DoD awards $6.6M for batteries, with SAFT AMERICA INC. securing the sole-source contract

Contract Overview

Contract Amount: $6,609,132 ($6.6M)

Contractor: Saft America Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-12-15

Contract Duration: 809 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIRST DO FOR BATTERIES, QTY 148

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to SAFT AMERICA INC for work described as: FIRST DO FOR BATTERIES, QTY 148 Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential cost savings. 2. The contract is for a significant quantity of batteries, indicating a substantial operational need. 3. Performance period extends over two years, suggesting a sustained requirement for these components. 4. The award is a delivery order against an unspecified basic contract, limiting immediate transparency. 5. The specific product code suggests a focus on electrical components, aligning with defense logistics needs.

Value Assessment

Rating: questionable

The contract value of $6.6 million for 148 batteries appears high on a per-unit basis, though without specific technical requirements or comparable market data, a definitive value assessment is challenging. The sole-source nature of the award prevents direct comparison with other vendors, potentially leading to a lack of competitive pricing pressure. Further analysis would require understanding the battery specifications and market rates for similar high-reliability power sources.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, SAFT AMERICA INC., was solicited. This approach bypasses the competitive bidding process typically employed to ensure fair pricing and identify the best value. The lack of competition limits the government's ability to explore alternative solutions or negotiate more favorable terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the efficient use of public funds.

Public Impact

The Department of Defense is the primary beneficiary, ensuring operational readiness through the supply of critical battery components. Services delivered include the provision of specialized batteries essential for various defense systems. The geographic impact is primarily within the Defense Logistics Agency's operational sphere, likely supporting military installations. Workforce implications are minimal, as this is a supply contract rather than a service requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Lack of detailed technical specifications in the provided data hinders a thorough value assessment.
The contract is a delivery order, suggesting it's part of a larger, potentially less transparent, contracting vehicle.

Positive Signals

Addresses a critical need for power sources within the Department of Defense.
SAFT AMERICA INC. is a known entity in the battery manufacturing sector.
The contract has a defined performance period, providing a clear timeline for delivery.

Sector Analysis

The defense logistics sector relies heavily on specialized components like batteries to maintain operational readiness. This contract falls within the broader electrical equipment manufacturing and distribution market, which is crucial for supporting military hardware. Benchmarking this spending would require comparing it to other sole-source awards for similar high-capacity batteries within defense or other government agencies, considering the specialized nature of military-grade power solutions.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the sole-source nature and the likely specialized requirements for defense-grade batteries, it is improbable that small businesses would be significantly involved as prime contractors. Subcontracting opportunities for small businesses are not explicitly detailed but would depend on SAFT AMERICA INC.'s procurement practices.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for ensuring compliance with contract terms and fair pricing. Transparency is limited due to the sole-source award and the delivery order format. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Logistics Agency Procurement
Military Battery Procurement
Sole-Source Defense Contracts
Electrical Component Supply Contracts

Risk Flags

Sole-source award
Potentially high unit cost
Lack of detailed technical specifications
Delivery order against unspecified basic contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to SAFT AMERICA INC. FIRST DO FOR BATTERIES, QTY 148

Who is the contractor on this award?

The obligated recipient is SAFT AMERICA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-12-15.

What is the specific type and technical specification of the batteries being procured?

The provided data indicates the procurement is for 'FIRST DO FOR BATTERIES, QTY 148' with a Product Service Code (PSC) of 335931 (Current-Carrying Wiring Device Manufacturing). However, the specific technical specifications, such as voltage, capacity (Ah), chemistry (e.g., lithium-ion, lead-acid), operating temperature range, and expected lifespan, are not detailed in the provided data. These specifications are critical for understanding the unit cost and assessing the value for money, as military-grade batteries with specialized performance characteristics can be significantly more expensive than commercial equivalents.

What is the historical spending pattern for this specific type of battery by the Defense Logistics Agency?

Historical spending data for this specific battery type by the Defense Logistics Agency (DLA) is not available in the provided summary. To assess historical patterns, one would need to query contract databases for similar PSC codes and keywords related to batteries awarded to SAFT AMERICA INC. or other vendors over previous fiscal years. Understanding past procurement volumes, contract values, and competition levels would provide context for the current $6.6 million award and help identify any significant deviations or trends in spending.

What is the justification for the sole-source award to SAFT AMERICA INC.?

The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source capable of providing the required supplies or services, or a compelling urgency that precludes competition. For this contract, the specific reason for awarding solely to SAFT AMERICA INC. is not detailed in the provided data. Common justifications in defense procurement include unique technical capabilities, proprietary technology, or compatibility requirements with existing systems that only one manufacturer can meet.

How does the per-unit cost of these batteries compare to commercial market rates or similar government contracts?

The provided data states a total contract value of $6,609,132.20 for 148 batteries, resulting in a raw per-unit cost of approximately $44,656.29. This figure appears exceptionally high for standard batteries. However, without detailed technical specifications (e.g., high-capacity, specialized military-grade, extreme environment performance), a direct comparison to commercial market rates or other government contracts is difficult. If these are indeed standard batteries, this unit cost would be a significant red flag. If they are highly specialized, the cost might be justifiable, but requires further technical data for validation.

What is SAFT AMERICA INC.'s track record with the Department of Defense for similar procurements?

SAFT AMERICA INC. has a history of supplying batteries to the Department of Defense and other government agencies. Their track record would involve reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A positive track record with reliable delivery and quality would lend some confidence to this award, although it does not negate the concerns associated with a sole-source procurement. Further investigation into their past performance on similar battery systems is warranted.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Current-Carrying Wiring Device Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Total SA

Address: 107 BEAVER CT, COCKEYSVILLE, MD, 21030

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: $6,609,132

Exercised Options: $6,609,132

Current Obligation: $6,609,132

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRRA224D0022

IDV Type: IDC

Timeline