DoD's $41.6M Allison Transmission Contract for Mechanical Power Transmission Equipment Manufacturing Showed Limited Small Business Participation
Contract Overview
Contract Amount: $41,633,501 ($41.6M)
Contractor: Allison Transmission, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-04-29
End Date: 2009-12-31
Contract Duration: 2,072 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TAS::97 4930::TAS
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46222
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $41.6 million to ALLISON TRANSMISSION, INC. for work described as: TAS::97 4930::TAS Key points: 1. The contract awarded to Allison Transmission, Inc. for mechanical power transmission equipment manufacturing totaled $41.6 million. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract duration was 2072 days, indicating a long-term need for these components. 4. Small business participation was not a factor in this contract. 5. The contract was firm fixed price, providing cost certainty for the government.
Value Assessment
Rating: fair
The contract value of $41.6 million for mechanical power transmission equipment is substantial. Benchmarking against similar contracts would be necessary to determine if this price was competitive, especially given the firm fixed price structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized full and open competition after the exclusion of sources. This method aims to ensure the best value is obtained, but the exclusion of specific sources warrants further investigation into the rationale behind it.
Taxpayer Impact: The firm fixed price contract likely provided predictable costs for taxpayers, but the overall value for money depends on the competitive landscape and the necessity of the excluded sources.
Public Impact
Military readiness may be impacted by the availability and performance of these mechanical power transmission components. The long contract duration suggests a sustained demand for this specific type of equipment within the Department of the Army. The exclusion of sources in the competition process could limit innovation and potentially increase long-term costs if alternative suppliers are not considered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Exclusion of sources in competition
Positive Signals
- Firm fixed price contract
- Full and open competition
Sector Analysis
The sector is Mechanical Power Transmission Equipment Manufacturing, a critical component for various military vehicles and machinery. Spending in this sector is often driven by defense modernization and sustainment needs.
Small Business Impact
This contract did not involve small businesses, as indicated by the 'sb' field being false. This suggests that the specific requirements of the mechanical power transmission equipment were likely met by larger, specialized manufacturers.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program management reviews, quality assurance checks, and financial audits to ensure compliance and performance.
Related Government Programs
- Mechanical Power Transmission Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation
- Exclusion of sources in competition
- Potential for single-source dependency
- Limited transparency on source exclusion rationale
Tags
mechanical-power-transmission-equipment-, department-of-defense, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.6 million to ALLISON TRANSMISSION, INC.. TAS::97 4930::TAS
Who is the contractor on this award?
The obligated recipient is ALLISON TRANSMISSION, 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 $41.6 million.
What is the period of performance?
Start: 2004-04-29. End: 2009-12-31.
What was the specific rationale for excluding certain sources during the full and open competition process for this mechanical power transmission equipment contract?
The rationale for excluding sources in a 'full and open competition after exclusion of sources' contract is typically based on specific technical requirements, existing system compatibility, or unique manufacturing capabilities that only a limited number of vendors can meet. This exclusion is intended to ensure the procured equipment is essential for operational needs or interoperability, though it requires justification to prevent undue market restriction.
How did the firm fixed price structure impact the government's risk exposure and potential for cost savings over the 2072-day contract duration?
A firm fixed price contract shifts most of the cost risk to the contractor, providing the government with budget certainty. For a long duration like 2072 days, this structure protects against cost overruns due to inflation or unforeseen production issues. However, it may also mean the government forgoes potential savings if the contractor's actual costs are significantly lower than anticipated.
What is the long-term strategic implication of awarding a large contract for mechanical power transmission equipment to a single, large manufacturer without small business involvement?
The long-term strategic implication could include reduced competition in the future if smaller businesses are consistently excluded from opportunities. It may also lead to a dependency on a single supplier for critical components, potentially impacting supply chain resilience. While ensuring immediate needs are met, it warrants consideration for fostering a broader industrial base for future procurements.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Mechanical Power Transmission Equipment Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Allison Transmission Inc
Address: 4700 W 10TH ST, INDIANAPOLIS, IN, 46222
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-29
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2023-06-02
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