DoD awards $23.2M for ESPS Production Crates, with Compotech Inc. as the sole awardee

Contract Overview

Contract Amount: $23,203,126 ($23.2M)

Contractor: Compotech Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-03

End Date: 2026-09-30

Contract Duration: 849 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESPS PRODUCTION CRATES

Place of Performance

Location: BREWER, PENOBSCOT County, MAINE, 04412

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to COMPOTECH INC for work described as: ESPS PRODUCTION CRATES Key points: 1. The contract value of $23.2 million for production crates suggests a significant need for specialized packaging solutions within the Department of Defense. 2. The contract type, Firm Fixed Price, indicates that the government has locked in costs, shifting potential cost overruns to the contractor. 3. The duration of 849 days (approximately 2.3 years) points to a sustained requirement for these ESPS production crates. 4. The North American Industry Classification System (NAICS) code 326130 for Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing places this contract within the plastics manufacturing sector. 5. The award was made under 'Full and Open Competition After Exclusion of Sources,' which warrants further investigation into the reasons for excluding other potential bidders. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation. 7. The contract's primary purpose is likely to support logistical and operational readiness by providing essential protective containers for equipment or supplies.

Value Assessment

Rating: questionable

Benchmarking the value of $23.2 million for production crates is challenging without specific details on the crate's specifications, materials, and quantity. However, the contract was awarded after excluding sources, which raises concerns about whether the government secured the best possible price. The firm fixed-price nature provides cost certainty but doesn't inherently guarantee value for money if the initial pricing was not competitive. Further analysis would require comparing this award to similar contracts for specialized crates with comparable features and quantities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, certain sources were excluded, leading to a limited pool of potential bidders. The specific reasons for these exclusions are not provided, making it difficult to assess the true level of competition. A limited competition, especially one with exclusions, can potentially lead to higher prices and reduced innovation compared to unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even if justified, limits the potential for competitive bidding, which could result in taxpayers paying more than they might have under a truly open competition. This approach may also indicate a lack of proactive market research to identify all capable vendors.

Public Impact

The Department of Defense benefits through the acquisition of essential production crates for its operations. The services delivered include the manufacturing and supply of specialized laminated plastic crates. The geographic impact is likely concentrated where the Department of Defense utilizes these crates, potentially worldwide. Workforce implications may include jobs in the plastics manufacturing sector, specifically at Compotech Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation raises concerns about the breadth of competition and potential price impacts for taxpayers.
Lack of transparency regarding the reasons for excluding other sources hinders a full assessment of the procurement process.
The absence of specific performance metrics or quality indicators in the provided data makes it difficult to evaluate the contractor's past performance or potential risks.

Positive Signals

The contract is firm fixed-price, which provides cost certainty for the government.
The award to Compotech Inc. suggests they possess the capabilities to meet the DoD's requirements for these specialized crates.
The contract duration indicates a stable, long-term need, potentially reflecting a critical operational requirement.

Sector Analysis

This contract falls within the plastics manufacturing industry, specifically NAICS code 326130, which covers the production of laminated plastic plates, sheets, and shapes. The market for specialized crates, particularly those for defense applications, is driven by stringent requirements for durability, protection, and compliance with military standards. While specific market size data for defense production crates is not readily available, the broader plastics manufacturing sector is substantial. This contract represents a significant award within a niche segment of this sector, likely serving a critical logistical function for the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement process did not prioritize small business participation through set-asides. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The impact on the broader small business ecosystem is neutral, as this contract did not leverage small business programs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the firm fixed-price contract type, which places the onus on Compotech Inc. to deliver within the agreed-upon price. Transparency is limited by the available data; while the award is public, the rationale for excluding sources is not detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Logistics Support Contracts
Military Packaging and Containerization
Specialized Plastics Manufacturing Contracts
Defense Production Equipment Procurement

Risk Flags

Limited Competition Due to Source Exclusions
Lack of Transparency on Exclusion Rationale
Potential for Suboptimal Price Discovery
Need for Detailed Performance Benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to COMPOTECH INC. ESPS PRODUCTION CRATES

Who is the contractor on this award?

