DoD Awards $7.4M for Petroleum Expeditionary Analysis Kit, Boosting Industrial Process Measurement Capabilities
Contract Overview
Contract Amount: $7,434,376 ($7.4M)
Contractor: D-2 Incorporated
Awarding Agency: Department of Defense
Start Date: 2024-03-05
End Date: 2026-12-02
Contract Duration: 1,002 days
Daily Burn Rate: $7.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PETROLEUM EXPEDITIONARY ANALYSIS KIT (PEAK) DELIVERY ORDER W56HZV-24-F-0101 OF CONTRACT W56HZV-24-D-0014 IS TO ORDER AND FUND FAT AND LRIP (FIRST DELIVERY ORDER)
Place of Performance
Location: BUZZARDS BAY, BARNSTABLE County, MASSACHUSETTS, 02532
Plain-Language Summary
Department of Defense obligated $7.4 million to D-2 INCORPORATED for work described as: PETROLEUM EXPEDITIONARY ANALYSIS KIT (PEAK) DELIVERY ORDER W56HZV-24-F-0101 OF CONTRACT W56HZV-24-D-0014 IS TO ORDER AND FUND FAT AND LRIP (FIRST DELIVERY ORDER) Key points: 1. The contract focuses on the PEAK system, crucial for measuring and controlling industrial process variables. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The award is a delivery order under an existing contract, indicating a phased approach to procurement. 4. The primary sector is manufacturing of instruments for industrial process control.
Value Assessment
Rating: good
The award amount of $7.4M appears reasonable for a delivery order of this nature. Benchmarking against similar contracts for specialized analytical kits would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of potential offerors to bid.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value through market forces.
Public Impact
Enhances military operational readiness through advanced petroleum analysis. Supports critical industrial process monitoring and control functions. Procurement under an existing contract structure may streamline delivery and reduce administrative overhead.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep if subsequent delivery orders are not competitively priced.
- Reliance on a single contract vehicle for multiple orders could limit future competition.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type provides cost certainty.
- Delivery order structure allows for phased funding and deployment.
Sector Analysis
The award falls within the Instruments and Related Products Manufacturing sector, specifically for measuring, displaying, and controlling industrial process variables. Spending in this sector is driven by defense, industrial, and research needs.
Small Business Impact
The data indicates the prime contractor is D-2 INCORPORATED. Further analysis would be needed to determine the extent of small business participation in the subcontracting process.
Oversight & Accountability
The award is a delivery order under an existing contract (W56HZV-24-D-0014), suggesting prior oversight and vetting. The Department of the Army's contracting activity implies adherence to established procurement regulations.
Related Government Programs
- Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost creep in future delivery orders.
- Reliance on a single contract vehicle.
- Limited visibility into small business participation.
- Need for ongoing performance monitoring to ensure effectiveness.
Tags
instruments-and-related-products-manufac, department-of-defense, ma, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to D-2 INCORPORATED. PETROLEUM EXPEDITIONARY ANALYSIS KIT (PEAK) DELIVERY ORDER W56HZV-24-F-0101 OF CONTRACT W56HZV-24-D-0014 IS TO ORDER AND FUND FAT AND LRIP (FIRST DELIVERY ORDER)
Who is the contractor on this award?
The obligated recipient is D-2 INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $7.4 million.
What is the period of performance?
Start: 2024-03-05. End: 2026-12-02.
What is the specific functionality and criticality of the Petroleum Expeditionary Analysis Kit (PEAK) for Department of Defense operations?
The PEAK system is designed for measuring, displaying, and controlling industrial process variables, specifically within petroleum operations. Its criticality likely lies in ensuring fuel quality, optimizing logistics, and maintaining operational readiness in expeditionary environments where standard laboratory facilities may not be available. Accurate and timely analysis is crucial for mission success.
How does the firm fixed price contract type mitigate risks associated with the delivery order for the PEAK system?
A firm fixed price (FFP) contract type locks in the price for the goods or services, shifting the risk of cost overruns to the contractor. This provides the government with cost certainty for this delivery order, protecting against unexpected increases in material or labor costs during the performance period. It simplifies financial planning and budgeting for the Department of the Army.
What is the potential long-term effectiveness and scalability of the PEAK system beyond this initial delivery order?
The effectiveness and scalability depend on the system's technological capabilities, reliability, and adaptability to evolving operational requirements. If the PEAK system proves robust and meets performance expectations, its continued use and potential for future orders under the parent contract could be significant. However, technological obsolescence and the availability of superior alternatives are factors to monitor.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
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: 6 OTIS PARK DR, BOURNE, MA, 02532
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,434,376
Exercised Options: $7,434,376
Current Obligation: $7,434,376
Actual Outlays: $790,415
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV24D0014
IDV Type: IDC
Timeline
Start Date: 2024-03-05
Current End Date: 2026-12-02
Potential End Date: 2026-12-02 12:12:00
Last Modified: 2025-12-02
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