing, but the exclusion of certain sources warrants scrutiny to ensure taxpayers received the best possible value.
Public Impact
The Department of the Navy benefits from a reliable source of essential valves and pipe fittings. This contract supports the manufacturing sector, specifically in metal valve and pipe fitting production. The contract's geographic impact is centered in New York, where DK MACHINE INC is located. Workforce implications include potential job retention or creation within DK MACHINE INC and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to source exclusion.
- Dependence on a single contractor for critical components.
- Risk of price escalation if market conditions change significantly during the contract term.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Defined contract duration (2 years) provides budget certainty.
- Moderate number of bidders suggests some level of market interest.
Sector Analysis
This contract operates within the industrial manufacturing sector, specifically focusing on the production of metal valves and pipe fittings (NAICS code 332919). This is a critical sub-sector that supports various industrial operations, including defense, energy, and infrastructure. The market for such components is often characterized by specialized manufacturers with stringent quality control requirements. Comparable spending benchmarks would involve analyzing other government or commercial contracts for similar specialized industrial hardware.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses may exist within DK MACHINE INC's operations, but this is not explicitly detailed in the provided information. The impact on the broader small business ecosystem is likely minimal unless DK MACHINE INC actively engages small businesses in its supply chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring DK MACHINE INC to deliver specified goods within the agreed-upon price and timeframe. Transparency is facilitated through contract award databases, though detailed performance metrics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Industrial Base Contracts
- Naval Supply Chain Management
- Industrial Manufacturing Procurements
- Metal Valve and Pipe Fitting Manufacturing
Risk Flags
- Potential for limited competition due to source exclusion.
- Dependence on a single contractor for critical components.
- Need for robust quality assurance to ensure component reliability.
Tags
defense, department-of-defense, department-of-the-navy, definitive-contract, firm-fixed-price, new-york, industrial-manufacturing, metal-valve-and-pipe-fitting-manufacturing, full-and-open-competition-after-exclusion-of-sources, moderate-competition, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.0 million to DK MACHINE INC. BALL
Who is the contractor on this award?
The obligated recipient is DK MACHINE 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 $6.0 million.
What is the period of performance?
Start: 2025-08-26. End: 2027-08-26.
What is the track record of DK MACHINE INC with federal contracts, particularly with the Department of Defense?
Information regarding DK MACHINE INC's specific track record with federal contracts, especially with the Department of Defense, is not detailed in the provided data snippet. A comprehensive analysis would require querying federal procurement databases (like SAM.gov or FPDS) for past awards, performance reviews, and any history of contract modifications or disputes. Understanding their past performance, including on-time delivery, quality adherence, and responsiveness to issues, is crucial for assessing the risk associated with this new award. Without this historical data, it's difficult to definitively gauge their reliability and capability beyond the current award.
How does the awarded price of $5.99M compare to market rates for similar valves and pipe fittings?
Benchmarking the $5.99M contract value against market rates for similar valves and pipe fittings requires detailed specifications of the components being procured. Factors such as material, size, pressure rating, and specific certifications (e.g., military specifications) significantly influence pricing. A preliminary assessment suggests the annual value of approximately $2.99M is within a reasonable range for specialized industrial components, especially given the firm-fixed-price nature which includes contractor risk. However, a definitive comparison would necessitate accessing market research reports, commercial price lists from competitors, or data from previous, comparable government procurements for identical or highly similar items.
What are the specific risks associated with a 'Full and Open Competition After Exclusion of Sources' award type?
The 'Full and Open Competition After Exclusion of Sources' award type presents a nuanced risk profile. While it aims to achieve broad competition, the initial exclusion of certain sources suggests a potential limitation on the number of viable bidders. This could arise from specific technical requirements, past performance issues with certain vendors, or strategic sourcing decisions. The risk is that by excluding potential competitors, the government might not achieve the most competitive pricing possible, potentially leading to a higher cost for taxpayers. Additionally, if the excluded sources were capable and competitive, their exclusion could be perceived as a missed opportunity for optimal value. Thorough documentation justifying the exclusion is critical to mitigate this risk.
What is the expected impact of this contract on the Department of the Navy's operational readiness?
This contract is expected to positively impact the Department of the Navy's operational readiness by ensuring a consistent and reliable supply of essential valves and pipe fittings. These components are critical for maintaining various naval systems, including propulsion, hydraulics, and plumbing across ships, submarines, and shore facilities. A stable supply chain, facilitated by this firm-fixed-price contract with a defined duration, reduces the risk of operational disruptions due to equipment failure or unavailability of replacement parts. The successful delivery of high-quality components by DK MACHINE INC will directly contribute to the upkeep and functionality of naval assets, thereby supporting overall mission effectiveness.
How does the $8.2M bid reason value (br) relate to the awarded amount?
The 'bid reason value' (br) of $8.2M represents the government's estimate or expectation of the contract's value prior to or during the bidding process. The awarded amount of $5.99M is significantly lower than this estimate. This substantial difference ($2.21M or approximately 27% lower) suggests that the competition was effective in driving down prices below the government's initial valuation. It indicates potentially strong price discovery, where bidders offered competitive rates, or that the government's initial estimate may have been conservative. This outcome is generally favorable for the government, implying good value for the taxpayer.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Metal Valve and Pipe Fitting Manufacturing
Product/Service Code: VALVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0010425RFE18
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 48 SULLIVAN PKWY, FORT EDWARD, NY, 12828
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,992,500
Exercised Options: $5,992,500
Current Obligation: $5,992,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2025-08-26
Current End Date: 2027-08-26
Potential End Date: 2027-08-26 00:00:00
Last Modified: 2025-12-15
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