E-ONE, INC. awarded $272.8M for heavy equipment, with delivery orders extending through late 2021

Contract Overview

Contract Amount: $27,280,821 ($27.3M)

Contractor: E-One, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-27

End Date: 2021-12-31

Contract Duration: 1,222 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8505813946!HEAVY EQUIPMENT PROGRAM IST -

Place of Performance

Location: OCALA, MARION County, FLORIDA, 34474

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to E-ONE, INC. for work described as: 8505813946!HEAVY EQUIPMENT PROGRAM IST - Key points: 1. Value for money appears fair given the firm fixed-price contract type, though detailed cost breakdowns are not available. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and potential for scope creep. 4. Performance context shows a multi-year contract for essential equipment, supporting ongoing operational needs. 5. Sector positioning places this within the defense logistics and vehicle manufacturing industry.

Value Assessment

Rating: fair

The total award of $272.8 million for heavy equipment over several years suggests a significant investment. Without specific unit costs or comparison to similar procurements for identical equipment, a precise value-for-money assessment is challenging. The firm fixed-price contract type generally offers cost certainty to the government, but the overall value depends on the specific capabilities and longevity of the equipment provided. Benchmarking against market rates for comparable heavy equipment would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but a full and open process typically fosters a competitive environment. This suggests that the Defense Logistics Agency sought to maximize competition to achieve favorable pricing and terms. The level of competition is a positive indicator for price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through robust bidding, leading to more efficient use of public funds.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical heavy equipment for its operations. Services delivered include the manufacturing and delivery of specialized heavy equipment. Geographic impact is likely nationwide, supporting various military installations and operational theaters. Workforce implications may include jobs in manufacturing, logistics, and support roles for E-ONE, INC. and its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contract scope expands beyond initial estimates.
Long contract duration increases the risk of technological obsolescence.
Dependence on a single contractor for a significant portion of heavy equipment needs.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award process.
Contract supports critical defense logistics requirements.

Sector Analysis

This contract falls within the motor vehicle body manufacturing sector, specifically focusing on heavy equipment for defense applications. The North American Industry Classification System (NAICS) code 336211 represents the production of truck bodies and trailers. The defense sector often procures specialized vehicles, and companies like E-ONE, INC. play a crucial role in meeting these unique requirements. Spending in this area is driven by military readiness and operational demands.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not available in the provided data. As a large prime contract, there may be opportunities for small businesses to participate as subcontractors, but the extent of this involvement is not specified. Further analysis would be needed to determine if small business goals were incorporated into the contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) and potentially the Department of Defense's Inspector General. Mechanisms likely include contract performance reviews, quality assurance checks, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Department of Defense Vehicle Procurement
Defense Logistics Agency Equipment Contracts
Heavy Equipment Manufacturing
Motor Vehicle Body Manufacturing

Risk Flags

Long contract duration
Potential for scope creep
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to E-ONE, INC.. 8505813946!HEAVY EQUIPMENT PROGRAM IST -

Who is the contractor on this award?

The obligated recipient is E-ONE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2018-08-27. End: 2021-12-31.

What is the specific type and capability of the heavy equipment being procured under this contract?

The provided data indicates the contract is for 'HEAVY EQUIPMENT PROGRAM IST'. While the exact specifications are not detailed, the NAICS code 336211 (Motor Vehicle Body Manufacturing) suggests the equipment likely involves specialized vehicle bodies or chassis designed for heavy-duty military applications. This could include fire trucks, specialized transport vehicles, or other robust platforms. Further details on the specific capabilities, such as load capacity, mobility features, and operational environment suitability, would require access to the contract's statement of work or technical specifications.

How does the $272.8 million award compare to historical spending on similar heavy equipment by the Department of Defense?

A direct comparison of the $272.8 million award to historical spending on similar heavy equipment by the Department of Defense requires access to historical procurement data for comparable items. Without knowing the exact nature of the 'HEAVY EQUIPMENT PROGRAM IST,' it's difficult to find precise benchmarks. However, the Department of Defense is a major procurer of specialized vehicles and equipment, and multi-million dollar contracts for such items are not uncommon. To assess if this award is high or low relative to historical trends, one would need to analyze the quantity, type, and duration of similar contracts awarded over previous fiscal years.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a firm fixed-price contract involving the manufacturing and delivery of heavy equipment, typical KPIs would likely include on-time delivery, adherence to technical specifications and quality standards, warranty performance, and potentially operational readiness rates once the equipment is fielded. The Defense Logistics Agency would establish these metrics to ensure the contractor meets the government's requirements effectively and efficiently.

What is the track record of E-ONE, INC. in fulfilling large defense contracts, particularly for heavy equipment?

E-ONE, INC. is a well-established manufacturer of fire apparatus and emergency vehicles, including custom chassis and bodies. While their primary focus is often on civilian emergency services, they also have experience supplying specialized vehicles to government and military entities. Information on their specific track record with large defense contracts, especially for heavy equipment programs similar to this one, would require a deeper dive into their contract history with the Department of Defense and other federal agencies. Assessing past performance, including on-time delivery, quality, and adherence to budget on similar contracts, is crucial for understanding their capability to execute this award.

Are there any identified risks associated with the long performance period (2018-2021) for this heavy equipment contract?

Yes, a long performance period for heavy equipment contracts, such as the one spanning from 2018 to 2021, presents several potential risks. Firstly, there's the risk of technological obsolescence; military technology evolves rapidly, and equipment delivered towards the end of the contract might be less advanced than newer systems. Secondly, the extended duration increases the likelihood of scope creep or changes in requirements, which could lead to cost increases if not managed carefully under the firm fixed-price structure. Lastly, maintaining consistent quality and support over several years can be challenging. The government's oversight and contract management are critical to mitigating these risks.

How does the firm fixed-price (FFP) contract type influence the risk allocation between the government and E-ONE, INC. for this heavy equipment program?

The firm fixed-price (FFP) contract type significantly shifts the risk to the contractor, E-ONE, INC. Under an FFP agreement, the price is set and is not subject to adjustment based on the contractor's cost experience. This means that if E-ONE, INC.'s costs for materials, labor, or manufacturing exceed their estimates, their profit margin will decrease, or they could incur a loss. Conversely, if they manage their costs efficiently and complete the work for less than anticipated, their profit will increase. For the government, the primary benefit is cost certainty, as the total expenditure is known upfront, assuming no contract modifications. This structure incentivizes the contractor to control costs and perform efficiently.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: REV Group, Inc. (UEI: 961941494)

Address: 1601 SW 37TH AVE, OCALA, FL, 34474

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,280,821

Exercised Options: $27,280,821

Current Obligation: $27,280,821

Actual Outlays: $16,832,847

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EC18D0008

IDV Type: IDC

Timeline