DoD's $4.2M battery contract with Enersys Energy Products Inc. awarded via full and open competition

Contract Overview

Contract Amount: $4,265,900 ($4.3M)

Contractor: Enersys Energy Products Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-05

End Date: 2026-03-06

Contract Duration: 60 days

Daily Burn Rate: $71.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511840981!BATTERY,STORAGE

Place of Performance

Location: WARRENSBURG, JOHNSON County, MISSOURI, 64093

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $4.3 million to ENERSYS ENERGY PRODUCTS INC. for work described as: 8511840981!BATTERY,STORAGE Key points: 1. Contract awarded through a competitive process, suggesting potential for favorable pricing. 2. The contract duration of 60 days is relatively short, potentially indicating a specific, immediate need. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award is a delivery order, suggesting it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 335910 points to battery manufacturing. 6. The contract is not set aside for small businesses, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $4.2 million for a 60-day delivery period for batteries appears reasonable given the nature of specialized defense equipment. Benchmarking against similar large-scale battery procurements for military applications would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of two bids suggests a degree of competition, which generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential battery storage components. Services delivered include the provision of critical battery manufacturing and supply. The geographic impact is centered around the delivery location in Missouri. Workforce implications may include manufacturing and logistics roles within the battery industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration could imply urgent operational needs that might strain existing supply chains if not managed effectively.
Reliance on a single awardee for this specific delivery order, even if from a competitive pool, warrants monitoring for future needs.
The specific type and quantity of batteries are not detailed, making it difficult to assess if this meets all potential future requirements.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Enersys Energy Products Inc., is an established entity in the energy storage sector.
The contract is for battery manufacturing, a critical component for various defense systems.

Sector Analysis

This contract falls within the broader Defense Industrial Base sector, specifically focusing on the manufacturing of energy storage solutions. The market for military-grade batteries is specialized, driven by stringent performance requirements and reliability standards. Comparable spending benchmarks would involve analyzing other DoD procurements for similar battery systems, which can range from small tactical units to large power storage arrays for bases or vehicles.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This suggests that the primary contractor, Enersys Energy Products Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, which could represent a missed opportunity for small business participation in the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial accountability. The Defense Logistics Agency (DLA) is the awarding agency, responsible for the overall procurement process. Transparency is facilitated through contract award databases, though specific performance metrics are not publicly detailed.

Related Government Programs

Defense Logistics Agency (DLA) Procurement
Military Vehicle Power Systems
Tactical Communication Power Solutions
Energy Storage Systems for DoD Installations

Risk Flags

Short contract duration may indicate urgent need or limited scope.
Lack of detailed specifications makes independent value assessment difficult.
Potential for supply chain bottlenecks for specialized battery components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.3 million to ENERSYS ENERGY PRODUCTS INC.. 8511840981!BATTERY,STORAGE

Who is the contractor on this award?

The obligated recipient is ENERSYS ENERGY PRODUCTS INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2026-01-05. End: 2026-03-06.

What is the track record of Enersys Energy Products Inc. with the Department of Defense?

Enersys Energy Products Inc. has a history of contracts with the Department of Defense, primarily through the Defense Logistics Agency (DLA). Their awards often relate to various types of batteries and power solutions essential for military operations, including vehicle batteries, tactical power systems, and potentially larger energy storage solutions. Analyzing past performance data, including any reported issues or successes, would provide a clearer picture of their reliability and capability in fulfilling defense contracts. The firm fixed-price nature of many of their awards suggests a willingness to assume cost risk, which is generally viewed favorably by the government. However, a comprehensive review would involve examining contract close-out data, any past performance evaluations, and the volume and value of their historical awards to assess their overall standing as a defense contractor.

How does the unit cost of these batteries compare to similar market rates or other government procurements?

Without specific details on the type, capacity, and technical specifications of the batteries procured under this $4.2 million contract, a precise unit cost comparison is challenging. However, given that this is a delivery order under a full and open competition with two bids, the pricing is likely competitive within the defense procurement landscape. Military-grade batteries often command a premium due to stringent reliability, durability, and performance requirements (e.g., operating temperature ranges, shock resistance). To benchmark effectively, one would need to compare the price per watt-hour or per ampere-hour against other DLA or DoD contracts for batteries with similar specifications, or against commercial equivalent pricing adjusted for military-grade requirements. The firm fixed-price contract type suggests that Enersys has factored in their costs and a profit margin, and the competitive bidding process should have driven this price towards market efficiency.

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

The primary risks associated with this contract include potential supply chain disruptions for specialized battery components, performance issues with the delivered batteries under demanding military conditions, and the short 60-day delivery window potentially indicating urgent needs that could lead to rushed production or logistical challenges. Mitigation strategies are inherent in the contract structure and award process. The firm fixed-price (FFP) contract shifts cost overrun risk to the contractor. The award through full and open competition with two bidders suggests a level of vetting and selection based on capability and price. The Defense Contract Management Agency (DCMA) would likely provide oversight to ensure quality and timely delivery. However, specific risks related to the technology's obsolescence or the contractor's capacity to scale production for future needs would require ongoing monitoring beyond this single delivery order.

How effective is the Defense Logistics Agency in procuring essential battery systems for the military?

The Defense Logistics Agency (DLA) plays a crucial role in procuring a vast array of essential supplies, including batteries, for the U.S. military. Its effectiveness in procuring battery systems can be assessed by several factors: the breadth of its contracting vehicles (like the one this delivery order falls under), the competitiveness of its solicitations, the reliability of the supplied equipment, and the overall cost-efficiency achieved. DLA's use of full and open competition, as seen in this award, is a positive indicator of efforts to achieve competitive pricing. However, the effectiveness can also be challenged by the rapidly evolving battery technology, the specialized nature of military requirements, and potential supply chain vulnerabilities. Analyzing DLA's historical spending patterns, contract performance data, and user feedback from military branches would provide a more comprehensive assessment of their effectiveness in this specific area.

What are the historical spending patterns for battery procurement by the Department of Defense?

The Department of Defense (DoD) has consistently allocated significant funds towards the procurement of batteries and energy storage solutions, reflecting their critical role across all military branches and operational domains. Historical spending patterns reveal a trend towards increasingly sophisticated and higher-capacity battery technologies to support advanced weaponry, communication systems, and logistical operations. Spending is often distributed across various contract types, including fixed-price contracts for established technologies and cost-plus contracts for research and development of next-generation power sources. Major awarding agencies include the Defense Logistics Agency (DLA), the Army, Navy, and Air Force, with contract values ranging from small, tactical replacements to multi-million dollar programs for large-scale energy storage systems. Factors influencing spending include technological advancements, geopolitical requirements, and the lifecycle management of military equipment.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Battery Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Enersys

Address: 617 N RIDGEVIEW DR, WARRENSBURG, MO, 64093

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: $4,265,900

Exercised Options: $4,265,900

Current Obligation: $4,265,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE7LX24D0049

IDV Type: IDC

Timeline