DoD Awards $48K Contract for Manufacturing Tech to Innovative Productivity, Inc

Contract Overview

Contract Amount: $22,237,092 ($22.2M)

Contractor: Innovative Productivity, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-11-16

End Date: 2011-11-10

Contract Duration: 3,646 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200202!002057!1700!BW19A !NAVAL SURFACE WARFARE CENTER, PO!N6339402C4014 !A!N! !N! !20011116!20021130!927941559!927941559!927941559!N!INNOVATIVE PRODUCTIVITY, INC. !1930 BISHOP LN STE 1011 !LOUISVILLE !KY!40218!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !+000004918000!N!N!000000000000!AE35!RDTE/MANUFACTURING TECHNOLOGY-ENG/MANUF DEVEL !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!U!1!001!N!5A!C!Y!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40208

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to INNOVATIVE PRODUCTIVITY, INC. for work described as: 200202!002057!1700!BW19A !NAVAL SURFACE WARFARE CENTER, PO!N6339402C4014 !A!N! !N! !20011116!20021130!927941559!927941559!927941559!N!INNOVATIVE PRODUCTIVITY, INC. !1930 BISHOP LN STE 1011 !LOUISVILLE !KY!40218!48000!111!21!LOUISVILLE !JEFFE… Key points: 1. Contract awarded for manufacturing technology and engineering services. 2. Innovative Productivity, Inc. is the sole awardee. 3. The contract value is $48,000. 4. The contract was not competed, raising potential concerns about price discovery.

Value Assessment

Rating: questionable

The contract value of $48,000 is relatively small. Without a competitive process, it's difficult to assess if this price is optimal compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to ensure the best possible price and value.

Taxpayer Impact: The limited value of this specific contract suggests a minimal direct taxpayer impact, but the precedent of sole-source awards warrants scrutiny.

Public Impact

Small businesses may be excluded from opportunities due to sole-source awards. Lack of competition can lead to higher costs for taxpayers over time. Transparency in contracting is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Sole-source award
Lack of competition
Limited transparency on pricing

Positive Signals

Specific manufacturing technology focus

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to manufacturing technology development. Benchmarks for this niche are difficult to establish without more data on similar sole-source awards.

Small Business Impact

The sole-source nature of this award does not provide an opportunity for small businesses to compete. Further analysis would be needed to determine if small businesses are generally excluded from this type of contracting.

Oversight & Accountability

The lack of competition raises questions about the oversight applied to justify a sole-source award. Robust justification and review are essential for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competitive bidding.
Lack of transparency regarding the justification for sole-sourcing.
Limited opportunity for small businesses to participate.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to INNOVATIVE PRODUCTIVITY, INC.. 200202!002057!1700!BW19A !NAVAL SURFACE WARFARE CENTER, PO!N6339402C4014 !A!N! !N! !20011116!20021130!927941559!927941559!927941559!N!INNOVATIVE PRODUCTIVITY, INC. !1930 BISHOP LN STE 1011 !LOUISVILLE !KY!40218!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !+000004918000!N!N!000000000000!AE35!RDTE/MANUFACTURING TECHNOLOGY-ENG/MANUF DEVEL !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is INNOVATIVE PRODUCTIVITY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2001-11-16. End: 2011-11-10.

What was the justification for awarding this contract on a sole-source basis, and how does it align with federal procurement regulations?

The provided data indicates the contract was 'NOT COMPETED'. Federal regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can fulfill the requirement. A thorough review of the justification documentation would be necessary to assess its validity and ensure compliance with procurement laws, preventing potential waste or abuse.

How can the government ensure fair pricing and value when awarding contracts without competition?

When sole-source contracts are unavoidable, the government must employ rigorous price analysis techniques. This includes comparing proposed prices to historical prices for similar items, using independent government cost estimates, and negotiating aggressively. Robust documentation of the price negotiation process is crucial for demonstrating due diligence and achieving fair and reasonable pricing for taxpayers.

What is the long-term impact of sole-source awards on innovation and market competition within the defense sector?

A consistent pattern of sole-source awards can stifle innovation by reducing the incentive for companies to compete on price and performance. It can also lead to market concentration, where a few incumbent firms dominate, potentially increasing costs and limiting the government's access to new technologies. Promoting competition, where feasible, is vital for a dynamic and cost-effective defense industrial base.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › ECONOMIC GROWTH/PRODUCTIVITY R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1930 BISHOP LN STE 1011, LOUISVILLE, KY, 03

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline