DoD awards $5.9M for 100-ton crane, highlighting overhead crane manufacturing sector
Contract Overview
Contract Amount: $5,942,767 ($5.9M)
Contractor: Crane Technologies Group, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-08-24
End Date: 2026-04-22
Contract Duration: 1,702 days
Daily Burn Rate: $3.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: 100-TON CRANE, AE-166
Place of Performance
Location: ROCHESTER HILLS, OAKLAND County, MICHIGAN, 48309
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $5.9 million to CRANE TECHNOLOGIES GROUP, INC. for work described as: 100-TON CRANE, AE-166 Key points: 1. The contract value is $5.9 million for a 100-ton crane. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The sector is Overhead Traveling Crane, Hoist, and Monorail System Manufacturing. 4. Risk appears moderate given the fixed-price contract and established manufacturing sector.
Value Assessment
Rating: good
The contract value of $5.9 million for a 100-ton crane appears reasonable within the heavy machinery manufacturing sector. Benchmarking against similar large crane procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a robust price discovery process. This method aims to ensure the government receives competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for this specialized equipment.
Public Impact
Procurement of heavy lifting equipment supports critical infrastructure and operational needs. The contract contributes to the manufacturing sector, potentially supporting jobs in Michigan. Specialized equipment like this can have long-term operational and maintenance implications for the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for long-term maintenance costs not fully detailed.
- Dependence on a single manufacturer for specialized parts could arise.
Positive Signals
- Fixed-price contract mitigates cost overrun risk.
- Full and open competition ensures market-driven pricing.
- Award to a US-based manufacturer supports domestic industry.
Sector Analysis
The Overhead Traveling Crane, Hoist, and Monorail System Manufacturing sector is specialized, with significant capital investment required. Spending benchmarks vary widely based on crane capacity and complexity.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain.
Oversight & Accountability
The contract was awarded via a delivery order, suggesting it falls under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-competed vehicle. Oversight would focus on delivery timelines and adherence to specifications.
Related Government Programs
- Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for long-term maintenance costs.
- Dependence on specialized parts.
- Limited small business participation indicated.
- Justification for 'exclusion of sources' needs review.
Tags
overhead-traveling-crane-hoist-and-monor, department-of-defense, mi, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.9 million to CRANE TECHNOLOGIES GROUP, INC.. 100-TON CRANE, AE-166
Who is the contractor on this award?
The obligated recipient is CRANE TECHNOLOGIES GROUP, 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 $5.9 million.
What is the period of performance?
Start: 2021-08-24. End: 2026-04-22.
What is the expected lifespan and maintenance cost of this 100-ton crane?
The expected lifespan and associated maintenance costs for this 100-ton crane are critical factors for long-term value assessment. While the initial purchase price is $5.9 million, ongoing operational expenses, including routine maintenance, repairs, and potential component replacements over its service life, could significantly impact the total cost of ownership. Understanding these future costs is essential for accurate budgeting and financial planning by the Department of Defense.
Are there any identified risks related to the 'exclusion of sources' clause in the competition?
The 'exclusion of sources' clause in a full and open competition context typically means that while the competition was open, certain pre-qualified sources or specific types of offerings were considered. The primary risk is ensuring that this exclusion did not unduly limit competition or prevent potentially more cost-effective or technologically superior solutions from being considered. Transparency in the justification for exclusion is key to mitigating this risk and ensuring fair market access.
How does the performance of this crane align with the operational needs of the Department of the Navy?
The alignment of this 100-ton crane's performance with the Department of the Navy's operational needs is paramount to its effectiveness. This includes ensuring the crane meets specific lifting capacities, environmental resilience (e.g., for maritime operations), safety standards, and integration capabilities with existing infrastructure. A thorough review of the technical specifications against the Navy's mission requirements would confirm the suitability and long-term utility of this asset.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
Product/Service Code: MATERIALS HANDLING EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247017R3009
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1954 ROCHESTER INDUSTRIAL DR, ROCHESTER HILLS, MI, 48309
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,942,767
Exercised Options: $5,942,767
Current Obligation: $5,942,767
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247018D2015
IDV Type: IDC
Timeline
Start Date: 2021-08-24
Current End Date: 2026-04-22
Potential End Date: 2026-04-22 00:00:00
Last Modified: 2026-01-07
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