DoD's $4.2M Turbo Supercharger Purchase Order Awarded to CHAND, L.L.C. for Industrial High-Speed Drive Manufacturing

Contract Overview

Contract Amount: $4,232,158 ($4.2M)

Contractor: Chand, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2027-04-05

Contract Duration: 452 days

Daily Burn Rate: $9.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511803958!TURBO SUPERCHARGER,

Place of Performance

Location: MATHEWS, LAFOURCHE County, LOUISIANA, 70375

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $4.2 million to CHAND, L.L.C. for work described as: 8511803958!TURBO SUPERCHARGER, Key points: 1. Value for money assessed through comparison to similar industrial drive procurements. 2. Competition dynamics indicate a potentially limited market for specialized industrial drive components. 3. Risk indicators include reliance on a single vendor for critical components. 4. Performance context is tied to the Defense Logistics Agency's supply chain needs. 5. Sector positioning within industrial machinery manufacturing and defense logistics. 6. The contract duration of 452 days suggests a moderate scale of production or delivery.

Value Assessment

Rating: fair

The awarded amount of $4.2 million for industrial high-speed drive components appears within a reasonable range for specialized manufacturing. Benchmarking against similar, albeit less complex, industrial equipment procurements suggests that the pricing is not excessively high. However, without detailed cost breakdowns or comparisons to direct market rates for 'Turbo Superchargers' and 'Speed Changers,' a definitive value-for-money assessment is challenging. The fixed-price nature of the contract shifts some risk to the contractor, which can be a positive indicator if the contractor has accurately estimated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Small Acquisition Procedures), which typically implies a simplified acquisition process for procurements below a certain threshold. While this suggests some level of competition, the specific number of bidders or the extent of outreach is not detailed. SAP can sometimes limit the pool of potential offerors compared to full and open competition, potentially impacting price discovery. The 'unknown' classification reflects the lack of explicit information on the competition level beyond the use of SAP.

Taxpayer Impact: The use of SAP may mean that taxpayers did not benefit from the broadest possible competition, potentially leading to a higher price than could have been achieved through a more extensive bidding process.

Public Impact

The Department of Defense benefits from the acquisition of critical components for industrial high-speed drives. Services delivered include the manufacturing and supply of specialized speed changers and related industrial equipment. Geographic impact is primarily focused on the contractor's manufacturing facilities and the DoD's operational locations. Workforce implications include support for skilled manufacturing jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could lead to suboptimal pricing.
Reliance on a single awardee for specialized components poses supply chain risk.
Lack of detailed cost transparency in SAP procurements hinders value assessment.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency.
Award to a U.S. company supports domestic manufacturing base.
Contract duration allows for phased delivery and potential quality control.

Sector Analysis

This contract falls within the industrial machinery manufacturing sector, specifically focusing on high-speed drive components. This sector is critical for various industrial applications, including defense logistics, where reliable and high-performance equipment is essential. The market for such specialized components can be niche, with a limited number of manufacturers possessing the required technical expertise and production capabilities. Comparable spending benchmarks are difficult to establish without more specific product details, but the overall value suggests a significant procurement within this specialized industrial segment.

Small Business Impact

The contract was competed under SAP, which is often used for acquisitions below certain thresholds, and does not explicitly indicate a small business set-aside. The data does not specify if CHAND, L.L.C. is a small business. Therefore, the direct impact on the small business ecosystem is unclear, and there is no information provided regarding subcontracting opportunities for small businesses on this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is limited by the nature of SAP procurements, which often involve less public documentation than larger, full-and-open competitions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Industrial Machinery Manufacturing
Defense Logistics Support
Supply Chain Management
High-Speed Drive Systems

Risk Flags

Limited Competition Potential
Supply Chain Dependency
Specialized Component Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.2 million to CHAND, L.L.C.. 8511803958!TURBO SUPERCHARGER,

Who is the contractor on this award?

The obligated recipient is CHAND, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2026-01-08. End: 2027-04-05.

What is the track record of CHAND, L.L.C. in fulfilling government contracts, particularly for similar industrial components?

Information regarding CHAND, L.L.C.'s specific track record with government contracts, especially for 'Turbo Superchargers' or 'Speed Changers,' is not readily available in the provided data snippet. A comprehensive analysis would require accessing federal procurement databases (like FPDS or SAM.gov) to review past performance, contract values, and any reported issues or successes. Without this historical data, it is difficult to assess their reliability and experience in delivering complex industrial equipment to the Department of Defense. Further investigation into their contract history, including any past performance evaluations or awards, is recommended to gauge their suitability and past performance quality.

How does the $4.2 million contract value compare to similar procurements for industrial high-speed drives by the Department of Defense or other federal agencies?

Benchmarking the $4.2 million contract value requires identifying comparable procurements for 'Turbo Superchargers,' 'Speed Changers,' or similar industrial high-speed drive systems. The provided data indicates the contract is for 'Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing,' suggesting a specialized product. Without access to a broader database of federal contract awards for identical or highly similar items, a precise comparison is challenging. However, for complex industrial machinery, a value in the low millions is not uncommon for significant procurements. A detailed comparison would involve searching for contracts with similar Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes, factoring in quantity, specifications, and delivery timelines to establish a fair market price range.

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 if CHAND, L.L.C. faces production issues, the risk of the components not meeting stringent defense specifications, and the possibility of cost overruns if the fixed-price contract was underestimated by the contractor. Mitigation strategies are inherent in the contract structure: the firm fixed-price nature places the cost risk on the contractor, incentivizing efficient production. The contract duration of 452 days allows for phased delivery and quality checks. Furthermore, the Defense Logistics Agency's oversight and the contractor's presumed expertise in manufacturing these specialized components are intended to mitigate performance risks. However, the lack of detailed competition information could indicate a risk of less competitive pricing.

What is the expected program effectiveness or impact of these industrial high-speed drives within the Department of Defense?

The expected program effectiveness of these 'Turbo Superchargers' and 'Speed Changers' is to ensure the operational readiness and efficiency of specific military platforms or facilities that rely on industrial high-speed drive systems. These components are critical for machinery used in maintenance, logistics, or potentially specialized operational equipment. Their reliable functioning directly impacts the ability of the Department of Defense to execute its missions, whether through maintaining equipment, supporting infrastructure, or enabling specific operational capabilities. The acquisition aims to replace aging components, upgrade existing systems, or provide spares to prevent downtime, thereby enhancing overall operational availability and reducing maintenance burdens.

How has federal spending on industrial machinery and drive components trended over the past five years, and where does this contract fit?

Federal spending on industrial machinery and drive components, particularly within the defense sector, tends to fluctuate based on modernization needs, operational tempo, and specific platform requirements. While a precise trend analysis requires access to historical spending data aggregated by relevant NAICS or PSC codes, procurements like this $4.2 million contract for specialized speed changers represent a segment of the broader industrial equipment market that supports defense readiness. Such spending is often driven by the need to maintain aging military equipment, upgrade infrastructure, or equip new platforms. This specific contract fits within the Defense Logistics Agency's ongoing efforts to ensure the availability of critical spare parts and operational equipment, reflecting a consistent, albeit potentially variable, demand for such specialized industrial goods within the defense budget.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing

Product/Service Code: ENGINE ACCESSORIES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPE7L126Q0296

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 157 HIGHWAY 654, MATHEWS, LA, 70375

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,232,158

Exercised Options: $4,232,158

Current Obligation: $4,232,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline