DoD's $19.8M Stainless Steel Tube Contract Awarded to Maher Limited Lacked Competition
Contract Overview
Contract Amount: $19,849,100 ($19.8M)
Contractor: Maher Limited
Awarding Agency: Department of Defense
Start Date: 2007-08-21
End Date: 2010-04-09
Contract Duration: 962 days
Daily Burn Rate: $20.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FSC: 4710 BRITISH STAINLESS STEEL TUBE
Plain-Language Summary
Department of Defense obligated $19.8 million to MAHER LIMITED for work described as: FSC: 4710 BRITISH STAINLESS STEEL TUBE Key points: 1. Significant spending on stainless steel tubing for military applications. 2. Sole-source award to Maher Limited raises questions about price discovery. 3. Long contract duration (962 days) may obscure current market pricing. 4. Lack of competition is a primary risk factor for potential overpayment.
Value Assessment
Rating: questionable
The contract value of $19.8 million for stainless steel tubing is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and increases the risk of paying a premium for the goods received.
Taxpayer Impact: The lack of competition means taxpayers may have overpaid for these essential military supplies, as a more competitive process could have driven down costs.
Public Impact
Military readiness may be impacted by the availability and cost of specialized steel tubing. Taxpayer funds are allocated to defense procurement, highlighting the need for efficient spending. The long-term nature of the contract suggests a sustained need for these components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Firm fixed price contract type
- Clear agency and sub-agency identified
Sector Analysis
The procurement falls under the Industrial Equipment and Supplies sector, specifically related to metal fabrication and raw materials. Defense spending in this area is critical for maintaining military hardware and infrastructure.
Small Business Impact
The data indicates no small business participation in this contract, which is a missed opportunity to support smaller enterprises within the supply chain.
Oversight & Accountability
The sole-source nature of this award warrants further review to ensure the Department of Defense obtained the best possible value and that procurement regulations were appropriately followed.
Related Government Programs
- Iron and Steel Mills
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- No small business participation
- Long contract duration (962 days)
- Potential for overpayment due to limited price discovery
Tags
iron-and-steel-mills, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.8 million to MAHER LIMITED. FSC: 4710 BRITISH STAINLESS STEEL TUBE
Who is the contractor on this award?
The obligated recipient is MAHER LIMITED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.8 million.
What is the period of performance?
Start: 2007-08-21. End: 2010-04-09.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award is not provided in the data. Typically, such awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to fully assess the necessity of bypassing the competitive process.
How does the $19.8 million contract value compare to industry benchmarks for similar stainless steel tubing, considering the lack of competition?
Direct comparison to industry benchmarks is challenging due to the sole-source nature of this award. Competitive processes usually yield prices closer to market rates. The absence of competition suggests this price may be higher than what could have been achieved through a bidding process, potentially leading to taxpayer overpayment.
What is the potential risk to the Department of the Army if the quality of the stainless steel tubing supplied by Maher Limited does not meet specifications?
The primary risk lies in the 'FIRM FIXED PRICE' contract type, which generally places the responsibility for meeting specifications on the contractor. However, if the tubing is substandard, it could lead to mission failures, increased maintenance costs, or the need for costly replacements, potentially impacting operational readiness.
Industry Classification
NAICS: Manufacturing › Iron and Steel Mills and Ferroalloy Manufacturing › Iron and Steel Mills
Product/Service Code: PIPE, TUBING, HOSE, AND FITTINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maher Ltd (UEI: 216755169)
Address: EDWARD ST, SHEFFIELD
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,849,100
Exercised Options: $19,849,100
Current Obligation: $19,849,100
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-08-21
Current End Date: 2010-04-09
Potential End Date: 2010-04-09 00:00:00
Last Modified: 2010-06-23
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