DoD's $24.3M ATAPS contract with KRANZE TECHNOLOGY SOLUTIONS INC awarded via full and open competition
Contract Overview
Contract Amount: $24,301,770 ($24.3M)
Contractor: Kranze Technology Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2017-09-27
End Date: 2024-03-29
Contract Duration: 2,375 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ATAPS
Place of Performance
Location: PROSPECT HEIGHTS, COOK County, ILLINOIS, 60070
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to KRANZE TECHNOLOGY SOLUTIONS INC for work described as: ATAPS Key points: 1. Contract value of $24.3M over 2375 days. 2. KRANZE TECHNOLOGY SOLUTIONS INC is the sole awardee. 3. Awarded under full and open competition. 4. Sector: IT (based on NAICS code 334511).
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar contracts for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms of Cost Plus Fixed Fee contracts require careful monitoring to ensure fair market prices are achieved.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The effectiveness of the competition and cost controls will determine the ultimate taxpayer impact.
Public Impact
Supports Department of the Navy's operational needs. Potential impact on navigation and guidance systems. Job creation within KRANZE TECHNOLOGY SOLUTIONS INC and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize overspending.
- Long duration of the contract (2375 days) may lead to scope creep or outdated technology.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Clear end date provides a defined project lifecycle.
- Specific NAICS code indicates a focused area of manufacturing.
Sector Analysis
The contract falls under the Manufacturing sector, specifically related to navigation and guidance systems. Spending in this area is critical for defense capabilities, and benchmarks should consider industry standards for similar complex systems.
Small Business Impact
The data indicates that small businesses were not directly involved in this award, as the 'sb' field is false. Future contracts should explore opportunities for small business participation to foster innovation and economic growth.
Oversight & Accountability
Oversight will be crucial for the Department of Defense to manage the Cost Plus Fixed Fee structure effectively, ensuring costs remain reasonable and deliverables meet requirements throughout the contract's duration.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No noted small business participation.
- Sole awardee may limit future competition.
- Potential for technology obsolescence over contract term.
Tags
search-detection-navigation-guidance-aer, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to KRANZE TECHNOLOGY SOLUTIONS INC. ATAPS
Who is the contractor on this award?
The obligated recipient is KRANZE TECHNOLOGY SOLUTIONS 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 $24.3 million.
What is the period of performance?
Start: 2017-09-27. End: 2024-03-29.
What specific systems or instruments are being manufactured or supplied under this ATAPS contract, and how do they align with current Department of the Navy technological needs?
The ATAPS contract, identified by NAICS code 334511, pertains to the manufacturing of Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. The specific systems are not detailed in the provided data. Understanding the precise nature of these instruments is crucial to assess their alignment with the Department of the Navy's current and future technological requirements and operational strategies.
Given the Cost Plus Fixed Fee structure, what are the primary cost drivers and how will the Department of Defense ensure cost efficiency and prevent potential overruns?
The primary cost drivers for a Cost Plus Fixed Fee contract typically include direct labor, materials, overhead, and the fixed fee itself. The Department of Defense will ensure cost efficiency through rigorous oversight, detailed auditing of incurred costs, performance metrics, and potentially establishing cost ceilings or incentive clauses. Regular reviews and clear communication with KRANZE TECHNOLOGY SOLUTIONS INC are vital to manage expenditures effectively.
What is the expected impact of these manufactured systems on the Department of the Navy's operational effectiveness and technological advantage in the specified domains?
The manufactured systems under the ATAPS contract are expected to enhance the Department of the Navy's capabilities in search, detection, navigation, and guidance, both aeronautical and nautical. This could translate to improved situational awareness, more precise navigation, and potentially enhanced operational effectiveness in various maritime and air-based missions. The specific impact depends on the sophistication and reliability of the systems provided by KRANZE TECHNOLOGY SOLUTIONS INC.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6893614R0027
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 742 PINECREST DR, PROSPECT HEIGHTS, IL, 60070
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $24,302,296
Exercised Options: $24,302,296
Current Obligation: $24,301,770
Actual Outlays: $1,047,784
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893617D0012
IDV Type: IDC
Timeline
Start Date: 2017-09-27
Current End Date: 2024-03-29
Potential End Date: 2024-03-29 00:00:00
Last Modified: 2024-04-03
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