DoD's $32.2M NGATS Parts Contract Awarded to Total Technology, Inc. Amidst Full and Open Competition

Contract Overview

Contract Amount: $32,234,863 ($32.2M)

Contractor: Total Technology, Inc

Awarding Agency: Department of Defense

Start Date: 2020-04-27

End Date: 2022-01-15

Contract Duration: 628 days

Daily Burn Rate: $51.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACQUISITION OF NEXT GENERATION AUTOMATED TEST STATION (NGATS) PARTS AND COMPONENTS.

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08034

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to TOTAL TECHNOLOGY, INC for work described as: ACQUISITION OF NEXT GENERATION AUTOMATED TEST STATION (NGATS) PARTS AND COMPONENTS. Key points: 1. The contract value of $32.2 million for Next Generation Automated Test Station (NGATS) parts and components represents a significant investment in defense readiness. 2. Competition was conducted under a 'full and open competition after exclusion of sources' model, suggesting a deliberate process to ensure fair pricing and access. 3. The contract duration of 628 days indicates a medium-term need for these critical components. 4. The award to Total Technology, Inc. warrants examination of their past performance and capacity to deliver specialized defense components. 5. The fixed-price contract type aims to control costs and provide predictability for the Department of Defense. 6. The absence of small business set-aside flags suggests the primary focus was on technical capability and competitive pricing from all eligible sources.

Value Assessment

Rating: good

The contract value of $32.2 million for NGATS parts and components appears reasonable given the specialized nature of defense equipment. Benchmarking against similar contracts for automated test equipment parts is challenging without more specific data on the components' complexity and quantity. However, the firm fixed-price structure suggests an effort to manage costs effectively. The award amount is within the expected range for such procurements, indicating a potentially good value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, specific sources may have been excluded initially, possibly due to pre-qualification or specific technical requirements. The presence of two bidders indicates a degree of competition, which is generally positive for price discovery. However, the 'exclusion of sources' aspect warrants further investigation to understand the rationale and its potential impact on the breadth of competition.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best possible pricing for taxpayers by allowing multiple vendors to bid. The fact that there were at least two bidders suggests that taxpayers likely benefited from a more competitive price than a sole-source award would have provided.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other branches of the Department of Defense requiring NGATS capabilities. The contract delivers essential parts and components for the Next Generation Automated Test Station, crucial for maintaining and upgrading defense testing infrastructure. The geographic impact is primarily centered around the contractor's location in New Jersey, but the ultimate impact is on defense readiness nationwide. The contract supports the defense industrial base and potentially creates or sustains jobs within the specialized engineering and manufacturing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type could limit the pool of potential bidders and potentially impact the final price if fewer companies are competing.
Lack of specific details on the 'parts and components' makes it difficult to assess if the pricing is truly competitive without further breakdown.
The contractor's track record with similar high-value, specialized defense contracts needs thorough review to ensure successful delivery.

Positive Signals

The contract was awarded under a 'full and open competition' framework, indicating an effort to maximize competition and achieve fair market value.
The firm fixed-price contract type provides cost certainty for the government, mitigating the risk of cost overruns.
The award to Total Technology, Inc. suggests they met the technical and performance requirements for these critical defense components.

Sector Analysis

The defense sector, particularly within engineering services and specialized equipment, is characterized by high barriers to entry due to stringent technical requirements, security clearances, and established relationships. The market for automated test station components is niche, serving the critical need for reliable testing of complex military hardware. Spending in this area is driven by the need for modernization and maintenance of existing defense systems, as well as the development of new platforms. Comparable spending benchmarks would typically be found within other large-scale defense procurement contracts for specialized electronic or mechanical systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all eligible sources, and the primary evaluation criteria likely focused on technical capability, past performance, and price, rather than specific small business participation goals. While there is no direct indication of subcontracting plans for small businesses, large defense contracts often include provisions for small business subcontracting, which would need to be verified in the full contract details. The absence of a set-aside means that the direct impact on the small business ecosystem for this specific award is likely minimal unless subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified parts and components within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency (DLA) Procurement
Army Aviation and Missile Command (AMCOM) Contracts
Naval Sea Systems Command (NAVSEA) Procurements
Air Force Materiel Command (AFMC) Contracts
Department of Defense Test and Evaluation Support

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Contractor's past performance on similar complex defense contracts needs verification.
Specificity of 'parts and components' is vague, impacting detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to TOTAL TECHNOLOGY, INC. ACQUISITION OF NEXT GENERATION AUTOMATED TEST STATION (NGATS) PARTS AND COMPONENTS.

Who is the contractor on this award?

