DoD's $10.5M BLADE FOLD RACK SET contract to SEYER INDUSTRIES, INC. lacked competition, raising value concerns

Contract Overview

Contract Amount: $10,512,592 ($10.5M)

Contractor: Seyer Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-01-03

End Date: 2010-09-13

Contract Duration: 1,349 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLADE FOLD RACK SET

Place of Performance

Location: SAINT PETERS, ST. CHARLES County, MISSOURI, 63376

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to SEYER INDUSTRIES, INC. for work described as: BLADE FOLD RACK SET Key points: 1. The contract was awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The duration of the contract (1349 days) suggests a long-term need for these fabricated metal products. 3. The specific product, a 'BLADE FOLD RACK SET', implies a specialized application within naval operations. 4. The absence of small business set-asides or subcontracting plans warrants further investigation into broader economic impact. 5. The contract's value of $10.5 million for 'All Other Miscellaneous Fabricated Metal Product Manufacturing' requires benchmarking against similar procurements.

Value Assessment

Rating: questionable

The contract value of $10.5 million for fabricated metal products appears significant. Without competitive bidding, it is difficult to assess if this price represents fair market value. Benchmarking against similar contracts for specialized fabricated metal components would be necessary to determine if the pricing is reasonable. The lack of competition is a primary indicator of potential value-for-money concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SEYER INDUSTRIES, INC., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity for price negotiation or for other qualified companies to offer their services, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government did not benefit from the potential cost savings that often result from a competitive procurement process.

Public Impact

The primary beneficiaries are likely the Department of the Navy, receiving specialized fabricated metal products for their operations. The contract delivers 'BLADE FOLD RACK SET' components, crucial for specific naval equipment or infrastructure. The geographic impact is centered around the contractor's location in Missouri, though the ultimate use is within the Department of Defense's operational areas. Workforce implications are primarily within SEYER INDUSTRIES, INC. and its supply chain, supporting manufacturing jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially inflates costs for taxpayers.
Absence of small business participation or subcontracting requirements may exclude smaller firms from benefiting.
The long contract duration without clear performance metrics raises questions about ongoing value and adaptability.

Positive Signals

The contract was awarded to a specific manufacturer, potentially indicating a need for specialized expertise or proprietary technology.
The firm fixed-price contract type provides cost certainty for the government, assuming the initial price was fair.

Sector Analysis

This contract falls within the Miscellaneous Fabricated Metal Product Manufacturing sector, a broad category encompassing the production of various metal items not elsewhere classified. The market for such specialized components is often niche, with demand driven by specific industrial or governmental needs. The Department of Defense is a significant consumer of fabricated metal products, often requiring highly customized or durable solutions. Benchmarking would involve comparing this contract's value and terms to other DoD procurements for similar specialized metal components.

Small Business Impact

The contract details indicate that this was not a small business set-aside, and there is no explicit mention of subcontracting plans. This suggests that opportunities for small businesses to participate in this procurement, either as prime contractors or subcontractors, were likely limited. The absence of a small business focus in this significant contract could mean missed opportunities for economic inclusion and diversification within the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management offices. Given the sole-source nature, oversight would focus on ensuring the contractor meets the specified requirements and that the pricing, while not competitively determined, aligns with any available benchmarks or cost analyses. Transparency is limited due to the non-competitive award, and specific Inspector General jurisdiction would depend on the nature of any reported issues or audits.

Related Government Programs

Department of Defense Procurement
Naval Equipment Manufacturing
Fabricated Metal Product Contracts
Sole-Source Procurements
Defense Supply Chain

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SEYER INDUSTRIES, INC.. BLADE FOLD RACK SET

Who is the contractor on this award?

The obligated recipient is SEYER INDUSTRIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2007-01-03. End: 2010-09-13.

What is the specific function and importance of the 'BLADE FOLD RACK SET' within naval operations?

The specific function of the 'BLADE FOLD RACK SET' is not detailed in the provided data. However, its designation as a 'BLADE FOLD RACK SET' suggests it is a component likely used for organizing, storing, or deploying specialized equipment, possibly related to aircraft blades, sensitive instruments, or modular systems within naval vessels or facilities. Its importance would be tied to the operational readiness and efficiency of the systems it supports. Without further technical specifications or operational context from the Department of the Navy, its precise role remains speculative but implies a critical support function.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The provided data indicates the contract was awarded as 'NOT COMPETED' (sole-source). Common justifications for sole-source awards include situations where only one responsible source can provide the required supply or service, or where there is a compelling urgency. For instance, the item might be a unique part with no other manufacturer, or there might have been a critical, time-sensitive need that precluded a competitive process. Without specific documentation from the Department of the Navy detailing the justification, the exact reason for the sole-source award remains unknown, but it implies a perceived lack of viable alternatives or an urgent requirement.

How does the $10.5 million contract value compare to similar fabricated metal product procurements by the DoD?

Benchmarking the $10.5 million contract value for 'BLADE FOLD RACK SET' against similar fabricated metal product procurements by the DoD is challenging without more specific product details and contract data. The category 'All Other Miscellaneous Fabricated Metal Product Manufacturing' is very broad. However, $10.5 million over approximately 3.6 years (1349 days) suggests a significant, ongoing requirement. If this represents a highly specialized or custom-fabricated item, the cost might be justified. If it's a more standard component, this value could be on the higher end, especially given the lack of competition. A detailed analysis would require comparing unit costs, quantities, and complexity of similar items procured competitively.

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

The primary risks associated with a sole-source contract of this magnitude ($10.5 million) and duration (1349 days) include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market transparency. There's also a risk that the government becomes overly reliant on a single supplier, making future procurements difficult or expensive. Furthermore, without competition, there's a higher chance of accepting suboptimal quality or delivery schedules if oversight is not rigorous. The long duration increases the risk of the procured item becoming obsolete or the pricing becoming uncompetitive over time.

What is SEYER INDUSTRIES, INC.'s track record with federal contracts, particularly with the Department of Defense?

The provided data indicates SEYER INDUSTRIES, INC. was awarded this specific $10.5 million contract by the Department of the Navy. Further details on their historical performance, other contract awards, past performance ratings, or any disputes or terminations are not included in this dataset. A comprehensive assessment of their track record would require accessing broader federal procurement databases (like FPDS or SAM.gov) to review their complete contract history, including contract values, agencies served, and any available performance evaluations or past performance questionnaires.

What are the implications of the contract being awarded in 2007 for a product still potentially in use or requiring replacement?

A contract awarded in 2007 for a 'BLADE FOLD RACK SET' implies the item has been in use for a considerable period. This raises questions about the product's lifecycle, potential obsolescence, and the need for upgrades or replacements. If the technology or design is dated, the DoD might face challenges in maintaining or integrating these systems. Conversely, if the product has proven durable and effective, it suggests good initial design and manufacturing. The long service life also means that the initial procurement decision and the contractor's performance have had a sustained impact on naval operations, and future replacement decisions will need to consider current technological advancements and market conditions.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: 66 PATMOS CT, SAINT PETERS, MO, 03

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,512,592

Exercised Options: $10,512,592

Current Obligation: $10,512,592

Contract Characteristics

Cost or Pricing Data: NO

Timeline