DoD Awards $530M Contract for Seal Replacement Parts Kits to Pioneer Industries, LLC
Contract Overview
Contract Amount: $5,300,889 ($5.3M)
Contractor: Pioneer Industries, LLC
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2027-01-11
Contract Duration: 388 days
Daily Burn Rate: $13.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: 8511802003!PARTS KIT,SEAL REPL
Place of Performance
Location: FARMINGDALE, SUFFOLK County, NEW YORK, 11735
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $5.3 million to PIONEER INDUSTRIES, LLC for work described as: 8511802003!PARTS KIT,SEAL REPL Key points: 1. Significant contract value of $530M for essential replacement parts. 2. Competition method 'COMPETED UNDER SAP' suggests potential for better pricing. 3. Risk of supply chain disruption for critical sealing components. 4. Sector: Manufacturing of Gasket, Packing, and Sealing Devices.
Value Assessment
Rating: good
The contract value of $530M for seal replacement parts appears reasonable given the duration and the nature of the components. Benchmarking against similar large-scale parts procurement contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition approach. While SAP can expedite procurement, it may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for a significant procurement of essential parts, with the effectiveness of the competition method impacting the final price paid.
Public Impact
Ensures continued operational readiness for defense equipment by providing necessary seal replacement parts. Supports a specific manufacturer, Pioneer Industries, LLC, contributing to the defense industrial base. Long-term contract (2025-2027) provides supply chain stability for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation over the contract duration.
- Dependence on a single supplier for critical parts.
Positive Signals
- Ensures availability of essential maintenance parts.
- Long-term contract provides supply chain predictability.
Sector Analysis
This contract falls within the Gasket, Packing, and Sealing Device Manufacturing sector, a critical component of the broader industrial manufacturing base supporting defense operations. Spending benchmarks in this niche area are difficult to ascertain without specific industry data.
Small Business Impact
The data does not indicate whether small businesses were involved in the subcontracting or supply chain for this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded via Purchase Order under SAP, suggesting a streamlined oversight process. The Defense Logistics Agency's role implies established procurement and oversight procedures are in place.
Related Government Programs
- Gasket, Packing, and Sealing Device Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition may lead to higher prices.
- Long-term contract duration increases exposure to market fluctuations.
- Dependence on a single supplier for critical parts.
- Lack of detailed cost breakdown hinders value assessment.
Tags
gasket-packing-and-sealing-device-manufa, department-of-defense, ny, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.3 million to PIONEER INDUSTRIES, LLC. 8511802003!PARTS KIT,SEAL REPL
Who is the contractor on this award?
The obligated recipient is PIONEER INDUSTRIES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $5.3 million.
What is the period of performance?
Start: 2025-12-19. End: 2027-01-11.
What is the estimated unit cost for the seal replacement parts, and how does it compare to industry averages?
The provided data does not include specific unit costs for the seal replacement parts. A detailed cost breakdown would be necessary to perform a unit cost analysis and benchmark it against industry averages for similar components. This information is crucial for assessing the overall value for money.
What are the specific risks associated with relying on Pioneer Industries, LLC for these critical components over the contract's duration?
Risks include potential supply chain disruptions due to unforeseen events affecting Pioneer Industries, LLC, or its raw material suppliers. There's also a risk of quality control issues or a lack of competitive pressure leading to suboptimal pricing over the contract's extended period, impacting long-term cost-effectiveness.
How effectively does the 'COMPETED UNDER SAP' method ensure fair pricing and value for taxpayer dollars in this $530M contract?
Competing under SAP (Simplified Acquisition Procedures) is intended to expedite procurement for purchases below certain thresholds. While it can be efficient, it may limit the pool of potential bidders compared to full and open competition, potentially impacting the degree of price discovery and the ultimate value achieved for taxpayers.
Industry Classification
NAICS: Manufacturing › Other Miscellaneous Manufacturing › Gasket, Packing, and Sealing Device Manufacturing
Product/Service Code: HARDWARE AND ABRASIVES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: SPE7L126Q0075
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 155 MARINE ST, FARMINGDALE, NY, 11735
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,300,889
Exercised Options: $5,300,889
Current Obligation: $5,300,889
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-12-19
Current End Date: 2027-01-11
Potential End Date: 2027-01-11 00:00:00
Last Modified: 2025-12-23
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