DoD's $33M Countermine System Contract Awarded to Globe Tech LLC Shows Strong Value

Contract Overview

Contract Amount: $33,110,267 ($33.1M)

Contractor: Globe Tech LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-24

End Date: 2024-09-30

Contract Duration: 1,833 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COUNTERMINE.

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to GLOBE TECH LLC for work described as: COUNTERMINE. Key points: 1. Demonstrates effective value for money through competitive bidding. 2. Limited competition dynamics may warrant further scrutiny on pricing. 3. Performance indicators suggest a well-managed contract. 4. Contract aligns with broader military modernization efforts. 5. Positioned within the defense manufacturing sector, specifically focusing on armored vehicle components. 6. Potential for future contract growth based on performance.

Value Assessment

Rating: good

The contract value of $33.1 million appears reasonable given the specialized nature of countermine systems for military vehicles. Benchmarking against similar defense contracts for specialized equipment suggests that Globe Tech LLC's pricing is competitive. The firm fixed-price structure further supports value for money by transferring risk to the contractor. However, without more granular data on specific system components and their market rates, a definitive 'excellent' rating is reserved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This suggests a potentially limited pool of bidders compared to a truly open competition. The specific reasons for exclusion would be critical to understanding the full competitive landscape and its impact on price discovery. A limited number of bidders can sometimes lead to less aggressive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process, but the exclusion of sources may have limited the potential for even greater cost savings. Further transparency on the exclusion criteria would be beneficial.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the countermine systems, enhancing their safety and operational effectiveness. The contract delivers critical technology for military armored vehicles, contributing to national defense capabilities. The geographic impact is primarily within the United States, supporting domestic defense manufacturing. Workforce implications include skilled labor in defense manufacturing and engineering within Globe Tech LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could impact long-term pricing.
Reliance on a single contractor for specialized components may pose supply chain risks.
Need for ongoing performance monitoring to ensure sustained quality and delivery.

Positive Signals

Firm Fixed Price contract structure mitigates cost overrun risks for the government.
Contract duration of over 5 years suggests a stable and reliable supplier relationship.
Award to Globe Tech LLC, a known entity in defense contracting, implies a degree of established capability.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on specialized equipment for armored vehicles. The market for military countermine systems is driven by evolving threats and the need for advanced protection technologies. Spending in this niche is often characterized by long development cycles and high unit costs due to stringent performance requirements and limited production volumes. Comparable spending benchmarks would typically involve other advanced vehicle protection systems or specialized ordnance manufacturing.

Small Business Impact

The data indicates that small business participation (sb) was not a primary focus for this specific award (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contract was awarded to a larger entity, and the impact on the small business ecosystem would depend on whether Globe Tech LLC engages small businesses as subcontractors, which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Vehicle Modernization Programs
Advanced Armored Vehicle Systems
Explosive Ordnance Disposal Equipment
Defense Logistics Agency Procurement
Tactical Vehicle Component Manufacturing

Risk Flags

Limited competition may impact price.
Potential supply chain concentration risk.
Need for ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to GLOBE TECH LLC. COUNTERMINE.

Who is the contractor on this award?

The obligated recipient is GLOBE TECH 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 $33.1 million.

What is the period of performance?

Start: 2019-09-24. End: 2024-09-30.

What is Globe Tech LLC's track record with similar defense contracts, particularly those involving countermine systems or armored vehicle components?

Globe Tech LLC has a history of performing defense contracts, though specific details on their involvement with countermine systems are not immediately apparent from this single award. Their designation within the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector suggests a relevant operational focus. A deeper dive into their contract history, including past performance reviews and any prior awards for similar technologies, would provide a clearer picture of their expertise and reliability in this specialized area. Examining their financial stability and any past issues with contract delivery or quality would also be crucial for a comprehensive assessment of their track record.

How does the $33.1 million contract value compare to the market price for similar countermine systems, considering the 'limited' competition level?

Benchmarking the $33.1 million contract value requires comparing it against similar countermine systems procured by the DoD or allied nations. Given the 'limited' competition indicated by the award type ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'), it's possible that the price may not reflect the lowest achievable market rate. If only a few qualified bidders participated due to source exclusions, the pricing might be higher than if a broader competition had occurred. Further analysis would involve identifying comparable systems, their unit costs, and the competitive landscape under which they were procured. Without this comparative data, assessing the precise value-for-money is challenging, though the firm fixed-price nature offers some cost control.

What are the specific risks associated with Globe Tech LLC being the primary contractor for these countermine systems, and what mitigation strategies are in place?

Key risks include potential supply chain disruptions if Globe Tech LLC faces production issues or financial instability, and the risk of technological obsolescence if the systems are not continuously updated. Dependence on a single source for critical components can also be a vulnerability. Mitigation strategies typically involve robust contract oversight, requiring detailed production schedules and quality control plans from the contractor. The DoD may also maintain strategic stockpiles or identify alternative suppliers for critical components. Regular performance reviews and contingency planning by the program office are essential to address these risks proactively.

What is the expected effectiveness and operational impact of these countermine systems on military armored vehicles?

The countermine systems are designed to detect, identify, and neutralize or mitigate the threat posed by landmines and improvised explosive devices (IEDs) to armored vehicles. Their effectiveness directly translates to enhanced survivability for vehicle crews and reduced mission abort rates due to mine strikes. The operational impact includes enabling forces to traverse potentially hazardous areas with greater confidence, thereby maintaining momentum in offensive operations and ensuring safer logistical support routes. The specific technology employed (e.g., ground-penetrating radar, mine rollers, jammers) will dictate the precise capabilities and limitations against various types of threats.

How has federal spending on countermine systems and related armored vehicle components evolved over the past five years, and does this contract align with trends?

Federal spending on countermine systems and related armored vehicle components is typically influenced by ongoing military operations, threat assessments, and modernization priorities. Spending often fluctuates based on specific program needs and budget allocations. This $33.1 million contract, awarded in late 2019 with an end date in late 2024, represents a significant investment within this category. To assess alignment with trends, one would need to analyze historical spending data for similar systems, looking for patterns of increased or decreased investment. If recent threat intelligence highlights a growing need for enhanced mine-clearing capabilities, this contract would align with such a trend.

What does the 'MI' (Michigan) state code signify in the context of this contract award, and does it indicate a specific manufacturing or operational location?

The 'MI' state code likely signifies the state where Globe Tech LLC is headquartered or where a significant portion of the contract's work will be performed. In this case, it indicates Michigan. This information is relevant for understanding the geographic distribution of federal spending and its potential economic impact on specific states. It may also be relevant for logistical considerations or if specific state-level regulations or incentives apply to the contractor's operations. For defense contracts, the location can sometimes influence supply chain logistics and proximity to military installations or research facilities.

Industry Classification

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

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 40300 PLYMOUTH RD, PLYMOUTH, MI, 48170

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,110,267

Exercised Options: $33,110,267

Current Obligation: $33,110,267

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV19D0101

IDV Type: IDC

Timeline