The obligated recipient is COMPOTECH 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 $23.2 million.

What is the period of performance?

Start: 2024-06-03. End: 2026-09-30.

What specific types of ESPS production crates are being procured, and what are their key specifications?

The provided data does not specify the exact types or detailed specifications of the ESPS production crates. 'ESPS' could refer to a specific system or program within the Department of Defense. Typically, such crates are designed for robust protection of sensitive equipment, often requiring features like shock absorption, environmental sealing, and specific dimensions to fit standard military transport. Without further details, it's presumed these are specialized containers tailored to the unique needs of the DoD, likely involving durable, possibly custom-molded, laminated plastic materials as indicated by the NAICS code.

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

The data provided does not detail the specific reasons for excluding other sources. This procurement method, while technically a form of full and open competition, allows for the exclusion of certain potential bidders based on specific criteria, such as unique capabilities, proprietary technology, or prior performance on related systems. Common justifications might include the need for compatibility with existing systems, specialized manufacturing processes only available from a limited number of vendors, or urgent requirements where only specific contractors could meet the timeline. A thorough review of the solicitation documents and justifications would be necessary to understand the precise rationale.

How does the awarded price of $23.2 million compare to market rates for similar specialized production crates?

Directly comparing the $23.2 million award to market rates for similar specialized production crates is difficult without detailed specifications of the crates themselves (e.g., dimensions, material strength, environmental resistance, quantity). The 'limited' competition resulting from source exclusions may have impacted price discovery. To perform a robust comparison, one would need to identify comparable contracts for defense-grade, custom-molded plastic crates, analyze their unit costs based on quantity and specifications, and factor in any unique requirements or certifications mandated for this specific DoD contract. The firm fixed-price nature suggests the government aimed for cost certainty, but the actual value for money depends heavily on the initial pricing negotiation and the competitive landscape.

What is Compotech Inc.'s track record with Department of Defense contracts, particularly for similar packaging or manufacturing requirements?

The provided data does not include information on Compotech Inc.'s specific track record with the Department of Defense or their history with similar packaging or manufacturing requirements. To assess their reliability and past performance, one would need to consult contract databases (like FPDS or SAM.gov) for previous awards, contract values, performance reviews, and any history of disputes or terminations. Their ability to secure this $23.2 million contract suggests they have met the DoD's pre-qualification criteria, but a deeper dive into their performance history is essential for a comprehensive risk assessment.

What are the potential risks associated with a firm fixed-price contract awarded under 'Full and Open Competition After Exclusion of Sources' for specialized crates?

The primary risks associated with this contract structure include potential overpricing due to limited competition and the contractor bearing the risk of cost overruns. If the initial price was not aggressively negotiated because of the restricted bidder pool, the government might not achieve optimal value. While the firm fixed-price protects the government from cost increases, if Compotech Inc. faces unforeseen manufacturing challenges, they might cut corners on quality to maintain profitability, although quality assurance measures should mitigate this. The exclusion of sources itself is a risk if it means potentially capable and more cost-effective vendors were overlooked.

How does this contract align with broader trends in defense logistics and supply chain management?

This contract aligns with the broader trend of the Department of Defense seeking specialized, durable, and reliable equipment to support global operations. The need for robust production crates suggests a focus on protecting high-value or sensitive assets throughout complex supply chains, from manufacturing to deployment. The use of laminated plastics indicates a move towards materials that offer a balance of durability, weight, and cost-effectiveness compared to traditional materials. The sustained duration of the contract points to a long-term strategic requirement for these specific packaging solutions, reflecting the ongoing need for efficient and secure logistics in modern military operations.

Industry Classification

NAICS: Manufacturing › Plastics Product Manufacturing › Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

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: 55 BAKER BLVD, BREWER, ME, 04412

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

Financial Breakdown

Contract Ceiling: $23,203,126

Exercised Options: $23,203,126

Current Obligation: $23,203,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY24D0001

IDV Type: IDC

Timeline