The obligated recipient is TOTAL TECHNOLOGY, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2020-04-27. End: 2022-01-15.

What is the specific nature of the 'Next Generation Automated Test Station (NGATS) Parts and Components' being procured, and how do they contribute to defense readiness?

The 'Next Generation Automated Test Station (NGATS) Parts and Components' are critical hardware elements required for the operation, maintenance, and upgrade of advanced automated testing systems used by the Department of Defense. These stations are essential for verifying the functionality and performance of complex military equipment, including aircraft systems, missile components, and electronic warfare systems. By ensuring the reliability and accuracy of these test stations, the procured parts directly contribute to defense readiness by enabling thorough pre-deployment testing, post-mission analysis, and ongoing maintenance of vital military assets. The 'next generation' designation implies these components are part of a modern, potentially more capable, iteration of test equipment designed to meet evolving technological demands and support newer generations of defense hardware.

Can Total Technology, Inc.'s past performance on similar defense contracts be assessed to gauge their reliability for this $32.2M award?

Assessing Total Technology, Inc.'s past performance is crucial for understanding their reliability in delivering specialized defense components under a significant contract. While the provided data indicates the awardee and contract value, it does not include specific details on their performance history. A thorough review would involve examining their track record with previous Department of Defense contracts, particularly those involving similar technical specifications, contract values, and delivery timelines. Key performance indicators to scrutinize would include on-time delivery rates, adherence to quality standards, responsiveness to government feedback, and any history of contract disputes or terminations. Positive indicators might include successful completion of complex projects, favorable past performance reviews from government agencies, and a demonstrated ability to manage intricate supply chains for defense-related materials. Conversely, any history of significant performance issues would raise concerns about their capacity to meet the demands of this NGATS contract.

How does the 'full and open competition after exclusion of sources' procurement method compare to standard full and open competition, and what are its implications for price discovery?

The 'full and open competition after exclusion of sources' method is a variation of standard full and open competition. Standard full and open competition aims to solicit offers from all responsible sources without restriction. In contrast, 'after exclusion of sources' implies that the agency initially identified a pool of potential offerors but then excluded certain sources from that pool before proceeding with a broader solicitation. The rationale for exclusion could be based on factors like pre-qualification requirements, specific technical expertise, or previous performance assessments. While it still aims for broad competition, the exclusion step can potentially limit the number of bidders compared to a truly unrestricted solicitation. This could have implications for price discovery; if the excluded sources were significant competitors, the final price might be higher than what could have been achieved with maximum possible competition. However, if the exclusions were based on ensuring only highly qualified vendors participated, it could lead to better technical solutions and potentially more stable pricing, albeit possibly at a slightly higher initial cost.

What are the potential risks associated with a firm fixed-price contract for specialized defense components, and how are they typically mitigated?

Firm fixed-price (FFP) contracts place the majority of the risk on the contractor, as the price is set regardless of the contractor's actual costs. For specialized defense components, the primary risks for the government under an FFP contract include the contractor potentially cutting corners on quality to maintain profitability if their costs exceed estimates, or the contractor being unable to deliver due to unforeseen cost increases or technical challenges, leading to delays or contract termination. Risks for the contractor include absorbing cost overruns if their estimates are inaccurate or if material/labor costs escalate unexpectedly. Mitigation strategies employed by the government often involve rigorous pre-award evaluation of the contractor's technical capability, financial stability, and cost estimation processes. During contract performance, robust quality assurance and inspection protocols are essential to ensure components meet specifications. Clear contract terms, including detailed specifications and delivery schedules, also help manage expectations and performance. For highly complex or novel components, agencies might opt for other contract types or include specific clauses to address potential cost volatility.

How does the $32.2 million contract value for NGATS parts compare to historical spending patterns for similar defense testing equipment or services?

Comparing the $32.2 million contract value for NGATS parts and components to historical spending patterns requires access to detailed historical procurement data for similar defense testing equipment and services. Without specific benchmarks, it's challenging to definitively state whether this amount is high or low. However, the Department of Defense consistently invests billions annually in maintaining and upgrading its testing infrastructure, which includes automated test stations. The cost of such systems and their components can vary significantly based on technological sophistication, the specific military platforms they support, and the volume of parts required. A $32.2 million award for a medium-term supply of specialized parts for 'next generation' equipment suggests a substantial program requirement. To provide a precise comparison, one would need to analyze average contract values for similar test stations, the number of components typically procured, and the inflation-adjusted costs over time for defense testing equipment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 N KINGS HWY, SUITE 105, CHERRY HILL, NJ, 08034

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $32,891,216

Exercised Options: $32,234,863

Current Obligation: $32,234,863

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN18D0073

IDV Type: IDC

Timeline