DoD awards $43M for T-142, T-150, T-154 Track Shoe Assemblies to ContiTech USA, Inc
Contract Overview
Contract Amount: $43,076,640 ($43.1M)
Contractor: Contitech USA, Inc
Awarding Agency: Department of Defense
Start Date: 2009-12-04
End Date: 2011-11-30
Contract Duration: 726 days
Daily Burn Rate: $59.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-142, T-150 AND T-154 TRACK SHOE ASSEMBLIES
Place of Performance
Location: FAIRLAWN, SUMMIT County, OHIO, 44333
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $43.1 million to CONTITECH USA, INC for work described as: T-142, T-150 AND T-154 TRACK SHOE ASSEMBLIES Key points: 1. High value contract for critical vehicle components. 2. Sole-source award raises questions about price discovery. 3. Long duration suggests potential for cost overruns. 4. Limited competition impacts potential savings.
Value Assessment
Rating: questionable
The award value of $43M over 726 days for track shoe assemblies is significant. Without competitive bidding, it's difficult to assess if the price is fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning only one vendor was considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher prices than could be achieved through a competitive process, impacting taxpayer funds.
Public Impact
Ensures operational readiness of armored vehicles. Potential for increased costs due to sole-source nature. Long-term supply chain for critical defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Critical component for military vehicles
- Established supplier
Sector Analysis
This contract falls within the Defense sector, specifically for armored vehicle components. Spending benchmarks for such specialized parts can vary widely, but competitive bidding typically drives efficiency.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste. Further oversight may be needed to confirm the necessity of this procurement approach.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for price inflation
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 $43.1 million to CONTITECH USA, INC. T-142, T-150 AND T-154 TRACK SHOE ASSEMBLIES
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 $43.1 million.
What is the period of performance?
Start: 2009-12-04. End: 2011-11-30.
What is the justification for the sole-source award of these track shoe assemblies?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further documentation, it's difficult to ascertain the specific reasons why ContiTech USA, Inc. was the only considered source for these critical track shoe assemblies.
How does the long contract duration impact the risk of cost escalation?
A long contract duration of 726 days increases the risk of cost escalation due to potential fluctuations in material costs, labor rates, and inflation. Without mechanisms for price adjustments tied to market indices or competitive re-evaluation, the government may end up paying more than necessary over the life of the contract.
What is the estimated cost savings lost due to the lack of competition?
Estimating lost cost savings from a sole-source award is challenging without a competitive baseline. However, industry studies often suggest that competitive bidding can yield savings ranging from 10% to 30% or more compared to sole-source procurements, depending on the complexity and market dynamics of the item.
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: $43,076,640
Exercised Options: $43,076,640
Current Obligation: $43,076,640
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV08D0072
IDV Type: IDC
Timeline
Start Date: 2009-12-04
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2011-08-01
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