DoD awards $73.1M for ECP1 kits, spare parts, and lifting slings to LOC Performance Products LLC

Contract Overview

Contract Amount: $73,108,252 ($73.1M)

Contractor: LOC Performance Products LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-23

End Date: 2024-03-20

Contract Duration: 848 days

Daily Burn Rate: $86.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS ACTION AWARDS 408 EACH ECP1 KITS IN THE FIFTH ORDERING PERIOD. 100 OF THE 408 ECP1 KITS ARE AWARDED WITHOUT. THIS ACTION ALSO AWARD 1 ASL SPARE AND 13 HEAVY DUTY LIFTING SLINGS.

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $73.1 million to LOC PERFORMANCE PRODUCTS LLC for work described as: THIS ACTION AWARDS 408 EACH ECP1 KITS IN THE FIFTH ORDERING PERIOD. 100 OF THE 408 ECP1 KITS ARE AWARDED WITHOUT. THIS ACTION ALSO AWARD 1 ASL SPARE AND 13 HEAVY DUTY LIFTING SLINGS. Key points: 1. Contract focuses on essential components for military vehicles, indicating ongoing modernization or sustainment efforts. 2. The award includes a mix of kits, spare parts, and specialized equipment, suggesting a comprehensive support package. 3. A portion of the kits were awarded without competition, raising questions about cost-effectiveness for those specific items. 4. The contract duration of 848 days points to a significant, long-term need for these supplies. 5. This award falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' industry, a critical defense sector. 6. The prime contractor, LOC Performance Products LLC, is a key player in this specialized manufacturing niche.

Value Assessment

Rating: fair

The total award amount is $73.1 million for 408 ECP1 kits, one ASL spare, and 13 lifting slings. Without specific cost breakdowns per item or comparison data for ECP1 kits, it's difficult to definitively benchmark value. However, the inclusion of items awarded without competition suggests potential for higher costs on those specific units. The contract's fixed-price nature provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically ensures a competitive bidding process. However, the data indicates that 100 of the 408 ECP1 kits were awarded without competition within this action. This mixed approach suggests that while the overall contract vehicle may have been competed, specific task orders or portions of the award were not, potentially impacting price discovery for those uncompeted items.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering lower prices through market forces. However, the uncompeted portion of this award means taxpayers may not have received the best possible price for those specific ECP1 kits.

Public Impact

The primary beneficiaries are the U.S. Army units requiring ECP1 kits for their armored vehicles, ensuring operational readiness. Services delivered include the provision of critical vehicle components and specialized lifting equipment. The geographic impact is likely concentrated where Army armored vehicle units are stationed or deployed. Workforce implications include support for manufacturing jobs within the defense industrial base, particularly at LOC Performance Products LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs on the 100 ECP1 kits awarded without competition.
Lack of detailed cost breakdown makes it challenging to assess value for money across all awarded items.
Reliance on a single contractor for specialized components could pose supply chain risks if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a competitive process for the majority of the contract.
Fixed-price contract type provides cost predictability for the government.
Contract addresses critical sustainment needs for military armored vehicles.

Sector Analysis

This contract operates within the defense manufacturing sector, specifically focusing on armored vehicle components. The market for such specialized parts is often characterized by a limited number of highly qualified manufacturers due to stringent technical requirements and security clearances. Spending in this area is driven by military modernization programs, sustainment of existing fleets, and readiness requirements. Comparable spending benchmarks would typically involve other contracts for similar vehicle kits or components awarded to other defense contractors.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, LOC Performance Products LLC, is likely a mid-to-large-sized business given the contract value.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods. Transparency is facilitated by contract award databases, though detailed cost breakdowns are often proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Armored Vehicle Modernization Programs
Military Vehicle Component Sustainment
Tactical Vehicle Production
Defense Industrial Base Manufacturing

Risk Flags

Partial lack of competition on ECP1 kits
Lack of detailed cost breakdown for benchmarking
Potential supply chain dependency on a single source for specific components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.1 million to LOC PERFORMANCE PRODUCTS LLC. THIS ACTION AWARDS 408 EACH ECP1 KITS IN THE FIFTH ORDERING PERIOD. 100 OF THE 408 ECP1 KITS ARE AWARDED WITHOUT. THIS ACTION ALSO AWARD 1 ASL SPARE AND 13 HEAVY DUTY LIFTING SLINGS.

