DoD awards $26.7M for troop helmets, with GENTEX CORPORATION securing the delivery order

Contract Overview

Contract Amount: $26,731,404 ($26.7M)

Contractor: Gentex Corporation

Awarding Agency: Department of Defense

Start Date: 2024-06-28

End Date: 2025-12-30

Contract Duration: 550 days

Daily Burn Rate: $48.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8510722984!HELMET,GROUND TROOP

Place of Performance

Location: CARBONDALE, LACKAWANNA County, PENNSYLVANIA, 18407

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to GENTEX CORPORATION for work described as: 8510722984!HELMET,GROUND TROOP Key points: 1. Value appears reasonable given the specialized nature of military protective equipment. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract type is firm fixed price, which transfers risk to the contractor. 4. Performance period extends over 1.5 years, indicating a medium-term requirement. 5. This contract falls within the broader Defense Logistics Agency's procurement of soldier protection systems. 6. The North American Industry Classification System (NAICS) code 339113 points to surgical appliance and supply manufacturing.

Value Assessment

Rating: good

The award of $26.7 million for troop helmets is a significant but not extraordinary sum for defense procurement. Benchmarking against similar contracts for advanced helmet systems is challenging without more specific technical details. However, the firm fixed-price structure suggests that the contractor, GENTEX CORPORATION, has committed to delivering the specified items at a set cost, which is generally favorable for the government. The duration of the contract (550 days) also suggests a manageable scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the designation suggests a robust competition was intended and likely occurred.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available.

Public Impact

Directly benefits ground troops by providing essential protective headgear. Enhances soldier survivability and operational effectiveness in combat and training environments. The contract supports manufacturing jobs within the defense industrial base. Geographic impact is primarily centered around the contractor's facilities and the distribution points for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific technical details for the helmet system makes independent value assessment difficult.
Potential for price fluctuations in raw materials impacting long-term cost-effectiveness, though mitigated by FFP.
Dependence on a single contractor for a critical piece of equipment could pose supply chain risks if not managed proactively.

Positive Signals

Firm Fixed Price (FFP) contract type shifts cost overrun risk to the contractor.
Full and open competition suggests a competitive pricing environment was leveraged.
Award to a known entity like GENTEX CORPORATION, likely with a track record in similar products, can indicate reliability.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on personal protective equipment. The market for advanced combat helmets is specialized, with a few key manufacturers dominating. Spending in this area is driven by ongoing military modernization efforts and the need to replace aging equipment with advanced, lighter, and more protective systems. Comparable spending benchmarks would typically be found within the Department of Defense's procurement of soldier systems and individual equipment.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this specific award. Therefore, the direct impact on small businesses is likely minimal unless GENTEX CORPORATION engages them as subcontractors. Further analysis would be needed to determine subcontracting plans and their potential benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Soldier Protection Systems
Advanced Combat Helmet Programs
Personal Protective Equipment Procurement
Defense Logistics Agency Supply Chain Management

Risk Flags

Potential for supply chain vulnerabilities in specialized materials.
Need for ongoing quality assurance to ensure performance standards are met.
Dependence on contractor's production capacity for timely delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to GENTEX CORPORATION. 8510722984!HELMET,GROUND TROOP

Who is the contractor on this award?

The obligated recipient is GENTEX CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2024-06-28. End: 2025-12-30.

What is GENTEX CORPORATION's track record with the Department of Defense for similar helmet systems?

GENTEX CORPORATION is a well-established defense contractor with a significant history of supplying protective equipment, including helmets, to the U.S. military and allied forces. They are known for their work in areas such as aircrew systems, ballistic protection, and respiratory protection. While specific details on past helmet contracts awarded to GENTEX by the DoD would require deeper database searches, their general reputation suggests they possess the technical capability and manufacturing capacity to fulfill this type of requirement. Their experience likely includes meeting stringent military specifications and performance standards for head protection systems, which is crucial for ensuring troop safety and operational readiness.

How does the $26.7 million award compare to historical spending on troop helmets by the DoD?

The $26.7 million award represents a substantial investment in troop helmets. To provide a precise comparison, historical spending data for similar helmet procurements over various fiscal years would be necessary. However, considering the advanced nature of modern combat helmets, which often incorporate features like enhanced ballistic protection, integrated communication systems, and mounting capabilities for accessories, this figure is not unexpected. Large-scale procurements for thousands of units, especially for next-generation systems, can easily reach tens of millions of dollars. This award likely covers a significant quantity of helmets, potentially for a specific unit, deployment, or as part of a broader modernization effort, making it a notable but not outlier expenditure within the context of overall defense budgets.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions for raw materials, manufacturing defects, and delivery delays. Given that this is a firm fixed-price contract, the risk of cost overruns is largely transferred to GENTEX CORPORATION. Mitigation strategies employed by the Department of Defense likely include rigorous quality assurance and inspection processes throughout the manufacturing lifecycle, clear performance metrics and delivery schedules outlined in the contract, and potentially maintaining relationships with alternative suppliers or having contingency plans. The full and open competition also serves as a risk mitigation factor by ensuring a competitive landscape that incentivizes the contractor to perform effectively to secure future business.

What is the expected program effectiveness and impact on soldier survivability?

The expected program effectiveness hinges on the helmet system meeting or exceeding its specified performance requirements for ballistic protection, comfort, and integration with other soldier systems. If the helmets provide superior protection against known threats and are comfortable for extended wear, they will directly contribute to enhanced soldier survivability and reduced casualty rates. Effective integration with communication devices, night vision equipment, and other mission-critical gear will also improve operational effectiveness. The success of the program will be measured by the extent to which these helmets fulfill their intended purpose in safeguarding troops and enabling mission accomplishment across diverse operational environments.

Are there any indications of potential overpricing or lack of value for money in this award?

Based on the available data, there are no immediate indications of overpricing or a lack of value for money. The contract was awarded under full and open competition, which typically drives prices down. The firm fixed-price nature of the contract also shifts financial risk to the contractor. However, a definitive assessment of value for money would require a detailed cost-benefit analysis, including benchmarking the per-unit cost against similar advanced helmet systems in the market, considering the specific technical specifications, quantity ordered, and the contractor's overhead and profit margins. Without access to these granular details, the assessment remains preliminary, but the competitive nature of the award is a positive sign.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 324 MAIN ST, SIMPSON, PA, 18407

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

Financial Breakdown

Contract Ceiling: $26,731,404

Exercised Options: $26,731,404

Current Obligation: $26,731,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C123D0041

IDV Type: IDC

Timeline