DoD Awards $9.27M Generator Contract to Intertrade Limited, Lacking Competition

Contract Overview

Contract Amount: $9,272,637 ($9.3M)

Contractor: Intertrade Limited

Awarding Agency: Department of Defense

Start Date: 2025-12-23

End Date: 2029-12-31

Contract Duration: 1,469 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTROL, GENERATOR

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38118

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to INTERTRADE LIMITED for work described as: CONTROL, GENERATOR Key points: 1. Contract Value: $9.27 million for generator control systems. 2. Limited Competition: Awarded to Intertrade Limited without competitive bidding. 3. Risk: Potential for overpayment due to lack of price discovery. 4. Sector: Defense Logistics Agency spending on aircraft parts manufacturing.

Value Assessment

Rating: questionable

The contract value of $9.27 million for generator control systems appears high given the lack of competitive bidding. Without market comparison or multiple offers, it's difficult to assess if this price represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This significantly reduces price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition raises concerns about potential overpayment, directly impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for essential generator control systems due to a lack of competitive bidding. The Defense Logistics Agency's procurement process for this critical component warrants closer scrutiny. Ensuring fair market prices for defense equipment is crucial for efficient use of public funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Definitive contract awarded
Long-term duration (2029)

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, with a value of $9.27 million. Benchmarks for similar generator control systems are difficult to ascertain without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine potential small business participation.

Oversight & Accountability

The sole-source nature of this award suggests a potential gap in oversight regarding competitive procurement practices. The Defense Logistics Agency should ensure robust justification for non-competitive awards.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award justification
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to INTERTRADE LIMITED. CONTROL, GENERATOR

Who is the contractor on this award?

The obligated recipient is INTERTRADE LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2025-12-23. End: 2029-12-31.

What is the justification for awarding this contract on a sole-source basis?

The provided data does not include the justification for the sole-source award. Typically, such justifications would involve reasons like unique capabilities, urgent needs, or lack of available sources. Without this information, it's impossible to fully assess the necessity of bypassing competition.

What is the estimated fair market price for these generator control systems?

Without competitive bidding or access to Intertrade Limited's cost data, determining a precise fair market price is challenging. The benchmark of $6.31 million (br) might represent an internal estimate or a previous contract value, but its relevance to the current $9.27 million award is unclear without further context.

What are the risks associated with a sole-source contract for critical defense components?

Sole-source contracts carry significant risks, including inflated prices due to a lack of competition, reduced innovation, and potential for vendor lock-in. For critical defense components, this can impact operational readiness and national security if the sole provider faces disruptions or fails to meet evolving technological requirements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRTA125R0032

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 400 COLLINS RD NE M/S 153-220, CEDAR RAPIDS, IA, 52498

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,272,637

Exercised Options: $9,272,637

Current Obligation: $9,272,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline