DoD awards $41.4M for T-161 double pin tracks, with 2 bids received

Contract Overview

Contract Amount: $41,439,129 ($41.4M)

Contractor: LOC Performance Products LLC

Awarding Agency: Department of Defense

Start Date: 2020-01-16

End Date: 2022-07-13

Contract Duration: 909 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DESCRIPTION OF ACTION: THIS ACTION IS FOR THE PROCUREMENT OF A COMPLETELY MANUFACTURED T-161 DOUBLE PIN TRACK WHICH IS COMPRISED OF MOLDED TRACK PADS, RUBBERIZED PINS, AND FORGED TRACK SHOE BODIES WITH BONDED RUBBER BACKINGS.

Place of Performance

Location: SAINT MARYS, AUGLAIZE County, OHIO, 45885

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $41.4 million to LOC PERFORMANCE PRODUCTS LLC for work described as: DESCRIPTION OF ACTION: THIS ACTION IS FOR THE PROCUREMENT OF A COMPLETELY MANUFACTURED T-161 DOUBLE PIN TRACK WHICH IS COMPRISED OF MOLDED TRACK PADS, RUBBERIZED PINS, AND FORGED TRACK SHOE BODIES WITH BONDED RUBBER BACKINGS. Key points: 1. Value for money assessed against comparable track system procurements. 2. Competition dynamics indicate a limited number of bidders for this specialized component. 3. Risk indicators include potential for sole-source escalation if competition remains low. 4. Performance context is tied to military armored vehicle sustainment. 5. Sector positioning within the defense industrial base for vehicle components.

Value Assessment

Rating: fair

The contract value of $41.4 million for T-161 double pin tracks appears within a reasonable range for specialized military vehicle components. However, without specific per-unit cost data or direct comparisons to identical track systems from other contracts, a definitive value-for-money assessment is challenging. The firm fixed-price nature of the contract provides cost certainty, but the benchmark for this specific track type is not readily available in the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. While competition was sought, the low number of bidders suggests a potentially concentrated market for this specific type of military track system. This limited competition could impact price discovery and potentially lead to higher prices than if more vendors were actively participating.

Taxpayer Impact: The limited number of bidders means taxpayers may not be benefiting from the most competitive pricing achievable in a broader market. Further analysis would be needed to determine if the received price reflects optimal value given the market constraints.

Public Impact

Directly benefits the Department of the Army by providing critical components for military armored vehicles. Ensures the operational readiness and sustainment of armored vehicle fleets. Supports manufacturing and supply chain activities within the defense industrial base. Impacts the availability of specialized parts for vehicle maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may restrict future price negotiations.
Dependence on a small number of suppliers for critical components.

Positive Signals

Awarded under full and open competition, indicating an effort to maximize market reach.
Firm fixed-price contract provides cost predictability for the government.

Sector Analysis

The procurement of T-161 double pin tracks falls within the broader defense industrial base sector, specifically focusing on armored vehicle components. This niche market is characterized by specialized manufacturing capabilities and stringent quality requirements. Comparable spending benchmarks would likely involve other contracts for track systems or major sub-assemblies for military vehicles, which can vary significantly based on vehicle type, quantity, and technological sophistication.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in their supply chain. Further investigation into subcontracting plans would be necessary for a comprehensive assessment.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management systems. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through contract databases, though detailed performance metrics and specific oversight activities are not detailed in this summary.

Related Government Programs

Military Vehicle Component Manufacturing
Armored Vehicle Sustainment Programs
Defense Supply Chain Management
Army Logistics Modernization

Risk Flags

Limited number of bidders
Potential for supply chain vulnerability
Specialized component with niche manufacturing base

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.4 million to LOC PERFORMANCE PRODUCTS LLC. DESCRIPTION OF ACTION: THIS ACTION IS FOR THE PROCUREMENT OF A COMPLETELY MANUFACTURED T-161 DOUBLE PIN TRACK WHICH IS COMPRISED OF MOLDED TRACK PADS, RUBBERIZED PINS, AND FORGED TRACK SHOE BODIES WITH BONDED RUBBER BACKINGS.

Who is the contractor on this award?

The obligated recipient is LOC PERFORMANCE PRODUCTS 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 $41.4 million.

What is the period of performance?

Start: 2020-01-16. End: 2022-07-13.

What is the historical spending pattern for T-161 double pin tracks or similar components by the Department of Defense?

Historical spending data for T-161 double pin tracks specifically is not detailed in the provided information. However, the Department of Defense consistently allocates significant funds towards the sustainment and modernization of its armored vehicle fleet. This includes the procurement of various components like tracks, engines, and armor plating. Analyzing past contracts for similar track systems, considering factors like quantity, material, and technological complexity, would provide a benchmark. For instance, if previous procurements of comparable track systems were significantly lower or higher in unit cost, it would indicate a trend. Without access to a broader contract history database, it's difficult to establish a precise historical spending pattern for this exact component, but the overall trend for vehicle parts is one of continuous investment to maintain operational readiness.

How does the unit cost of these T-161 double pin tracks compare to market rates for similar commercial applications?

Directly comparing the unit cost of T-161 double pin tracks to commercial applications is challenging due to the specialized nature of military-grade components. Military tracks often incorporate enhanced durability, specific material compositions, and rigorous testing protocols that exceed commercial standards, leading to higher costs. Commercial track systems for heavy machinery, while similar in function, may not require the same level of performance under extreme combat conditions. To establish a meaningful comparison, one would need to identify commercial track systems with equivalent load-bearing capacity, lifespan under harsh conditions, and material specifications. The provided data does not include unit pricing, making this comparison impossible without further information. However, it is generally understood that military-specific components command a premium due to these specialized requirements.

What are the primary risks associated with this contract, beyond competition levels?

Beyond the limited competition, primary risks associated with this contract include potential supply chain disruptions for the specialized materials (molded track pads, rubberized pins, forged shoe bodies), manufacturing defects leading to premature wear or failure, and the contractor's financial stability. Given the duration of the contract (909 days) and the critical nature of the components for vehicle readiness, any delays or quality issues could have significant operational impacts. Furthermore, the reliance on a specific track design (T-161) could pose a risk if future vehicle upgrades or alternative track technologies emerge, potentially rendering this component obsolete or incompatible. The firm fixed-price nature, while beneficial for cost control, also places the risk of cost overruns on the contractor, which could incentivize corner-cutting on quality if not adequately monitored.

What is the expected performance and lifespan of the T-161 double pin track system?

The expected performance and lifespan of the T-161 double pin track system are critical factors for military vehicle sustainment, though specific metrics are not detailed in the provided contract action summary. Generally, military track systems are designed for high durability and extended operational life under demanding conditions, including varied terrain, extreme temperatures, and potential combat damage. The 'double pin' design often implies enhanced durability and ease of maintenance compared to single-pin systems. Lifespan is typically measured in operating hours or miles, and specific targets would be outlined in the technical specifications and performance work statement of the contract. The firm fixed-price nature suggests the government expects the contractor to meet these performance and lifespan requirements to justify the awarded price.

How does the total contract value of $41.4 million compare to the typical annual spending on vehicle components for the Department of the Army?

The total contract value of $41.4 million for T-161 double pin tracks represents a significant, but not exceptionally large, investment within the Department of the Army's overall vehicle component spending. The Army operates a vast fleet of diverse vehicles, and annual spending on parts, maintenance, and sustainment runs into billions of dollars. This specific contract addresses a critical component for a particular type of armored vehicle. While substantial for a single component procurement, it is likely a fraction of the total budget allocated for vehicle parts and maintenance across all Army platforms. To contextualize further, one would need to examine the Army's total budget for 'Weapons and Ammunition' or 'Vehicular Equipment' procurement and maintenance over a fiscal year.

Industry Classification

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

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV19R0170

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13505 N HAGGERTY RD, PLYMOUTH, MI, 48170

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

Financial Breakdown

Contract Ceiling: $41,439,129

Exercised Options: $41,439,129

Current Obligation: $41,439,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline