DoD's Army awards $18.3M for ordnance accessories, lacking competition, raising cost concerns
Contract Overview
Contract Amount: $18,348,263 ($18.3M)
Contractor: Triumph Actuation Systems - Connecticut, LLC
Awarding Agency: Department of Defense
Start Date: 2011-02-04
End Date: 2017-11-06
Contract Duration: 2,467 days
Daily Burn Rate: $7.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADDITITONAL QUANTITIES
Place of Performance
Location: BLOOMFIELD, HARTFORD County, CONNECTICUT, 06002
Plain-Language Summary
Department of Defense obligated $18.3 million to TRIUMPH ACTUATION SYSTEMS - CONNECTICUT, LLC for work described as: ADDITITONAL QUANTITIES Key points: 1. Significant award value of $18.3M for ordnance accessories. 2. Contract was not competed, potentially limiting price discovery. 3. Lack of competition raises concerns about value for taxpayer money. 4. The sector is 'Other Ordnance and Accessories Manufacturing'.
Value Assessment
Rating: questionable
The contract was awarded without competition, making it difficult to assess if the $18.3M price represents fair value. Benchmarking against similar competitively awarded contracts for ordnance accessories is crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED', indicating a sole-source or limited competition award. This method can lead to higher prices as there is no market pressure to offer the best value.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these ordnance accessories.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The Department of the Army received essential ordnance accessories, fulfilling a requirement. The long contract duration (2467 days) with a fixed price could expose the government to risks if material costs fluctuate significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Requirement fulfilled
- Firm fixed price contract
Sector Analysis
The 'Other Ordnance and Accessories Manufacturing' sector is critical for defense readiness. Spending in this area can vary widely based on geopolitical factors and specific military needs. Without competitive data, it's hard to benchmark this $18.3M award.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in robust oversight or justification for foregoing competition. Accountability for ensuring fair pricing in sole-source awards is paramount.
Related Government Programs
- Other Ordnance and Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
- Unknown small business participation
Tags
other-ordnance-and-accessories-manufactu, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to TRIUMPH ACTUATION SYSTEMS - CONNECTICUT, LLC. ADDITITONAL QUANTITIES
Who is the contractor on this award?
The obligated recipient is TRIUMPH ACTUATION SYSTEMS - CONNECTICUT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2011-02-04. End: 2017-11-06.
What was the justification for not competing this $18.3M contract for ordnance accessories?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as a unique capability, urgent need, or lack of available sources. Without this information, it's impossible to assess the validity of foregoing competition and its impact on price.
What are the risks associated with a sole-source award of this magnitude and duration?
Sole-source awards of this magnitude ($18.3M) and duration (2467 days) carry significant risks. The primary risk is paying an inflated price due to the absence of competitive pressure. Additionally, the government may miss out on innovative solutions or better quality products that competition could have fostered. Long-term fixed-price contracts can also expose the government to price increases if market conditions change unfavorably.
How can the Department of the Army ensure better value and competition in future ordnance accessory procurements?
To ensure better value and competition, the Department of the Army should prioritize market research to identify potential sources and encourage competition whenever feasible. Developing clear requirements and using flexible contract types that allow for price adjustments based on market conditions could also be beneficial. Implementing robust pre-award and post-award oversight for sole-source contracts is essential to validate justifications and ensure fair pricing.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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: Triumph Group, Inc. (UEI: 807636451)
Address: 1395 BLUE HILLS AVE, BLOOMFIELD, CT, 06002
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,348,263
Exercised Options: $18,348,263
Current Obligation: $18,348,263
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-02-04
Current End Date: 2017-11-06
Potential End Date: 2017-11-06 00:00:00
Last Modified: 2021-07-15
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)