DoD Awards $5.27M for Shaft Assemblies, Lacking Competition
Contract Overview
Contract Amount: $5,275,323 ($5.3M)
Contractor: Defense Maritime Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2027-03-31
Contract Duration: 551 days
Daily Burn Rate: $9.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS FOR SIX (6) TOTAL SHAFT ASSEMBLIES; THREE (3) WLD 1500 SHAFT ASSEMBLIES AND THREE (3) WLD 1720 SHAFT ASSEMBLIES. SEE BASIC ORDERING AGREEMENT N64498-23-G-4000 STATEMENT OF WORK.
Place of Performance
Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23323
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $5.3 million to DEFENSE MARITIME SOLUTIONS, INC. for work described as: THIS DELIVERY ORDER IS FOR SIX (6) TOTAL SHAFT ASSEMBLIES; THREE (3) WLD 1500 SHAFT ASSEMBLIES AND THREE (3) WLD 1720 SHAFT ASSEMBLIES. SEE BASIC ORDERING AGREEMENT N64498-23-G-4000 STATEMENT OF WORK. Key points: 1. High cost for specialized turbine components. 2. Sole-source award limits price discovery. 3. Potential for cost savings through competition. 4. Manufacturing sector for turbine components.
Value Assessment
Rating: questionable
The price of $5.27M for six shaft assemblies appears high given the lack of competition. Benchmarking against similar sole-source contracts or market research would be necessary for a definitive assessment.
Cost Per Unit: $879,220.33
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, likely due to specialized requirements or a pre-existing agreement. The absence of competition prevents market forces from driving down the price and may lead to a higher cost for the government.
Taxpayer Impact: The lack of competition on this $5.27M award means taxpayers may be paying a premium for these shaft assemblies.
Public Impact
Ensures critical components for defense systems are procured. Potential for increased costs due to sole-source award. Supports a specific manufacturing capability within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost
- Sole-source award
Positive Signals
- Supports defense readiness
- Firm fixed price contract
Sector Analysis
This contract falls within the Turbine and Turbine Generator Set Units Manufacturing sector. Spending in this niche area is often characterized by specialized suppliers and can be susceptible to higher costs when competition is limited.
Small Business Impact
There is no indication that small businesses were involved in this specific delivery order. Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.
Oversight & Accountability
The award is managed under a Basic Ordering Agreement, suggesting a framework for future orders. Oversight will be crucial to ensure fair pricing and performance on subsequent deliveries, especially if competition remains limited.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- High per-unit cost
- Potential for price escalation
- Limited market research evident
- Dependency on a single supplier
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.3 million to DEFENSE MARITIME SOLUTIONS, INC.. THIS DELIVERY ORDER IS FOR SIX (6) TOTAL SHAFT ASSEMBLIES; THREE (3) WLD 1500 SHAFT ASSEMBLIES AND THREE (3) WLD 1720 SHAFT ASSEMBLIES. SEE BASIC ORDERING AGREEMENT N64498-23-G-4000 STATEMENT OF WORK.
Who is the contractor on this award?
The obligated recipient is DEFENSE MARITIME SOLUTIONS, 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 $5.3 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-03-31.
What is the justification for the sole-source award of these critical shaft assemblies?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's difficult to ascertain the specific rationale. However, such awards warrant close scrutiny to ensure they are truly necessary and not a result of inadequate market research or planning.
What are the risks associated with procuring specialized defense components via sole-source contracts?
Sole-source procurement carries significant risks, including inflated prices due to lack of competition, potential for substandard quality if the contractor faces no market pressure, and reduced innovation. It can also limit the government's flexibility and create dependency on a single supplier, which can be problematic for long-term sustainment and future upgrades.
How can the government ensure value for money on future sole-source awards for similar components?
To ensure value, the government should conduct thorough market research to identify potential competitors, even for specialized items. Negotiating stronger terms, exploring alternative designs, and implementing robust cost-analysis techniques are vital. Furthermore, fostering a competitive environment through strategic sourcing and encouraging new entrants into the market can mitigate sole-source risks over time.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units Manufacturing
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3617 KOPPENS WAY, CHESAPEAKE, VA, 23323
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $5,275,323
Exercised Options: $5,275,323
Current Obligation: $5,275,323
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6449823G4000
IDV Type: BOA
Timeline
Start Date: 2025-09-26
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-12-23
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