DoD awards $31.6M for 6.5L Turbocharged Engines, impacting Other Engine Equipment Manufacturing sector
Contract Overview
Contract Amount: $31,573,267 ($31.6M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2007-09-21
End Date: 2009-01-15
Contract Duration: 482 days
Daily Burn Rate: $65.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 6.5L TURBOCHARGED ENGINE, WITH CONTAINER
Place of Performance
Location: MISHAWAKA, ST. JOSEPH County, INDIANA, 46544
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $31.6 million to AM GENERAL LLC for work described as: 6.5L TURBOCHARGED ENGINE, WITH CONTAINER Key points: 1. Significant contract value of $31.6M for specialized engine components. 2. AM General LLC is the sole awardee, raising questions about competition. 3. Contract awarded for 'Other Engine Equipment Manufacturing', a niche sector. 4. Long contract duration of 482 days suggests a substantial project.
Value Assessment
Rating: questionable
The contract value of $31.6M for 6.5L turbocharged engines is difficult to benchmark without specific unit counts or detailed specifications. However, the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to AM General LLC. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Military readiness may be impacted by the availability and cost of these specialized engines. The sole-source nature of the award could set a precedent for future sole-source procurements in this sector. Taxpayers bear the cost of this procurement, with potential for inflated pricing due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Awarded to established contractor
- Specific engine type procured
Sector Analysis
The 'Other Engine Equipment Manufacturing' sector is specialized, often involving custom or high-performance components. Benchmarking is challenging without comparable sole-source contracts, but competition typically drives better value.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, which is common for specialized defense contracts. This limits opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further review of the justification for not competing the contract is recommended.
Related Government Programs
- Other Engine Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price negotiation.
- Limited small business participation.
- Need for justification of sole-source procurement.
Tags
other-engine-equipment-manufacturing, department-of-defense, in, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.6 million to AM GENERAL LLC. 6.5L TURBOCHARGED ENGINE, WITH CONTAINER
Who is the contractor on this award?
The obligated recipient is AM GENERAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $31.6 million.
What is the period of performance?
Start: 2007-09-21. End: 2009-01-15.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without access to the specific contract file, it's impossible to detail the exact justification. However, agencies are expected to conduct market research and negotiate pricing rigorously even in sole-source situations to protect taxpayer interests.
What is the expected lifespan and performance of these 6.5L turbocharged engines, and how does this impact the overall value proposition for the Department of Defense?
The expected lifespan and performance of the engines are critical to assessing value. If these engines are designed for demanding military applications with a long service life and high reliability, the $31.6M investment could be justified. However, without detailed specifications and performance metrics, it's difficult to determine if the price reflects the expected utility and longevity.
Are there any alternative engine technologies or manufacturers that could meet the Department of the Army's requirements, even if requiring some modification or development?
Exploring alternatives is crucial for competitive sourcing. Even if AM General LLC is the incumbent or has unique expertise, the Army should have investigated if other manufacturers could adapt their existing technologies or develop comparable engines. This would involve assessing technical feasibility, development timelines, and overall cost-effectiveness compared to the sole-source option.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Other Engine Equipment Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV07R0610
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Macandrews & Forbes Holdings Inc. (UEI: 878304849)
Address: 408 S BYRKIT ST, MISHAWAKA, IN, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,573,267
Exercised Options: $31,573,267
Current Obligation: $31,573,267
Timeline
Start Date: 2007-09-21
Current End Date: 2009-01-15
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2008-04-29
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