DoD Awards $5.9M for Tube and Pipe Equipment to Hartech Group LLC
Contract Overview
Contract Amount: $5,849,993 ($5.8M)
Contractor: Hartech Group LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-19
End Date: 2026-05-15
Contract Duration: 665 days
Daily Burn Rate: $8.8K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8510501498!IPE - TUBE AND PIPE EQUIPMENT
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $5.8 million to HARTECH GROUP LLC for work described as: 8510501498!IPE - TUBE AND PIPE EQUIPMENT Key points: 1. Contract awarded to Hartech Group LLC for specialized equipment. 2. Competition method was 'Competed Under SAP', indicating potential for limited competition. 3. The contract value is $5,849,993. 4. Sector is Machine Tool Manufacturing, supporting Defense Logistics Agency needs.
Value Assessment
Rating: fair
The contract value of $5.9M for tube and pipe equipment appears within a reasonable range for specialized machinery. However, without specific details on the equipment's capabilities and market benchmarks for similar procurements, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for limited competition among pre-qualified vendors. This method can expedite procurement but may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential defense logistics equipment. The efficiency of the SAP competition method will impact the overall value for money.
Public Impact
Ensures operational readiness for the Defense Logistics Agency by providing necessary equipment. Supports the Machine Tool Manufacturing sector, contributing to domestic industrial capacity. Potential for limited competition may impact cost savings for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP.
- Lack of detailed equipment specifications for value assessment.
Positive Signals
- Supports critical defense logistics.
- Procurement completed under established procedures.
Sector Analysis
This contract falls within the Machine Tool Manufacturing sector, which is crucial for producing various industrial components. Spending benchmarks in this sector can vary widely based on specialization and technological advancement.
Small Business Impact
The data does not indicate if Hartech Group LLC is a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The contract is a Purchase Order awarded by the Defense Logistics Agency, subject to standard federal procurement oversight. Accountability is maintained through contract terms and performance monitoring.
Related Government Programs
- Machine Tool Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition potential.
- Lack of detailed technical specifications for value assessment.
- Potential for higher costs due to SAP.
- Unknown small business participation.
Tags
machine-tool-manufacturing, department-of-defense, fl, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.8 million to HARTECH GROUP LLC. 8510501498!IPE - TUBE AND PIPE EQUIPMENT
Who is the contractor on this award?
The obligated recipient is HARTECH GROUP LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $5.8 million.
What is the period of performance?
Start: 2024-07-19. End: 2026-05-15.
What specific capabilities does this tube and pipe equipment offer, and how do they align with the agency's needs?
The provided data lacks specific details on the capabilities of the tube and pipe equipment. Understanding the exact specifications, such as material compatibility, precision, and production volume, is crucial to assess its alignment with the Defense Logistics Agency's operational requirements and justify the $5.9M expenditure.
What was the competitive landscape under SAP, and were there opportunities missed for broader competition?
While competed under SAP, the specific number of bidders and the rationale for limiting competition are not detailed. A review of the procurement file could reveal if alternative, more competitive methods were considered or if the SAP limitations were justified by urgency or specific technical requirements.
How does the firm fixed price contract structure mitigate risks for the government regarding cost overruns?
A firm fixed price contract shifts the risk of cost overruns to the contractor, Hartech Group LLC. This structure provides budget certainty for the Department of Defense, as the price is set regardless of the contractor's actual costs. However, it necessitates thorough initial price negotiation to ensure fairness.
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: SPE4A822Q0058
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3030 N ROCKY POINT DR W, TAMPA, FL, 33607
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $5,849,993
Exercised Options: $5,849,993
Current Obligation: $5,849,993
Actual Outlays: $431,998
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2024-07-19
Current End Date: 2026-05-15
Potential End Date: 2026-05-15 00:00:00
Last Modified: 2026-02-20
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