DoD's $37.1M contract for MK 48 Alternator/Regulator awarded to Barber-Nichols, LLC
Contract Overview
Contract Amount: $37,122,007 ($37.1M)
Contractor: Barber-Nichols, LLC
Awarding Agency: Department of Defense
Start Date: 2015-07-23
End Date: 2024-10-31
Contract Duration: 3,388 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MK 48 ALTERNATOR AND REGULATOR - FIRST ARTICLE IGF::OT::IGF
Place of Performance
Location: ARVADA, JEFFERSON County, COLORADO, 80002
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $37.1 million to BARBER-NICHOLS, LLC for work described as: MK 48 ALTERNATOR AND REGULATOR - FIRST ARTICLE IGF::OT::IGF Key points: 1. The contract value is substantial at $37.1 million. 2. Barber-Nichols, LLC is the sole awardee. 3. The contract spans nearly 10 years, indicating a long-term need. 4. The sector is Motor Vehicle Electrical and Electronic Equipment Manufacturing.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount is significant, and without specific performance data or benchmarks for this specialized equipment, assessing its value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the competition and how price was determined are not provided, making it difficult to assess the effectiveness of price discovery.
Taxpayer Impact: Taxpayer funds are being used for specialized defense equipment. The cost-plus nature of the contract warrants close monitoring to ensure efficiency and prevent unnecessary expenditure.
Public Impact
Ensures operational readiness of naval vessels by providing critical electrical components. Supports a specific niche in defense manufacturing. The long duration of the contract may indicate a stable but potentially less innovative supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type can lead to higher costs.
- Long contract duration may limit competitive opportunities.
- Lack of detailed cost breakdown makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical defense need.
Sector Analysis
This contract falls within the Motor Vehicle Electrical and Electronic Equipment Manufacturing sector, specifically for naval applications. Spending benchmarks for such specialized defense components are often proprietary or difficult to compare directly due to unique specifications.
Small Business Impact
The awardee, Barber-Nichols, LLC, is not identified as a small business in the provided data. There is no indication of subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract's cost-plus fixed fee structure necessitates robust oversight from the Department of the Navy to manage costs and ensure performance. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Motor Vehicle Electrical and Electronic Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus contract type.
- Long contract duration.
- Lack of detailed cost transparency.
- Potential for limited future innovation.
- Sole awardee for an extended period.
Tags
motor-vehicle-electrical-and-electronic-, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.1 million to BARBER-NICHOLS, LLC. MK 48 ALTERNATOR AND REGULATOR - FIRST ARTICLE IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is BARBER-NICHOLS, 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 $37.1 million.
What is the period of performance?
Start: 2015-07-23. End: 2024-10-31.
What is the expected lifespan and performance reliability of the MK 48 Alternator and Regulator under operational conditions?
The expected lifespan and performance reliability are critical factors for assessing the long-term value of this $37.1 million contract. While the contract duration is nearly 10 years, specific reliability metrics and failure rates under various operational stresses are not detailed. Understanding these parameters would allow for a more accurate projection of maintenance costs and operational uptime, directly impacting the overall return on investment for the Department of Defense.
How were the fixed fee and cost ceilings determined during the full and open competition to ensure a fair price?
The determination of the fixed fee and cost ceilings in a Cost Plus Fixed Fee (CPFF) contract awarded through full and open competition is crucial for price fairness. While competition suggests multiple bids were considered, the specific methodology used by the Department of the Navy to evaluate proposed costs, establish profit margins, and set ceiling prices is not detailed. This lack of transparency makes it difficult to independently verify if the government secured the best possible price for the MK 48 Alternator and Regulator.
What is the potential impact of this long-term, sole-source award on future technological advancements in naval electrical systems?
A nearly decade-long contract for a specific component like the MK 48 Alternator and Regulator, even if initially awarded competitively, could potentially stifle innovation. By locking in a single supplier for an extended period, it may reduce the incentive for other companies to develop alternative or superior technologies. This could lead to a technological plateau in naval electrical systems, making the fleet reliant on potentially outdated solutions and missing out on advancements that could improve efficiency or capability.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Motor Vehicle Electrical and Electronic Equipment Manufacturing
Product/Service Code: ENGINE ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6660414R0921
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Barber-Nichols LLC
Address: 6325 W 55TH AVE, ARVADA, CO, 80002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,722,493
Exercised Options: $43,223,755
Current Obligation: $37,122,007
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-23
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2024-07-25
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