DoD awards $293.8M for MLRS Improved Armor Cab Kits, with LOC Performance Products LLC as prime

Contract Overview

Contract Amount: $293,756,630 ($293.8M)

Contractor: LOC Performance Products LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-16

End Date: 2028-08-15

Contract Duration: 3,652 days

Daily Burn Rate: $80.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTIPLE LAUNCH ROCKET SYSTEM (MLRS) IMPROVED ARMOR CAB (IAC) KITS

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $293.8 million to LOC PERFORMANCE PRODUCTS LLC for work described as: MULTIPLE LAUNCH ROCKET SYSTEM (MLRS) IMPROVED ARMOR CAB (IAC) KITS Key points: 1. Contract value of $293.8M over 10 years suggests significant long-term investment in vehicle survivability. 2. Full and open competition after exclusion of sources indicates a deliberate procurement strategy to ensure best value. 3. The contract's duration of 3652 days (10 years) points to a sustained need for these critical armor kits. 4. Focus on Guided Missile and Space Vehicle Manufacturing highlights the advanced nature of the protected platforms. 5. The award to LOC Performance Products LLC signifies a key supplier for essential Army modernization efforts. 6. Firm Fixed Price contract type provides cost certainty for the government over the life of the award.

Value Assessment

Rating: good

The total contract value of $293.8M over a 10-year period for MLRS Improved Armor Cab Kits appears reasonable given the specialized nature of military vehicle protection. Benchmarking against similar advanced armor system contracts is challenging due to unique specifications, but the firm fixed-price structure suggests predictable costs. The number of bids (4) indicates a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation implies that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria or prior arrangements, potentially limiting the pool of bidders. Four bids were received, suggesting a moderate level of competition.

Taxpayer Impact: While not fully open, the competition structure aimed to secure a qualified supplier. The exclusion of sources warrants scrutiny to ensure it did not unduly restrict competition and lead to higher costs for taxpayers.

Public Impact

Enhances survivability for soldiers operating Multiple Launch Rocket Systems (MLRS). Provides critical protection against battlefield threats for Army ground vehicles. Supports the operational readiness and effectiveness of the U.S. Army's artillery and rocket units. Contributes to the modernization of armored vehicle fleets. Impacts the defense manufacturing sector, particularly in specialized armor production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Long contract duration could lead to price increases if market conditions change significantly.
Dependence on a single contractor for critical survivability components.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded to a company with demonstrated capabilities in defense manufacturing.
Addresses a critical need for soldier protection in combat vehicles.

Sector Analysis

The defense manufacturing sector, specifically within the Guided Missile and Space Vehicle Manufacturing sub-sector, is characterized by high technological requirements and stringent quality standards. Contracts like this, for advanced armor systems, represent a significant portion of defense spending aimed at maintaining technological superiority and soldier safety. The market for such specialized components is often concentrated among a few key suppliers capable of meeting the rigorous specifications.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (sb: false). While the prime contractor is not specified as a small business, there is potential for subcontracting opportunities within the defense industrial base. The impact on the small business ecosystem will depend on LOC Performance Products LLC's subcontracting strategy and whether they engage with small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and the Defense Contract Management Agency (DCMA). The firm fixed-price nature provides a degree of cost control. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may be less publicly accessible. The Inspector General's office could investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Armored Vehicle Modernization Programs
Army Combat Vehicle Survivability Initiatives
Missile Systems Production
Tactical Wheeled Vehicle Enhancements

Risk Flags

Potential for limited competition due to exclusion of sources.
Long-term contract duration may expose government to market volatility.
Dependence on a single supplier for critical survivability components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $293.8 million to LOC PERFORMANCE PRODUCTS LLC. MULTIPLE LAUNCH ROCKET SYSTEM (MLRS) IMPROVED ARMOR CAB (IAC) KITS

Who is the contractor on this award?

The obligated recipient is LOC PERFORMANCE PRODUCTS 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 $293.8 million.

What is the period of performance?

Start: 2018-08-16. End: 2028-08-15.

What is the historical spending trend for MLRS Improved Armor Cab Kits?

Historical spending data for this specific 'MLRS Improved Armor Cab Kits' line item is not directly available in the provided snippet. However, the current award of $293.8 million over 10 years suggests a substantial and ongoing requirement. To understand historical trends, one would need to examine prior contracts for similar armor upgrades or previous iterations of the MLRS armor kits. Analyzing the Army's budget allocations for vehicle modernization and survivability over the past decade would provide broader context. It's also important to consider if this represents a new capability or an upgrade to an existing system, which would influence the interpretation of spending patterns.

How does the per-unit cost of these armor kits compare to similar systems?

A direct per-unit cost comparison for the MLRS Improved Armor Cab Kits is not feasible with the provided data, as the total contract value and duration are given, but the number of units is not specified. To perform such an analysis, the total contract value ($293,756,629.83) would need to be divided by the total number of kits to be delivered over the contract's 10-year period. Furthermore, benchmarking would require access to cost data for comparable armor kits used on other military vehicles, which is often proprietary or classified. Factors such as material complexity, threat protection levels, and integration requirements significantly influence per-unit costs across different systems.

What are the key performance indicators (KPIs) for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a contract involving military vehicle armor, typical KPIs would likely include adherence to delivery schedules, meeting stringent quality and material specifications, ensuring the armor kits provide the specified level of protection against defined threats (e.g., IEDs, kinetic energy penetrators), and successful integration with the MLRS platform. Performance would also be assessed based on the durability and reliability of the armor under operational conditions. The firm fixed-price nature suggests that meeting these performance standards within the agreed budget is paramount.

What is the track record of LOC Performance Products LLC in delivering similar defense contracts?

Information regarding LOC Performance Products LLC's specific track record for delivering similar defense contracts is not detailed in the provided data snippet. However, the fact that they were awarded this significant 10-year, $293.8 million contract by the Department of the Army suggests they possess the necessary qualifications, manufacturing capabilities, and past performance history to meet the government's requirements. A comprehensive assessment would involve reviewing their contract history, past performance evaluations (if publicly available), and any history of contract disputes or awards.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' method, while aiming for broad competition, carries specific risks. The primary risk is that the exclusion of certain sources, even if justified, might inadvertently limit the competitive pool, potentially leading to higher prices or less innovative solutions than might have been achieved in a truly unrestricted competition. It requires careful justification to ensure that the exclusion is based on legitimate technical, security, or logistical reasons and not on arbitrary criteria. There's also a risk of protests from excluded bidders if they believe the exclusion was improper. Transparency in the justification for exclusion is crucial for mitigating these risks and ensuring taxpayer value.

How does this contract contribute to the overall modernization goals of the U.S. Army?

This contract directly supports the U.S. Army's modernization goals by enhancing the survivability and effectiveness of its Multiple Launch Rocket Systems (MLRS). The Improved Armor Cab (IAC) Kits are designed to protect soldiers operating these critical indirect fire assets from battlefield threats. By ensuring these platforms are better protected, the Army can maintain operational readiness, project power more effectively, and reduce casualties. This investment aligns with broader Army objectives focused on equipping forces with advanced capabilities that provide a decisive advantage in contested environments.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W15QKN17R0214

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13505 N HAGGERTY RD, PLYMOUTH, MI, 48170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $641,395,553

Exercised Options: $293,756,630

Current Obligation: $293,756,630

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $37,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline