DoD's $46.5M contract for ESBI Plates awarded to Leading Technology Composites Inc. with no competition

Contract Overview

Contract Amount: $46,560,000 ($46.6M)

Contractor: Leading Technology Composites Inc

Awarding Agency: Department of Defense

Start Date: 2017-07-07

End Date: 2019-03-07

Contract Duration: 608 days

Daily Burn Rate: $76.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8504551606!ESBI PLATES

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67213

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $46.6 million to LEADING TECHNOLOGY COMPOSITES INC for work described as: 8504551606!ESBI PLATES Key points: 1. Value for money is questionable due to sole-source award and lack of competitive pricing. 2. Competition dynamics indicate a sole-source procurement, limiting price discovery and potentially increasing costs. 3. Risk indicators include the absence of competition and a fixed-price contract type which may not fully mitigate cost overruns. 4. Performance context is for cut and sew apparel contractors, suggesting a specific niche within defense logistics. 5. Sector positioning is within the Defense sector, specifically supporting the Defense Logistics Agency. 6. The contract duration of 608 days suggests a significant supply requirement.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without competitive benchmarks. As a sole-source award, there's no direct comparison to other offers. The firm fixed-price structure provides cost certainty for the government, but the initial pricing cannot be validated against market rates due to the lack of competition. This makes it challenging to determine if the $46.5 million represents a fair and reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Leading Technology Composites Inc., was solicited. The absence of a competitive bidding process means that other qualified suppliers were not given an opportunity to offer their products or services. This approach is typically used when only one source is capable of meeting the requirement, but it bypasses the price discovery benefits of open competition.

Taxpayer Impact: The lack of competition means taxpayers may not have received the lowest possible price for these ESBI plates. Without competing bids, the government cannot be assured it obtained the best value.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential components for its operations. The contract delivers ESBI Plates, critical for protective equipment or vehicle armor. The geographic impact is centered in Kansas (ST: KS, SN: KANSAS), where the contractor is located. Workforce implications may include job creation or maintenance at Leading Technology Composites Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially inflates costs for taxpayers.
Lack of competition raises questions about whether the government secured the best possible value.
Fixed-price contract, while offering cost certainty, doesn't inherently guarantee cost-effectiveness without competitive pressure.
Limited public information on the specific application of ESBI plates makes it hard to gauge strategic importance.
Contract duration of nearly two years suggests a substantial, ongoing need that could have been explored with multiple vendors.

Positive Signals

Contract awarded to a specific company, potentially supporting a known supplier for critical defense components.
Firm fixed-price contract provides budget predictability for the Department of Defense.
The contract is for a specific item (ESBI Plates), indicating a defined need.
The contractor is located in Kansas, potentially supporting regional economic activity.

Sector Analysis

The defense logistics and manufacturing sector involves the production of specialized materials and equipment for military use. This contract for ESBI Plates falls within this domain, likely related to armor or protective systems. The market for such specialized defense components can be niche, often involving a limited number of qualified manufacturers. Spending in this area is driven by military readiness requirements and technological advancements in materials science.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. The impact on the small business ecosystem is therefore minimal for this particular contract, as it was awarded directly to a single, presumably larger, entity.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial regulations. Transparency is limited due to the sole-source nature, with fewer public details available compared to competed contracts. Accountability rests with Leading Technology Composites Inc. to deliver the specified ESBI Plates according to the contract terms and with the Department of Defense to manage the contract effectively.

Related Government Programs

Defense Logistics Agency Procurement
Department of Defense Supply Chain Management
Armor and Protective Systems Contracts
Specialized Materials Manufacturing
Sole-Source Defense Procurements

Risk Flags

Sole-source award limits competition.
Potential for overpayment due to lack of competitive bidding.
Limited transparency regarding justification for sole-source procurement.
Contract duration may indicate a long-term dependency on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.6 million to LEADING TECHNOLOGY COMPOSITES INC. 8504551606!ESBI PLATES

Who is the contractor on this award?

