Army Awards $62.4M Contract for Ammunition Boxes to CONCO, Inc
Contract Overview
Contract Amount: $14,404,318 ($14.4M)
Contractor: Conco, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-28
End Date: 2010-10-31
Contract Duration: 2,224 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200412!002203!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0099 !A!N! !N! ! !20040928!20061231!623757762!623757762!623757762!N!CONCO, INC !4000 OAKLAWN DRIVE !LOUISVILLE !KY!40219!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !+000000003952!Y!N!000000000000!8140!AMMUN & NUCLR ORDNCE BXS, PKGS & SPL CONTAINERS !A6 !AMMUNITION !000 !* !332439!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!K! !A!N!A! ! !N!B!N!N! ! !A! !B!A!00 !A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40219
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $14.4 million to CONCO, INC. for work described as: 200412!002203!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0099 !A!N! !N! ! !20040928!20061231!623757762!623757762!623757762!N!CONCO, INC !4000 OAKLAWN DRIVE !LOUISVILLE !KY!40219!48000!111!21!LOUISVILLE !JEFF… Key points: 1. Contract awarded for ammunition boxes and specialized containers. 2. CONCO, Inc. secured the deal valued at over $62 million. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract spans nearly 6 years, from 2004 to 2010. 5. Sector is primarily manufacturing, specifically ammunition-related containers.
Value Assessment
Rating: fair
The contract value of $62.4 million for ammunition boxes and specialized containers appears within a reasonable range for the duration and scope. Benchmarking against similar defense contracts for container manufacturing would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while the process was intended to be open, specific sources may have been excluded, potentially limiting price discovery and competition.
Taxpayer Impact: The final price paid by taxpayers will depend on the efficiency of the limited competition and the negotiated terms. Without further data on the exclusion rationale, the full taxpayer impact is uncertain.
Public Impact
Ensures supply of critical ammunition packaging for the U.S. Army. Supports a manufacturing company and its employees in Kentucky. Potential for cost savings or overspending depending on competition effectiveness. Impact on readiness if container quality or delivery is compromised.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Contract duration is substantial, increasing risk exposure.
- Specifics of 'exclusion of sources' are not detailed.
Positive Signals
- Addresses a clear defense need for specialized containers.
- Contract awarded to a domestic manufacturer.
- Fixed price contract provides some cost certainty.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition packaging. Spending benchmarks for similar defense logistics and container contracts are typically in the millions, aligning with this award.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award, though they may be subcontractors.
Oversight & Accountability
Oversight would involve monitoring CONCO, Inc.'s performance, adherence to delivery schedules, and quality control for the ammunition boxes. The Department of the Army is responsible for ensuring contract compliance and taxpayer value.
Related Government Programs
- Other Metal Container Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Long contract duration
- Lack of detailed justification for source exclusion
- Potential for price increases over contract life
Tags
other-metal-container-manufacturing, department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to CONCO, INC.. 200412!002203!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0099 !A!N! !N! ! !20040928!20061231!623757762!623757762!623757762!N!CONCO, INC !4000 OAKLAWN DRIVE !LOUISVILLE !KY!40219!48000!111!21!LOUISVILLE !JEFFERSON !KENTUCKY !+000000003952!Y!N!000000000000!8140!AMMUN & NUCLR ORDNCE BXS, PKGS & SPL CONTAINERS !A6 !AMMUNITION !000 !* !332439!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is CONCO, 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 $14.4 million.
What is the period of performance?
Start: 2004-09-28. End: 2010-10-31.
What was the rationale for excluding certain sources in the competition?
The rationale for excluding specific sources in the 'Full and Open Competition After Exclusion of Sources' method is crucial for understanding the competitive landscape. Without this information, it's difficult to assess if the exclusion was justified by technical requirements, past performance, or other factors, and whether it unduly limited competition and potentially inflated costs for the taxpayer.
How does the unit cost compare to industry benchmarks for similar ammunition containers?
A detailed comparison of the per-unit cost for these ammunition boxes and specialized containers against industry benchmarks is essential. This analysis would reveal whether CONCO, Inc.'s pricing is competitive or if there's potential for overpayment. Factors like material costs, manufacturing complexity, and volume discounts would need to be considered for an accurate assessment.
What are the potential risks associated with a nearly 6-year contract for ammunition containers?
A contract duration of nearly six years for ammunition containers presents several risks. These include potential price escalation due to market fluctuations in raw materials, the risk of technological obsolescence in container design or materials, and the possibility of contractor performance degradation over an extended period. Ensuring robust contract management and performance metrics is vital.
Industry Classification
NAICS: Manufacturing › Boiler, Tank, and Shipping Container Manufacturing › Other Metal Container Manufacturing
Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4000 OAKLAWN DRIVE, LOUISVILLE, KY, 03
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,970
Exercised Options: $25,970
Current Obligation: $14,404,318
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-09-28
Current End Date: 2010-10-31
Potential End Date: 2010-10-31 00:00:00
Last Modified: 2010-07-28
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