Department of the Army awards $44.5M contract for military vehicle components to LOC PERFORMANCE PRODUCTS LLC

Contract Overview

Contract Amount: $44,544,467 ($44.5M)

Contractor: LOC Performance Products LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-04

End Date: 2027-02-14

Contract Duration: 802 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD OF NSN 2530-01-587-6141 FOR 37,599 EA.

Place of Performance

Location: SAINT MARYS, AUGLAIZE County, OHIO, 45885

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $44.5 million to LOC PERFORMANCE PRODUCTS LLC for work described as: AWARD OF NSN 2530-01-587-6141 FOR 37,599 EA. Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The contract duration of over two years suggests a need for sustained supply. 3. Fixed-price contract type aims to control costs, but initial award value is substantial. 4. The specific NSN indicates a focus on specialized military vehicle parts. 5. Performance is located in Ohio, potentially impacting regional manufacturing employment.

Value Assessment

Rating: fair

The award of $44.5 million for 37,599 units of a specific military vehicle component warrants careful review. While the firm fixed-price contract type is designed to manage cost overruns, the absence of multiple bids in the provided data makes direct value-for-money assessment challenging. Benchmarking this unit price against similar components or historical awards for this NSN would be crucial to determine if the price is competitive. Without further data on the complexity of the component and market rates for similar manufacturing, it is difficult to definitively assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data provided does not specify the number of bids received. A high number of bidders typically leads to more competitive pricing, while a low number could suggest limited market capacity or specialized requirements. Further investigation into the number of proposals received would clarify the extent of competition and its impact on the final award price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best prices, potentially leading to cost savings for the government.

Public Impact

The primary beneficiaries are the Department of the Army, ensuring the availability of critical military vehicle components. This contract supports the manufacturing and supply of specialized parts for armored vehicles. The geographic impact is concentrated in Ohio, where LOC PERFORMANCE PRODUCTS LLC is located, potentially creating or sustaining jobs in that region. The contract ensures the operational readiness of military equipment by providing necessary components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition metrics (number of bids) hinders full assessment of price competitiveness.
The substantial award amount necessitates close monitoring of performance and delivery to ensure value.
Dependence on a single awardee for a critical component could pose supply chain risks if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a broad market search.
Firm fixed-price contract type provides cost certainty for the government.
The contract duration indicates a stable, long-term need for these components.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of military vehicle components. The market for such specialized parts is often characterized by a limited number of highly qualified suppliers due to stringent technical requirements and security clearances. The total addressable market for military vehicle components is significant, driven by ongoing modernization efforts and sustainment requirements for existing fleets. This award represents a portion of the Department of Defense's broader spending on vehicle procurement and maintenance.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business set-asides is none. However, the prime contractor, LOC PERFORMANCE PRODUCTS LLC, may engage small businesses as subcontractors. An analysis of subcontracting plans would be necessary to determine the extent of small business participation and its overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and quality assurance clauses. Transparency is facilitated through contract award databases like SAM.gov. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Vehicle Procurement
Armored Vehicle Sustainment
Defense Manufacturing Contracts
Department of the Army Supply Chain

Risk Flags

Potential for limited competition despite 'full and open' designation if few bids were received.
Supply chain risk due to reliance on a single awardee for critical components.
Need for rigorous quality assurance given the nature of military vehicle parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.5 million to LOC PERFORMANCE PRODUCTS LLC. AWARD OF NSN 2530-01-587-6141 FOR 37,599 EA.

Who is the contractor on this award?

The obligated recipient is LOC PERFORMANCE PRODUCTS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $44.5 million.

What is the period of performance?

Start: 2024-12-04. End: 2027-02-14.

What is the track record of LOC PERFORMANCE PRODUCTS LLC in fulfilling government contracts, particularly for military vehicle components?

A thorough review of LOC PERFORMANCE PRODUCTS LLC's past performance is essential. This would involve examining their contract history with the Department of Defense and other federal agencies, looking for on-time delivery rates, quality compliance, and any history of contract disputes or terminations. Specific attention should be paid to previous awards for similar NSNs or components to gauge their experience and reliability in this specialized area. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would provide valuable insights into their performance metrics and customer satisfaction. Understanding their past performance is critical for assessing the risk associated with this current award and ensuring successful project execution.

How does the awarded unit price compare to historical pricing for this specific NSN or similar components?

To assess the value for money, the awarded unit price needs to be benchmarked against historical data. This involves retrieving pricing information for the same NSN (2530-01-587-6141) from previous contracts, ideally awarded by the Department of the Army or other branches. Comparisons should also be made with similar components that serve analogous functions in other military vehicles, considering factors like material, complexity, and manufacturing processes. Analyzing trends in pricing over time can reveal whether costs are increasing, decreasing, or remaining stable. If this award represents a significant deviation from historical averages or market benchmarks, it warrants further investigation into the underlying reasons, such as increased material costs, updated specifications, or a less competitive bidding environment.

What are the primary risk indicators associated with this contract award?

Several risk indicators warrant attention for this contract. Firstly, the lack of specific data on the number of bids received under 'full and open competition' presents a risk, as it limits the ability to confirm robust price discovery and potentially indicates a constrained market. Secondly, the substantial award amount of $44.5 million necessitates diligent oversight to ensure performance aligns with expectations and budget. Thirdly, the reliance on a single awardee for a critical component, even if sourced through open competition, carries inherent supply chain risks. Finally, the nature of military vehicle components suggests potential complexities in manufacturing and quality assurance, requiring rigorous adherence to specifications. Proactive risk mitigation strategies should focus on close monitoring of performance, schedule adherence, and quality control.

What is the expected effectiveness of this contract in ensuring the operational readiness of military vehicles?

The effectiveness of this contract hinges on the timely and quality delivery of the specified military vehicle components. By securing a supply of NSN 2530-01-587-6141, the Department of the Army aims to maintain and repair its fleet of armored vehicles, directly contributing to operational readiness. The contract's duration (ending February 2027) suggests a sustained need, implying that these components are critical for ongoing operations or planned upgrades. Successful execution will ensure that maintenance depots and field units have the necessary parts to keep vehicles mission-capable. The effectiveness will be measured by the contractor's ability to meet all performance specifications, delivery schedules, and quality standards throughout the contract period.

How does this contract fit into the broader historical spending patterns for military vehicle components by the Department of the Army?

This $44.5 million award needs to be contextualized within the Department of the Army's historical spending on military vehicle components. Analyzing past fiscal years' spending on similar NSNs, component categories (like armored vehicle parts), and specific contractors can reveal trends. Is this award amount typical, higher, or lower than previous awards for comparable items? Understanding the historical spending trajectory helps determine if this contract represents a significant shift in procurement strategy, an increase in demand for specific components, or a response to market price fluctuations. It also informs whether the current award aligns with established budget allocations for vehicle sustainment and modernization programs.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912CH25R0013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13505 N HAGGERTY RD, PLYMOUTH, MI, 48170

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

Financial Breakdown

Contract Ceiling: $44,544,467

Exercised Options: $44,544,467

Current Obligation: $44,544,467

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,353,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline