Naval Ship Systems Engineering contract awarded to TREADWELL CORPORATION for $12.3M, highlighting potential value concerns

Contract Overview

Contract Amount: $12,325,834 ($12.3M)

Contractor: Treadwell Corporation (delaware)

Awarding Agency: Department of Defense

Start Date: 2005-08-24

End Date: 2007-09-30

Contract Duration: 767 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200511!383210!1700!N65540!NAVAL SHIP SYSTEMS ENGINEERING !N6554005C0029 !A!N! !N! ! !20050824!20070930!805817020!805817020!805817020!N!TREADWELL CORPORATION !341 RAILROAD ST !THOMASTON !CT!06787!75660!005!09!THOMASTON !LITCHFIELD !CONN !+000012331970!N!N!000001233197!2090!MISCELLANEOUS SHIP AND MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !333999!E! !3! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1A!Z!Y!A! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! !1700!N65540!0001! !

Place of Performance

Location: THOMASTON, LITCHFIELD County, CONNECTICUT, 06787

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to TREADWELL CORPORATION (DELAWARE) for work described as: 200511!383210!1700!N65540!NAVAL SHIP SYSTEMS ENGINEERING !N6554005C0029 !A!N! !N! ! !20050824!20070930!805817020!805817020!805817020!N!TREADWELL CORPORATION !341 RAILROAD ST !THOMASTON !CT!06787!75660!005!09!THOMASTON !LITC… Key points: 1. The contract's value of $12.3 million warrants scrutiny given the lack of competition. 2. A sole-source award suggests limited market exploration and potential for inflated pricing. 3. The contract duration of over two years without competitive bidding raises risk indicators. 4. Performance context is limited due to the non-competitive nature of the award. 5. This contract falls within the 'Miscellaneous Ship and Marine Equipment' sector, requiring specialized knowledge. 6. The absence of small business participation is noted.

Value Assessment

Rating: questionable

The awarded value of $12.3 million for 'Miscellaneous Ship and Marine Equipment' is difficult to benchmark due to the sole-source nature of this contract. Without competitive bids, it's challenging to determine if this price represents fair market value. The lack of transparency in the pricing structure further complicates a value-for-money assessment. Future contracts in this category should ideally be competed to ensure cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, TREADWELL CORPORATION, was solicited. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government compared to a fully competed procurement. The rationale for a sole-source award, if any, is not detailed here but typically involves unique capabilities or urgent needs.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition is a key driver for cost savings in government contracting.

Public Impact

The primary beneficiary is TREADWELL CORPORATION, receiving a significant contract for specialized equipment. The contract supports the Department of the Navy's shipbuilding and maintenance operations. The geographic impact is primarily within Connecticut, where TREADWELL CORPORATION is located. Workforce implications are likely concentrated at the contractor's facility, requiring skilled labor for manufacturing and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency and accountability in pricing.
Potential for vendor lock-in due to specialized nature of the equipment.

Positive Signals

Contract awarded to a specific company, indicating a need for their specialized services.
Contract duration suggests a sustained requirement for the delivered goods or services.

Sector Analysis

This contract falls under the 'Miscellaneous Ship and Marine Equipment' category, which is part of the broader defense industrial base. This sector involves the production of specialized components and systems for naval vessels. The market size for such specialized equipment can be niche, often relying on a limited number of qualified manufacturers. Benchmarking spending in this area is challenging without more specific product details, but it represents a critical, albeit often non-competitive, segment of defense procurement.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further indicates that small businesses were not specifically solicited or considered as primary contractors. There is no information provided regarding subcontracting plans with small businesses.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a sole-source award, the justification and approval process would be subject to specific federal acquisition regulations. Transparency is limited due to the lack of competitive bidding. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Ship Systems Engineering Support
Miscellaneous Ship and Marine Equipment Procurement
Department of Defense Sole-Source Contracts
Naval Vessel Component Manufacturing

