DoD Awards $2M Firm Fixed Price Contract to Rantec Power Systems for Power Supplies
Contract Overview
Contract Amount: $1,996,860 ($2.0M)
Contractor: Rantec Power Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2026-01-06
End Date: 2027-03-27
Contract Duration: 445 days
Daily Burn Rate: $4.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: POWER SUPPLY
Place of Performance
Location: LOS OSOS, SAN LUIS OBISPO County, CALIFORNIA, 93402
Plain-Language Summary
Department of Defense obligated $2.0 million to RANTEC POWER SYSTEMS INC. for work described as: POWER SUPPLY Key points: 1. Contract awarded to Rantec Power Systems Inc. for power supplies. 2. The contract is valued at $1,996,860. 3. This is a definitive contract with a firm fixed price. 4. The contract falls under the 'Current-Carrying Wiring Device Manufacturing' NAICS code. 5. The contract duration is 445 days.
Value Assessment
Rating: fair
The contract value of $1.99M is moderate. Without specific unit details or historical pricing for similar power supplies, a direct comparison is difficult. The benchmark of $4,487 per unit suggests a potentially high cost, requiring further investigation.
Cost Per Unit: $4,487
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these power supplies, impacting taxpayer funds.
Public Impact
Military readiness may be impacted if these power supplies are critical components. Taxpayers may be overpaying due to the sole-source nature of the award. The defense sector relies on specialized components like these for operational effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High per-unit cost benchmark requires justification.
- Lack of small business participation noted.
Positive Signals
- Firm fixed price contract provides cost certainty for the government.
- Contract awarded to a specific company for a specialized need.
Sector Analysis
This contract falls within the manufacturing sector, specifically for electrical equipment. Defense Logistics Agency spending on such components is common to support military operations. Benchmarks for similar power supply contracts would be needed for a more precise comparison.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). There is no indication of efforts to engage small businesses for this procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and the reasonableness of the price paid.
Related Government Programs
- Current-Carrying Wiring Device Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- High per-unit cost benchmark
- No small business participation
- Potential for price overpayment
Tags
current-carrying-wiring-device-manufactu, department-of-defense, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.0 million to RANTEC POWER SYSTEMS INC.. POWER SUPPLY
Who is the contractor on this award?
The obligated recipient is RANTEC POWER SYSTEMS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $2.0 million.
What is the period of performance?
Start: 2026-01-06. End: 2027-03-27.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources. The government should have conducted a price analysis, comparing the proposed price to historical prices, other government contracts, or commercial prices for similar items to ensure fairness and reasonableness.
How critical are these specific power supplies to the operational readiness of the Department of Defense assets they support?
The criticality of these power supplies directly influences the risk associated with potential supply chain disruptions or performance issues. If they are essential for key military platforms or systems, any failure or delay in delivery could have significant operational consequences, impacting mission effectiveness and readiness.
What is the long-term strategy for procuring these power supplies to ensure competitive pricing and reliable supply in the future?
A long-term strategy might involve market research to identify potential new sources, developing specifications that allow for broader competition, or exploring multi-year contracts with incentives for cost reduction. This proactive approach aims to mitigate the risks and costs associated with sole-source awards and ensure sustained availability.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Current-Carrying Wiring Device Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RPS Holdings, Inc.
Address: 1173 LOS OLIVOS AVE, LOS OSOS, CA, 93402
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,996,860
Exercised Options: $1,996,860
Current Obligation: $1,996,860
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-01-06
Current End Date: 2027-03-27
Potential End Date: 2027-03-27 12:03:00
Last Modified: 2026-01-06
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