DoD awards $9.4M for barbed tape, with competition ensuring value and Allied Tube & Conduit Corporation as the contractor

Contract Overview

Contract Amount: $9,439,000 ($9.4M)

Contractor: Allied Tube & Conduit Corporation

Awarding Agency: Department of Defense

Start Date: 2026-01-07

End Date: 2027-12-31

Contract Duration: 723 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511845724!BARBED TAPE,CONCERT

Place of Performance

Location: HARVEY, COOK County, ILLINOIS, 60426

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to ALLIED TUBE & CONDUIT CORPORATION for work described as: 8511845724!BARBED TAPE,CONCERT Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 723 days indicates a medium-term supply need. 3. The award to a single contractor, Allied Tube & Conduit Corporation, warrants a review of market concentration. 4. Fixed-price contract type generally transfers risk to the contractor. 5. The product category, barbed tape, is a standard military supply item. 6. Geographic location of performance in Illinois may have implications for logistics and regional economic impact.

Value Assessment

Rating: good

The contract value of $9.4 million for barbed tape over approximately two years appears reasonable given the product and duration. Benchmarking against similar military supply contracts for physical security materials would provide a more precise value assessment. The firm fixed-price structure is standard for this type of procurement, aiming for cost certainty. Without specific unit cost data or comparison to commercial equivalents, a definitive value-for-money judgment is challenging, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The Defense Logistics Agency's use of this procurement approach for standard items like barbed tape suggests a commitment to leveraging market forces to obtain the best value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and prevents potential price gouging associated with limited or sole-source awards.

Public Impact

The primary beneficiaries are the Department of Defense, which will receive essential barbed tape for security and perimeter control. The services delivered include the manufacturing and supply of barbed tape, a critical component for physical security. The geographic impact is centered in Illinois, where the contractor is located, potentially supporting local jobs and the regional economy. Workforce implications may include employment opportunities at Allied Tube & Conduit Corporation and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit pricing makes it difficult to assess cost efficiency over time.
Limited information on the number of competitors in the full and open bid process.
Potential for supply chain disruptions if Allied Tube & Conduit Corporation faces unforeseen production issues.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Contract duration aligns with anticipated operational needs for the supplied material.

Sector Analysis

The procurement falls within the fabricated wire product manufacturing sector, a segment of the broader industrial and defense manufacturing landscape. This sector is characterized by established players and standard production processes for items like barbed tape. The market size for military-grade physical security materials is substantial, driven by ongoing global security requirements. This contract represents a typical, albeit significant, award for a specialized but essential defense supply item.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor, Allied Tube & Conduit Corporation, is likely a larger entity, there is no explicit information on subcontracting plans to small businesses. The impact on the small business ecosystem is therefore neutral to potentially positive if the prime contractor engages small businesses in its supply chain, though this is not guaranteed by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA), which is responsible for procuring and distributing supplies for the U.S. Armed Forces. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated by the public nature of federal contract awards, allowing for post-award analysis. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Perimeter Security Systems
Physical Security Equipment Procurement
Defense Logistics Agency Supply Chain Management
Fabricated Metal Product Manufacturing Contracts

Risk Flags

Potential supply chain concentration risk
Limited transparency on number of bidders
Need for unit cost benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to ALLIED TUBE & CONDUIT CORPORATION. 8511845724!BARBED TAPE,CONCERT

Who is the contractor on this award?

The obligated recipient is ALLIED TUBE & CONDUIT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.4 million.

What is the period of performance?

Start: 2026-01-07. End: 2027-12-31.

What is the track record of Allied Tube & Conduit Corporation with the Department of Defense?

Allied Tube & Conduit Corporation has a history of supplying various metal products, including conduit and fencing materials, to government agencies. While specific details on their past performance with the DoD for barbed tape are not immediately available from this data snippet, their selection suggests they met the technical and responsibility requirements for this award. A deeper dive into their contract history, including past performance reviews and any disputes or terminations, would provide a more comprehensive understanding of their reliability as a supplier to the Department of Defense. Their established presence in the market indicates a capacity to handle significant government orders.

How does the awarded price compare to market rates for barbed tape?

The total contract value is $9.4 million over approximately two years. To benchmark this against market rates, one would need to determine the quantity of barbed tape being procured and calculate a per-unit cost. This unit cost could then be compared to commercial pricing for similar grades and specifications of barbed tape, as well as other government contracts for the same or comparable items. Without the quantity or unit price, a direct comparison is not possible. However, the use of full and open competition suggests that the DLA aimed to secure a price reflective of market conditions.

What are the primary risks associated with this contract?

Key risks include potential supply chain disruptions affecting Allied Tube & Conduit Corporation's ability to meet delivery schedules, quality control issues with the manufactured barbed tape, and price volatility if raw material costs increase significantly (though mitigated by the fixed-price nature). There's also a risk related to the concentration of supply if Allied Tube & Conduit is a primary or sole source for this specific type of barbed tape, potentially limiting future competition. Furthermore, geopolitical events or changes in DoD requirements could impact the long-term need for this specific product.

How effective is the Defense Logistics Agency in procuring essential supplies like barbed tape?

The DLA is a critical component of the DoD's supply chain, responsible for procuring and distributing a vast array of items, including those for contingency operations and daily readiness. Their effectiveness in procuring essential supplies like barbed tape is generally considered high, given their established processes, market reach, and expertise in logistics. The use of competitive bidding processes, as seen in this award, is a key indicator of their strategy to ensure value and availability. However, like any large organization, challenges can arise, such as ensuring timely delivery and managing supplier performance.

What are the historical spending patterns for barbed tape by the DoD?

Historical spending data for barbed tape by the DoD would reveal trends in quantity, price, and sourcing over time. This contract, valued at $9.4 million over two years, suggests a consistent need for this item. Analyzing past contracts would indicate whether spending has been stable, increasing, or decreasing, and whether the DLA has historically relied on competitive bidding or other methods. Understanding these patterns can help forecast future requirements and identify potential cost-saving opportunities or areas where market dynamics have shifted.

What is the strategic importance of barbed tape in military operations?

Barbed tape is a fundamental component of physical security and force protection. It is used extensively for establishing perimeter security around bases, forward operating posts, detention facilities, and sensitive sites. Its primary function is to deter unauthorized entry, slow down potential adversaries, and provide early warning of breaches. In tactical situations, it can be used to channel enemy movement or create obstacles. The consistent procurement of such items underscores their ongoing strategic importance in maintaining operational security and personnel safety across various military environments.

Industry Classification

NAICS: Manufacturing › Spring and Wire Product Manufacturing › Other Fabricated Wire Product Manufacturing

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16100 LATHROP AVE, HARVEY, IL, 60426

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: $9,439,000

Exercised Options: $9,439,000

Current Obligation: $9,439,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8E624D0002

IDV Type: IDC

Timeline