DoD awards $8.56M for aluminum road wheel blanks, with competition potentially driving value

Contract Overview

Contract Amount: $8,556,000 ($8.6M)

Contractor: Advanced Structural Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-15

End Date: 2026-08-06

Contract Duration: 478 days

Daily Burn Rate: $17.9K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MANUFACTURE AND SUPPLY ALUMINUM ROAD WHEEL BLANKS, P/N: 12324556 REV C.

Place of Performance

Location: TEXARKANA, BOWIE County, TEXAS, 75501

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to ADVANCED STRUCTURAL TECHNOLOGIES, INC. for work described as: MANUFACTURE AND SUPPLY ALUMINUM ROAD WHEEL BLANKS, P/N: 12324556 REV C. Key points: 1. Contract awarded for critical vehicle components, indicating a need for robust supply chains. 2. The fixed-price contract type aims to control costs and provide predictability. 3. Delivery order structure suggests this is part of a larger, ongoing requirement. 4. The awarded amount is moderate, suggesting it may not represent a massive program. 5. Geographic concentration in Texas for manufacturing could pose supply chain risks. 6. The specific part number indicates a specialized, potentially long-lifecycle component.

Value Assessment

Rating: good

The awarded amount of $8.56 million for aluminum road wheel blanks appears reasonable given the specialized nature of the product and the firm fixed-price contract. Benchmarking against similar defense contracts for forgings or vehicle components would provide a clearer picture of value for money. The provided data does not include unit costs, making a direct per-unit comparison difficult, but the total value suggests a significant quantity of specialized parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below certain thresholds. While the exact number of bidders is not specified, SAP generally allows for multiple offers, suggesting a degree of price discovery and potential for competitive pricing. The 'COMPETED UNDER SAP' designation implies that the government sought offers from multiple sources.

Taxpayer Impact: A competitive process, even under SAP, is beneficial for taxpayers as it encourages multiple suppliers to offer their best pricing, potentially leading to cost savings compared to a sole-source award.

Public Impact

Benefits the Department of the Army by ensuring a supply of critical road wheel components for military vehicles. Services delivered include the manufacture and supply of specialized aluminum road wheel blanks. Geographic impact is concentrated in Texas, where the contractor is located. Workforce implications may include skilled labor in manufacturing and forging within the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geographic concentration of manufacturing in Texas could create single-point-of-failure risks in the supply chain.
Reliance on a specific part number (12324556 REV C) may limit flexibility if design changes are needed.
The duration of the contract (478 days) is relatively short, potentially requiring follow-on contracts and continuous procurement efforts.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
Competition under SAP suggests a proactive approach to sourcing and potentially achieving competitive pricing.
The award to Advanced Structural Technologies, Inc. indicates a supplier capable of meeting defense specifications.

Sector Analysis

The defense manufacturing sector relies on specialized suppliers for critical components like forged aluminum parts. This contract falls within the broader industrial base supporting military vehicle production. The Nonferrous Forging industry (NAICS 332112) is characterized by specialized equipment and expertise. Comparable spending benchmarks would involve analyzing other contracts for vehicle parts, forgings, or metal components within the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Advanced Structural Technologies, Inc. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature of the contract simplifies some aspects of financial oversight. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Vehicle Procurement
Defense Industrial Base
Forged Metal Components
Army Logistics Support
Tactical Vehicle Parts

Risk Flags

Geographic concentration risk
Supply chain dependency on specific part number

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to ADVANCED STRUCTURAL TECHNOLOGIES, INC.. MANUFACTURE AND SUPPLY ALUMINUM ROAD WHEEL BLANKS, P/N: 12324556 REV C.

Who is the contractor on this award?

The obligated recipient is ADVANCED STRUCTURAL TECHNOLOGIES, 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 $8.6 million.

What is the period of performance?

Start: 2025-04-15. End: 2026-08-06.

What is the historical spending pattern for aluminum road wheel blanks or similar components by the Department of Defense?

Analyzing historical spending for aluminum road wheel blanks or similar vehicle components by the Department of Defense requires access to comprehensive contract databases. Typically, such components are procured through delivery orders against indefinite-delivery indefinite-quantity (IDIQ) contracts or through competitive bids for specific requirements. Spending patterns can fluctuate based on vehicle modernization programs, operational tempo, and inventory management strategies. For instance, periods of increased deployment or fleet upgrades would likely correlate with higher spending. Without specific historical data for this exact part number or category, it's challenging to provide precise figures. However, the defense sector consistently invests in vehicle sustainment and modernization, suggesting a recurring need for such components over time. The current award of $8.56 million represents a snapshot of this ongoing requirement.

How does the awarded price compare to market rates for similar aluminum forgings?

Directly comparing the awarded price to market rates for similar aluminum forgings is challenging without specific details on the exact alloy, tolerances, and production volume. However, the contract's value of $8.56 million for 'MANUFACTURE AND SUPPLY ALUMINUM ROAD WHEEL BLANKS, P/N: 12324556 REV C' suggests a significant quantity of specialized parts. The fact that it was competed under Simplified Acquisition Procedures (SAP) implies that the government sought competitive offers, which generally helps in achieving prices close to market rates for standard or moderately specialized items. For highly specialized or custom forgings, market rates can vary significantly based on tooling costs, material prices, and the complexity of the manufacturing process. A thorough benchmark would require obtaining quotes from multiple suppliers for comparable forgings or analyzing past contracts for similar items.

What are the potential risks associated with the contractor's track record or financial stability?

Assessing the potential risks associated with Advanced Structural Technologies, Inc.'s track record or financial stability requires a deeper dive into their past performance on government contracts and their financial health. Standard government procurement processes often include reviews of past performance information (PPI) and contractor responsibility. Without access to these specific assessments, it's difficult to pinpoint risks. However, general risks for any contractor include potential for schedule delays, quality control issues, or financial distress that could impact delivery. The fact that this is a delivery order under a competed SAP contract suggests that the contractor was deemed responsible at the time of award. Further due diligence might involve reviewing contract award histories for performance issues or financial reports if publicly available.

What is the expected program effectiveness or impact of these aluminum road wheel blanks?

The expected program effectiveness of these aluminum road wheel blanks is directly tied to their role in maintaining and operating military vehicles. Road wheels are critical components for the mobility of wheeled military platforms. Ensuring a reliable supply of these blanks, which are the precursor to finished road wheels, is essential for vehicle readiness and operational capability. The effectiveness is measured by the ability of the delivered components to meet stringent military specifications, ensuring durability and performance under demanding conditions. A successful outcome means that the Army can continue to equip and maintain its fleet, supporting its mission requirements without interruption due to a lack of essential parts. The firm fixed-price nature of the contract aims to ensure cost-effectiveness in achieving this operational readiness.

Are there any known issues with the specific part number (12324556 REV C) or its previous suppliers?

Information regarding known issues with the specific part number (12324556 REV C) or its previous suppliers is not readily available in the provided data. Typically, such information would be found in internal government quality assurance reports, past performance evaluations, or technical documentation related to the vehicle platform these wheels are intended for. If there were significant or recurring issues with this part number, it might have led to design changes, a different part number being specified, or a sole-source award to a contractor with a proven track record for that specific item. The fact that this part is being manufactured and supplied under a competed contract suggests that it is a known and accepted component within the Army's inventory, and that the current supplier has met the necessary qualifications.

Industry Classification

NAICS: Manufacturing › Forging and Stamping › Nonferrous Forging

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 RICHMOND AVE, OXNARD, CA, 93030

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

Financial Breakdown

Contract Ceiling: $8,556,000

Exercised Options: $8,556,000

Current Obligation: $8,556,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911RQ24D0009

IDV Type: IDC

Timeline