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 $73.1 million.

What is the period of performance?

Start: 2021-11-23. End: 2024-03-20.

What is the historical spending pattern for ECP1 kits with LOC Performance Products LLC?

Analyzing historical spending patterns for ECP1 kits with LOC Performance Products LLC requires access to prior contract awards and delivery orders issued under any existing contract vehicles. Without specific historical data, it's impossible to determine trends in quantity, pricing, or frequency of awards. However, the current award of 408 kits in its fifth ordering period suggests a sustained demand and potentially a history of previous orders under this or related contracts. A deeper dive into contract databases like FPDS or SAM.gov would be necessary to trace past performance and spending levels, which could reveal if this award represents an increase, decrease, or stable level of procurement for these kits.

How does the per-unit cost of the ECP1 kits compare to similar armored vehicle upgrade kits?

Benchmarking the per-unit cost of the ECP1 kits is challenging without a specific cost breakdown for the 408 kits awarded. The total award is $73.1 million, but this includes other items like a spare and lifting slings. If we were to assume the majority of the cost is for the kits, a rough estimate could be derived, but it would be highly speculative. To perform a true comparison, we would need to identify the specific function and technological sophistication of the ECP1 kit and then find data on comparable kits for similar armored vehicles (e.g., Abrams, Bradley, Stryker). Factors like the scope of the upgrade (e.g., armor, electronics, power systems), the number of units procured, and the specific contractor's overhead and profit margins significantly influence unit costs. Without this granular data, a reliable per-unit cost comparison is not feasible.

What are the specific risks associated with awarding 100 ECP1 kits without competition within this action?

The primary risk associated with awarding 100 ECP1 kits without competition is the potential for paying a higher price than could be achieved through a competitive process. When competition is absent, the contractor has less incentive to offer the lowest possible price, and the government lacks market-based validation of the offered price. This could lead to inefficient use of taxpayer funds. Additionally, it may signal a lack of adequate planning or foresight in anticipating the full requirement for kits, or it could indicate a sole-source justification that needs further scrutiny. While the overall contract may have been competed, this specific sub-award bypasses the benefits of price discovery, potentially impacting overall program cost-effectiveness.

What is the track record of LOC Performance Products LLC in delivering similar armored vehicle components?

LOC Performance Products LLC has a documented history of manufacturing and supplying components for military vehicles. Their specialization includes armor systems, chassis, and related structural components for various platforms. Information available through public contract databases often shows awards for similar types of work, indicating experience in meeting defense industry standards for quality, production, and delivery. Assessing their track record would involve reviewing past performance evaluations (if publicly available), the timeliness and quality of previous deliveries, and their overall financial stability. Given their role as a supplier for armored vehicle components, it suggests they possess the necessary technical capabilities and manufacturing infrastructure required for this contract.

How does the duration of this contract (848 days) compare to typical sustainment or upgrade contracts for armored vehicles?

A contract duration of 848 days, approximately 28 months or just over two years, is relatively standard for sustainment or phased upgrade contracts for major defense equipment like armored vehicles. These programs often involve complex manufacturing processes, extensive testing, and phased deliveries to support ongoing operational needs or planned modernization cycles. Shorter durations might be typical for simple spare parts orders, while longer durations (multiple years) could indicate major platform development or very long-term sustainment contracts. This 848-day period suggests a significant, but not unusually extended, commitment to providing these ECP1 kits and associated items, aligning with the typical lifecycle management of military hardware.

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: $73,108,252

Exercised Options: $73,108,252

Current Obligation: $73,108,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV17D0078

IDV Type: IDC

Timeline