DOD awards $23.2M modification kit contract to Lapeer Industries, Inc. for vehicle bodies

Contract Overview

Contract Amount: $23,191,440 ($23.2M)

Contractor: Lapeer Industries, Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-21

End Date: 2009-12-31

Contract Duration: 832 days

Daily Burn Rate: $27.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MODIFICATION KIT, VE

Place of Performance

Location: LAPEER, LAPEER County, MICHIGAN, 48446

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to LAPEER INDUSTRIES, INC for work described as: MODIFICATION KIT, VE Key points: 1. Contract value of $23.2M for vehicle body modification kits. 2. Awarded to Lapeer Industries, Inc. with a firm fixed price. 3. Contract duration spans over 800 days. 4. Primarily supports the Department of the Army. 5. No small business set-aside was utilized. 6. The contract was not competed.

Value Assessment

Rating: fair

The contract value of $23.2 million for vehicle body modification kits appears to be within a reasonable range for specialized manufacturing. However, without specific details on the kits' complexity and quantity, a precise value-for-money assessment is challenging. Benchmarking against similar modification contracts would provide better context for pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach can sometimes lead to higher prices and reduced innovation compared to open competition. The lack of competition limits the government's ability to explore alternative solutions or secure more favorable pricing.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially missing out on cost savings that could have been achieved through a more open procurement process.

Public Impact

Military personnel benefit from enhanced vehicle capabilities through updated modification kits. The contract supports the operational readiness of the U.S. Army's vehicle fleet. Manufacturing activities are likely concentrated in Michigan, where Lapeer Industries is located. The contract supports jobs within the defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can limit access to innovative solutions.
Limited transparency on the specific components and services included in the modification kits.

Positive Signals

Contract awarded to a single, established supplier.
Firm fixed price contract provides cost certainty for the government.
Supports a critical defense need for vehicle modernization.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically related to vehicle body manufacturing and modification. The market for specialized military vehicle components is often characterized by a limited number of qualified suppliers due to stringent technical requirements and security clearances. Spending in this niche can fluctuate based on modernization programs and operational demands.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary awardee, Lapeer Industries, Inc., is likely a larger entity, and the contract's direct impact on the small business ecosystem may be minimal unless they engage in significant subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency regarding the specific modifications and their necessity would be key to assessing accountability. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Military Vehicle Modernization Programs
Tactical Wheeled Vehicle Fleet Support
Defense Logistics Agency (DLA) Procurement

Risk Flags

Sole-source award limits competitive pricing.
Lack of detailed scope limits value assessment.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to LAPEER INDUSTRIES, INC. MODIFICATION KIT, VE

Who is the contractor on this award?

The obligated recipient is LAPEER INDUSTRIES, 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 $23.2 million.

What is the period of performance?

Start: 2007-09-21. End: 2009-12-31.

What specific modifications are included in the kits, and how do they enhance vehicle performance or survivability?

The provided data does not detail the specific modifications included in the kits. These kits are designated for 'MODIFICATION KIT, VE,' suggesting they are intended to upgrade or alter existing vehicle bodies. Enhancements could range from structural reinforcements for improved protection, integration of new communication or sensor equipment, to modifications for specific mission roles. Without further documentation, the exact nature of the performance or survivability improvements remains unspecified. Understanding these details is crucial for assessing the true value and necessity of the $23.2 million expenditure.

What is the historical performance record of Lapeer Industries, Inc. with the Department of Defense?

Lapeer Industries, Inc. has a history of contracting with the Department of Defense, as evidenced by this award. To assess their performance record, a review of past contracts, including their value, duration, and any reported issues (e.g., contract disputes, performance deficiencies, or awards for exceptional performance), would be necessary. Information from sources like the Federal Procurement Data System (FPDS) or contract award databases could provide insights into their track record, on-time delivery, quality of work, and overall reliability as a defense contractor.

How does the $23.2 million contract value compare to similar vehicle modification contracts awarded by the Army or other branches?

Benchmarking this $23.2 million contract against similar vehicle modification contracts is difficult without more specific information on the scope of work. The 'Motor Vehicle Body Manufacturing' NAICS code (336211) is broad. If these kits are for extensive structural overhauls or specialized mission equipment integration on a large fleet, the cost might be justified. However, if they are for minor upgrades on a smaller number of vehicles, the price could be high. A comparative analysis would require identifying contracts for similar vehicle types, modification complexity, and quantities awarded over a comparable timeframe.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competition. Without competing bids, the government loses the opportunity to leverage market forces to secure the best possible price and terms. Other risks include a reduced incentive for the contractor to innovate or maintain high quality, as there is no direct competitor to outperform. Furthermore, it limits the government's ability to explore alternative technologies or suppliers that might offer better value or meet evolving requirements more effectively.

What is the projected impact of these vehicle modifications on the Army's operational readiness and capabilities?

The projected impact on the Army's operational readiness and capabilities hinges on the specific nature of the modification kits. If these kits enhance survivability (e.g., improved armor), mobility (e.g., upgraded suspension), or integrate new mission-critical systems (e.g., advanced communications, sensor suites), they could significantly bolster the effectiveness of the affected vehicle fleet. This could translate to improved force protection in combat zones, enhanced situational awareness, and greater mission flexibility. The duration of the contract (over 800 days) suggests a sustained effort to upgrade a portion of the fleet, implying a notable, albeit unspecified, enhancement to overall readiness.

What is the historical spending trend for vehicle modification kits by the Department of the Army?

Analyzing historical spending trends for vehicle modification kits by the Department of the Army requires access to comprehensive procurement data over several fiscal years. This specific contract, awarded in 2007 and ending in 2009, represents a snapshot. To understand trends, one would need to examine aggregate spending on similar modification kits, identify periods of increased or decreased investment, and correlate these with major Army modernization initiatives, operational deployments, or technological advancements. Without this broader dataset, it's challenging to place this $23.2 million award within a larger historical context of Army vehicle sustainment and upgrade strategies.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV07R0849

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 MCCORMICK DR, LAPEER, MI, 09

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,191,440

Exercised Options: $23,191,440

Current Obligation: $23,191,440

Timeline