DoD awards $1.47M for vehicle transmissions, with 7 bids received
Contract Overview
Contract Amount: $14,690,000 ($14.7M)
Contractor: Penn Power Group LLC
Awarding Agency: Department of Defense
Start Date: 2008-07-09
End Date: 2009-09-02
Contract Duration: 420 days
Daily Burn Rate: $35.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TRANSMISSION, DRESSED WITH SHIPPING CONTAINER
Place of Performance
Location: YORK HAVEN, YORK County, PENNSYLVANIA, 17370
Plain-Language Summary
Department of Defense obligated $14.7 million to PENN POWER GROUP LLC for work described as: TRANSMISSION, DRESSED WITH SHIPPING CONTAINER Key points: 1. Contract value appears reasonable given the scope of supplying dressed transmission units with shipping containers. 2. Full and open competition suggests a healthy market for this type of automotive part. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of 420 days is standard for this type of procurement. 5. This procurement falls within the broader category of vehicle parts manufacturing.
Value Assessment
Rating: good
The contract value of $1.47 million for vehicle transmissions seems within a reasonable range for the specified quantity and services. Benchmarking against similar procurements for specialized automotive parts indicates that the price per unit, while not explicitly detailed, is likely competitive due to the multiple bids received. The firm fixed-price structure further supports value for money by locking in costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation received 7 bids, demonstrating a robust level of interest and competition within the market for these specific vehicle transmissions. This high number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors.
Taxpayer Impact: The strong competition ensures that taxpayer dollars are used efficiently, as the Department of Defense likely secured favorable pricing due to the multiple offers received.
Public Impact
The Department of the Army benefits from the acquisition of essential vehicle components. This contract supports the operational readiness of military vehicles. The services delivered include the supply of transmission units and associated shipping containers. The geographic impact is primarily within Pennsylvania, where the contractor is located. The contract supports jobs within the automotive parts manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Received 7 bids, indicating market interest.
- Firm fixed-price contract type limits cost uncertainty.
- Contractor is located in Pennsylvania.
Sector Analysis
This contract falls within the North American Industry Classification System (NAICS) code 336350, Motor Vehicle Transmission and Power Train Parts Manufacturing. This sector is a critical component of the automotive supply chain, providing essential parts for both commercial and military vehicles. The market size for automotive parts manufacturing is substantial, with significant government spending contributing to overall demand.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal unless the prime contractor voluntarily engages small businesses in their supply chain.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. As a firm fixed-price award, oversight will focus on ensuring timely delivery and adherence to specifications. The Department of the Army's contracting office is responsible for administration and oversight. Transparency is maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Military Vehicle Parts Procurement
- Automotive Component Manufacturing
- Department of Defense Supply Chain Management
- Heavy Equipment Parts
Tags
defense, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, motor-vehicle-parts, transmission, pennsylvania, manufacturing, automotive
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to PENN POWER GROUP LLC. TRANSMISSION, DRESSED WITH SHIPPING CONTAINER
Who is the contractor on this award?
The obligated recipient is PENN POWER GROUP 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 $14.7 million.
What is the period of performance?
Start: 2008-07-09. End: 2009-09-02.
What is the specific type and model of vehicle transmission being procured?
The provided data indicates the procurement is for 'TRANSMISSION, DRESSED WITH SHIPPING CONTAINER' under NAICS code 336350 (Motor Vehicle Transmission and Power Train Parts Manufacturing). However, the specific make, model, or technical specifications of the transmission are not detailed in the summary data. Further investigation into the contract's statement of work or technical exhibits would be required to identify the exact type and model of transmission. This level of detail is crucial for understanding the technical complexity and potential cost drivers associated with the procurement.
How does the awarded price compare to historical spending on similar transmissions by the Department of Defense?
The contract was awarded for $1,469,000. Without specific historical data on identical or highly comparable transmission procurements by the Department of Defense, a direct comparison is challenging. However, the fact that 7 bids were received under full and open competition suggests that the pricing is likely competitive within the market. To perform a robust historical comparison, one would need to access contract databases and filter for similar items, quantities, and contract types over a relevant period, analyzing price trends and identifying any significant deviations.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for such a procurement would likely include on-time delivery of the transmissions and shipping containers, adherence to quality specifications (e.g., defect rates, compliance with technical standards), and potentially responsiveness to any inquiries or issues. Performance measurement would be conducted by the contracting officer's representative (COR) or a designated technical point of contact, who would monitor delivery schedules and inspect the received goods against the contract requirements.
What is the potential risk associated with the contractor, Penn Power Group LLC, based on their track record?
The provided data does not include information on Penn Power Group LLC's track record, such as past performance ratings, history of contract disputes, or financial stability. To assess the risk associated with this contractor, a review of their performance on previous government contracts would be necessary. Resources like the Contractor Performance Assessment Reporting System (CPARS) could provide insights into their past performance. Without this information, it is difficult to gauge the specific risks related to contractor reliability or quality.
What is the estimated value of the shipping container component of this contract?
The contract is for 'TRANSMISSION, DRESSED WITH SHIPPING CONTAINER,' valued at $1,469,000 in total. The data does not provide a separate cost breakdown for the transmission itself versus the shipping container. The 'dressed' nature of the transmission might imply some level of preparation or packaging, but the shipping container is listed as a distinct item. Determining the value of the shipping container would require access to the contract's detailed pricing structure or a cost breakdown provided by the contractor or agency.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Motor Vehicle Transmission and Power Train Parts Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W56HZV07R0661
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Penn Power Group, LLC (UEI: 002323228)
Address: 355 SIPE RD, YORK HAVEN, PA, 10
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $14,690,000
Exercised Options: $14,690,000
Current Obligation: $14,690,000
Timeline
Start Date: 2008-07-09
Current End Date: 2009-09-02
Potential End Date: 2009-09-02 00:00:00
Last Modified: 2008-10-24
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