DoD Awards $10M for Cargo Loaders Amidst Defense Logistics Agency Needs
Contract Overview
Contract Amount: $10,032,955 ($10.0M)
Contractor: Wright & Wright Machinery CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2024-10-07
End Date: 2025-12-31
Contract Duration: 450 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510940315!CARGO LOADER 25K
Place of Performance
Location: MONTICELLO, WAYNE County, KENTUCKY, 42633
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $10.0 million to WRIGHT & WRIGHT MACHINERY CO., INC. for work described as: 8510940315!CARGO LOADER 25K Key points: 1. Significant award for specialized cargo handling equipment. 2. Competition was full and open, suggesting market availability. 3. Potential risk related to delivery timelines and equipment reliability. 4. Sector focus on defense logistics and industrial machinery.
Value Assessment
Rating: good
The award of $10,032,954.56 for cargo loaders appears reasonable given the specialized nature of the equipment and the firm fixed price contract type. Benchmarking against similar large-scale industrial machinery procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of this award is expected to yield a cost-effective solution for the Department of Defense, maximizing taxpayer value for essential logistics equipment.
Public Impact
Ensures critical cargo handling capabilities for military operations. Supports the Defense Logistics Agency's mission to provide logistical support. Potential for job creation in the industrial machinery manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Delivery timeline alignment with operational needs.
- Long-term maintenance and support costs.
- Potential for obsolescence in rapidly evolving technology.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost overruns.
- Supports critical defense logistics infrastructure.
Sector Analysis
This procurement falls within the industrial truck, tractor, trailer, and stacker machinery manufacturing sector, crucial for logistics and supply chain operations. Defense spending in this area is often driven by operational readiness and global deployment requirements.
Small Business Impact
While the awardee is a specific company, the full and open competition process allows for small businesses to participate as subcontractors or prime contractors on future similar procurements, fostering broader market engagement.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract, ensuring timely delivery and adherence to specifications. The firm fixed price contract provides a degree of cost certainty, simplifying oversight.
Related Government Programs
- Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for delivery delays.
- Ensuring long-term operational readiness.
- Availability of spare parts and maintenance support.
- Technological obsolescence risk.
Tags
industrial-truck-tractor-trailer-and-sta, department-of-defense, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to WRIGHT & WRIGHT MACHINERY CO., INC.. 8510940315!CARGO LOADER 25K
Who is the contractor on this award?
The obligated recipient is WRIGHT & WRIGHT MACHINERY CO., INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2024-10-07. End: 2025-12-31.
What is the expected lifespan and maintenance schedule for these cargo loaders to ensure long-term value?
The expected lifespan and maintenance schedule are critical factors for assessing the long-term value of this $10 million award. While the contract duration is 450 days for delivery, the operational life of heavy machinery like cargo loaders can extend for many years. Detailed specifications regarding maintenance intervals, required spare parts, and warranty provisions are essential to understand the total cost of ownership and prevent unexpected expenditures for the Department of Defense.
How does the performance of these specific cargo loaders compare to industry benchmarks for efficiency and reliability in similar military environments?
Comparing the performance of these cargo loaders against industry benchmarks is key to evaluating their effectiveness. Factors such as lifting capacity under various conditions, fuel efficiency, maneuverability in confined spaces, and durability in harsh environments should be assessed. Understanding how these machines stack up against commercial equivalents or previous military models will indicate if the chosen equipment offers optimal operational advantages and reliability for the demanding needs of the Defense Logistics Agency.
What are the potential risks associated with the firm fixed price contract if unforeseen technical challenges arise during manufacturing or delivery?
A firm fixed price contract, while beneficial for cost control, carries risks if unforeseen technical challenges emerge. If Wright & Wright Machinery Co., Inc. encounters significant manufacturing issues or material shortages not accounted for, they may absorb losses or seek contract modifications, potentially leading to delays or disputes. The government's ability to enforce the fixed price without compromising delivery or quality hinges on the thoroughness of the initial technical specifications and the contractor's risk assessment.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Truck, Tractor, Trailer, and Stacker Machinery 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
Address: 384 HWY 3284, MONTICELLO, KY, 42633
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $10,032,955
Exercised Options: $10,032,955
Current Obligation: $10,032,955
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE8EC20D0054
IDV Type: IDC
Timeline
Start Date: 2024-10-07
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-01-09
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