DoD awards $46.1M for tank rack modules, with Isometrics Inc. securing the contract

Contract Overview

Contract Amount: $46,102,281 ($46.1M)

Contractor: Isometrics Inc

Awarding Agency: Department of Defense

Start Date: 2020-03-02

End Date: 2021-11-01

Contract Duration: 609 days

Daily Burn Rate: $75.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TANK RACK MODULE PRODUCTION. THIS IS DO 0005 UNDER SUBJECT CONTRACT AND ORDERS 648 SYSTEMS AND 120 ASLS.

Place of Performance

Location: REIDSVILLE, ROCKINGHAM County, NORTH CAROLINA, 27320

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $46.1 million to ISOMETRICS INC for work described as: TANK RACK MODULE PRODUCTION. THIS IS DO 0005 UNDER SUBJECT CONTRACT AND ORDERS 648 SYSTEMS AND 120 ASLS. Key points: 1. Contract value of $46.1M for 648 systems and 120 ASLs indicates a significant investment in military logistics. 2. The contract type, Firm Fixed Price, shifts cost risk to the contractor, potentially stabilizing final expenditure. 3. Competition after exclusion of sources suggests a specific justification was needed, warranting scrutiny of the procurement process. 4. The duration of 609 days for delivery order 0005 implies a substantial production and delivery timeline. 5. North Carolina is the state of performance, potentially indicating regional economic impact and workforce development. 6. The product service code (PSC) is not specified, making direct benchmarking against similar equipment challenging.

Value Assessment

Rating: fair

The contract value of $46.1M for 648 systems and 120 ASLs translates to approximately $65,000 per system. Without specific details on the complexity and features of the tank rack modules, it is difficult to benchmark this price against similar contracts. The 'after exclusion of sources' competition type may have limited price discovery, potentially leading to a less competitive price than a full and open competition. Further analysis would require understanding the technical specifications and comparing them to industry standards for similar military equipment.

Cost Per Unit: Approximately $65,000 per system (648 systems + 120 ASLs).

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, suggesting a specific reason or requirement that narrowed the field. The number of bidders is not provided, but the exclusion of sources implies a less competitive environment than a standard full and open competition, which could impact price negotiation and overall value for money.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers compared to what might have been achieved with broader market participation. Transparency regarding the reasons for excluding sources is crucial for ensuring fair pricing.

Public Impact

The primary beneficiaries are the U.S. Army, receiving essential equipment for logistical support of armored vehicles. The contract delivers 648 tank rack systems and 120 Auxiliary Load Systems (ASLs), enhancing operational readiness. Performance is located in North Carolina, potentially creating jobs and stimulating the local economy in the manufacturing sector. The production of these specialized modules supports the defense industrial base and the skilled workforce involved in manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' competition method raises questions about the breadth of competition and potential impact on pricing.
Lack of detailed technical specifications makes it difficult to fully assess the value for money and compare unit costs.
The contract duration of 609 days for delivery order 0005 suggests a potentially lengthy production cycle.

Positive Signals

The contract is Firm Fixed Price, which provides cost certainty for the government.
Isometrics Inc. is the awarded contractor, indicating a known entity within the defense supply chain.
The award supports critical military logistics, directly contributing to national defense capabilities.

Sector Analysis

This contract falls within the 'Measuring, Dispensing, and Other Pumping Equipment Manufacturing' sector, specifically related to military logistics and vehicle support. The defense sector often involves specialized, high-value equipment where production runs can be limited, and competition dynamics are influenced by security clearances and specific technical requirements. Benchmarking requires comparison with other defense contractors producing similar vehicle-mounted systems, which can be challenging due to proprietary information and unique specifications.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or goals. Therefore, the direct impact on the small business ecosystem is likely minimal unless Isometrics Inc. actively engages small businesses as subcontractors for components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract, it is subject to standard procurement regulations and oversight. The 'after exclusion of sources' clause suggests a specific justification was documented and approved, which would be part of the oversight record. Transparency regarding the reasons for exclusion and the competitive process is key to accountability.

Related Government Programs

Military Vehicle Production
Defense Logistics Support Equipment
Army Equipment Procurement
Tactical Vehicle Components

Risk Flags

Limited Competition
Lack of Detailed Specifications
Potential for Higher Cost due to Excluded Sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.1 million to ISOMETRICS INC. TANK RACK MODULE PRODUCTION. THIS IS DO 0005 UNDER SUBJECT CONTRACT AND ORDERS 648 SYSTEMS AND 120 ASLS.

Who is the contractor on this award?

The obligated recipient is ISOMETRICS 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 $46.1 million.

What is the period of performance?

Start: 2020-03-02. End: 2021-11-01.

What were the specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The specific reasons for excluding sources in a 'Full and Open Competition After Exclusion of Sources' award are typically documented in the contract file. Common justifications include proprietary data rights, unique technical requirements that only certain contractors can meet, urgent and compelling needs where only a limited number of contractors possess the necessary capabilities, or specific national security concerns. Without access to the contract's Justification and Approval (J&A) document, the precise rationale remains unknown. This exclusion method, while permissible, inherently limits the competitive landscape and warrants careful review to ensure it was applied appropriately and did not unduly restrict competition, potentially impacting the final price paid by the government.

How does the unit cost of $65,000 per tank rack module compare to similar military equipment or commercial equivalents?

Benchmarking the unit cost of approximately $65,000 per tank rack module is challenging without detailed technical specifications and a clear understanding of the module's capabilities, materials, and intended operational environment. Military-grade equipment often incorporates specialized features, ruggedization, and integration requirements that significantly increase costs compared to commercial off-the-shelf (COTS) products. To perform a robust comparison, one would need to identify comparable systems procured by the Department of Defense or allied nations, analyze their specifications, contract values, and quantities. Additionally, understanding the 'Auxiliary Load Systems' (ASLs) included in the order is crucial, as their complexity and cost would factor into the overall unit price. The 'after exclusion of sources' procurement method also suggests that the price might not reflect the lowest possible cost achievable through broad competition.

What is the track record of Isometrics Inc. in fulfilling similar defense contracts, particularly regarding on-time delivery and quality?

Assessing the track record of Isometrics Inc. requires accessing historical contract data, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past performance issues or awards. As a supplier to the Department of Defense, Isometrics Inc. likely has experience with government contracting requirements. However, the specific performance on this $46.1 million contract, which spans from March 2020 to November 2021 (609 days), would be a key indicator. Information on whether the delivery order was completed on time, met quality standards, and stayed within budget (as per the Firm Fixed Price structure) is crucial. A review of their broader contract history, including any awards or penalties, would provide a more comprehensive view of their reliability and capability in delivering defense-related equipment.

What are the potential risks associated with the 'after exclusion of sources' procurement method for this contract?

The primary risk associated with the 'after exclusion of sources' procurement method is reduced competition, which can lead to higher prices for the government and taxpayers than might be achieved through a fully open competition. It also raises concerns about fairness and transparency if the exclusion criteria are not well-justified or are perceived as favoring specific contractors. Other risks include potential limitations in innovation if a broader range of potential solutions is not considered, and a diminished incentive for contractors to offer their best pricing or performance if they perceive less competitive pressure. Ensuring that the exclusion was based on legitimate, documented reasons is critical to mitigating these risks and demonstrating responsible stewardship of public funds.

How does this spending align with broader trends in Department of the Army equipment procurement for armored vehicle support?

This $46.1 million award for tank rack modules fits within the Department of the Army's ongoing efforts to maintain and modernize its fleet of armored vehicles and associated logistical support systems. Spending on such components is critical for ensuring operational readiness and enabling troops to effectively deploy and sustain combat power. Broader trends in Army procurement often focus on enhancing survivability, mobility, and lethality, with logistical support systems playing a vital, albeit less visible, role. Contracts like this reflect a sustained investment in the infrastructure that underpins armored force projection. Analyzing historical spending patterns for similar equipment and comparing this award's value and quantity against previous procurements would reveal whether this represents a typical, increased, or decreased level of investment in this specific capability.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Measuring, Dispensing, and Other Pumping Equipment Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

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: 1266 N SCALES ST, REIDSVILLE, NC, 27320

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

Financial Breakdown

Contract Ceiling: $46,102,281

Exercised Options: $46,102,281

Current Obligation: $46,102,281

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV19D0048

IDV Type: IDC

Timeline