Department of the Army awards $18.7M contract for Stratasys equipment to Hartech Group LLC

Contract Overview

Contract Amount: $18,723,236 ($18.7M)

Contractor: Hartech Group LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-09-16

Contract Duration: 1,083 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STRATASYS EQUIPMENT

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to HARTECH GROUP LLC for work described as: STRATASYS EQUIPMENT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of over 1000 days suggests a long-term need for the equipment. 3. Awarded to a single vendor, raising questions about competitive pricing. 4. The equipment falls under Machine Tool Manufacturing, a critical industrial sector. 5. The contract value is substantial, requiring careful monitoring of performance. 6. Geographic location of the contractor is New Jersey.

Value Assessment

Rating: questionable

Benchmarking the value of this specific Stratasys equipment purchase is challenging without detailed specifications and market comparisons. However, the $18.7 million price tag for a single award contract warrants scrutiny. The firm-fixed-price structure provides some cost certainty, but the lack of competition means there's no direct market validation of the price. Further analysis would require comparing this award to similar procurements for comparable equipment, considering factors like quantity, specifications, and support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Hartech Group LLC, was solicited. This significantly limits price discovery and competitive pressure. While sole-source awards can be justified for unique capabilities or urgent needs, they often result in higher prices for the government compared to fully competed contracts. The absence of multiple bidders means the government did not benefit from a competitive bidding process to secure the best possible price and terms.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most cost-effective solution. Without competition, there is a risk that the price paid is higher than it would have been in a competitive environment.

Public Impact

The Department of the Army is the primary beneficiary, acquiring necessary equipment. The equipment is intended for use within the Machine Tool Manufacturing sector. The contract's duration suggests ongoing operational support and utilization. The specific geographic impact is tied to the Army's operational needs within New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award requires strong justification to ensure value for money.
Performance monitoring is crucial to ensure equipment meets Army's needs.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Long contract duration indicates a strategic, long-term investment.
Award to a single vendor might imply specialized equipment or a streamlined acquisition process.

Sector Analysis

This contract falls within the Machine Tool Manufacturing sector, a critical component of industrial production and defense readiness. The market for specialized manufacturing equipment like Stratasys products can be concentrated, with a few key suppliers. The $18.7 million award represents a significant investment in advanced manufacturing capabilities for the Department of the Army. Comparable spending benchmarks would depend on the specific type and quantity of equipment procured, but this amount suggests a substantial acquisition.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The award to Hartech Group LLC, a single entity, suggests a direct procurement. Further investigation into Hartech Group LLC's size status and subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency could be enhanced by making the justification for the sole-source award publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Manufacturing Equipment Procurement
Advanced Manufacturing Technology Acquisition
Army Industrial Base Modernization
Sole-Source Equipment Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Need for strong justification for sole-source procurement.
Performance monitoring is critical for value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to HARTECH GROUP LLC. STRATASYS EQUIPMENT

Who is the contractor on this award?

The obligated recipient is HARTECH GROUP 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 $18.7 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-16.

What is the specific type and model of Stratasys equipment being procured, and what are its intended applications within the Department of the Army?

The provided data identifies the equipment as 'STRATASYS EQUIPMENT' and the North American Industry Classification System (NAICS) code as '333517' (Machine Tool Manufacturing). However, it does not specify the exact model or type of Stratasys equipment (e.g., 3D printer, specific material handling systems). The intended applications are also not detailed but are broadly categorized under machine tool manufacturing, suggesting use in prototyping, tooling, or direct part production for military applications. Further details would likely be found in the contract's statement of work or technical specifications, which are not publicly available in this dataset.

What is the justification for awarding this contract on a sole-source basis to Hartech Group LLC?

The justification for a sole-source award is critical for understanding why competition was not pursued. Common reasons include the unique capability of a single contractor, the urgency of the requirement where only one source can meet the timeline, or if the equipment is a follow-on to a previous sole-source purchase where interoperability or standardization is paramount. Without access to the contract's justification documentation (e.g., a Justification and Approval document), it is impossible to determine the specific rationale. This lack of competition raises concerns about potential overpayment and the absence of market-driven pricing.

How does the $18.7 million contract value compare to historical spending on similar Stratasys equipment by the Department of Defense or other federal agencies?

Direct comparison of the $18.7 million award for 'STRATASYS EQUIPMENT' to historical spending is difficult without knowing the precise equipment models and quantities. Stratasys offers a range of additive manufacturing solutions, from desktop 3D printers to industrial-scale systems. If this contract is for a large-scale industrial system or a significant fleet of machines, the value might be within a reasonable range for such acquisitions. However, without specific product details and quantities, it's hard to benchmark. A review of historical sole-source awards for similar high-value equipment would be necessary to assess if this price is competitive or potentially inflated due to the lack of competition.

What are the key performance metrics and deliverables outlined in the contract to ensure the Army receives value for its $18.7 million investment?

The provided data indicates a 'FIRM FIXED PRICE' contract type and a duration of 1083 days (approximately 3 years). While this suggests a defined cost and timeline, the specific performance metrics and deliverables are not detailed. Typically, for equipment contracts, deliverables would include the timely delivery of the specified Stratasys equipment, installation, training, and potentially ongoing maintenance and support services. Performance metrics might relate to equipment uptime, operational efficiency, or adherence to technical specifications. The effectiveness of the investment hinges on the Army's ability to monitor these aspects throughout the contract period.

What is the track record of Hartech Group LLC in fulfilling similar government contracts, particularly sole-source awards for specialized equipment?

Information regarding Hartech Group LLC's track record with government contracts, especially sole-source awards for specialized equipment like Stratasys products, is not included in the provided data snippet. A comprehensive assessment would require reviewing the company's contract history, including past performance evaluations, any reported issues or disputes, and the types and values of contracts previously awarded. Understanding their experience and performance in similar procurements is crucial for evaluating the risk associated with this $18.7 million sole-source award.

Industry Classification

NAICS: Manufacturing › Metalworking Machinery Manufacturing › Machine Tool Manufacturing

Product/Service Code: METALWORKING MACHINERY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15QKN23Q0053

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3030 N ROCKY POINT DR W, TAMPA, FL, 33607

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,723,236

Exercised Options: $18,723,236

Current Obligation: $18,723,236

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline