DoD awards $41.9M for T-158LL TRACK to CONTITECH USA, INC, a sole-source contract
Contract Overview
Contract Amount: $41,924,311 ($41.9M)
Contractor: Contitech USA, Inc
Awarding Agency: Department of Defense
Start Date: 2009-07-13
End Date: 2011-01-31
Contract Duration: 567 days
Daily Burn Rate: $73.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-158LL TRACK
Place of Performance
Location: FAIRLAWN, SUMMIT County, OHIO, 44333
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $41.9 million to CONTITECH USA, INC for work described as: T-158LL TRACK Key points: 1. Contract awarded for military vehicle components. 2. Sole-source award raises questions about price discovery. 3. No small business participation noted. 4. Long contract duration of 567 days.
Value Assessment
Rating: questionable
The contract value of $41.9M for T-158LL TRACK components is difficult to assess without comparable data. The sole-source nature limits the ability to benchmark against market prices for similar components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This approach can lead to higher prices as there is no competitive pressure to drive down costs.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical vehicle components.
Public Impact
Ensures supply of essential parts for military vehicles. Potential for inflated costs due to lack of competition. Limited transparency in the procurement process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Essential military component procurement
Sector Analysis
This contract falls under the Defense sector, specifically manufacturing components for military armored vehicles. Spending in this sector is critical for national security but requires robust oversight to ensure value.
Small Business Impact
The contract explicitly states no small business participation. This indicates a missed opportunity to support small businesses and potentially leverage their specialized capabilities.
Oversight & Accountability
The sole-source nature of this award warrants further investigation into the justification for not competing the contract. Oversight should focus on ensuring the price paid is fair and reasonable.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment due to limited price discovery.
- No small business participation noted.
- Long contract duration may indicate inefficiencies.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.9 million to CONTITECH USA, INC. T-158LL TRACK
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $41.9 million.
What is the period of performance?
Start: 2009-07-13. End: 2011-01-31.
What was the justification for awarding this contract sole-source?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's difficult to ascertain the precise reason, but it implies a lack of readily available alternatives in the market.
How can the government ensure fair pricing on sole-source contracts?
Ensuring fair pricing on sole-source contracts involves rigorous cost analysis, price negotiation, and potentially using historical pricing data or independent cost estimates. Agencies should also explore alternative sources or competition for future procurements to establish a baseline. Transparency in the negotiation process and justification for the final price are crucial for accountability.
What is the long-term impact of sole-source awards on defense supply chains?
Sole-source awards can lead to a lack of innovation and increased costs over time if not managed carefully. They can also create dependencies on single suppliers, making the supply chain vulnerable to disruptions. While sometimes necessary for specialized needs, a consistent reliance on sole-source contracts can stifle competition and reduce overall market efficiency.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 703 S CLEVELAND MASSILLON RD, FAIRLAWN, OH, 13
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,924,311
Exercised Options: $41,924,311
Current Obligation: $41,924,311
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV08D0072
IDV Type: IDC
Timeline
Start Date: 2009-07-13
Current End Date: 2011-01-31
Potential End Date: 2011-01-31 00:00:00
Last Modified: 2010-05-27
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