DoD awards $5.4M for Stryker vehicle containerization, a sole-source delivery order with a 494-day duration

Contract Overview

Contract Amount: $5,400,603 ($5.4M)

Contractor: BOH Environmental, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2024-10-23

End Date: 2026-03-01

Contract Duration: 494 days

Daily Burn Rate: $10.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STTE CONTAINERIZATION DELIVERY ORDER FOR STRYKER FAMILY OF VEHICLES.

Place of Performance

Location: COVINGTON, SAINT TAMMANY County, LOUISIANA, 70433

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to BOH ENVIRONMENTAL, L.L.C. for work described as: STTE CONTAINERIZATION DELIVERY ORDER FOR STRYKER FAMILY OF VEHICLES. Key points: 1. This contract focuses on specialized containerization for Stryker vehicles, indicating a niche but critical support function. 2. The 'NOT COMPETED' status raises questions about potential cost efficiencies and market exploration. 3. A fixed-price contract type suggests cost certainty for the government, but the absence of competition may inflate the price. 4. The delivery order is part of a larger framework, implying ongoing needs for this specialized service. 5. The duration of nearly 17 months points to a substantial and sustained requirement. 6. The specific North American Industry Classification System (NAICS) code 332439 relates to the manufacturing of tanks and containers, aligning with the contract's purpose.

Value Assessment

Rating: questionable

Benchmarking the value of this specific delivery order is challenging without comparable sole-source contracts for Stryker vehicle containerization. However, the total award of $5.4 million over approximately 17 months suggests a significant investment in specialized logistics. The firm fixed-price structure provides cost predictability, but the lack of competition means there's no direct market comparison to assess if this represents optimal value for money. Further analysis would require understanding the specific technical requirements and the contractor's cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The absence of a competitive bidding process limits the government's ability to solicit the best possible pricing and terms from the market. It also means that potential efficiencies that could arise from a competitive environment are not realized.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price. Without competition, the government may pay a premium for the goods or services, as the contractor faces less pressure to offer competitive rates.

Public Impact

The primary beneficiaries are the U.S. Army units requiring specialized containers for the Stryker family of vehicles, ensuring operational readiness and equipment protection. The services delivered involve the manufacturing and delivery of custom containers designed to transport and protect sensitive military equipment. The geographic impact is primarily tied to the delivery location within Louisiana, supporting logistical operations in that region. Workforce implications include employment opportunities at BOH Environmental, L.L.C. and potentially its suppliers, particularly in manufacturing and logistics roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by not engaging a broader market.
Dependence on a single contractor for critical components can pose supply chain risks.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Specialized nature of the requirement may necessitate a single, qualified provider.
Delivery order structure suggests it's part of a larger, established program.

Sector Analysis

The manufacturing of specialized containers falls under the broader industrial manufacturing sector, specifically within metal container manufacturing (NAICS 332439). This sector is characterized by its role in supporting logistics and supply chains across various industries, including defense. The market size for defense-related containerization is significant, driven by the need for robust and specialized solutions for transporting sensitive equipment. This contract fits within the defense industrial base, providing essential support for military vehicle operations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to BOH ENVIRONMENTAL, L.L.C., a company whose size is not specified in the provided data, means that opportunities for small business participation in this specific contract are likely limited. This could represent a missed opportunity to leverage the agility and innovation of the small business sector within the defense supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract, existing oversight mechanisms for the parent contract would likely apply. Transparency is moderate, as the award details are publicly available, but the lack of competition limits the depth of scrutiny regarding pricing and alternatives. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Stryker Family of Vehicles Procurement
Military Logistics and Transportation Support
Defense Industrial Base Manufacturing
Specialized Container Manufacturing Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for higher costs to taxpayers due to lack of competition.
Limited transparency into contractor's cost structure without competitive bids.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to BOH ENVIRONMENTAL, L.L.C.. STTE CONTAINERIZATION DELIVERY ORDER FOR STRYKER FAMILY OF VEHICLES.

Who is the contractor on this award?

The obligated recipient is BOH ENVIRONMENTAL, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-10-23. End: 2026-03-01.

What is the track record of BOH ENVIRONMENTAL, L.L.C. in fulfilling defense contracts, particularly for specialized containerization?

Information regarding BOH ENVIRONMENTAL, L.L.C.'s specific track record with defense contracts, especially for specialized containerization, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Without this historical data, it is difficult to definitively assess their capability and reliability for this specific requirement. Further investigation into federal procurement databases and contractor performance systems would be necessary to provide a detailed analysis of their past performance.

How does the $5.4 million award compare to similar containerization contracts for military vehicles?

Direct comparison of this $5.4 million award for Stryker vehicle containerization is difficult without access to a database of similar sole-source or competed contracts for specialized military vehicle containers. The value is influenced by factors such as the number of units, specific design requirements, materials used, and delivery timelines. Given the sole-source nature, it's challenging to benchmark against competitive bids. However, the duration of nearly 17 months suggests a significant scope of work, making the total value plausible for a specialized manufacturing effort. A broader market analysis of defense logistics support contracts could provide a more generalized comparison.

What are the primary risks associated with this sole-source award for containerization?

The primary risks associated with this sole-source award include potential cost overruns due to the lack of competitive pressure, which could lead to taxpayers paying a premium. There's also a risk of reduced innovation, as the government doesn't benefit from the diverse solutions a competitive market might offer. Furthermore, reliance on a single contractor can create supply chain vulnerabilities; if BOH ENVIRONMENTAL, L.L.C. experiences production issues, the delivery of critical containerization could be delayed, impacting military readiness. Finally, without competition, there's a diminished ability to verify that the contractor's pricing is fair and reasonable.

How effective is the firm fixed-price contract type in managing costs for this specific requirement?

The firm fixed-price (FFP) contract type is generally effective in managing costs for the government when the scope of work is well-defined and the risks of unforeseen cost increases are low. For this containerization requirement, FFP provides cost certainty, meaning the contractor assumes the risk of cost overruns. This protects the government from unexpected price hikes. However, because this is a sole-source award, the initial price negotiated might be higher than it would be in a competitive scenario. Therefore, while FFP controls cost *variability*, it doesn't guarantee the *lowest possible cost* without a competitive baseline.

What are the historical spending patterns for Stryker vehicle support or related containerization by the Department of Defense?

Historical spending patterns for Stryker vehicle support and related containerization by the Department of Defense are likely substantial, given the widespread deployment of the Stryker platform. The Army continuously invests in maintaining and enhancing the operational readiness of its vehicle fleets. This includes expenditures on spare parts, maintenance, upgrades, and specialized equipment like protective containers. While specific figures for containerization are not provided, the overall budget for Stryker fleet sustainment runs into billions of dollars over its lifecycle. This $5.4 million delivery order represents a small fraction of that overall investment, focused on a specific logistical enhancement.

Industry Classification

NAICS: Manufacturing › Boiler, Tank, and Shipping Container Manufacturing › Other Metal Container Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BOH Environmental L.L.C.

Address: 143 TERRA BELLA BLVD, COVINGTON, LA, 70433

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,400,603

Exercised Options: $5,400,603

Current Obligation: $5,400,603

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W56HZV23D0034

IDV Type: IDC

Timeline