The obligated recipient is LEADING TECHNOLOGY COMPOSITES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $46.6 million.

What is the period of performance?

Start: 2017-07-07. End: 2019-03-07.

What is the specific function and importance of ESBI Plates within the Department of Defense?

ESBI Plates, often referred to as Enhanced Small Ballistic Inserts, are typically used as lightweight ballistic protection components. They are integrated into body armor systems for personnel or can be utilized in vehicle armor to enhance survivability against ballistic threats. Their importance lies in providing crucial protection to service members and assets while aiming to minimize weight penalties. The specific application within this $46.5 million contract would dictate their exact role, whether for individual soldier protection, vehicle upgrades, or other specialized defense applications. The Defense Logistics Agency's involvement suggests a role in equipping and sustaining military forces.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE' award. This typically occurs when the contracting agency determines that only one responsible source is available or capable of meeting the requirement. Reasons can include unique technical capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or if the item is a follow-on to a previously competed contract where only the original contractor can provide necessary compatibility. Without further justification from the agency, the specific rationale for this sole-source award remains undisclosed, but it implies a perceived lack of alternatives.

How does the firm fixed-price (FFP) contract type impact cost risk for the government and contractor?

A Firm Fixed Price (FFP) contract shifts the majority of cost risk to the contractor. The contractor agrees to a set price for the delivery of the specified goods or services, regardless of their actual costs incurred. This provides the government with budget certainty, as the price is fixed. However, if the contractor's costs exceed the agreed-upon price, they absorb the loss. Conversely, if their costs are lower, they realize a higher profit margin. For this $46.5 million contract, the Department of Defense knows the maximum expenditure, but the absence of competition makes it difficult to ascertain if the fixed price represents the best achievable market value.

What is the historical spending pattern for ESBI Plates or similar items by the Defense Logistics Agency?

Analyzing historical spending patterns for ESBI Plates specifically by the Defense Logistics Agency (DLA) would require access to detailed procurement databases beyond the provided summary data. However, the DLA is responsible for a vast array of logistical support, including clothing, textiles, and general supplies. Contracts for ballistic protection components are common within the Department of Defense, driven by ongoing operational needs and modernization efforts. Without specific historical data for this NSN (315210 - Cut and Sew Apparel Contractors), it's difficult to establish a trend. However, the $46.5 million awarded here suggests a significant procurement event, potentially indicating a substantial requirement or a consolidation of previous, smaller purchases.

What is the track record of Leading Technology Composites Inc. in fulfilling government contracts, particularly for defense items?

Leading Technology Composites Inc. (LTC) has a history of receiving government contracts, primarily within the defense sector. Information available through public contract databases indicates previous awards for various composite materials and related products. Assessing their track record specifically for ESBI Plates requires a deeper dive into past performance reviews and delivery histories for similar items. Given this is a sole-source award, the agency likely has prior positive experience or determined LTC to be the only capable source. However, without explicit performance metrics or past issues highlighted, a comprehensive evaluation of their track record is limited to the fact they are a recipient of defense contracts.

Are there any known risks associated with the materials or manufacturing process for ESBI Plates?

The risks associated with ESBI Plates depend heavily on the specific materials used (e.g., ceramics, composites, polymers) and the manufacturing processes employed. Advanced composite materials, often used for lightweight ballistic solutions, can present challenges related to quality control, material consistency, and potential degradation over time due to environmental factors or stress. Manufacturing processes must adhere to stringent tolerances to ensure ballistic performance. Risks could include material defects, improper bonding, or failure to meet specified performance standards under testing. The firm fixed-price nature of this contract places the onus on Leading Technology Composites Inc. to manage these manufacturing and material risks effectively to avoid financial losses.

Industry Classification

NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Cut and Sew Apparel Contractors

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2626 W MAY ST, WICHITA, KS, 67213

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

Financial Breakdown

Contract Ceiling: $46,560,000

Exercised Options: $46,560,000

Current Obligation: $46,560,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline