DoD Awards $11.6M for Gas Generating Systems to Rix Industries, Inc

Contract Overview

Contract Amount: $11,599,576 ($11.6M)

Contractor: RIX Industries

Awarding Agency: Department of Defense

Start Date: 2003-09-16

End Date: 2009-01-29

Contract Duration: 1,962 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200312!000713!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0250 !A!N! !N! !20030916!20040916!041833625!041833625!041833625!N!RIX INDUSTRIES, INC !4900 INDUSTRIAL WAY !BENICIA !CA!94510!05290!095!06!BENICIA !SOLANO !CALIFORNIA!+000001031800!N!N!000001031800!3655!GAS GENERATING AND DISPENSING SYSTEMS !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !333999!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!K! !A!N!A! ! !N!B!N!N! !B!C! !B!A!000!A!B!N! ! ! ! !1710!N68335!0001! !

Place of Performance

Location: SPARKS, WASHOE County, NEVADA, 89431

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to RIX INDUSTRIES for work described as: 200312!000713!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0250 !A!N! !N! !20030916!20040916!041833625!041833625!041833625!N!RIX INDUSTRIES, INC !4900 INDUSTRIAL WAY !BENICIA !CA!94510!05290!095!06!BENICIA !SOLAN… Key points: 1. The contract value is $11.6 million, awarded to Rix Industries, Inc. 2. Competition was full and open after exclusion of sources, suggesting a specific reason for limited initial competition. 3. The primary risk lies in the 'Not Discernible or Classified' nature of the specific application, potentially impacting long-term utility or obsolescence. 4. The sector is Defense, specifically for the Naval Air Warfare Center, indicating specialized equipment needs.

Value Assessment

Rating: fair

The contract value of $11.6 million for gas generating and dispensing systems appears to be a significant award. Without specific unit details or historical pricing for similar systems, a direct comparison is difficult. However, the duration of the contract (1962 days) suggests a substantial procurement.

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.' This indicates that while the competition was ultimately broad, there was an initial exclusion of certain sources, which might have influenced the price discovery process. The specific reason for exclusion is not detailed.

Taxpayer Impact: The full and open competition, despite initial exclusions, aims to secure the best value for taxpayers. However, the lack of transparency regarding the exclusion could obscure potential cost savings.

Public Impact

This award supports critical defense operations, ensuring the availability of specialized gas generating systems for naval air warfare. The procurement contributes to the industrial base by supporting a manufacturing firm, Rix Industries, Inc. The long contract duration suggests a sustained need for these systems within the military.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on 'Not Discernible or Classified' application
Potential for limited competition due to initial source exclusion
Long contract duration may lead to price escalation if not managed

Positive Signals

Awarded under full and open competition
Supports critical defense capabilities
Procurement for a specific, albeit undefined, military need

Sector Analysis

This contract falls within the Defense sector, specifically for specialized equipment related to naval air warfare. Spending benchmarks in this area are highly variable due to the unique and often classified nature of defense procurements. The value of $11.6 million is moderate for a defense contract of this duration.

Small Business Impact

The data does not indicate whether Rix Industries, Inc. is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The contract was awarded by the Department of the Navy, indicating oversight by a major defense agency. The 'Full and Open Competition After Exclusion of Sources' clause suggests a structured procurement process, but the specifics of the exclusion warrant further scrutiny for accountability.

Related Government Programs

All Other Miscellaneous General Purpose Machinery Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of specific application details ('Not Discernible or Classified')
Ambiguity in 'Full and Open Competition After Exclusion of Sources'
Potential for long-term obsolescence given the nature of defense technology
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to RIX INDUSTRIES. 200312!000713!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0250 !A!N! !N! !20030916!20040916!041833625!041833625!041833625!N!RIX INDUSTRIES, INC !4900 INDUSTRIAL WAY !BENICIA !CA!94510!05290!095!06!BENICIA !SOLANO !CALIFORNIA!+000001031800!N!N!000001031800!3655!GAS GENERATING AND DISPENSING SYSTEMS !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !333999!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is RIX INDUSTRIES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2003-09-16. End: 2009-01-29.

What is the specific function and criticality of these 'Gas Generating and Dispensing Systems' within naval air warfare?

The precise function of these systems is not detailed, being described as 'Not Discernible or Classified.' Within naval air warfare, such systems could range from life support components to specialized propulsion or testing equipment. Understanding their exact role is crucial for assessing the true value and necessity of this $11.6 million award and ensuring it aligns with critical operational requirements.

What were the reasons for excluding certain sources prior to the 'Full and Open Competition' phase?

The exclusion of sources prior to the full and open competition phase raises questions about the initial market research and potential barriers to entry. Understanding these reasons is vital for assessing whether the competition was truly maximized and if any qualified small businesses or alternative vendors were unfairly precluded from bidding, potentially impacting overall cost-effectiveness for the taxpayer.

How does the $11.6 million contract value compare to the lifecycle cost and operational effectiveness of the acquired systems?

Assessing the value requires comparing the $11.6 million award against the total lifecycle costs, including maintenance, upgrades, and disposal, as well as the system's contribution to operational effectiveness. Without performance metrics or detailed cost breakdowns, it's difficult to determine if this represents a good investment. The long contract duration (over 5 years) necessitates a thorough evaluation of long-term value and potential for obsolescence.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 4900 INDUSTRIAL WAY, BENICIA, CA, 08

Business Categories: Category Business, Small Business, Veteran Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline