DoD awards $10.8M for IQA Test Stand, with 3 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $10,841,140 ($10.8M)

Contractor: Ganzcorp Investments Inc

Awarding Agency: Department of Defense

Start Date: 2025-01-17

End Date: 2028-01-17

Contract Duration: 1,095 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BUILD AND INSTALLATION - IQA TEST STAND

Place of Performance

Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to GANZCORP INVESTMENTS INC for work described as: BUILD AND INSTALLATION - IQA TEST STAND Key points: 1. The contract value of $10.8 million appears reasonable for a specialized test stand, but requires benchmarking against similar procurements. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy, potentially balancing broad market access with specific needs. 3. The firm-fixed-price contract type shifts risk to the contractor, which is generally favorable for the government in stable requirements. 4. A 3-year duration for installation and build is standard for complex equipment, but performance monitoring will be key. 5. The North Carolina location for this defense contract may have implications for local economic impact and workforce development. 6. The absence of small business set-aside or subcontracting goals warrants review to ensure fair opportunity for smaller enterprises.

Value Assessment

Rating: good

The contract value of $10.8 million for a specialized IQA test stand requires careful benchmarking. Without specific details on the stand's capabilities, a direct comparison is difficult. However, for complex manufacturing equipment, this price point is within a plausible range. The firm-fixed-price structure is advantageous as it caps the government's expenditure. Further analysis would involve comparing the per-unit cost or total project cost against similar test stand procurements by the Department of Defense or other agencies.

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,' indicating that while the competition was intended to be broad, certain sources were initially excluded before the final solicitation. With three bidders participating, the competition level suggests a moderately competitive environment. This level of competition is generally sufficient to drive reasonable pricing, but a higher number of bidders could potentially yield even more aggressive offers. The exclusion of sources prior to the final competition warrants understanding to ensure no viable suppliers were inadvertently omitted.

Taxpayer Impact: Three bidders provide a reasonable baseline for price discovery, helping to ensure taxpayer funds are used efficiently. While more bidders could theoretically lead to lower prices, this level of competition suggests the government is unlikely to be significantly overpaying due to a lack of viable options.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel who will utilize the IQA test stand for quality assurance. The contract will result in the delivery of a specialized IQA test stand, crucial for ensuring the quality and reliability of aircraft parts. The contract is geographically focused on North Carolina, potentially creating or sustaining jobs in the advanced manufacturing or defense sector within the state. The project may necessitate specialized labor for the build and installation, potentially impacting the local skilled workforce in manufacturing and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' aspect of the competition requires further clarification to ensure no qualified small businesses were unfairly prevented from bidding.
Lack of explicit small business subcontracting goals could limit opportunities for smaller firms to participate in this significant defense contract.
The firm-fixed-price nature, while beneficial for cost control, places the burden of unforeseen cost increases entirely on the contractor, which could lead to performance issues if not managed well.

Positive Signals

The firm-fixed-price contract type is a positive signal, indicating a clear understanding of requirements and a desire to control costs.
The award to GANZCORP INVESTMENTS INC suggests a contractor with a track record deemed suitable for this specialized defense requirement.
The definitive contract award implies a structured approach to fulfilling a specific need within the Department of the Navy's operations.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on specialized equipment for quality assurance testing. The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicates a niche within the larger aerospace supply chain. The market for such specialized test equipment is often characterized by a limited number of highly technical manufacturers capable of meeting stringent defense specifications. Comparable spending benchmarks would likely be found within other DoD procurements for similar testing apparatus or specialized manufacturing machinery.

Small Business Impact

The contract does not appear to have specific small business set-aside provisions, nor are there explicit subcontracting goals mentioned. This suggests that opportunities for small businesses would primarily arise through GANZCORP INVESTMENTS INC's own subcontracting decisions, if any. The absence of mandated set-asides or goals could limit the direct impact on the small business ecosystem unless the prime contractor proactively engages with small suppliers. Further investigation into GANZCORP's subcontracting plan would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified test stand within the agreed-upon price. Transparency is typically facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or closeout.

Related Government Programs

Aircraft Parts Manufacturing
Defense Industrial Base
Quality Assurance Equipment
Naval Aviation Support
Manufacturing Equipment Procurement

Risk Flags

Competition Strategy Ambiguity
Potential for Cost Overruns (Contractor Risk)
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to GANZCORP INVESTMENTS INC. BUILD AND INSTALLATION - IQA TEST STAND

Who is the contractor on this award?

The obligated recipient is GANZCORP INVESTMENTS 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 $10.8 million.

What is the period of performance?

Start: 2025-01-17. End: 2028-01-17.

What is the specific function and technical capability of the IQA Test Stand being procured?

The 'IQA TEST STAND' likely refers to an Inspection Qualification Assurance test stand. Its specific function is to verify and validate the performance, accuracy, and reliability of aircraft parts or sub-assemblies before they are integrated into larger systems or deployed. This could involve testing parameters such as structural integrity, operational functionality, electronic performance, or material properties under simulated conditions. The technical capabilities would be defined by the detailed specifications within the contract's Statement of Work (SOW), outlining the types of tests it can perform, the precision required, and the environmental conditions it must withstand. Without access to the SOW, the precise capabilities remain general.

How does the $10.8 million contract value compare to similar IQA test stand procurements?

Benchmarking the $10.8 million contract value requires access to data on similar procurements for IQA test stands. Factors influencing cost include the complexity of the stand, the specific aircraft parts it's designed for, required precision levels, integration needs with existing systems, and the contractor's overhead. A preliminary assessment suggests this is a significant investment, indicative of a specialized and potentially complex piece of equipment. To provide a robust comparison, one would need to analyze historical contract awards for comparable test stands, considering factors like duration, scope, and technical specifications. Without such comparative data, the value is difficult to definitively assess as high or low.

What are the potential risks associated with a firm-fixed-price contract for this type of equipment?

While firm-fixed-price (FFP) contracts are generally favored for cost control, they carry specific risks for complex procurements like specialized test stands. The primary risk is that the contractor may underestimate the costs or encounter unforeseen technical challenges during design, manufacturing, or installation. If GANZCORP INVESTMENTS INC faces significant cost overruns, they might be tempted to cut corners on quality, delay delivery, or seek contract modifications, potentially impacting performance and schedule. The government's risk is mitigated by a well-defined SOW and rigorous oversight, but the contractor bears the brunt of cost uncertainty. This could also lead to less competitive bidding in the future if contractors perceive excessive risk.

What is GANZCORP INVESTMENTS INC's track record with similar defense contracts?

GANZCORP INVESTMENTS INC's track record with similar defense contracts is crucial for assessing performance risk. Information on their past performance, including successful delivery of complex manufacturing equipment, adherence to schedules and budgets, and quality of work on previous government contracts, would be available through sources like the Contractor Performance Assessment Reporting System (CPARS). A review of their history would reveal their experience with firm-fixed-price contracts, their ability to manage technical complexities, and their overall reliability as a defense contractor. Without specific CPARS data, it's assumed the Department of the Navy conducted due diligence and found their past performance satisfactory for this award.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for price and innovation?

The 'Full and Open Competition After Exclusion of Sources' (FOA) designation suggests a nuanced approach to competition. Initially, certain potential sources were excluded, possibly due to specific technical requirements, security clearances, or past performance issues. However, the subsequent 'Full and Open' phase implies that the remaining pool of bidders was considered sufficient for robust competition. This approach can balance the need for specialized capabilities with market access. While it might limit the absolute number of bidders compared to unrestricted full and open competition, it aims to ensure that qualified and capable sources compete. The impact on price and innovation depends on the size and competitiveness of the final bidder pool; a smaller, specialized pool might offer less price pressure but could foster innovation among niche providers.

How does this contract fit into the broader context of Department of the Navy's modernization or readiness efforts?

This contract for an IQA Test Stand directly supports the Department of the Navy's (DoN) efforts to maintain and enhance the readiness and reliability of its aircraft and associated components. By ensuring that aircraft parts meet stringent quality assurance standards through advanced testing, the DoN mitigates risks of in-flight failures and reduces long-term maintenance costs. Such procurements are integral to the DoN's strategy of fielding and sustaining a modern, capable air fleet. The investment in specialized testing equipment reflects a commitment to upholding high operational standards and ensuring the safety and effectiveness of naval aviation assets.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6852024R0041

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2300 PINNACLE PKWY, TWINSBURG, OH, 44087

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,699,098

Exercised Options: $10,841,140

Current Obligation: $10,841,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline