DoD awards $106M for metal containers, highlighting potential for cost efficiencies in manufacturing
Contract Overview
Contract Amount: $105,955,868 ($106.0M)
Contractor: Conco, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-08
End Date: 2027-02-27
Contract Duration: 933 days
Daily Burn Rate: $113.6K/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: THIS DELIVERY ORDER IS TO PROCURE PA103A2 MACS METAL CONTAINERS.
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40219
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $106.0 million to CONCO, INC. for work described as: THIS DELIVERY ORDER IS TO PROCURE PA103A2 MACS METAL CONTAINERS. Key points: 1. Value for money appears fair given the firm-fixed-price contract type, which shifts risk to the contractor. 2. Competition dynamics indicate a full and open process, suggesting a competitive environment for pricing. 3. Risk indicators are moderate, with a fixed-price contract and a defined period of performance. 4. Performance context is for the delivery of PA103A2 MACS metal containers. 5. Sector positioning is within the manufacturing of metal containers, a critical component for logistics.
Value Assessment
Rating: fair
The contract value of approximately $106 million over roughly three years suggests a significant procurement. Benchmarking against similar large-scale container manufacturing contracts is difficult without more specific details on the container's specifications and volume. However, the firm-fixed-price structure implies that the government has negotiated a price that should cover all contractor costs and profit, providing cost certainty. The absence of detailed cost breakdowns makes a precise value-for-money assessment challenging, but the competitive award process is a positive indicator.
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,' indicating that while the initial solicitation may have had some restrictions, the final award was made through a broad competitive process. The specific number of bidders is not provided, but the 'full and open' designation generally implies multiple interested parties were allowed to compete, which is conducive to price discovery and potentially lower costs for the government.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation among contractors.
Public Impact
The Department of the Army is the primary beneficiary, receiving essential metal containers for its operations. The services delivered include the manufacturing and supply of PA103A2 MACS metal containers. The geographic impact is centered in Kentucky, where the contractor is located, potentially creating local economic activity. Workforce implications may include employment opportunities within the manufacturing sector at the contractor's facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if raw material costs fluctuate significantly, though mitigated by fixed-price contract.
- Dependence on a single contractor for a specific type of container could pose supply chain risks if not managed.
- Ensuring consistent quality and adherence to specifications over the contract duration requires robust oversight.
Positive Signals
- Firm-fixed-price contract shifts cost overrun risk to the contractor.
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Defined period of performance and delivery order structure provide clear expectations.
Sector Analysis
The manufacturing of metal containers falls under the broader industrial manufacturing sector, specifically within the 'Other Metal Container Manufacturing' category (NAICS 332439). This sector is characterized by its role in providing essential packaging and storage solutions for various industries, including defense, food and beverage, and industrial goods. The market size for specialized military containers can be niche but critical, with spending often driven by defense procurement needs. Comparable spending benchmarks would typically involve analyzing other large-scale procurements of similar container types by government agencies.
Small Business Impact
The data indicates that small business participation was not a primary set-aside criterion for this specific contract (SS: false, SB: false). While the prime contractor, CONCO, INC., is not explicitly identified as small or large, the contract value suggests it could be a significant award. There is no direct information on subcontracting plans for small businesses within this award. Future analysis could explore whether the prime contractor has a history of engaging small businesses in its supply chain or if there are opportunities for small businesses to compete for subcontracts related to this manufacturing effort.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified goods by a certain date. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and cost breakdowns are typically not publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Logistics Agency (DLA) procurements
- Military equipment packaging contracts
- General Services Administration (GSA) Federal Supply Schedule contracts for containers
- Department of Defense supply chain management initiatives
Risk Flags
- Potential for supply chain disruptions impacting raw material availability.
- Ensuring consistent quality control over a multi-year contract period.
- Price volatility of raw materials could impact contractor profitability if not adequately managed.
