DoD's Navy awards $12.76M for overhead cranes, facing potential cost risks
Contract Overview
Contract Amount: $12,760,477 ($12.8M)
Contractor: Allied Systems Company
Awarding Agency: Department of Defense
Start Date: 2022-11-01
End Date: 2025-01-31
Contract Duration: 822 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACSC PRODUCTION UNITS YEAR ONE
Place of Performance
Location: SHERWOOD, WASHINGTON County, OREGON, 97140
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to ALLIED SYSTEMS COMPANY for work described as: ACSC PRODUCTION UNITS YEAR ONE Key points: 1. Spending is concentrated with a single vendor, Allied Systems Company. 2. The contract is for overhead traveling crane, hoist, and monorail systems. 3. A firm fixed price contract was used, but duration is long (822 days). 4. No small business participation is noted.
Value Assessment
Rating: fair
The contract value of $12.76M over 822 days suggests a moderate per-unit cost. Benchmarking against similar overhead crane systems is difficult without more specific technical details and market data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the use of a delivery order under a larger contract may limit direct price comparison for this specific award.
Taxpayer Impact: Taxpayer funds are being used for essential equipment for the Department of the Navy. The firm fixed price aims to control costs, but the long duration warrants monitoring.
Public Impact
Ensures operational readiness for naval facilities requiring heavy lifting equipment. Supports manufacturing and maintenance within the defense industrial base. Potential for long-term reliance on a single supplier for specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (822 days) with potential for cost escalation if not managed.
- Lack of small business participation.
- Limited visibility into specific unit pricing for overhead crane components.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type helps mitigate cost overrun risk.
- Essential equipment for Department of the Navy operations.
Sector Analysis
This spending falls within the Defense sector, specifically related to industrial equipment and manufacturing support. Benchmarks for overhead crane systems vary widely based on size, capacity, and customization, making direct comparison challenging.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Allied Systems Company, is likely a large business, and subcontracting opportunities for small businesses were not explicitly captured or pursued in this award.
Oversight & Accountability
Oversight will be crucial to ensure the Department of the Navy receives the specified overhead traveling crane, hoist, and monorail systems within the firm fixed price. Monitoring performance and delivery schedules against the 822-day duration is key for accountability.
Related Government Programs
- Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for vendor lock-in due to specialized equipment.
- Long contract duration increases exposure to market fluctuations.
- Lack of small business participation may indicate missed opportunities for economic impact.
- Limited data on specific unit pricing hinders detailed cost analysis.
Tags
overhead-traveling-crane-hoist-and-monor, department-of-defense, or, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to ALLIED SYSTEMS COMPANY. ACSC PRODUCTION UNITS YEAR ONE
Who is the contractor on this award?
The obligated recipient is ALLIED SYSTEMS COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2022-11-01. End: 2025-01-31.
What is the specific breakdown of costs per unit or major component within the $12.76M award?
The provided data does not include a specific breakdown of costs per unit or major component. The total award amount is for the entire scope of work, including production, delivery, and potentially installation or testing over 822 days. Further analysis would require access to the detailed contract line item numbers (CLINs) or a cost breakdown from the Department of the Navy.
What are the risks associated with a single vendor providing critical overhead crane systems for an extended period?
The primary risks include potential supply chain disruptions if the sole vendor faces issues, limited leverage for future negotiations due to vendor lock-in, and a lack of competitive pressure to drive innovation or cost reductions. This could lead to higher prices in subsequent contracts and potential delays if the vendor cannot meet demand.
How effectively does this contract support the Navy's long-term operational readiness and infrastructure needs?
This contract directly supports the Navy's operational readiness by providing essential heavy-lifting equipment for facilities. The firm fixed price and full and open competition suggest an effort to ensure value. However, the long duration and lack of small business involvement warrant monitoring to ensure sustained support and potential future competition.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
Product/Service Code: MATERIALS HANDLING EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6833514R0276
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 21433 SW OREGON ST, SHERWOOD, OR, 97140
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,760,477
Exercised Options: $12,760,477
Current Obligation: $12,760,477
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833519D0135
IDV Type: IDC
Timeline
Start Date: 2022-11-01
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2025-10-14
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