DoD awards $8.86M contract for track shoe connecting components to QPI PRO, INC
Contract Overview
Contract Amount: $8,866,866 ($8.9M)
Contractor: QPI PRO, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-05
End Date: 2027-06-08
Contract Duration: 1,006 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510864456!LINK,TRACK SHOE,CONNECTING
Place of Performance
Location: FULLERTON, ORANGE County, CALIFORNIA, 92833
Plain-Language Summary
Department of Defense obligated $8.9 million to QPI PRO, INC. for work described as: 8510864456!LINK,TRACK SHOE,CONNECTING Key points: 1. Contract awarded for essential vehicle components, indicating ongoing maintenance needs. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Fixed-price contract type offers cost certainty for the government. 4. California-based manufacturer selected, potentially impacting regional economic benefits.
Value Assessment
Rating: good
The contract value of $8.86 million for track shoe connecting components appears reasonable given the duration and the nature of specialized automotive parts. Benchmarking against similar defense contracts for vehicle sub-assemblies would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method can impact price discovery by limiting the pool of potential bidders.
Taxpayer Impact: Taxpayer funds are being used for essential defense logistics. The limited competition may result in a higher price than if all potential sources were included, but the fixed-price nature provides some cost control.
Public Impact
Ensures operational readiness of military vehicles by providing critical replacement parts. Supports the defense industrial base through procurement of specialized manufacturing components. Potential for job creation and economic activity within the awarded company's region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about best value.
- Exclusion of sources needs clear justification.
- Contract duration of nearly three years requires ongoing monitoring.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Award to a single supplier ensures supply chain continuity for this specific part.
- Contract supports a critical defense logistics need.
Sector Analysis
This contract falls within the manufacturing sector, specifically for motor vehicle steering and suspension components. Defense spending in this area is crucial for maintaining vehicle fleets, and benchmarks often depend on the specificity and volume of parts required.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a specific procurement strategy that warrants oversight to ensure fairness and cost-effectiveness. The Defense Logistics Agency's role in managing this contract is key to accountability.
Related Government Programs
- Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition
- Exclusion of sources
- Potential supply chain disruption
- Long contract duration
Tags
motor-vehicle-steering-and-suspension-co, department-of-defense, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.9 million to QPI PRO, INC.. 8510864456!LINK,TRACK SHOE,CONNECTING
Who is the contractor on this award?
The obligated recipient is QPI PRO, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $8.9 million.
What is the period of performance?
Start: 2024-09-05. End: 2027-06-08.
What was the justification for excluding specific sources from this competition, and how did this exclusion impact the final price?
The justification for excluding sources typically relates to technical capabilities, past performance, or specific security requirements. Without detailed documentation, it's difficult to ascertain the precise reasons. However, excluding potential bidders generally reduces competition, which can lead to higher prices compared to a fully open solicitation. The government aims to balance the need for specialized capabilities with achieving the best possible price.
How does the unit cost of these track shoe connecting components compare to industry benchmarks for similar military vehicle parts?
A direct comparison to industry benchmarks for similar military vehicle parts is challenging without knowing the exact specifications, materials, and production volume. However, the contract's total value of $8.86 million over approximately 1006 days suggests a moderate per-unit cost. Further analysis would require access to detailed cost breakdowns and comparative pricing data from other defense contracts or commercial equivalents.
What is the potential risk to military vehicle operational readiness if QPI PRO, INC. faces production or delivery issues?
The risk to military vehicle operational readiness is significant if QPI PRO, INC. encounters production or delivery issues, especially given the contract's duration and the specialized nature of the components. The Defense Logistics Agency would likely have contingency plans, such as identifying alternative suppliers or expediting orders, but disruptions could still lead to delays in vehicle maintenance and deployment, impacting readiness.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SPE7L124R0021
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: QPI PRO Inc.
Address: 3517 W COMMONWEALTH AVE, FULLERTON, CA, 92833
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,866,866
Exercised Options: $8,866,866
Current Obligation: $8,866,866
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-05
Current End Date: 2027-06-08
Potential End Date: 2027-06-08 00:00:00
Last Modified: 2025-12-02
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