DoD awards $55M for Titanium Ingots to RMI Titanium Company, LLC, with 805 days duration
Contract Overview
Contract Amount: $54,964,162 ($55.0M)
Contractor: RMI Titanium Company, LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-18
End Date: 2025-12-31
Contract Duration: 805 days
Daily Burn Rate: $68.3K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TITANIUM INGOTS
Place of Performance
Location: HAWTHORNE, MINERAL County, NEVADA, 89415
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $55.0 million to RMI TITANIUM COMPANY, LLC for work described as: TITANIUM INGOTS Key points: 1. Contract awarded to RMI Titanium Company, LLC for $54.96M. 2. The contract is for Titanium Ingots, a critical component in defense manufacturing. 3. Competition was conducted under SAP (Simplified Acquisition Procedures), suggesting a potentially less competitive environment. 4. The sector is Nonferrous Metal Rolling, Drawing, and Extruding, with a benchmark of $6.83M. 5. The contract duration is 805 days, ending in December 2025.
Value Assessment
Rating: questionable
The award amount of $54.96M significantly exceeds the sector benchmark of $6.83M. While the contract is for a substantial duration and quantity, the high value relative to the benchmark warrants scrutiny regarding pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, which typically involves fewer vendors and less formal solicitation processes than full and open competition. This method may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The significant deviation from the sector benchmark suggests potential overspending, impacting taxpayer funds negatively.
Public Impact
Ensures supply of critical titanium components for defense applications. Potential for higher costs due to limited competition under SAP. Long-term contract may lock in pricing, but could miss out on future market reductions. Supports a specific supplier, RMI Titanium Company, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High award value compared to sector benchmark.
- Limited competition under SAP.
- Long contract duration.
Positive Signals
- Secures critical defense material.
- Definitive contract provides clear terms.
Sector Analysis
The Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding sector involves specialized manufacturing. The benchmark of $6.83M suggests typical contract values in this area, making the $54.96M award notably higher.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was competed under SAP, which may have less stringent oversight requirements compared to larger, full-and-open procurements. Accountability for pricing and performance should be closely monitored by the Defense Logistics Agency.
Related Government Programs
- Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Award value significantly exceeds sector benchmark.
- Limited competition due to SAP.
- Long contract duration may prevent benefit from future price decreases.
- Lack of transparency on specific justification for high cost.
Tags
nonferrous-metal-except-copper-and-alumi, department-of-defense, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.0 million to RMI TITANIUM COMPANY, LLC. TITANIUM INGOTS
Who is the contractor on this award?
The obligated recipient is RMI TITANIUM COMPANY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $55.0 million.
What is the period of performance?
Start: 2023-10-18. End: 2025-12-31.
What specific factors justify the $54.96M award for titanium ingots when the sector benchmark is $6.83M?
The significant difference between the award amount and the sector benchmark requires detailed justification. Factors could include the specific grade and quantity of titanium, unique technical specifications, urgency of need, or market fluctuations. Without further data on these specifics, it's difficult to ascertain the precise reasons for the substantial cost variance.
What are the risks associated with competing this contract under Simplified Acquisition Procedures (SAP)?
Competing under SAP generally involves fewer vendors and less formal documentation, which can streamline the acquisition process. However, it also limits the pool of potential bidders, potentially reducing price competition and increasing the risk of the government not securing the best possible price. This can lead to higher overall costs for taxpayers.
How does the 805-day contract duration impact the government's ability to achieve value for money?
An 805-day contract duration provides stability and ensures a consistent supply of titanium ingots over a long period. However, it also locks the government into a specific pricing structure for an extended time. If market prices for titanium decrease significantly during the contract period, the government might not benefit from those lower prices, potentially impacting overall value for money.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: SP800023R0005
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTI Remmele Engineering Inc.
Address: 1000 WARREN AVE, NILES, OH, 44446
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,964,162
Exercised Options: $54,964,162
Current Obligation: $54,964,162
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-10-18
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-04-22
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