DoD awards $32.3M for Fire Control Systems to VSE Corporation, raising value concerns
Contract Overview
Contract Amount: $32,353,431 ($32.4M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2004-11-05
End Date: 2007-01-31
Contract Duration: 817 days
Daily Burn Rate: $39.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200502!001410!2100!W56HZV!TACOM - WARREN !W56HZV05C0062 !A!N! !N! ! !20041105!20051104!049997380!049997380!049997380!N!VSE CORPORATION !2550 HUNTINGTON AVE !ALEXANDRIA !VA!22303!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000011000000!N!N!000000000000!1230!FIRE CONTROL SYSTEMS, COMPLETE !A4B!NON-COMBAT VEHICLES !299 !STRYKER (IAV) !332811!A!A!1! ! ! ! ! !20200930!B! ! !N!A!D!Y!J!1!001!N!2A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22303
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.4 million to VSE CORPORATION for work described as: 200502!001410!2100!W56HZV!TACOM - WARREN !W56HZV05C0062 !A!N! !N! ! !20041105!20051104!049997380!049997380!049997380!N!VSE CORPORATION !2550 HUNTINGTON AVE !ALEXANDRIA !VA!22303!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. The contract value of $32.3M appears high for the specified period, warranting further investigation. 2. VSE Corporation, the sole awardee, suggests potential limitations in competition. 3. The 'NOT COMPETED' award type indicates a lack of market research and potential for overpricing. 4. The sector is Defense, specifically Non-Combat Vehicles, with a focus on Fire Control Systems.
Value Assessment
Rating: questionable
The contract value of $32.3M for a 2-year period (2004-2007) for 'FIRE CONTROL SYSTEMS, COMPLETE' seems high. Benchmarking against similar contracts for fire control systems or components within the Non-Combat Vehicle sector is recommended to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source or limited competition scenario. This significantly impacts price discovery, as there was no competitive pressure to drive down costs, potentially leading to a higher price for the government.
Taxpayer Impact: The lack of competition may have resulted in taxpayers paying a premium for these fire control systems.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The specific components or systems provided are critical for non-combat vehicles, impacting operational readiness. VSE Corporation's role as a sole awardee warrants scrutiny regarding its market dominance or the justification for limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential overpricing
- Limited transparency in award justification
Positive Signals
- Contract awarded to a known entity (VSE Corporation)
- Specific product line identified
Sector Analysis
This contract falls within the Defense sector, specifically supporting Non-Combat Vehicles. Spending benchmarks for similar systems or components within this niche are difficult to ascertain without more detailed product specifications, but the value suggests a significant procurement.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. Further analysis would be needed to determine if small businesses were excluded or if subcontracting opportunities were pursued.
Oversight & Accountability
The 'NOT COMPETED' status raises questions about the adequacy of oversight in ensuring fair and reasonable pricing. The awarding agency, Defense Contract Management Agency, should have processes in place to validate sole-source justifications and pricing.
Related Government Programs
- Metal Heat Treating
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding raises concerns about fair pricing.
- Potential for overpayment due to sole-source award.
- Limited transparency regarding the justification for 'NOT COMPETED'.
- Need for benchmarking against similar systems to validate value.
Tags
metal-heat-treating, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.4 million to VSE CORPORATION. 200502!001410!2100!W56HZV!TACOM - WARREN !W56HZV05C0062 !A!N! !N! ! !20041105!20051104!049997380!049997380!049997380!N!VSE CORPORATION !2550 HUNTINGTON AVE !ALEXANDRIA !VA!22303!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000011000000!N!N!000000000000!1230!FIRE CONTROL SYSTEMS, COMPLETE !A4B!NON-COMBAT VEHICLES !299 !STRYKER (IAV) !332811!A!A!1! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $32.4 million.
What is the period of performance?
Start: 2004-11-05. End: 2007-01-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review of the contract file would be necessary to determine the specific justification (e.g., urgent need, unique capability, lack of sources). Without this documentation, it's impossible to assess the validity of the sole-source award and whether it truly served the government's best interest or if alternative sources were overlooked.
How does the unit cost of these fire control systems compare to industry benchmarks or previous procurements of similar systems?
The provided data lacks specific unit cost information and detailed technical specifications for the 'FIRE CONTROL SYSTEMS, COMPLETE'. To assess value, a comparison would require identifying the exact components, their complexity, and then benchmarking against market prices for similar systems or parts, considering factors like technology, volume, and supplier.
What is the potential impact of this sole-source award on future competition for similar fire control systems or related components?
A sole-source award can stifle future competition by establishing a single supplier relationship without market testing. This may discourage other potential vendors from developing competing solutions or entering the market, potentially leading to continued reliance on VSE Corporation and sustained higher prices in subsequent procurements.
Industry Classification
NAICS: Manufacturing › Coating, Engraving, Heat Treating, and Allied Activities › Metal Heat Treating
Product/Service Code: FIRE CONTROL EQPT.
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
Address: 2550 HUNTINGTON AVE, ALEXANDRIA, VA, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-11-05
Current End Date: 2007-01-31
Potential End Date: 2007-01-31 00:00:00
Last Modified: 2014-11-26
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