DoD awards $19.9M for armored vehicle parts, raising concerns over limited competition and potential overpricing
Contract Overview
Contract Amount: $19,938,892 ($19.9M)
Contractor: Underground Pipeline Inc
Awarding Agency: Department of Defense
Start Date: 2011-11-14
End Date: 2012-09-27
Contract Duration: 318 days
Daily Burn Rate: $62.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FL DOOR ASSY COMP PART NUMBER: 13013991
Place of Performance
Location: EAGLE, WAUKESHA County, WISCONSIN, 53119
Plain-Language Summary
Department of Defense obligated $19.9 million to UNDERGROUND PIPELINE INC for work described as: FL DOOR ASSY COMP PART NUMBER: 13013991 Key points: 1. Significant contract value for specialized vehicle components. 2. Limited competition suggests potential for higher costs. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector is critical for military readiness and modernization.
Value Assessment
Rating: questionable
The contract value of $19.9M for a specific part (13013991) is substantial. Without competitive bids, it's difficult to assess if this price is reasonable compared to market rates or similar components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to inflated costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in higher prices than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid for essential military vehicle parts. Lack of transparency in pricing due to limited competition. Potential for future contracts to be awarded without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmarks
- Potential for cost overruns
Positive Signals
- Critical component for military vehicles
- Firm fixed price contract limits cost escalation risk
Sector Analysis
This contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is driven by defense modernization and maintenance needs, with benchmarks often influenced by specialized manufacturing and R&D costs.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would typically involve contract management to ensure delivery and quality, but the limited competition aspect warrants scrutiny regarding value for money.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for overpricing
- Lack of transparency in pricing
- High contract value for a single part
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, wi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to UNDERGROUND PIPELINE INC. FL DOOR ASSY COMP PART NUMBER: 13013991
Who is the contractor on this award?
The obligated recipient is UNDERGROUND PIPELINE 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 $19.9 million.
What is the period of performance?
Start: 2011-11-14. End: 2012-09-27.
What is the justification for awarding this contract on a limited competition basis?
The justification for limited competition is crucial for understanding why a broader bidding process was not pursued. Reasons could include unique technical requirements, proprietary technology, or urgent needs. Without this justification, it's difficult to assess if the limited competition was truly necessary or if it was a missed opportunity for cost savings.
How does the unit price compare to similar components or historical pricing for this part?
Benchmarking the unit price against similar components or historical data is essential for assessing value. Given the $19.9M total award and 1 unit, the implied unit price is high. Without comparative data, it's impossible to determine if this price is fair or inflated due to the lack of competition.
What is the long-term impact of awarding contracts with limited competition on the overall defense budget?
Consistently awarding contracts with limited competition can lead to a systemic increase in costs for defense procurement. This erodes the purchasing power of the defense budget, potentially requiring higher overall appropriations or forcing trade-offs in other critical areas. It also disincentivizes innovation and efficiency among potential suppliers who are excluded from bidding.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Underground Pipeline, Inc. (UEI: 114114077)
Address: S 87 W 35670 GODFREY LN, EAGLE, WI, 05
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $19,938,892
Exercised Options: $19,938,892
Current Obligation: $19,938,892
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-11-14
Current End Date: 2012-09-27
Potential End Date: 2012-09-27 00:00:00
Last Modified: 2012-02-08
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