DoD's $23.3M D-30 Cannon Tube Contract Awarded to UNIS GROUP D.O.O. Under Full and Open Competition
Contract Overview
Contract Amount: $23,294,030 ($23.3M)
Contractor: Unis Group D.O.O.
Awarding Agency: Department of Defense
Start Date: 2016-07-28
End Date: 2022-06-01
Contract Duration: 2,134 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: D-30 CANNON TUBES AND REPAIR PARTS
Plain-Language Summary
Department of Defense obligated $23.3 million to UNIS GROUP D.O.O. for work described as: D-30 CANNON TUBES AND REPAIR PARTS Key points: 1. The contract for D-30 Cannon Tubes and Repair Parts represents a significant investment by the Department of the Army. 2. UNIS GROUP D.O.O. secured this contract through a full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs, but potential risks may arise from the duration and specific repair part needs. 4. The sector context points to defense manufacturing, specifically related to ordnance and forgings.
Value Assessment
Rating: fair
The total award value of $23.3 million over approximately 5.8 years suggests a moderate annual spend. Benchmarking against similar defense hardware contracts would be necessary to fully assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing the best possible price for the required goods.
Public Impact
Ensures readiness of Army artillery systems through the provision of critical cannon tubes and repair parts. Supports the defense industrial base by contracting for specialized manufacturing capabilities. Potential for long-term sustainment of weapon systems, impacting operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 5 years may lead to price escalation risks if not managed.
- Reliance on a single awardee for critical repair parts could pose supply chain risks.
- Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm Fixed Price contract type helps mitigate cost overruns.
- Contract supports essential defense materiel.
Sector Analysis
This contract falls within the defense sector, specifically related to the manufacturing of ordnance components. Spending benchmarks in this niche area are highly dependent on specific weapon systems and geopolitical factors.
Small Business Impact
The provided data does not indicate whether small businesses were involved as prime contractors or subcontractors in this award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Defense typically has robust oversight mechanisms for contracts of this magnitude, including contract performance monitoring and financial audits. However, specific oversight details for this contract are not provided.
Related Government Programs
- Iron and Steel Forging
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may lead to price volatility.
- Potential for supply chain disruption for critical repair parts.
- Limited visibility into specific performance metrics.
- Dependence on a single supplier for specialized components.
Tags
iron-and-steel-forging, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to UNIS GROUP D.O.O.. D-30 CANNON TUBES AND REPAIR PARTS
Who is the contractor on this award?
The obligated recipient is UNIS GROUP D.O.O..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2016-07-28. End: 2022-06-01.
What is the unit cost of the D-30 cannon tubes and repair parts, and how does it compare to industry benchmarks?
The provided data does not allow for a precise unit cost calculation due to the nature of the award (multiple items, repair parts, and a long duration). A detailed breakdown of the $23.3 million award across the contract's life and item types would be needed to establish unit costs and compare them against industry benchmarks for similar ordnance components.
What are the primary risks associated with the long contract duration and the specific nature of repair parts for D-30 cannon tubes?
The primary risks include potential price escalation over the 5.8-year period, especially for raw materials or specialized labor. For repair parts, there's a risk of obsolescence, changes in technology, or the supplier discontinuing production, which could impact the Army's ability to maintain its D-30 systems effectively.
How effectively does this contract ensure the long-term operational readiness of the Army's D-30 cannon systems?
The contract's effectiveness hinges on the reliability of UNIS GROUP D.O.O. in delivering quality parts on time and the Army's management of inventory and maintenance schedules. While the contract provides a framework for supply, actual operational readiness depends on factors beyond the contract itself, such as the condition of existing systems and the responsiveness of the contractor to emergent needs.
Industry Classification
NAICS: Manufacturing › Forging and Stamping › Iron and Steel Forging
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN16R0103
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dionicko Drustvo SBH Telecom Sarajevo
Address: USTANICKA 11/III, ILIDZA
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $46,588,067
Exercised Options: $23,294,030
Current Obligation: $23,294,030
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-07-28
Current End Date: 2022-06-01
Potential End Date: 2022-06-01 12:06:00
Last Modified: 2024-06-28
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