DoD's $15.1M Torpedo Wire Dispenser Contract Awarded to Entwistle Company LLC

Contract Overview

Contract Amount: $15,146,033 ($15.1M)

Contractor: THE Entwistle Company LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2013-02-21

Contract Duration: 1,973 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TORPEDO WIRE DISPENSER

Place of Performance

Location: HUDSON, MIDDLESEX County, MASSACHUSETTS, 01749

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to THE ENTWISTLE COMPANY LLC for work described as: TORPEDO WIRE DISPENSER Key points: 1. Contract value of $15.1 million over its period of performance. 2. Awarded under full and open competition after exclusion of sources. 3. The contract was awarded by the Department of the Navy. 4. The period of performance spanned from 2007 to 2013. 5. The contractor, The Entwistle Company LLC, is based in Massachusetts. 6. The contract type was Firm Fixed Price, indicating price certainty. 7. The North American Industry Classification System (NAICS) code is 332710 (Machine Shops).

Value Assessment

Rating: fair

The contract value of $15.1 million for torpedo wire dispensers over approximately five years suggests a moderate annual spend. Without specific unit details or performance metrics, a direct value-for-money assessment is challenging. However, the firm fixed-price contract type generally offers good cost control for the government. Benchmarking against similar specialized defense components would be necessary for a more precise evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for reasons not detailed in the provided data. The number of bids received (2) suggests a limited but present level of competition for this specialized defense requirement.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing. However, the limited number of bidders might suggest a niche market where true price discovery could be constrained.

Public Impact

The primary beneficiaries are the U.S. Navy's torpedo systems, ensuring operational readiness. The contract delivered essential components for torpedo deployment mechanisms. The geographic impact is primarily within the defense supply chain, supporting naval operations. Workforce implications are likely within specialized manufacturing and engineering roles at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition (2 bidders) may have restricted price negotiation leverage.
  • The 'exclusion of sources' clause warrants further investigation into the rationale.
  • Long performance period (1973 days) could introduce risks related to obsolescence or changing requirements.

Positive Signals

  • Firm Fixed Price contract type provides cost certainty for the government.
  • Awarded under a competitive process, suggesting some level of market vetting.
  • The contractor has a track record of fulfilling defense contracts.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on specialized ordnance components. The market for such items is typically characterized by high barriers to entry due to technical expertise, security clearances, and established relationships with government agencies. Spending in this niche is driven by defense readiness requirements and technological advancements in naval warfare.

Small Business Impact

The provided data indicates that small business participation (sb) was false and small business set-aside (ss) was false. This suggests that the contract was not specifically targeted towards small businesses, and there is no indication of subcontracting requirements for small businesses within this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability is maintained through contract clauses, performance monitoring, and payment schedules tied to deliverables. Transparency is generally limited for specific defense procurement details, but contract award information is publicly available.

Related Government Programs

  • Naval Ordnance Procurement
  • Torpedo Systems
  • Defense Manufacturing Equipment
  • Submarine Warfare Components

Risk Flags

  • Limited Competition
  • Potential for Technology Obsolescence
  • Exclusion of Sources Justification Needed

Tags

defense, department-of-the-navy, torpedo-wire-dispenser, firm-fixed-price, full-and-open-competition, machine-shops, massachusetts, defense-manufacturing, ordnance, naval-operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to THE ENTWISTLE COMPANY LLC. TORPEDO WIRE DISPENSER

Who is the contractor on this award?

The obligated recipient is THE ENTWISTLE COMPANY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2007-09-28. End: 2013-02-21.

What is the specific function and technical complexity of the 'TORPEDO WIRE DISPENSER'?

The 'TORPEDO WIRE DISPENSER' is a critical component within a torpedo's guidance and launching system. Its primary function is to manage and deploy the wire that connects the torpedo to the launching platform (e.g., a submarine or surface vessel) during its run. This wire is essential for transmitting guidance commands from the platform to the torpedo and, in some cases, for receiving data back from the torpedo. The technical complexity lies in ensuring reliable dispensing under high-pressure, dynamic underwater conditions, preventing entanglement, and maintaining signal integrity through the wire. Precision engineering is required to meet stringent military specifications for durability, environmental resistance, and operational performance.

How does the 'full and open competition after exclusion of sources' process typically work, and what are its implications?

This procurement method begins with the intent for full and open competition, meaning all responsible sources are permitted to submit offers. However, 'after exclusion of sources' indicates that specific potential offerors were identified and excluded from the competition prior to the solicitation, or that certain types of sources were excluded. The reasons for exclusion could range from national security concerns, inability to meet specific security requirements, or prior performance issues. While it aims for broad competition, the exclusion of certain sources can limit the pool of bidders, potentially impacting the level of price competition and innovation. The justification for such exclusions must typically be documented and approved.

What is the significance of the 'Machine Shops' NAICS code (332710) in relation to this contract?

The NAICS code 332710, 'Machine Shops,' signifies that the primary business activity of the contractor, The Entwistle Company LLC, for this contract involved the fabrication of parts or products through the removal of material from metal or plastic. This typically includes operations like turning, milling, drilling, grinding, and other machining processes. For a 'TORPEDO WIRE DISPENSER,' this classification suggests that the contract likely involved the precision machining of metal components to create the housing, spools, guides, and other mechanical parts necessary for the dispenser's function. It indicates a focus on manufacturing capabilities rather than, for example, electronics assembly or software development.

What does the 'Firm Fixed Price' (FFP) contract type imply for risk and cost management?

A Firm Fixed Price (FFP) contract type is generally considered advantageous for the government in terms of cost certainty and risk management. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This places the risk of cost overruns squarely on the contractor. For the government, it means the total cost of the acquisition is known upfront, simplifying budgeting and financial planning. The contractor is incentivized to control costs efficiently to maximize profit. However, FFP contracts can sometimes lead to higher initial prices as contractors may build in a contingency to cover potential cost increases. They are best suited for acquisitions where the scope of work is well-defined and stable.

Given the contract duration (1973 days) and award date (2007), what potential risks might have emerged regarding technology obsolescence?

A contract spanning nearly six years (1973 days) from an award in 2007 presents a significant risk of technology obsolescence, particularly in the defense sector where technological advancements are rapid. The 'TORPEDO WIRE DISPENSER' technology, while potentially mature, could still be subject to upgrades or replacement by newer systems during this period. If the dispenser relied on specific electronic components or materials that became outdated or unsupported, maintenance and repair could become difficult and costly. Furthermore, advancements in torpedo guidance systems or operational requirements might necessitate dispenser capabilities that were not envisioned at the contract's inception. The government would need robust program management to monitor technological trends and manage potential upgrades or replacements.

Industry Classification

NAICS: ManufacturingMachine Shops; Turned Product; and Screw, Nut, and Bolt ManufacturingMachine Shops

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0025307R0008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Entwistle Trust (UEI: 038269291)

Address: BIGELOW ST, HUDSON, MA, 03

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,146,033

Exercised Options: $15,146,033

Current Obligation: $15,146,033

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2007-09-28

Current End Date: 2013-02-21

Potential End Date: 2013-02-21 00:00:00

Last Modified: 2013-10-18

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