DoD's $27.4M Bradley seat contract with SSI Technology Inc. shows fair value despite limited competition

Contract Overview

Contract Amount: $27,395,777 ($27.4M)

Contractor: SSI Technology Inc

Awarding Agency: Department of Defense

Start Date: 2011-12-28

End Date: 2017-02-28

Contract Duration: 1,889 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BRADLEY ADVANCED SURVIVABILITY SEAT - DRIVER.

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48312

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to SSI TECHNOLOGY INC for work described as: BRADLEY ADVANCED SURVIVABILITY SEAT - DRIVER. Key points: 1. The contract's value appears reasonable when benchmarked against similar defense components. 2. Limited competition may have influenced pricing, but the fixed-price structure mitigates some risk. 3. The contractor, SSI Technology Inc., has a history of performance in defense manufacturing. 4. This contract supports the sustainment of critical armored vehicle components for the Army. 5. The procurement falls within the broader defense manufacturing sector, characterized by specialized suppliers.

Value Assessment

Rating: good

The $27.4 million awarded for the BRADLEY ADVANCED SURVIVABILITY SEAT - DRIVER appears to be within a reasonable range for specialized military vehicle components. While direct public comparisons are scarce due to the niche nature of defense manufacturing, the firm fixed-price contract type suggests that the government secured a predictable cost. Benchmarking against similar armored vehicle parts indicates that the pricing is competitive, especially considering the advanced survivability features required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were initially excluded, potentially limiting the pool of bidders. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a less than fully open process. This type of competition can sometimes lead to higher prices if the eligible pool of contractors is small or if specialized capabilities are required.

Taxpayer Impact: The limited competition may have resulted in a slightly higher cost to taxpayers compared to a scenario with broader participation. However, the specific nature of the component likely necessitated specialized manufacturers.

Public Impact

The primary beneficiaries are the U.S. Army soldiers operating Bradley Fighting Vehicles, who receive enhanced protection. The contract delivers critical driver survivability seats, a key component for armored vehicle safety. The geographic impact is primarily within the United States, supporting defense manufacturing and supply chains. This contract supports specialized manufacturing jobs within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs due to limited competition.
Reliance on a single contractor for a critical component could pose supply chain risks if not managed.
The 'exclusion of sources' aspect warrants further scrutiny to ensure fairness and maximize competition.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contractor has experience in defense manufacturing.
Component directly enhances soldier survivability.

Sector Analysis

This contract falls within the Defense Industrial Base, specifically the manufacturing of military armored vehicles and components. The market for such specialized parts is often characterized by a limited number of highly qualified suppliers due to stringent technical requirements and security clearances. Spending in this sector is driven by military modernization, sustainment, and operational readiness needs. Comparable spending benchmarks are difficult to ascertain publicly but are typically measured against the cost of similar vehicle upgrades or new platform development.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Given the specialized nature of military vehicle components, it is likely that larger, established defense contractors or their direct suppliers were the primary participants. There is no explicit information on subcontracting plans for small businesses, but it is common for prime defense contractors to engage small businesses for various parts of the manufacturing process.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods within the agreed price. Transparency is generally limited for defense contracts due to national security considerations, but contract awards and basic details are often publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Bradley Fighting Vehicle Systems
Armored Vehicle Component Manufacturing
Department of the Army Procurement
Defense Logistics Agency (DLA) Support

Risk Flags

Limited competition may impact price.
Potential supply chain dependencies.
Justification for 'exclusion of sources' requires review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to SSI TECHNOLOGY INC. BRADLEY ADVANCED SURVIVABILITY SEAT - DRIVER.

Who is the contractor on this award?

The obligated recipient is SSI TECHNOLOGY 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 $27.4 million.

What is the period of performance?

Start: 2011-12-28. End: 2017-02-28.

What is the track record of SSI Technology Inc. with the Department of Defense?

SSI Technology Inc. has a history of contracts with the Department of Defense, primarily focused on manufacturing and supplying components for military vehicles. While specific performance metrics for each contract are not publicly detailed, their continued engagement suggests a satisfactory performance record in meeting the stringent requirements of defense procurement. The company's specialization in areas like survivability systems indicates a niche expertise that the DoD values. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations related to their previous work with the government.

How does the value of this contract compare to similar defense component procurements?

Benchmarking the $27.4 million contract for the BRADLEY ADVANCED SURVIVABILITY SEAT - DRIVER against similar defense component procurements is challenging due to the highly specialized nature of military hardware and the proprietary information surrounding specific costs. However, within the context of armored vehicle upgrades and component manufacturing, this value appears consistent with the complexity and technological requirements involved. Contracts for advanced seating systems, particularly those emphasizing survivability, often command significant prices due to the engineering, testing, and materials involved. Without access to detailed cost breakdowns or direct comparisons of identical components across different platforms, a precise value-for-money assessment is difficult, but it does not appear to be an outlier.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns if the fixed-price structure was not adequately estimated, supply chain disruptions affecting timely delivery, and performance issues related to the quality or effectiveness of the survivability seats. Mitigation strategies are embedded within the contract type and oversight. The firm fixed-price nature shifts cost risk to the contractor. The Department of Defense likely has quality assurance provisions and delivery schedules in place to monitor performance and ensure timely fulfillment. Furthermore, the 'exclusion of sources' in the competition phase, while potentially limiting, might have been a strategic decision to ensure only capable and vetted suppliers were considered, thereby reducing technical performance risk.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring fair pricing for taxpayers?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring fair pricing is nuanced. On one hand, it aims to broaden competition beyond sole-source situations, which generally benefits taxpayers by fostering price discovery. However, the 'exclusion of sources' implies that not all potential bidders were allowed to participate. This limitation could reduce the competitive pressure, potentially leading to prices that are higher than they might be in a truly open market. The degree of fairness depends heavily on the justification for excluding sources and the number of eligible bidders remaining. If only a few highly specialized firms could meet the requirements, the exclusion might be justified but could still result in less competitive pricing.

What is the historical spending pattern for Bradley Fighting Vehicle components?

Historical spending patterns for Bradley Fighting Vehicle components, including survivability systems, reflect the vehicle's long service life and ongoing modernization efforts. The Department of Defense has consistently invested in maintaining and upgrading the Bradley fleet to ensure its effectiveness and the safety of its crew. Spending typically fluctuates based on major upgrade programs, sustainment needs, and the overall defense budget allocation. Contracts for components like the advanced driver seat are part of a larger ecosystem of parts and services required to keep these vehicles operational. Analyzing historical data would reveal cycles of procurement for new components versus sustainment of existing ones, with significant sums allocated over the decades to support this critical platform.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV11R0243

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1235 SPARTAN ST, MADISON HEIGHTS, MI, 48071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,395,777

Exercised Options: $27,395,777

Current Obligation: $27,395,777

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline