DoD awards $71.5M for Bradley Fighting Vehicle engineering changes, with LOC Performance Products LLC managing the effort

Contract Overview

Contract Amount: $71,464,959 ($71.5M)

Contractor: LOC Performance Products LLC

Awarding Agency: Department of Defense

Start Date: 2019-12-09

End Date: 2022-01-19

Contract Duration: 772 days

Daily Burn Rate: $92.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BRADLEY FIGHTING VEHICLE ENGINEERING CHANGE PROPOSAL 1/ 414 EACH

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $71.5 million to LOC PERFORMANCE PRODUCTS LLC for work described as: BRADLEY FIGHTING VEHICLE ENGINEERING CHANGE PROPOSAL 1/ 414 EACH Key points: 1. Value for money assessed through comparison to similar engineering change proposals and market rates for specialized vehicle modifications. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the complexity of engineering changes for a major combat vehicle and potential for schedule overruns. 4. Performance context is tied to the ongoing sustainment and modernization needs of the Bradley Fighting Vehicle fleet. 5. Sector positioning places this contract within the defense industrial base, specifically focused on armored vehicle manufacturing and upgrades.

Value Assessment

Rating: good

The contract value of $71.5 million for engineering changes to the Bradley Fighting Vehicle appears reasonable given the specialized nature of military vehicle modifications. Benchmarking against similar engineering change proposals for major defense platforms suggests that costs are within expected ranges. The firm fixed-price contract type provides cost certainty, although the final value can fluctuate based on the scope of approved engineering changes. The award to LOC Performance Products LLC, a known entity in this space, suggests a level of confidence in their ability to deliver.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not detailed, but a full and open process generally fosters a competitive environment. This approach is intended to drive innovation and ensure the government receives the best value by allowing a wide range of potential contractors to propose solutions.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages contractors to offer their most cost-effective solutions.

Public Impact

The primary beneficiaries are the U.S. Army, ensuring the continued operational readiness and technological relevance of the Bradley Fighting Vehicle fleet. Services delivered include engineering design, development, testing, and integration of modifications to enhance the vehicle's capabilities. The geographic impact is primarily centered around the contractor's facilities in Michigan, with the ultimate deployment of upgraded vehicles across Army units. Workforce implications include skilled engineering, manufacturing, and technical roles at the contractor's site and potentially at supporting suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in engineering change proposals, which could increase costs beyond initial estimates.
Dependency on a single contractor for critical engineering modifications may pose a long-term supply chain risk.
Ensuring timely delivery of modifications to maintain fleet readiness amidst evolving battlefield requirements.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost predictability for the government.
Contractor has experience with military vehicle systems, indicating relevant expertise.

Sector Analysis

The defense industrial base, particularly the segment focused on armored vehicle manufacturing and sustainment, is characterized by high barriers to entry due to specialized knowledge, capital investment, and stringent quality requirements. This contract fits within the broader category of defense modernization and sustainment spending, aimed at maintaining the effectiveness of legacy platforms like the Bradley Fighting Vehicle. Comparable spending benchmarks would involve other engineering change proposals or upgrade contracts for similar armored vehicles, which often run into tens or hundreds of millions of dollars depending on the scope.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The prime contractor, LOC Performance Products LLC, is not identified as a small business. Therefore, the direct impact on small business set-asides appears minimal for this specific award, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified engineering changes. Transparency is facilitated through contract award databases, though detailed technical specifications and internal performance reviews are generally not public.

Related Government Programs

Bradley Fighting Vehicle Systems
Armored Vehicle Modernization Programs
Department of Defense Engineering Services
Military Vehicle Component Manufacturing

Risk Flags

Potential for schedule delays
Risk of cost overruns
Technical complexity of modifications
Ensuring long-term reliability post-modification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.5 million to LOC PERFORMANCE PRODUCTS LLC. BRADLEY FIGHTING VEHICLE ENGINEERING CHANGE PROPOSAL 1/ 414 EACH

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 $71.5 million.

What is the period of performance?

Start: 2019-12-09. End: 2022-01-19.

What is the historical spending trend for engineering change proposals related to the Bradley Fighting Vehicle?

Analyzing historical spending on Bradley Fighting Vehicle engineering change proposals requires access to detailed contract databases and historical procurement data. Generally, major combat platforms like the Bradley undergo numerous upgrades and modifications throughout their service life to adapt to new threats, technologies, and operational requirements. Spending on such changes can fluctuate significantly year-to-year, influenced by strategic priorities, budget allocations, and the specific nature of the proposed modifications. Without specific historical data for this contract vehicle, it's difficult to provide precise trends, but it's common for such programs to involve multi-year, multi-million dollar investments for significant engineering efforts. The current award of $71.5 million represents a substantial investment in the platform's continued relevance and capability enhancement.

How does the awarded amount compare to the estimated value or initial solicitations for this engineering change proposal?

The provided data shows an award amount of $71,464,958.67. To compare this to initial solicitations or estimated values, one would need access to the original Request for Proposal (RFP) documents or pre-solicitation notices. These documents typically outline the government's estimated cost range and the scope of work. If the awarded amount is significantly higher than the initial estimate, it could indicate unforeseen complexities, increased material costs, or a broader scope than initially anticipated. Conversely, if it's within or below the estimate, it suggests successful cost management during the competition and negotiation phase. Without the initial solicitation details, a direct comparison is not possible, but the final award reflects the negotiated price between the government and the contractor.

What are the key performance indicators (KPIs) used to assess the success of this engineering change proposal contract?

Key Performance Indicators (KPIs) for an engineering change proposal contract like this typically focus on technical performance, schedule adherence, and cost control. Technical KPIs might include successful integration of the proposed changes, meeting specified performance improvements (e.g., enhanced survivability, mobility, or lethality), and passing rigorous testing and validation phases. Schedule KPIs would involve meeting key milestones for design, prototyping, testing, and production, ensuring the modifications are implemented within the planned timeframe to support fleet readiness. Cost KPIs would focus on managing the project within the firm fixed-price budget, minimizing cost overruns, and ensuring efficient use of resources. The government's program office would monitor these KPIs throughout the contract lifecycle.

What is the track record of LOC Performance Products LLC in delivering similar defense contracts?

LOC Performance Products LLC has a history of working with the Department of Defense, particularly on vehicle programs. Their expertise often lies in manufacturing and integrating components for military vehicles, including armored platforms. Assessing their track record for similar engineering change proposals would involve reviewing past contract performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, if publicly available. Positive performance indicators would include timely delivery, adherence to quality standards, and successful execution of complex modifications. Any history of significant performance issues, cost overruns, or schedule delays on comparable contracts would be a relevant factor in assessing risk for this current award.

What are the potential risks associated with implementing engineering changes on a fielded combat system like the Bradley?

Implementing engineering changes on a fielded combat system like the Bradley Fighting Vehicle carries several inherent risks. These include the potential for unintended consequences or 'negative discoveries' where a change negatively impacts other vehicle systems, requiring further costly modifications. There's also the risk of schedule delays due to the complexity of design, testing, and integration, which can impact operational readiness. Cost overruns are another significant risk, especially if unforeseen technical challenges arise or if the scope of work expands beyond initial projections. Furthermore, ensuring interoperability with existing systems and maintaining the overall reliability and maintainability of the platform after modifications are critical challenges that must be carefully managed.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $71,464,959

Exercised Options: $71,464,959

Current Obligation: $71,464,959

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV17D0078

IDV Type: IDC

Timeline