Navy awards $2.04M contract for pump units, highlighting potential value concerns due to sole-source nature

Contract Overview

Contract Amount: $2,043,000 ($2.0M)

Contractor: Carver Pump Company

Awarding Agency: Department of Defense

Start Date: 2026-01-07

End Date: 2027-07-21

Contract Duration: 560 days

Daily Burn Rate: $3.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PUMP UNIT,CENTRIFUG

Place of Performance

Location: MUSCATINE, MUSCATINE County, IOWA, 52761

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to CARVER PUMP COMPANY for work described as: PUMP UNIT,CENTRIFUG Key points: 1. The contract value of $2.04 million for pump units appears significant for a single award. 2. The sole-source award raises questions about potential overpayment and lack of competitive pressure. 3. The fixed-price contract type shifts risk to the contractor, which is generally positive. 4. The duration of the contract (over 1.5 years) suggests a need for sustained supply. 5. The specific product code (333914) indicates a focus on specialized pumping equipment manufacturing. 6. The absence of small business set-aside suggests larger prime contractors are likely involved.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the pump units' specifications and quantity. However, the $2.04 million award for what appears to be a single type of equipment warrants scrutiny. Given the sole-source nature, it is difficult to assess if the pricing reflects competitive market rates. Without comparison to similar sole-source procurements or open market prices for comparable equipment, it's hard to definitively state if this represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Carver Pump Company, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means the government did not benefit from the price discovery and potential cost savings that arise from a competitive environment. This method is usually reserved for situations where only one source can fulfill the requirement, such as unique capabilities or urgent needs.

Taxpayer Impact: Taxpayers may be paying a premium for this equipment due to the absence of competitive bidding. The government missed an opportunity to leverage competition to secure a lower price.

Public Impact

The Department of the Navy is the primary beneficiary, securing essential pumping equipment. The contract supports the operational readiness and maintenance needs of naval assets. The geographic impact is likely concentrated around naval bases or facilities where these pumps are deployed. The contract supports the manufacturing workforce within the pump industry, specifically at Carver Pump Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of transparency in the justification for sole-sourcing could hide inefficiencies.
Dependence on a single supplier for critical equipment can create supply chain risks.
The specific application and criticality of these pumps are not detailed, making risk assessment difficult.

Positive Signals

Fixed-price contract type effectively transfers cost overrun risk to the contractor.
Carver Pump Company is a known entity, suggesting some level of established performance.
The contract duration provides a predictable supply chain for the Navy over the performance period.

Sector Analysis

This contract falls within the 'Measuring, Dispensing, and Other Pumping Equipment Manufacturing' sector (NAICS 333914). This industry encompasses a wide range of fluid handling equipment. Federal spending in this sector often supports military operations, infrastructure maintenance, and research and development. Comparable spending benchmarks are difficult to establish without knowing the exact specifications and volume of the pump units procured. However, the $2.04 million award suggests a significant procurement, potentially for specialized or high-capacity units.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). This suggests that the procurement was either awarded to a large business or that the nature of the requirement did not lend itself to a small business set-aside. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear, though typically larger contracts offer more subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award would be a key area for oversight. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse, or through specific audits initiated by the IG's office.

Related Government Programs

Naval Ship Systems
Marine Corps Logistics Support
Defense Logistics Agency Procurement
Pumping Equipment Manufacturing Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed specifications makes value assessment difficult.
Potential for supply chain disruption if Carver Pump Company faces production issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to CARVER PUMP COMPANY. PUMP UNIT,CENTRIFUG

Who is the contractor on this award?

The obligated recipient is CARVER PUMP COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2026-01-07. End: 2027-07-21.

What specific type and quantity of pump units are being procured under this contract?

The provided data specifies the North American Industry Classification System (NAICS) code as 333914, which covers 'Measuring, Dispensing, and Other Pumping Equipment Manufacturing.' However, it does not detail the exact type, model, or quantity of pump units. The contract is for 'PUMP UNIT, CENTRIFUGAL.' Without further details on the specifications (e.g., flow rate, pressure, material, size) and the number of units, it is difficult to fully assess the value or suitability of the procurement. This lack of specificity is a common challenge when analyzing federal contracts based solely on summary data.

What is the justification for awarding this contract on a sole-source basis to Carver Pump Company?

The justification for a sole-source award is critical for understanding why competition was bypassed. Common reasons include unique technical capabilities, proprietary technology, urgent and compelling needs where only one source can respond in time, or if the cost of competition outweighs the expected benefits. For this contract, the specific justification from the Department of the Navy is not provided in the data. A thorough review would require accessing the contract's justification and approval (J&A) document, which should detail the rationale and demonstrate why other sources could not meet the requirement.

How does the $2.04 million contract value compare to historical spending on similar pump units by the Navy or other agencies?

Comparing the $2.04 million contract value requires identifying comparable procurements. This involves searching federal procurement databases for contracts with similar NAICS codes (333914), product descriptions ('centrifugal pump unit'), and agencies (Department of Defense, specifically Navy). Without access to a comprehensive contract database and the ability to filter by detailed specifications, a direct comparison is difficult. However, if historical data shows significantly lower prices for similar quantities or specifications, or if this represents a substantial increase over previous awards, it would raise concerns about value for money, especially given the sole-source nature.

What are the performance risks associated with relying on Carver Pump Company for these specific pump units?

Performance risks depend heavily on Carver Pump Company's track record, the complexity of the pump units, and the criticality of their function within the Navy's operations. While the fixed-price contract shifts financial risk to the contractor, performance risks remain. These could include delivery delays, manufacturing defects, or the equipment not meeting performance specifications under operational conditions. Assessing these risks would involve reviewing Carver Pump Company's past performance ratings, any history of contract disputes or failures, and the technical requirements outlined in the contract statement of work.

What is the expected impact of this contract on the broader market for centrifugal pump manufacturing?

A sole-source award of $2.04 million to Carver Pump Company, while significant for the contractor, may have a limited impact on the broader market for centrifugal pump manufacturing. This is because it does not stimulate competition among multiple manufacturers. If this type of pump is widely produced by many companies, this single award does not necessarily reflect overall market pricing or innovation. However, if the pump units are highly specialized or proprietary, this contract could indicate a niche market where Carver Pump Company holds a dominant position.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Measuring, Dispensing, and Other Pumping Equipment Manufacturing

Product/Service Code: PUMPS AND COMPRESSORS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: N0010425RCC30

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2415 PARK AVE, MUSCATINE, IA, 52761

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

Financial Breakdown

Contract Ceiling: $2,043,000

Exercised Options: $2,043,000

Current Obligation: $2,043,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline