Army Awards $9.9M Contract to Grip Pod Systems for Ordnance Accessories, Not Competed
Contract Overview
Contract Amount: $9,928,800 ($9.9M)
Contractor: Grip POD Systems, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2007-09-06
End Date: 2009-07-03
Contract Duration: 666 days
Daily Burn Rate: $14.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT WITH ONE 200% OPTION
Place of Performance
Location: SAINT JOHNS, ST. JOHNS County, FLORIDA, 32259
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to GRIP POD SYSTEMS, L.L.C. for work described as: CONTRACT WITH ONE 200% OPTION Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant option value suggests potential for future spending increases. 3. Lack of competition may lead to suboptimal pricing and reduced innovation. 4. The sector is 'Other Ordnance and Accessories Manufacturing', indicating specialized defense procurement.
Value Assessment
Rating: questionable
The contract value is $9.9M with a 200% option, totaling $29.7M. Without competitive bids, it's difficult to assess if this price is optimal compared to similar ordnance accessory contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition means taxpayers may be paying more than necessary for these ordnance accessories.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency in the procurement process hinders public scrutiny. The specialized nature of ordnance accessories means few companies may be capable, but competition should still be explored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Significant option value
- No competition reported
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls under 'Other Ordnance and Accessories Manufacturing'. Spending in this niche defense sector can vary widely based on geopolitical needs and technological advancements. Benchmarks are difficult without specific product comparisons.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses were considered or had the capability to bid.
Oversight & Accountability
The 'not competed' status warrants further oversight to ensure the government received fair value and that a sole-source award was truly justified. Accountability for the procurement decision is crucial.
Related Government Programs
- Other Ordnance and Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns due to large option
- No justification for sole-source award provided
- Limited transparency in pricing
Tags
other-ordnance-and-accessories-manufactu, department-of-defense, fl, dca, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to GRIP POD SYSTEMS, L.L.C.. CONTRACT WITH ONE 200% OPTION
Who is the contractor on this award?
The obligated recipient is GRIP POD SYSTEMS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2007-09-06. End: 2009-07-03.
What was the justification for awarding this contract sole-source instead of competing it?
The justification for a sole-source award is not provided in the data. Typically, such awards require a documented justification, such as a lack of available sources, urgent need, or specific technical requirements that only one vendor can meet. Without this justification, it's difficult to assess the necessity of bypassing competition.
What is the risk associated with the 200% option clause?
The primary risk of a 200% option clause is the significant potential for increased spending without further competition. It allows the government to potentially triple the original contract value. This can lead to budget overruns and lock the government into a single vendor for an extended period, even if better alternatives emerge.
How effective is this procurement strategy in ensuring the best value for taxpayers?
This procurement strategy is generally not effective in ensuring the best value for taxpayers when a contract is sole-sourced. Competition drives down prices and encourages innovation. By not competing, the government loses the benefits of market forces, potentially leading to higher costs and less optimal solutions.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W52H0907R0295
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 738 NATURES HAMMOCK DR W, JACKSONVILLE, FL, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $9,928,800
Exercised Options: $9,928,800
Current Obligation: $9,928,800
Timeline
Start Date: 2007-09-06
Current End Date: 2009-07-03
Potential End Date: 2009-07-03 00:00:00
Last Modified: 2008-06-25
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