DoD's $5.5M contract for industrial speed changers awarded to Advance Development & Manufacturing Corporation

Contract Overview

Contract Amount: $5,509,750 ($5.5M)

Contractor: Advance Development & Manufacturing Corporation

Awarding Agency: Department of Defense

Start Date: 2022-03-07

End Date: 2025-05-30

Contract Duration: 1,180 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8508828492!PULLEY,FLAT

Place of Performance

Location: GUILFORD, NEW HAVEN County, CONNECTICUT, 06437

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to ADVANCE DEVELOPMENT & MANUFACTURING CORPORATION for work described as: 8508828492!PULLEY,FLAT Key points: 1. Contract value appears reasonable given the specialized nature of industrial high-speed drive components. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Contract duration of nearly two years indicates a need for sustained supply. 4. The award to a single contractor warrants scrutiny regarding market availability and potential alternatives. 5. Fixed-price contract type aims to control costs for the government. 6. The procurement falls within the broader Defense Logistics Agency's mission to support military readiness.

Value Assessment

Rating: fair

The contract value of $5.5 million for industrial speed changers and related components is difficult to benchmark without specific technical details and market data for these specialized items. However, the duration of the contract (nearly two years) suggests a significant quantity or complexity. The firm fixed-price structure is a positive indicator for cost control. Further analysis would require comparing unit costs to similar procurements or industry benchmarks for comparable high-speed drive components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded, possibly due to unique capabilities or prior relationships. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrower field than a truly open competition. This approach can sometimes lead to higher prices if the excluded sources represent significant competition.

Taxpayer Impact: The exclusion of sources may limit price discovery, potentially resulting in a higher cost to taxpayers if the remaining bidders do not face sufficient competitive pressure.

Public Impact

This contract directly supports the Department of Defense's operational readiness by ensuring the availability of critical components for industrial machinery. The components supplied are essential for maintaining and repairing high-speed drive systems used in various military applications. The geographic impact is primarily within the Defense Logistics Agency's supply chain network, potentially affecting bases and facilities nationwide. The contract supports manufacturing jobs within the specialized industrial equipment sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could lead to suboptimal pricing.
Lack of transparency on the reasons for excluding specific sources raises questions about fairness and potential anti-competitive practices.
Reliance on a single awardee for specialized components could pose supply chain risks if that contractor faces production issues.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
The Defense Logistics Agency's role ensures critical equipment maintenance for military operations.
The contract duration suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the industrial machinery and equipment manufacturing sector, specifically focusing on high-speed drive components. This is a niche market often characterized by specialized engineering and manufacturing capabilities. The Defense Logistics Agency's spending in this area is crucial for maintaining the operational readiness of military equipment that relies on complex mechanical systems. Comparable spending benchmarks would likely be found within other defense procurements for similar specialized industrial components.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration or requirement for this specific contract. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not detailed in the provided information, but typically, prime contractors in such specialized manufacturing may engage small businesses for specific components or services if cost-effective and technically feasible.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which ensures contractor performance and compliance with contract terms. The Defense Contract Audit Agency (DCAA) may conduct audits to verify costs if necessary. Transparency is facilitated through contract databases like FPDS, though detailed justifications for source exclusions are not always publicly available. Inspector General (IG) investigations could be initiated if allegations of fraud, waste, or abuse arise.

Related Government Programs

Defense Logistics Agency Supply Chain Management
Industrial Equipment Maintenance and Repair
Military Vehicle and Aircraft Component Manufacturing
High-Speed Drive Systems Procurement

Risk Flags

Limited competition due to source exclusion.
Potential for higher costs to taxpayers due to restricted competition.
Lack of transparency regarding reasons for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to ADVANCE DEVELOPMENT & MANUFACTURING CORPORATION. 8508828492!PULLEY,FLAT

Who is the contractor on this award?

The obligated recipient is ADVANCE DEVELOPMENT & MANUFACTURING CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2022-03-07. End: 2025-05-30.

What specific types of industrial high-speed drive and gear manufacturing are covered by this contract, and what are their critical applications within the DoD?

This contract, valued at $5.5 million, covers 'Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing.' These components are critical for various military applications requiring precise and reliable power transmission at high rotational speeds. Examples include systems used in naval propulsion, aircraft ground support equipment, missile launch systems, and specialized industrial machinery found on military bases or in support facilities. The 'speed changer' aspect implies components that can alter the rotational speed of machinery, essential for optimizing performance across different operational demands. The 'industrial' designation suggests these are robust, heavy-duty components designed for demanding environments, aligning with the rigorous requirements of military operations.

What were the specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award are not detailed in the provided data. Typically, such exclusions are based on factors like a lack of required technical capabilities, inability to meet security requirements, past performance issues, or a determination that only a limited number of sources possess the unique technology or manufacturing capacity needed. The Defense Logistics Agency (DLA) would have had to justify these exclusions, often citing proprietary technology, specialized manufacturing processes, or essential interoperability requirements that only certain contractors could meet. Without the official justification documentation, it is difficult to ascertain the precise rationale, but it implies a belief that only a select group of vendors could fulfill the contract's stringent technical specifications.

How does the firm fixed-price contract type mitigate risks for the government in procuring specialized industrial components?

The firm fixed-price (FFP) contract type is highly advantageous for the government when procuring specialized industrial components like speed changers and high-speed drives. Under an FFP agreement, the contractor assumes the primary risk for cost overruns. This means the agreed-upon price is fixed, regardless of the contractor's actual costs incurred during performance. This structure incentivizes the contractor to manage their expenses efficiently and complete the work within the budgeted amount. For the government, it provides significant cost certainty, making budget forecasting more reliable and protecting against unexpected increases in material, labor, or overhead costs. This is particularly valuable for complex, long-term procurements where cost fluctuations could otherwise be substantial.

What is the historical spending pattern for similar industrial speed changers and gear manufacturing by the Defense Logistics Agency?

Analyzing historical spending patterns for 'Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing' by the Defense Logistics Agency (DLA) requires access to comprehensive contract databases beyond the provided snippet. However, based on the nature of these components, DLA likely procures them periodically to support the maintenance, repair, and overhaul (MRO) of various military platforms and infrastructure. Spending would fluctuate based on the lifecycle of equipment requiring these parts, modernization programs, and readiness requirements. It's probable that DLA has awarded multiple contracts over the years, potentially with varying competition levels and values, depending on market dynamics and specific technological requirements at the time. A deeper dive into FPDS or similar databases would reveal trends in contract volume, average award values, and dominant contractors within this niche.

What are the potential supply chain risks associated with awarding this contract to Advance Development & Manufacturing Corporation, and how might they be mitigated?

Potential supply chain risks associated with awarding this contract to Advance Development & Manufacturing Corporation (ADMC) could include production delays, quality control issues, or financial instability of the contractor. Given that this is a specialized manufacturing area, ADMC might be a sole or primary source for certain critical components, making the supply chain vulnerable if ADMC faces disruptions. Mitigation strategies employed by the DLA could include robust oversight through the Defense Contract Management Agency (DCMA), requiring detailed production schedules, conducting regular site visits, and implementing stringent quality assurance protocols. Furthermore, the contract might include clauses for performance incentives or penalties. The DLA could also encourage ADMC to develop secondary sources or maintain strategic inventory levels for critical sub-components to build resilience.

Industry Classification

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

Product/Service Code: MECHANICAL POWER TRANSMISSION EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPE7M221R0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 325 SOUNDVIEW RD, GUILFORD, CT, 06437

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,509,750

Exercised Options: $5,509,750

Current Obligation: $5,509,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline