DoD Awards $12.2M for Automated Storage System Modernization to Dematic Corp
Contract Overview
Contract Amount: $12,191,987 ($12.2M)
Contractor: Dematic Corp
Awarding Agency: Department of Defense
Start Date: 2021-09-20
End Date: 2026-09-18
Contract Duration: 1,824 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AUTOMATED STORAGE AND RETRIEVAL SYSTEM (ASRS) MODERNIZATION
Place of Performance
Location: TOBYHANNA, MONROE County, PENNSYLVANIA, 18466
Plain-Language Summary
Department of Defense obligated $12.2 million to DEMATIC CORP for work described as: AUTOMATED STORAGE AND RETRIEVAL SYSTEM (ASRS) MODERNIZATION Key points: 1. Contract awarded to Dematic Corp for ASRS modernization. 2. Significant investment in logistics and warehousing infrastructure. 3. Potential for efficiency gains in military supply chain operations. 4. Focus on industrial machinery manufacturing sector.
Value Assessment
Rating: good
The contract value of $12.2 million for an Automated Storage and Retrieval System (ASRS) modernization appears reasonable given the scope. Benchmarking against similar large-scale automated warehousing projects suggests this is within the expected range for advanced systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market pricing and ensure the government receives the best value.
Taxpayer Impact: The investment aims to improve operational efficiency, which could lead to long-term cost savings for taxpayers through optimized logistics.
Public Impact
Modernization of critical storage infrastructure for the Department of the Army. Potential for improved inventory management and faster deployment of resources. Enhances the logistical capabilities of the military.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1824 days.
- Potential for scope creep in modernization projects.
- Reliance on a single vendor for a critical system.
Positive Signals
- Awarded under full and open competition.
- Aims to modernize essential infrastructure.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing sector. Spending in this area is crucial for maintaining and upgrading the logistical backbone of various industries, including defense.
Small Business Impact
The data does not indicate any specific set-asides for small businesses in this contract. The primary contractor, Dematic Corp, is a large corporation, suggesting limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The award is managed by the Department of the Army, which is responsible for ensuring proper execution and oversight. The firm fixed price contract provides a degree of financial accountability.
Related Government Programs
- Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Potential integration challenges.
- Dependence on a single supplier for a critical system.
- Lack of explicit small business participation noted.
Tags
industrial-truck-tractor-trailer-and-sta, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to DEMATIC CORP. AUTOMATED STORAGE AND RETRIEVAL SYSTEM (ASRS) MODERNIZATION
Who is the contractor on this award?
The obligated recipient is DEMATIC CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.2 million.
What is the period of performance?
Start: 2021-09-20. End: 2026-09-18.
What specific performance metrics will be used to evaluate the success of the ASRS modernization?
The success of the ASRS modernization will likely be evaluated based on key performance indicators such as increased throughput, reduced error rates in inventory management, improved storage density, and faster retrieval times. Specific metrics should be detailed in the contract's statement of work and performance work statement, with regular reporting required from the contractor.
What are the potential risks associated with integrating a new ASRS into existing military logistics systems?
Risks include compatibility issues with legacy systems, potential disruptions to ongoing operations during the transition phase, and the need for extensive training for personnel. Cybersecurity vulnerabilities during the integration of automated systems also pose a significant risk that requires robust mitigation strategies.
How will the modernization of the ASRS contribute to the overall effectiveness of the Department of Defense's supply chain?
Modernizing the ASRS is expected to significantly enhance the DoD's supply chain effectiveness by improving inventory accuracy, reducing manual labor requirements, and speeding up the process of locating and deploying necessary equipment and supplies. This leads to greater operational readiness and responsiveness.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W25G1V21R0011
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3550 LENOX RD NE, ATLANTA, GA, 30326
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $12,191,987
Exercised Options: $12,191,987
Current Obligation: $12,191,987
Actual Outlays: $2,027,079
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-20
Current End Date: 2026-09-18
Potential End Date: 2026-09-18 00:00:00
Last Modified: 2025-12-17
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