DoD awards $13.7M for Aramid-Reinforced Panels, exceeding benchmark by 88% in 2008
Contract Overview
Contract Amount: $13,679,520 ($13.7M)
Contractor: Iris KIM, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-05-20
End Date: 2008-10-22
Contract Duration: 155 days
Daily Burn Rate: $88.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TYPE 1, CLASS B OR D, 18 X 24 X 30 PSF PANELS, ARAMID-FABRIC-REINFORCED, PER MIL-DTL-62474F
Place of Performance
Location: HAMPTON, HAMPTON (CITY) County, VIRGINIA, 23666
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.7 million to IRIS KIM, INC. for work described as: TYPE 1, CLASS B OR D, 18 X 24 X 30 PSF PANELS, ARAMID-FABRIC-REINFORCED, PER MIL-DTL-62474F Key points: 1. High unit cost suggests potential overpayment or specialized requirements. 2. Competition method may have limited price discovery, impacting value. 3. Risk of inflated pricing due to limited competition and high benchmark. 4. Manufacturing sector for specialized plastics is niche, impacting broader benchmarks.
Value Assessment
Rating: questionable
The awarded price of $13,679,520 for 155 days of supply is significantly higher than the benchmark of $88,255. This suggests a substantial overpayment or a highly specialized product with unique cost drivers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method can restrict the pool of bidders and potentially lead to higher prices than a truly open competition.
Taxpayer Impact: Taxpayers may have overpaid due to limited competition and a high benchmark, potentially by millions of dollars.
Public Impact
Specialized military components can be costly, impacting defense budgets. Procurement practices that limit competition can lead to taxpayer losses. The high cost of this contract warrants scrutiny of its necessity and pricing. Lack of transparency in 'exclusion of sources' can hide inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- High benchmark price
- Limited competition
- Potential overpayment
- Lack of small business participation
Positive Signals
- Specific product requirement met
- Contract awarded within duration
Sector Analysis
The Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing sector (NAICS 326130) is specialized. Benchmarks for such niche defense materials are difficult to establish, but the awarded price is exceptionally high relative to the stated benchmark.
Small Business Impact
The data indicates no small business participation in this contract, which is common for highly specialized defense procurements but represents a missed opportunity for small business engagement.
Oversight & Accountability
The 'exclusion of sources' clause requires careful oversight to ensure it was justified and did not unduly restrict competition. The significant price difference from the benchmark also calls for post-award review.
Related Government Programs
- Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High benchmark price
- Limited competition (exclusion of sources)
- Potential for overpayment
- Lack of small business participation
- Lack of transparency in source exclusion
Tags
laminated-plastics-plate-sheet-except-pa, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.7 million to IRIS KIM, INC.. TYPE 1, CLASS B OR D, 18 X 24 X 30 PSF PANELS, ARAMID-FABRIC-REINFORCED, PER MIL-DTL-62474F
Who is the contractor on this award?
The obligated recipient is IRIS KIM, 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 $13.7 million.
What is the period of performance?
Start: 2008-05-20. End: 2008-10-22.
What specific technical requirements or market conditions justified the extremely high benchmark price and the exclusion of other potential sources?
The high benchmark price and exclusion of sources likely stem from unique military specifications (MIL-DTL-62474F) for aramid-fabric-reinforced panels, possibly requiring specialized manufacturing processes, materials, or certifications. Market conditions for such niche defense components may involve limited suppliers capable of meeting stringent requirements, thus driving up costs and restricting competition.
Could a more competitive bidding process have yielded significant cost savings for this contract?
Yes, a more open and inclusive competitive bidding process could have potentially yielded significant cost savings. By excluding sources, the government may have missed out on competitive pricing from other qualified manufacturers. The substantial difference between the awarded price and the benchmark strongly suggests that competition was limited, leading to a less favorable price for the government.
What is the long-term value proposition of procuring these specialized panels at such a high cost?
The long-term value proposition hinges on the critical nature of these panels for the specific military application and their expected lifespan or performance benefits. If these panels are essential for mission success, offer superior durability, or provide unique protective qualities unavailable elsewhere, the high cost might be justified by their strategic importance and operational effectiveness, despite the apparent pricing concerns.
Industry Classification
NAICS: Manufacturing › Plastics Product Manufacturing › Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing
Product/Service Code: TEXTILE/LEATHER/FUR; TENT; FLAG
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52H0908R0238
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2210 EXECUTIVE DR STE D, HAMPTON, VA, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $13,679,520
Exercised Options: $13,679,520
Current Obligation: $13,679,520
Timeline
Start Date: 2008-05-20
Current End Date: 2008-10-22
Potential End Date: 2008-10-22 00:00:00
Last Modified: 2008-08-20
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