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpricing due to lack of competition.
Limited transparency in contract value assessment.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to TREADWELL CORPORATION (DELAWARE). 200511!383210!1700!N65540!NAVAL SHIP SYSTEMS ENGINEERING !N6554005C0029 !A!N! !N! ! !20050824!20070930!805817020!805817020!805817020!N!TREADWELL CORPORATION !341 RAILROAD ST !THOMASTON !CT!06787!75660!005!09!THOMASTON !LITCHFIELD !CONN !+000012331970!N!N!000001233197!2090!MISCELLANEOUS SHIP AND MARINE EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !333999!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is TREADWELL CORPORATION (DELAWARE).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2005-08-24. End: 2007-09-30.

What is the specific nature of the 'Miscellaneous Ship and Marine Equipment' being procured under this contract?

The provided data classifies the product service code (PSC) as '2090' and the North American Industry Classification System (NAICS) code as '333999' (All Other Miscellaneous General Purpose Machinery Manufacturing). While the contract title is 'NAVAL SHIP SYSTEMS ENGINEERING', the specific equipment is not detailed. This broad classification suggests it could encompass a range of specialized components, machinery, or systems integral to naval ship operations, potentially including propulsion, auxiliary systems, or specialized engineering equipment. Further details would be required from the contract award documentation to ascertain the precise nature of the goods or services.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded on a sole-source basis. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for competitive acquisitions, but also provides exceptions for sole-source procurements. Common justifications include: only one responsible source exists with the capability to satisfy the requirement, an urgent and compelling need exists that cannot be met by other sources, or the agency has entered into a sole-source contract with a Federally Funded Research and Development Center (FFRDC). Without the specific justification cited in the contract award documentation, it is impossible to determine the precise reason for this sole-source award to TREADWELL CORPORATION.

How does the contract value of $12.3 million compare to similar contracts for naval ship systems engineering or marine equipment?

Direct comparison of the $12.3 million contract value is challenging without knowing the exact scope of 'Miscellaneous Ship and Marine Equipment' and 'Naval Ship Systems Engineering'. However, given the sole-source nature, it's difficult to establish a benchmark for value for money. Typically, contracts for specialized naval components or engineering services can range widely, from hundreds of thousands to tens or even hundreds of millions of dollars, depending on complexity, quantity, and duration. The absence of competition here means there's no direct market comparison to assess if $12.3 million is high or low relative to what other vendors might have offered.

What is TREADWELL CORPORATION's track record with the Department of the Navy or other federal agencies?

The provided data identifies TREADWELL CORPORATION as the contractor. While the data confirms this specific award, it does not offer a comprehensive history of their performance with the Department of the Navy or other federal agencies. To assess their track record, one would need to consult contract databases (like FPDS or SAM.gov) for past awards, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A thorough review would be necessary to understand their reliability, quality of work, and adherence to contract terms in previous engagements.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts, especially for a value of $12.3 million and a duration of over two years (767 days), carry several inherent risks. Firstly, the lack of competition can lead to inflated pricing, as the contractor faces no pressure to offer competitive rates. Secondly, it can reduce innovation, as there's less incentive for the contractor to develop more efficient or cost-effective solutions. Thirdly, it can create vendor lock-in, making it difficult and costly to switch to a different supplier in the future. Finally, without competitive oversight, there's a heightened risk of complacency or reduced service quality from the awarded contractor.

What is the historical spending pattern for 'Miscellaneous Ship and Marine Equipment' by the Department of the Navy?

The provided data focuses on a single contract award. To understand historical spending patterns for 'Miscellaneous Ship and Marine Equipment' by the Department of the Navy, one would need to analyze aggregated data over several fiscal years. This would involve querying contract databases for spending under relevant Product Service Codes (PSCs) and NAICS codes associated with this category. Such an analysis would reveal trends in overall spending, identify major contractors, and highlight the proportion of competitive versus sole-source awards within this segment of defense procurement.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery 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: 341 RAILROAD ST, THOMASTON, CT, 05

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline