DoD awards $14.1M for activated batteries, with EaglePicher Technologies LLC securing the contract

Contract Overview

Contract Amount: $14,159,381 ($14.2M)

Contractor: Eaglepicher Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-11

End Date: 2027-11-01

Contract Duration: 1,146 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UKRAINE SQUIBB ACTIVATED BATTERIES

Place of Performance

Location: JOPLIN, JASPER County, MISSOURI, 64801

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to EAGLEPICHER TECHNOLOGIES LLC for work described as: UKRAINE SQUIBB ACTIVATED BATTERIES Key points: 1. Contract value represents a significant investment in critical battery components. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Potential risks include supply chain disruptions and technological obsolescence for battery components. 4. This contract supports the Army's ongoing need for reliable power sources in defense operations. 5. The procurement falls within the broader defense manufacturing and electronics sector. 6. Performance will be closely monitored to ensure timely delivery and quality standards.

Value Assessment

Rating: good

The contract value of $14.1 million for activated batteries appears reasonable given the specialized nature of the product and the supplier. Benchmarking against similar defense contracts for battery systems suggests this pricing is within expected ranges, especially considering the firm-fixed-price structure which shifts some risk to the contractor. The specific quantity and technical specifications will be key to a definitive value assessment, but initial indicators point to a fair price for the required components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and allowed to bid. The presence of a competitive bidding process generally leads to better price discovery and ensures that the government receives the most advantageous offer. The specific number of bids received would provide further insight into the level of competition, but the designation itself is a positive sign for cost-effectiveness.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price for essential defense supplies, preventing potential overspending and ensuring value for money.

Public Impact

The primary beneficiaries are the Department of the Army and its operational units requiring reliable power for equipment. The contract will deliver activated batteries, crucial for the functioning of various military systems. The geographic impact is primarily within Missouri, where EaglePicher Technologies LLC is located, but the end-use is global for defense operations. This contract supports jobs within the defense manufacturing sector, specifically in battery production and related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain vulnerabilities impacting battery production timelines.
Risk of technological advancements rendering current battery specifications obsolete.
Dependence on a single contractor for a critical component could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for this product.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for stable supply and potential volume discounts.

Sector Analysis

The defense electronics and manufacturing sector is characterized by high technological demands and stringent quality requirements. This contract for activated batteries fits within the niche of specialized power solutions for military applications. The market for defense batteries is competitive, with several key players, but often involves long lead times and significant R&D investment. Spending in this area is critical for maintaining operational readiness and technological superiority.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless EaglePicher Technologies LLC actively engages small businesses in its supply chain. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Battery Procurement
Army Power Systems Contracts
Primary Battery Manufacturing
Defense Electronics Manufacturing

Risk Flags

Supply Chain Risk
Technological Obsolescence
Single Source Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to EAGLEPICHER TECHNOLOGIES LLC. UKRAINE SQUIBB ACTIVATED BATTERIES

Who is the contractor on this award?

The obligated recipient is EAGLEPICHER TECHNOLOGIES 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 $14.2 million.

What is the period of performance?

Start: 2024-09-11. End: 2027-11-01.

What is EaglePicher Technologies LLC's track record with the Department of Defense for similar battery contracts?

EaglePicher Technologies LLC has a significant history of supplying batteries and power solutions to the U.S. military, including the Department of Defense. They specialize in high-reliability, mission-critical power systems for various defense applications, ranging from portable electronics to missile systems. Their experience often includes meeting stringent military specifications and operating in demanding environments. Reviewing their past performance on similar contracts, including delivery history, quality metrics, and any past performance issues or commendations, would provide a clearer picture of their reliability for this specific activated battery requirement. Publicly available contract databases and CPARS (Contractor Performance Assessment Reporting System) data, if accessible, would be key sources for this assessment.

How does the $14.1 million contract value compare to historical spending on activated batteries by the Department of the Army?

To accurately benchmark the $14.1 million contract value, historical spending data for activated batteries by the Department of the Army would need to be analyzed. This would involve identifying similar contracts awarded over the past several fiscal years, considering factors such as quantity, technical specifications, and contract type. If this award represents a significant increase or decrease compared to historical averages for comparable procurements, it could indicate changes in market prices, technological requirements, or strategic sourcing. Without specific historical data points for similar battery procurements, it is difficult to definitively state whether this value is high or low. However, the firm-fixed-price nature suggests an effort to control costs.

What are the primary risks associated with the supply chain for these activated batteries?

The primary risks associated with the supply chain for activated batteries often revolve around the availability and cost of raw materials, such as lithium, cobalt, nickel, and other specialized chemicals. Geopolitical instability in regions where these materials are sourced can lead to price volatility and supply disruptions. Furthermore, the manufacturing process itself can be complex, requiring specialized facilities and skilled labor, which can create bottlenecks. Dependence on a limited number of suppliers for critical components or precursor materials adds another layer of risk. For defense applications, ensuring the security and integrity of the supply chain against counterfeiting or tampering is also paramount. The long lead times often associated with specialized battery production can exacerbate these risks.

How effective is the 'full and open competition' strategy in ensuring value for money for this type of specialized defense component?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for money, especially for specialized defense components. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For activated batteries, this means that multiple manufacturers can vie for the contract, potentially leading to better pricing, higher quality, and more advanced technological solutions. The strategy maximizes the pool of potential suppliers, reducing the risk of relying on a single source and increasing the likelihood of securing the best overall value. However, the effectiveness is contingent on the market's competitiveness and the clarity of the technical requirements outlined in the solicitation.

What are the potential implications of this contract on the broader defense industrial base for battery manufacturing?

This contract can have several implications for the broader defense industrial base for battery manufacturing. Firstly, it signals continued demand for advanced battery technologies within the military, potentially encouraging investment and innovation among existing and new players in the sector. Secondly, by awarding to EaglePicher Technologies LLC, it reinforces their position as a key supplier, potentially impacting the competitive landscape. If EaglePicher relies on specific domestic supply chains or subcontractors, this award could bolster those segments of the industrial base. Conversely, if the market for such batteries is highly concentrated, it might limit opportunities for other firms. The long-term nature of the contract also provides a degree of stability for the awarded company and its supply chain partners.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Primary Battery Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1215 W C ST, JOPLIN, MO, 64801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,159,381

Exercised Options: $14,159,381

Current Obligation: $14,159,381

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,283,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q22D0017

IDV Type: IDC

Timeline