DoD Awards $137M for PA103A2 Metal Containers, with Full and Open Competition After Source Exclusion

Contract Overview

Contract Amount: $137,057,368 ($137.1M)

Contractor: Conco, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-22

End Date: 2027-02-28

Contract Duration: 1,347 days

Daily Burn Rate: $101.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UCA DELIVERY ORDER FOR PRODUCTION OF PA103A2 METAL CONTAINERS AND NON-RECURRING ENGINEERING FOR ACCELERATION.

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40219

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $137.1 million to CONCO, INC. for work described as: UCA DELIVERY ORDER FOR PRODUCTION OF PA103A2 METAL CONTAINERS AND NON-RECURRING ENGINEERING FOR ACCELERATION. Key points: 1. Significant award for specialized metal containers and engineering services. 2. Competition method indicates a complex procurement process, potentially limiting initial bidders. 3. Risk associated with production timelines and potential supply chain dependencies. 4. Sector focus on manufacturing, specifically metal containers, with potential defense applications.

Value Assessment

Rating: good

The contract value of $137M for production and engineering appears substantial. Benchmarking against similar defense manufacturing contracts would be necessary for a precise assessment, but the firm-fixed-price structure suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement used 'Full and Open Competition After Exclusion of Sources,' suggesting an initial restriction followed by broader competition. This method can impact price discovery by potentially excluding some capable vendors from the outset.

Taxpayer Impact: The use of full and open competition, even with prior exclusions, aims to achieve fair pricing for taxpayers. The final price will depend on the number and competitiveness of the bids received.

Public Impact

Ensures availability of critical PA103A2 metal containers for defense needs. Supports manufacturing jobs and industrial capacity within the defense supply chain. Potential for technological advancements through non-recurring engineering for acceleration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Complexity of 'Full and Open Competition After Exclusion of Sources' may impact bidder pool.
  • Long contract duration (2023-2027) could introduce risks related to material costs or obsolescence.
  • Sole contractor (CONCO, INC.) for this specific delivery order warrants monitoring.

Positive Signals

  • Firm Fixed Price contract provides cost predictability.
  • Clear definition of deliverables (production and engineering).
  • Awarded by Department of the Army, indicating a specific defense requirement.

Sector Analysis

This award falls within the Other Metal Container Manufacturing sector, a niche but critical area for defense logistics and storage. Spending benchmarks in this specific sub-sector are difficult to ascertain without more granular data, but defense-related manufacturing contracts often represent significant investments.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of the Army is responsible for oversight. The firm-fixed-price contract type provides a degree of financial accountability. Further oversight would involve monitoring performance, delivery schedules, and quality control.

Related Government Programs

  • Other Metal Container Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for supply chain disruptions affecting production.
  • Risk of cost overruns if material prices escalate significantly during the contract period.
  • Dependence on a single contractor (CONCO, INC.) for this specific delivery order.
  • Ensuring the 'non-recurring engineering' delivers tangible, cost-saving or performance-enhancing benefits.

Tags

other-metal-container-manufacturing, department-of-defense, ky, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $137.1 million to CONCO, INC.. UCA DELIVERY ORDER FOR PRODUCTION OF PA103A2 METAL CONTAINERS AND NON-RECURRING ENGINEERING FOR ACCELERATION.

Who is the contractor on this award?

The obligated recipient is CONCO, 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 $137.1 million.

What is the period of performance?

Start: 2023-06-22. End: 2027-02-28.

What was the rationale for excluding sources prior to the full and open competition phase?

The rationale for excluding sources prior to the full and open competition phase is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, security clearances, or prior performance issues. Understanding this rationale is crucial for assessing whether the competition was truly optimized for value and innovation.

What are the key performance indicators (KPIs) for this contract, and how will they be monitored?

Key performance indicators for this contract likely include on-time delivery of PA103A2 metal containers, adherence to quality specifications, and successful completion of non-recurring engineering tasks. Monitoring would involve regular progress reports from CONCO, INC., quality assurance inspections by the Department of the Army, and potentially site visits.

Are there alternative materials or container designs that could meet the defense requirement more cost-effectively or efficiently?

The provided data does not offer insights into alternative materials or designs. The focus is on the PA103A2 specification. A thorough review would require market research and technical analysis to determine if other solutions could fulfill the requirement with greater cost-effectiveness or improved efficiency, potentially impacting future procurement strategies.

Industry Classification

NAICS: ManufacturingBoiler, Tank, and Shipping Container ManufacturingOther Metal Container Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4000 OAKLAWN DR, LOUISVILLE, KY, 40219

Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $144,908,581

Exercised Options: $137,057,368

Current Obligation: $137,057,368

Actual Outlays: $2,660,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN20D0003

IDV Type: IDC

Timeline

Start Date: 2023-06-22

Current End Date: 2027-02-28

Potential End Date: 2027-02-28 00:00:00

Last Modified: 2025-12-11

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