DoD Awards $49M for Gearbox Test Stands to RENK SYSTEMS CORP Under Full and Open Competition
Contract Overview
Contract Amount: $49,041,711 ($49.0M)
Contractor: Renk Systems Corp
Awarding Agency: Department of Defense
Start Date: 2023-11-24
End Date: 2025-11-13
Contract Duration: 720 days
Daily Burn Rate: $68.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GEARBOX TEST STANDS
Place of Performance
Location: CAMBY, HENDRICKS County, INDIANA, 46113
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $49.0 million to RENK SYSTEMS CORP for work described as: GEARBOX TEST STANDS Key points: 1. Significant award for specialized industrial process instrumentation. 2. RENK SYSTEMS CORP is a key player in this niche manufacturing sector. 3. Potential for cost overruns or schedule delays exists given the contract duration. 4. The award falls within the Instruments and Related Products Manufacturing sector.
Value Assessment
Rating: good
The contract value of $49M for gearbox test stands appears reasonable given the specialized nature of the equipment and the 2-year duration. Benchmarking against similar complex instrumentation contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: Full and open competition is expected to yield fair market value, maximizing taxpayer benefit for this specialized equipment.
Public Impact
Ensures critical testing capabilities for naval gearbox systems. Supports advanced manufacturing and technological development in the defense industrial base. Potential for job creation within the Instruments and Related Products Manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Long contract duration (720 days) may increase risk of scope creep or price escalation.
- Reliance on a single awardee for specialized equipment could pose supply chain risks.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Firm Fixed Price contract type limits cost risk for the government.
Sector Analysis
This award is within the Instruments and Related Products Manufacturing sector, which supports industrial process control and measurement. Spending in this sector can vary based on defense and industrial needs.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Navy, part of the Department of Defense. Standard oversight mechanisms for defense contracts should apply, including performance monitoring and compliance checks.
Related Government Programs
- Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Specialized equipment with potential for technical challenges.
- Single awardee for critical testing capability.
- Potential supply chain dependencies.
Tags
instruments-and-related-products-manufac, department-of-defense, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.0 million to RENK SYSTEMS CORP. GEARBOX TEST STANDS
Who is the contractor on this award?
The obligated recipient is RENK SYSTEMS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $49.0 million.
What is the period of performance?
Start: 2023-11-24. End: 2025-11-13.
What is the specific technological advancement or capability this gearbox test stand will enable for the Navy?
The gearbox test stands are crucial for ensuring the reliability and performance of complex naval propulsion systems. They allow for rigorous testing under simulated operational conditions, identifying potential failures before deployment and validating design improvements. This directly supports naval readiness and the development of next-generation marine propulsion technology.
Are there any identified risks associated with RENK SYSTEMS CORP's ability to deliver these specialized test stands on time and to specification?
While the contract is firm fixed price, the long duration and specialized nature of the equipment warrant monitoring. Potential risks include supply chain disruptions for critical components or unforeseen technical challenges during integration and testing. Proactive government oversight and clear communication channels with RENK SYSTEMS CORP are essential to mitigate these risks.
How does the $49M award compare to the estimated market value for similar gearbox test stand systems?
Without specific market data for comparable gearbox test stand systems, a precise comparison is difficult. However, the 'full and open competition' award suggests the price achieved was competitive. Benchmarking against industry reports or previous similar procurements, if available, would provide a clearer picture of value for money.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6833522R0169
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8880 UNION MILLS DR, CAMBY, IN, 46113
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $49,041,711
Exercised Options: $49,041,711
Current Obligation: $49,041,711
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-24
Current End Date: 2025-11-13
Potential End Date: 2026-05-13 00:00:00
Last Modified: 2026-01-14
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