DoD Awards $18.7M for Bulk Fuel Distribution Systems to Certified Stainless Service Inc
Contract Overview
Contract Amount: $18,688,947 ($18.7M)
Contractor: Certified Stainless Service Inc.
Awarding Agency: Department of Defense
Start Date: 2024-07-22
End Date: 2026-05-29
Contract Duration: 676 days
Daily Burn Rate: $27.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: BULK FUEL DISTRIBUTION SYSTEM (BFDS) - OY2 DO
Place of Performance
Location: CERES, STANISLAUS County, CALIFORNIA, 95307
Plain-Language Summary
Department of Defense obligated $18.7 million to CERTIFIED STAINLESS SERVICE INC. for work described as: BULK FUEL DISTRIBUTION SYSTEM (BFDS) - OY2 DO Key points: 1. The contract value of $18.7 million is significant for specialized equipment. 2. Certified Stainless Service Inc. is the sole awardee for this delivery order. 3. Potential risks include reliance on a single supplier and price volatility due to economic price adjustment. 4. The sector is primarily Defense, with a focus on logistics and equipment.
Value Assessment
Rating: good
The award price of $18.7 million for a Bulk Fuel Distribution System appears reasonable given the specialized nature of the equipment. Benchmarking against similar complex logistics systems 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, suggesting a robust price discovery process. However, this specific delivery order was awarded to a single entity, Certified Stainless Service Inc.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently. The economic price adjustment clause introduces potential for cost increases over the contract duration.
Public Impact
Ensures critical fuel logistics capabilities for the Department of the Army. Supports military readiness by providing essential infrastructure. Potential for job creation within the truck trailer manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic Price Adjustment (EPA) clause may lead to cost overruns.
- Single awardee for this delivery order could limit future competition.
- Long contract duration (676 days) increases exposure to market fluctuations.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical defense need.
- Fixed Price contract type provides some cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically related to logistics and transportation equipment. Spending benchmarks for similar specialized fuel systems are not readily available but are typically high due to complexity and safety requirements.
Small Business Impact
The data indicates the primary contractor is Certified Stainless Service Inc. There is no explicit mention of small business participation in this specific award, which warrants further investigation.
Oversight & Accountability
The Department of the Army is responsible for oversight. The use of full and open competition suggests a structured procurement process, but monitoring the EPA clause and performance is crucial.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Economic Price Adjustment (EPA) clause
- Single awardee for this delivery order
- Long contract duration
- Lack of explicit small business participation noted
Tags
truck-trailer-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.7 million to CERTIFIED STAINLESS SERVICE INC.. BULK FUEL DISTRIBUTION SYSTEM (BFDS) - OY2 DO
Who is the contractor on this award?
The obligated recipient is CERTIFIED STAINLESS SERVICE 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 $18.7 million.
What is the period of performance?
Start: 2024-07-22. End: 2026-05-29.
What is the specific breakdown of costs within the $18.7 million award, and how does the economic price adjustment mechanism function?
The provided data does not detail the cost breakdown. The economic price adjustment (EPA) clause typically allows for modifications to the contract price based on fluctuations in specific economic factors, such as labor rates or material costs. The exact formula and trigger points for EPA adjustments would be detailed in the full contract.
What are the potential risks associated with relying on a single supplier for this critical fuel distribution system, especially given the long contract duration?
Relying on a single supplier, Certified Stainless Service Inc., for this delivery order poses risks such as potential supply chain disruptions, lack of competitive pressure on pricing for future needs, and limited options if performance issues arise. The 676-day duration amplifies these risks by extending the period of dependence.
How effectively does this contract contribute to the Department of the Army's overall mission readiness and logistical capabilities?
This contract is designed to enhance the Army's logistical capabilities by providing essential Bulk Fuel Distribution Systems. These systems are critical for maintaining operational readiness in various environments, ensuring fuel can be efficiently transported and stored where needed, thereby supporting troop deployment and sustained operations.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 2704 RAILROAD AVE, CERES, CA, 95307
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: $18,688,947
Exercised Options: $18,688,947
Current Obligation: $18,688,947
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV22D0078
IDV Type: IDC
Timeline
Start Date: 2024-07-22
Current End Date: 2026-05-29
Potential End Date: 2026-05-29 12:05:00
Last Modified: 2025-03-28
More Contracts from Certified Stainless Service Inc.
- Bulk Fuel Distribution System (bfds) — $30.9M (Department of Defense)
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