DoD Awards $17.6M for Watervliet Arsenal Crane Modernization to Blackledge Group

Contract Overview

Contract Amount: $17,576,053 ($17.6M)

Contractor: THE Blackledge Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-28

End Date: 2025-09-01

Contract Duration: 735 days

Daily Burn Rate: $23.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Manufacturing

Official Description: TO COVER THE COST OF THE UPGRADE OF CONTROLS AND MODERNIZATION OF 60+ INDUSTRIAL OVERHEAD CRANES FOR THE WATERVLIET ARSENAL, NY 12189-4000

Place of Performance

Location: WATERVLIET, ALBANY County, NEW YORK, 12189

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to THE BLACKLEDGE GROUP, INC. for work described as: TO COVER THE COST OF THE UPGRADE OF CONTROLS AND MODERNIZATION OF 60+ INDUSTRIAL OVERHEAD CRANES FOR THE WATERVLIET ARSENAL, NY 12189-4000 Key points: 1. Contract awarded for modernization of over 60 industrial overhead cranes. 2. Significant investment in critical infrastructure at Watervliet Arsenal. 3. Limited competition raises questions about price discovery and value. 4. Sector: Manufacturing (Overhead Cranes) with potential for broader industrial applications.

Value Assessment

Rating: questionable

The contract value of $17.6 million for crane modernization is substantial. Without comparable contract data or a competitive bidding process, assessing the pricing's fairness against market rates is difficult. The firm fixed-price structure offers some cost certainty but doesn't guarantee optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source procurement. This lack of competition likely restricts price discovery and may lead to higher costs than if multiple vendors had competed. The rationale for this limitation is not provided.

Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for the crane upgrades, as market pressures are not leveraged to drive down costs.

Public Impact

Ensures operational readiness and safety of critical industrial equipment at a key military facility. Modernization may improve efficiency and reduce long-term maintenance costs for the cranes. Potential for job creation or retention within the crane manufacturing and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited transparency on procurement justification
Potential for inflated costs due to sole-source award

Positive Signals

Addresses critical infrastructure needs
Firm fixed-price contract provides cost certainty
Long-term modernization effort

Sector Analysis

This contract falls within the industrial manufacturing sector, specifically focusing on overhead crane systems. Spending benchmarks for such specialized industrial equipment can vary widely based on complexity and quantity. The $17.6 million award suggests a significant scope of work for a substantial number of cranes.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award, potentially limiting their participation in this significant defense contract.

Oversight & Accountability

The contract is managed by the Department of the Army. Oversight will be crucial to ensure the modernization meets specifications, stays within budget, and that the limited competition justification is sound. Post-award reviews could assess the value achieved.

Related Government Programs

Overhead Traveling Crane, Hoist, and Monorail System Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Limited transparency on procurement rationale
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to THE BLACKLEDGE GROUP, INC.. TO COVER THE COST OF THE UPGRADE OF CONTROLS AND MODERNIZATION OF 60+ INDUSTRIAL OVERHEAD CRANES FOR THE WATERVLIET ARSENAL, NY 12189-4000

Who is the contractor on this award?

The obligated recipient is THE BLACKLEDGE GROUP, 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 $17.6 million.

What is the period of performance?

Start: 2023-08-28. End: 2025-09-01.

What is the specific justification for limiting competition on this $17.6 million crane modernization contract?

The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION,' but does not offer a specific justification. Typically, such limitations are based on factors like unique capabilities, urgent needs, or existing infrastructure compatibility. Without this detail, it's difficult to assess if the limited competition was truly necessary or if alternative procurement strategies could have been employed.

How will the government ensure fair pricing and value for money given the lack of competitive bidding?

With a limited competition award, ensuring fair pricing relies heavily on robust pre-award cost analysis and post-award monitoring. The Department of Defense should have conducted thorough market research and cost estimations. Ongoing oversight of performance and adherence to the firm fixed-price contract terms will be critical to prevent cost overruns and ensure the delivered modernization provides adequate value.

What are the expected performance improvements and cost savings from modernizing these 60+ cranes?

The contract aims to upgrade and modernize the cranes, implying expected improvements in operational efficiency, reliability, and safety. Modernization often leads to reduced downtime and lower maintenance costs over the equipment's lifecycle. Quantifying these benefits would require baseline performance data and post-modernization assessments to determine the actual return on the $17.6 million investment.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Overhead Traveling Crane, Hoist, and Monorail System Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911PT23R0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 408 15TH ST S, JACKSONVILLE BEACH, FL, 32250

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,576,053

Exercised Options: $17,576,053

Current Obligation: $17,576,053

Actual Outlays: $4,588,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline