DoD Spends $28.6M on High Hard Armor from Evraz Inc. NA, Lacking Competition
Contract Overview
Contract Amount: $28,564,179 ($28.6M)
Contractor: Evraz Inc NA
Awarding Agency: Department of Defense
Start Date: 2007-10-25
End Date: 2008-02-03
Contract Duration: 101 days
Daily Burn Rate: $282.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF HIGH HARD ARMOR
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97205
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to EVRAZ INC NA for work described as: PURCHASE OF HIGH HARD ARMOR Key points: 1. Significant spending on critical defense material. 2. Sole supplier Evraz Inc. NA dominates the market for this specific armor. 3. Lack of competition raises concerns about price and innovation. 4. Steel mills sector context is relevant to material sourcing.
Value Assessment
Rating: questionable
The awarded amount of $28.6M for high hard armor is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than a competed contract, impacting taxpayer value.
Public Impact
Ensures supply of critical armor for military personnel. Potential for inflated costs due to lack of competitive pressure. Reliance on a single supplier could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source reliance
Positive Signals
- Procurement of essential defense equipment
Sector Analysis
The procurement falls within the Iron and Steel Mills sector (NAICS 331111). Spending benchmarks for specialized armor within this sector are difficult to ascertain without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates no small business participation in this contract. This is common for large, specialized defense procurements but represents a missed opportunity for small business engagement.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps or specific justifications for sole-sourcing that are not detailed here. Further review of the justification for other than full and open competition is warranted.
Related Government Programs
- Iron and Steel Mills
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for sole-source price inflation
- Supply chain dependency risk
- Limited transparency on justification for non-competition
Tags
iron-and-steel-mills, department-of-defense, or, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to EVRAZ INC NA. PURCHASE OF HIGH HARD ARMOR
Who is the contractor on this award?
The obligated recipient is EVRAZ INC NA.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $28.6 million.
What is the period of performance?
Start: 2007-10-25. End: 2008-02-03.
What was the justification for not competing this contract, and was it adequately documented?
The provided data simply states 'NOT COMPETED' without elaboration. A thorough review would require accessing the contract file to understand the specific justification (e.g., sole proprietary source, urgent need) and verify its validity and adherence to procurement regulations. Without this, the rationale for bypassing competition remains unclear.
How does the unit cost of this armor compare to industry benchmarks or historical pricing for similar materials?
The data does not provide a per-unit cost or sufficient detail to establish a benchmark. The total award is $28.6M, and the contract duration was 101 days. Without knowing the quantity purchased, a direct cost comparison is impossible. The lack of competition further complicates assessing if the price paid was reasonable.
What are the long-term risks associated with relying on a single supplier for this critical defense component?
Long-term reliance on a single supplier, Evraz Inc. NA, creates significant supply chain vulnerability. Risks include potential price gouging, production disruptions due to unforeseen events affecting the supplier, and lack of incentive for the supplier to innovate or improve quality. This could impact future defense readiness.
Industry Classification
NAICS: Manufacturing › Iron and Steel Mills and Ferroalloy Manufacturing › Iron and Steel Mills
Product/Service Code: METAL BARS, SHEETS, SHAPES
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
Parent Company: Lanebrook Limited (UEI: 565489521)
Address: 1000 SOUTHWEST BROADWAY, SUITE 2200, PORTLAND, OR, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,564,179
Exercised Options: $28,564,179
Current Obligation: $28,564,179
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-10-25
Current End Date: 2008-02-03
Potential End Date: 2008-02-03 00:00:00
Last Modified: 2012-03-27
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