Department of the Army awarded $14.79M contract for armor plates to Sivyer Steel Corporation

Contract Overview

Contract Amount: $14,790,000 ($14.8M)

Contractor: Sivyer Steel Corporation

Awarding Agency: Department of Defense

Start Date: 2008-03-17

End Date: 2009-03-30

Contract Duration: 378 days

Daily Burn Rate: $39.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: P900 ARMOR PLATE

Place of Performance

Location: BETTENDORF, SCOTT County, IOWA, 52722

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to SIVYER STEEL CORPORATION for work described as: P900 ARMOR PLATE Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a clear understanding of costs. 2. The duration of the contract was 378 days, suggesting a short-term need for the armor plates. 3. The contract was not competed, raising questions about potential cost savings through competitive bidding. 4. The North American Industry Classification System (NAICS) code 331513 points to steel foundries, a specialized sector. 5. The award was made by the Department of the Army, a major defense procurement entity. 6. The contract was awarded in fiscal year 2008, providing historical context for current spending.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to benchmark the value for money. The raw dollar amount of $14.79 million for armor plates needs to be assessed against the quantity and specifications. The absence of competition suggests that the government may not have secured the most favorable pricing. Further analysis would require details on the specific type and quantity of armor plates procured.

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. This approach is typically used when only one source can fulfill the requirement, or in cases of urgent need. The lack of competition means there was no opportunity for multiple vendors to bid, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost reductions typically achieved through competitive bidding processes. This can result in a less efficient use of taxpayer funds.

Public Impact

Personnel within the Department of the Army benefit from the provision of these armor plates, enhancing their protection. The services delivered include the manufacturing and supply of critical protective equipment. The geographic impact is primarily within the United States, where the steel foundry operates and supplies the defense department. The workforce implications are tied to the steel foundry industry, supporting jobs in manufacturing and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Sole-source awards can indicate potential single points of failure in supply chains.
Historical data on this specific award is limited, making it hard to assess long-term value.
The contract's fixed-price nature doesn't account for potential cost efficiencies gained through competition.

Positive Signals

The contract was awarded on a firm-fixed-price basis, providing cost certainty.
The award was made to a specific steel foundry, potentially supporting domestic manufacturing.
The duration of the contract was defined, allowing for clear project management.

Sector Analysis

The procurement of armor plates falls within the broader defense manufacturing sector, specifically related to steel foundries. This industry is characterized by specialized manufacturing processes and stringent quality control requirements due to the critical nature of the products. The market size for defense-related steel products is significant, driven by ongoing military needs. This contract represents a specific instance of the Department of Defense sourcing essential protective equipment from a specialized industrial base.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities for small businesses. The award was made to Sivyer Steel Corporation, and further information would be needed to determine if they are a small business or if they engaged in subcontracting. Without this data, the impact on the small business ecosystem remains unknown.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army's contracting and program management offices. Accountability measures would typically include contract performance monitoring, quality assurance checks, and financial audits. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Body Armor Procurement
Defense Industrial Base
Steel Manufacturing Contracts
Department of Defense Supply Chain

Risk Flags

Sole-source award
Lack of competition
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to SIVYER STEEL CORPORATION. P900 ARMOR PLATE

Who is the contractor on this award?

The obligated recipient is SIVYER STEEL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2008-03-17. End: 2009-03-30.

What specific type and quantity of armor plates were procured under this contract?

The provided data does not specify the exact type or quantity of armor plates. The contract is for 'P900 ARMOR PLATE,' and the total award amount was $14,790,000. To fully assess the value, details on the specifications (e.g., material composition, protection level, dimensions) and the number of units purchased are essential. Without this information, it's challenging to perform a meaningful per-unit cost analysis or compare it to industry standards for similar protective equipment.

What is the track record of Sivyer Steel Corporation in fulfilling defense contracts?

The provided data indicates Sivyer Steel Corporation was awarded this specific contract. However, it does not offer a comprehensive view of their track record with the Department of Defense or other government agencies. To assess their reliability and past performance, a review of their contract history, including on-time delivery, quality compliance, and any past disputes or contract terminations, would be necessary. This information is typically available through government contract databases.

How does the $14.79 million award compare to similar armor plate procurements by the DoD?

Comparing this $14.79 million award requires knowledge of the quantity and specifications of the armor plates. If this was for a large quantity of standard plates, it might be within a typical range. However, if it was for a smaller quantity or highly specialized plates, the cost could be higher or lower than average. Benchmarking would necessitate identifying comparable contracts with similar item descriptions, quantities, and award dates. The sole-source nature of this award also suggests it might not be directly comparable to competitively bid contracts.

What are the primary risks associated with a sole-source award for critical defense equipment like armor plates?

The primary risks associated with a sole-source award for critical defense equipment include potential overpricing due to the lack of competition, limited innovation from a single supplier, and increased vulnerability in the supply chain. If Sivyer Steel Corporation were to face production issues or go out of business, the Department of the Army would have difficulty finding an immediate alternative supplier. This lack of competition can also reduce the incentive for the contractor to improve efficiency or quality beyond the contract's minimum requirements.

What was the historical spending trend for armor plates by the Department of the Army around 2008?

The provided data only offers a single data point for armor plate procurement in 2008. To understand historical spending trends, one would need to analyze multiple contracts for similar items over several fiscal years. This would involve querying databases for armor plate procurements by the Department of the Army before and after 2008, noting award amounts, quantities, and competition levels. Such an analysis could reveal patterns of increasing or decreasing demand, shifts in procurement strategies, or changes in average unit costs.

Industry Classification

NAICS: Manufacturing › Foundries › Steel Foundries (except Investment)

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

Address: 225 33RD ST, BETTENDORF, IA, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,790,000

Exercised Options: $14,790,000

Current Obligation: $14,790,000

Timeline