DoD awards $107M for Track Shoe Assemblies to CONTITECH USA, INC under full and open competition
Contract Overview
Contract Amount: $107,232,055 ($107.2M)
Contractor: Contitech USA, Inc
Awarding Agency: Department of Defense
Start Date: 2020-04-10
End Date: 2022-12-31
Contract Duration: 995 days
Daily Burn Rate: $107.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRACK SHOE ASSEMBLY
Place of Performance
Location: SAINT MARYS, AUGLAIZE County, OHIO, 45885
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $107.2 million to CONTITECH USA, INC for work described as: TRACK SHOE ASSEMBLY Key points: 1. Significant award value for specialized vehicle components. 2. CONTITECH USA, INC is the sole awardee. 3. Potential risk associated with single supplier dependency. 4. Spending falls within the Defense sector's manufacturing segment.
Value Assessment
Rating: fair
The contract value of $107.2M over approximately 2.7 years suggests a substantial investment. Benchmarking against similar specialized track shoe assemblies is difficult without more granular data on specifications and quantities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting efforts were made to secure a fair price.
Public Impact
Ensures continued supply of critical components for military vehicles. Supports manufacturing jobs within the defense industrial base. Potential for future contract modifications impacting total cost.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee concentration risk
- Potential for price increases in future contracts
- Limited visibility into specific performance metrics
Positive Signals
- Awarded under full and open competition
- Firm Fixed Price contract type limits cost overrun risk
- Clear end date for the contract period
Sector Analysis
This spending is within the Defense sector, specifically for manufacturing components for armored vehicles. Benchmarks for such specialized parts are highly variable based on technical requirements and production volume.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or if subcontracting opportunities exist.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency, suggesting established oversight processes. However, ongoing monitoring of performance and cost is crucial.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole awardee
- Potential for supply chain disruption
- Lack of detailed performance metrics
- Limited historical pricing context
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, oh, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.2 million to CONTITECH USA, INC. TRACK SHOE ASSEMBLY
Who is the contractor on this award?
The obligated recipient is CONTITECH USA, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $107.2 million.
What is the period of performance?
Start: 2020-04-10. End: 2022-12-31.
What is the historical pricing trend for this specific track shoe assembly, and how does the current award compare to previous contracts?
Historical pricing data is not provided, making a direct comparison difficult. However, the award value of $107.2M suggests a significant procurement. Understanding if this price represents an increase or decrease from prior procurements would require access to historical contract information and volume data.
What are the key performance indicators (KPIs) for this contract, and how is CONTITECH USA, INC's performance being monitored?
Specific KPIs are not detailed in the provided data. The Defense Contract Management Agency (DCMA) is responsible for oversight, implying standard performance monitoring protocols are in place. These likely include quality control, delivery schedules, and adherence to specifications.
Are there any identified risks related to the supply chain or manufacturing capabilities of CONTITECH USA, INC for these track shoe assemblies?
The data does not explicitly list supply chain or manufacturing risks for CONTITECH USA, INC. However, as the sole awardee, potential risks include sole-source dependency and the impact of any unforeseen disruptions to their operations on military readiness.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SPRDL119R0226
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Continental Aktiengesellschaft
Address: 703 S CLEVELAND MASSILLON RD, FAIRLAWN, OH, 44333
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $107,232,055
Exercised Options: $107,232,055
Current Obligation: $107,232,055
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $2,847,605
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-04-10
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2022-08-15
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