DoD's $27.1M contract for rubber products awarded to GTA DRUM, INC. shows fair value with 2 bidders

Contract Overview

Contract Amount: $27,107,378 ($27.1M)

Contractor: GTA Drum, Inc

Awarding Agency: Department of Defense

Start Date: 2010-02-05

End Date: 2013-01-31

Contract Duration: 1,091 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DRUM,FABRIC,COLLAPS

Place of Performance

Location: SOUTH BEND, ST. JOSEPH County, INDIANA, 46601

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to GTA DRUM, INC for work described as: DRUM,FABRIC,COLLAPS Key points: 1. The contract's value appears reasonable given the scope and duration. 2. Competition was robust, indicating potential for price discovery. 3. Risk indicators are low, with a firm fixed-price contract type. 4. Performance context suggests a standard procurement for essential supplies. 5. This contract falls within the broader 'Other Rubber Product Manufacturing' sector. 6. The award was made after exclusion of sources, suggesting specific justifications. 7. The contract duration of nearly three years points to a sustained need.

Value Assessment

Rating: good

The contract's total value of $27.1 million over approximately three years suggests a moderate annual spend. Benchmarking against similar procurements for specialized rubber products is challenging without more granular data on the specific items. However, the firm fixed-price nature of the contract generally indicates that the contractor assumed the risk for cost overruns, which can be a positive sign for value if the price remains competitive. The presence of two bidders also suggests a degree of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, likely due to specific technical requirements, past performance, or other pre-determined criteria. The fact that two bids were received suggests that despite the exclusions, there was sufficient interest from qualified vendors. The level of competition, while not fully open, likely provided a reasonable basis for price negotiation.

Taxpayer Impact: The exclusion of sources may limit the number of potential bidders, potentially impacting the lowest possible price for taxpayers. However, if the exclusions were justified by specific needs, it ensures the government receives a product meeting stringent requirements, avoiding costs associated with non-compliance.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential rubber products. The contract supports the manufacturing and supply chain for defense logistics. The geographic impact is primarily in Indiana, where the contractor is located. Workforce implications include jobs in rubber product manufacturing and related logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' could impact long-term pricing.
Lack of detailed product specifications makes it difficult to assess unit price competitiveness.
The specific reasons for excluding other sources are not detailed, raising questions about fairness.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risk for the government.
Award to a single contractor suggests a successful bid within established parameters.
The contract duration indicates a stable, ongoing need for the products.

Sector Analysis

This contract falls under the 'All Other Rubber Product Manufacturing' sector, which is a niche within the broader manufacturing industry. This sector produces a variety of rubber goods not elsewhere classified, often serving specialized industrial or defense needs. The market size for such specialized rubber products can vary significantly, but defense procurements often represent a stable demand. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the rubber products, but defense logistics contracts for manufactured goods are common.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses in its supply chain.

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 financial accountability. The firm fixed-price nature simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed justifications for source exclusions may not always be publicly available.

Related Government Programs

Defense Logistics Agency Procurements
Rubber and Plastics Products Manufacturing
Industrial Supplies Contracts
Department of Defense Supply Chain Management

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed product specification hinders granular value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to GTA DRUM, INC. DRUM,FABRIC,COLLAPS

Who is the contractor on this award?

The obligated recipient is GTA DRUM, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.1 million.

What is the period of performance?

Start: 2010-02-05. End: 2013-01-31.

What specific types of rubber products were procured under this contract?

The contract data indicates the North American Industry Classification System (NAICS) code 326299, which covers 'All Other Rubber Product Manufacturing.' This broad category suggests the products could range from specialized seals, gaskets, hoses, or other custom-molded rubber components. Without more specific product descriptions or line-item details within the contract award, it is impossible to determine the exact nature of the rubber products. This lack of specificity makes it challenging to perform detailed cost analysis or compare pricing against industry benchmarks for particular items.

What were the primary reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The specific reasons for excluding sources in a 'Full and Open Competition After Exclusion of Sources' award are typically documented in the contract file but are not always publicly disclosed in detail. Common justifications include the need for highly specialized technical capabilities, unique manufacturing processes, specific security clearances, or a history of exceptional past performance that makes certain contractors uniquely qualified. In this case, the exclusion suggests that only GTA DRUM, INC. and one other bidder met the stringent criteria set forth by the Defense Logistics Agency for these particular rubber products, potentially related to material specifications, production capacity, or compliance with defense standards.

How does the firm fixed-price (FFP) contract type benefit the government in this scenario?

A Firm Fixed-Price (FFP) contract type is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's cost experience. This provides budget certainty and predictability for the procuring agency. For the Department of Defense procuring rubber products, this means they know the exact cost of the goods upfront, simplifying financial planning and reducing the potential for unexpected increases in expenditure. The contractor is incentivized to manage their costs efficiently to maintain profitability.

What is the significance of the contract being awarded in Indiana?

The contract award to GTA DRUM, INC., located in Indiana, signifies a contribution to the state's manufacturing sector and economy. It indicates that Indiana-based companies are competitive in securing federal defense contracts. This can translate into job creation, investment in local infrastructure, and support for ancillary businesses within the state. For the Department of Defense, awarding contracts to domestic manufacturers like GTA DRUM, INC. aligns with policies that support U.S. industry and maintain domestic production capabilities for critical goods.

What is the historical spending pattern for similar rubber product procurements by the Defense Logistics Agency?

Analyzing historical spending patterns for similar rubber product procurements by the Defense Logistics Agency (DLA) requires access to detailed procurement data beyond this single award. However, the DLA is known for its extensive role in supplying a vast array of equipment and supplies to the U.S. military. Procurements for rubber products, especially those meeting military specifications, are likely recurring needs. Historical data might reveal trends in pricing, supplier base, and contract values for specific types of rubber goods. Without further data, it's difficult to ascertain if this $27.1 million contract represents an increase, decrease, or stable level of spending compared to past procurements of comparable items.

What are the potential risks associated with a contract awarded after excluding sources?

The primary risk associated with excluding sources in a competitive procurement is the potential for reduced competition, which could lead to higher prices than might be achieved in a truly open market. It also raises concerns about fairness and transparency if the exclusion criteria are not clearly defined or are perceived as arbitrary. Taxpayers could be disadvantaged if the excluded sources were capable of providing the goods or services at a lower cost. Furthermore, if the exclusion is based on subjective criteria, it could inadvertently limit the government's access to innovative solutions or new market entrants.

Industry Classification

NAICS: Manufacturing › Rubber Product Manufacturing › All Other Rubber Product Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1410 W NAPIER ST, SOUTH BEND, IN, 02

Business Categories: Category Business, HUBZone Firm, Labor Surplus Area Firm, Manufacturer of Goods, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $27,107,378

Exercised Options: $27,107,378

Current Obligation: $27,107,378

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV08D0069

IDV Type: IDC

Timeline