DoD awards $15.9M contract for turning equipment, with PAULEY RODINE INC as the contractor

Contract Overview

Contract Amount: $15,914,337 ($15.9M)

Contractor: Pauley Rodine Inc

Awarding Agency: Department of Defense

Start Date: 2024-07-09

End Date: 2026-06-29

Contract Duration: 720 days

Daily Burn Rate: $22.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8510717273!IPE - TURNING EQUIPMENT

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98312

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to PAULEY RODINE INC for work described as: 8510717273!IPE - TURNING EQUIPMENT Key points: 1. Contract value appears reasonable given the scope of specialized machinery. 2. Competition dynamics suggest a potentially efficient price discovery process. 3. Risk indicators are low due to a firm-fixed-price structure. 4. Performance context is set by a two-year duration for delivery and support. 5. Sector positioning is within the Defense Logistics Agency's critical equipment procurement.

Value Assessment

Rating: good

The contract value of $15.9 million for turning equipment seems aligned with industry benchmarks for specialized industrial machinery. Without specific per-unit cost data, a direct comparison is challenging, but the overall award amount does not immediately suggest overpricing. The firm-fixed-price nature of the contract helps control costs for the government, indicating a potentially good value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for procurements below certain thresholds. While the exact number of bidders is not specified, the use of SAP generally encourages multiple offers, leading to price discovery and potentially better pricing for the government. The 'COMPETED UNDER SAP' designation suggests a robust, albeit streamlined, competitive environment.

Taxpayer Impact: A competitive award under SAP helps ensure taxpayer dollars are used efficiently by fostering price competition among qualified vendors.

Public Impact

The Department of Defense benefits from acquiring essential turning equipment for its operations. This equipment is crucial for manufacturing and maintenance within defense logistics. The geographic impact is likely centered around the Defense Logistics Agency's operational hubs. Workforce implications may include the need for skilled operators and maintenance personnel for the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delivery delays if PAULEY RODINE INC faces supply chain issues for specialized components.
Ensuring long-term maintenance and spare parts availability for the acquired turning equipment.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risks for the government.
Award to an established contractor suggests a degree of reliability in execution.
The competitive bidding process likely secured a fair market price.

Sector Analysis

The Machine Tool Manufacturing sector is vital for industrial production, providing the machinery necessary for creating a vast array of goods. Within the defense sector, such equipment is critical for maintaining readiness, producing spare parts, and supporting complex manufacturing needs. Spending in this area is often characterized by high unit costs due to technological sophistication and specialized requirements. Comparable spending benchmarks would typically involve other large-scale procurements of industrial machinery for government or large commercial entities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless PAULEY RODINE INC voluntarily engages small businesses in its supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial accountability. The firm-fixed-price nature simplifies some aspects of financial oversight, focusing on delivery and quality. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

Defense Logistics Agency Procurement
Industrial Equipment Acquisition
Manufacturing and Production Support
DoD Supply Chain Management

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Need for robust post-delivery inspection and acceptance testing.
Ensuring availability of specialized maintenance and spare parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to PAULEY RODINE INC. 8510717273!IPE - TURNING EQUIPMENT

Who is the contractor on this award?

The obligated recipient is PAULEY RODINE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2024-07-09. End: 2026-06-29.

What is the track record of PAULEY RODINE INC in fulfilling government contracts, particularly for similar types of equipment?

A review of PAULEY RODINE INC's contract history with the federal government would be necessary to assess their track record. Key areas to examine would include on-time delivery rates, adherence to quality standards, and any history of contract disputes or terminations. For contracts involving specialized turning equipment, their experience with similar procurements, including the complexity and scale, would be a significant indicator of their capability. Analyzing past performance on firm-fixed-price contracts would also provide insight into their ability to manage costs effectively within a set budget. Without specific historical data on this contractor, it is difficult to provide a definitive assessment of their reliability for this particular award.

How does the awarded price of $15.9 million compare to market rates for comparable turning equipment from other manufacturers?

To benchmark the $15.9 million award, a detailed analysis of current market prices for similar turning equipment from various manufacturers would be required. This would involve identifying key specifications of the equipment procured (e.g., precision, capacity, automation features) and then researching quotes or published prices from competitors. Factors such as warranty, included training, and installation services also need to be considered in the comparison. If the Defense Logistics Agency (DLA) conducted a thorough competitive bidding process under SAP, it is likely that the awarded price reflects a fair market value. However, a direct comparison with publicly available data or industry reports on machine tool pricing would provide a more concrete validation of the value obtained.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential delays in delivery due to manufacturing lead times or supply chain disruptions for specialized components, and the possibility of equipment malfunction or performance issues post-delivery. Given the firm-fixed-price nature of the contract, the financial risk of cost overruns is largely borne by the contractor, PAULEY RODINE INC. Mitigation strategies typically involve clear contract terms specifying delivery schedules, performance standards, and warranty provisions. The government's oversight, including inspections and acceptance testing, serves as a key mitigation for performance risks. Ensuring the contractor has a robust quality control system and a reliable supply chain would be crucial for minimizing delivery and performance risks.

How effective is the Defense Logistics Agency (DLA) in procuring specialized equipment like turning machines to meet operational demands?

The effectiveness of the DLA in procuring specialized equipment like turning machines can be assessed by examining several factors. These include the timeliness of procurements relative to identified needs, the competitiveness of the bidding processes used, and the overall satisfaction of end-users with the acquired equipment's performance and reliability. The DLA's use of competitive procedures, such as the SAP in this case, suggests an effort to achieve efficiency and value. Their ability to secure contracts with reputable manufacturers like PAULEY RODINE INC, assuming they are one, indicates a capacity to navigate the complexities of industrial equipment acquisition. A deeper analysis would involve reviewing DLA's historical performance data on similar procurements and user feedback.

What has been the historical spending pattern for turning equipment by the Department of Defense over the past five years?

Analyzing the historical spending patterns for turning equipment by the Department of Defense (DoD) over the past five years would reveal trends in acquisition volume, average contract values, and the primary contractors involved. This data can be obtained from federal procurement databases like FPDS-NG. Such an analysis would help contextualize the current $15.9 million award, indicating whether it represents a typical expenditure or a significant deviation. It would also highlight any shifts in technology or manufacturing capabilities the DoD is prioritizing. Understanding these patterns is crucial for budget forecasting and strategic sourcing of essential manufacturing assets.

Industry Classification

NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool Manufacturing

Product/Service Code: METALWORKING MACHINERY

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPE4A823R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1234 CHARLESTON BEACH RD W STE D, BREMERTON, WA, 98312

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,914,337

Exercised Options: $15,914,337

Current Obligation: $15,914,337

Actual Outlays: $903,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline