DoD Awards $5.3M for Engine Equipment, Lacking Competition, with Long-Term Delivery

Contract Overview

Contract Amount: $5,372,558 ($5.4M)

Contractor: Florida Ordnance Corporation

Awarding Agency: Department of Defense

Start Date: 2024-06-06

End Date: 2027-01-31

Contract Duration: 969 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPRDL1-24-F-0140 TO ADD 1369 UNITS - 2815-00-150-7405

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33309

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to FLORIDA ORDNANCE CORPORATION for work described as: SPRDL1-24-F-0140 TO ADD 1369 UNITS - 2815-00-150-7405 Key points: 1. Significant contract value of $5.3M for engine equipment. 2. Sole-source award raises concerns about price discovery and competition. 3. Long contract duration (969 days) may impact cost-effectiveness. 4. Awardee is a small business, but contract type is not competed.

Value Assessment

Rating: questionable

The contract's value of $5.3M for 1369 units of engine equipment is difficult to benchmark without specific unit details. However, the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition in this sole-source award could result in inflated prices, impacting taxpayer value.

Public Impact

Military readiness may be impacted by the specific engine equipment procured. Taxpayers may be overpaying due to the lack of competitive bidding. The long delivery period could affect the timeliness of equipment availability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of transparency in pricing

Positive Signals

Award to a small business

Sector Analysis

This contract falls under 'Other Engine Equipment Manufacturing' within the Defense sector. Spending in this niche area is critical for military operations, but competitive sourcing is key to ensuring value.

Small Business Impact

The awardee, Florida Ordnance Corporation, is a small business. While supporting small businesses is a positive, the sole-source nature of this award limits the broader competitive landscape.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure fair pricing and justification for the lack of competition. Accountability for taxpayer funds is crucial.

Related Government Programs

Other Engine Equipment Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Long contract duration may lead to cost inefficiencies.
Risk of equipment obsolescence over the contract period.
Lack of detailed justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to FLORIDA ORDNANCE CORPORATION. SPRDL1-24-F-0140 TO ADD 1369 UNITS - 2815-00-150-7405

Who is the contractor on this award?

The obligated recipient is FLORIDA ORDNANCE CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-06-06. End: 2027-01-31.

What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves specific circumstances like unique capabilities or urgent needs. Without further details, it's unclear what drove this decision. To ensure fair pricing, agencies should conduct thorough market research and potentially negotiate aggressively, even in sole-source situations, to achieve best value for the government.

How does the long contract duration of 969 days impact the overall cost-effectiveness and potential for obsolescence?

A long contract duration can increase the risk of cost overruns due to inflation or changing market conditions. It also raises concerns about potential obsolescence of the equipment by the end of the contract period. For this contract, the extended timeline necessitates careful monitoring to ensure the equipment remains relevant and that pricing reflects the long-term commitment.

What is the specific type of engine equipment being procured, and what is its criticality to defense operations?

The data indicates the contract is for 'Other Engine Equipment Manufacturing' with PSC code '5544'. Without more specific product details, it's challenging to assess its criticality. However, engine components are generally vital for vehicle and aircraft operational readiness, suggesting this procurement likely supports essential defense functions.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Other Engine Equipment Manufacturing

Product/Service Code: ENGINES AND TURBINES AND COMPONENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4740 NW 15TH AVE, FORT LAUDERDALE, FL, 33309

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

Financial Breakdown

Contract Ceiling: $5,372,558

Exercised Options: $5,372,558

Current Obligation: $5,372,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRDL120D0072

IDV Type: IDC

Timeline