Tags
defense, department-of-defense, department-of-the-army, metal-containers, manufacturing, firm-fixed-price, delivery-order, full-and-open-competition, kentucky, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $106.0 million to CONCO, INC.. THIS DELIVERY ORDER IS TO PROCURE PA103A2 MACS METAL CONTAINERS.
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 $106.0 million.
What is the period of performance?
Start: 2024-08-08. End: 2027-02-27.
What is the specific nature and intended use of the PA103A2 MACS metal containers?
The PA103A2 MACS metal containers are specialized containers likely designed for the transportation, storage, and protection of military equipment or supplies. 'MACS' could potentially refer to a specific military application or system. Without further details from the contract statement of work or associated documentation, the precise specifications (e.g., dimensions, weight capacity, environmental resistance, material composition beyond 'metal') and their exact role within the Department of the Army's logistics chain remain unspecified. Understanding these details is crucial for assessing the criticality of the procurement and the appropriateness of the awarded price relative to the value delivered.
How does the awarded price of approximately $106 million compare to historical spending on similar container procurements by the DoD?
A direct comparison of the $106 million award to historical spending on similar container procurements is challenging without more granular data on the specific type, quantity, and specifications of the PA103A2 MACS metal containers. The Department of Defense procures a vast array of containers, from standard shipping containers to highly specialized, ruggedized cases for sensitive equipment. To benchmark effectively, one would need to identify contracts for containers with comparable material, size, durability requirements, and intended use. Analyzing historical data from the Federal Procurement Data System (FPDS) or similar databases for contracts under NAICS code 332439, focusing on defense-related procurements over the last 5-10 years, could provide a range of unit costs and total contract values for similar items, allowing for a more informed assessment of whether this award represents good value.
What are the key performance indicators (KPIs) and quality assurance measures associated with this delivery order?
The provided data does not explicitly detail the Key Performance Indicators (KPIs) or specific quality assurance (QA) measures for this delivery order. However, as a firm-fixed-price contract, the primary performance indicator is the successful delivery of the PA103A2 MACS metal containers in accordance with the contract's specifications and schedule. Quality assurance would typically involve inspection and testing protocols established by the Department of the Army, potentially including material testing, dimensional verification, load testing, and visual inspections to ensure compliance with military standards. The contracting officer's representative (COR) would likely be responsible for monitoring contractor performance and ensuring adherence to quality requirements throughout the contract period.
What is CONCO, INC.'s track record with the Department of Defense, particularly in manufacturing similar metal containers?
Information regarding CONCO, INC.'s specific track record with the Department of Defense for manufacturing PA103A2 MACS metal containers is not detailed in the provided data. To assess their capabilities and past performance, a review of their contract history within the Federal Procurement Data System (FPDS) would be necessary. This would reveal previous awards, contract types, performance ratings (if available), and the types of goods or services they have provided to the DoD. Examining their experience with similar metal container manufacturing, adherence to delivery schedules, and quality control on prior government contracts would provide valuable insights into their reliability and suitability for this significant award.
Are there any identified risks associated with the supply chain for the raw materials needed to produce these metal containers?
The provided data does not contain specific information about potential supply chain risks for the raw materials required to produce the PA103A2 MACS metal containers. However, general risks in metal manufacturing can include fluctuations in the price and availability of key commodities such as steel or aluminum, geopolitical factors affecting global supply chains, and potential disruptions from natural disasters or trade disputes. Given the firm-fixed-price nature of the contract, CONCO, INC. would bear the primary responsibility for managing these risks and ensuring the timely procurement of necessary materials. The Department of the Army might conduct due diligence on the contractor's supply chain management plan as part of the overall risk assessment, but this detail is not present here.
Industry Classification
NAICS: Manufacturing › Boiler, Tank, and Shipping Container Manufacturing › Other 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: $112,179,612
Exercised Options: $105,955,868
Current Obligation: $105,955,868
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: 2024-08-08
Current End Date: 2027-02-27
Potential End Date: 2027-02-27 00:00:00
Last Modified: 2025-06-27
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