DoD Awards $11.2M for EHP Rollers and Military Vehicle Components to Globe Tech LLC
Contract Overview
Contract Amount: $11,218,267 ($11.2M)
Contractor: Globe Tech LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-28
End Date: 2029-04-30
Contract Duration: 1,645 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR THE PROCUREMENT OF 23 EHP ROLLERS, 25 AUTHORIZED STOCKAGE LISTS (ASLS), 11 PRESCRIBED LOAD LISTS (PLL), AND 23 BASIC ISSUE ITEMS (BIIS).
Place of Performance
Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $11.2 million to GLOBE TECH LLC for work described as: DELIVERY ORDER FOR THE PROCUREMENT OF 23 EHP ROLLERS, 25 AUTHORIZED STOCKAGE LISTS (ASLS), 11 PRESCRIBED LOAD LISTS (PLL), AND 23 BASIC ISSUE ITEMS (BIIS). Key points: 1. Spending focuses on critical military vehicle components and logistical support items. 2. Globe Tech LLC, a small business, secured this delivery order. 3. The contract type is Firm Fixed Price, aiming for cost certainty. 4. Competition was conducted under 'Full and Open Competition after Exclusion of Sources'.
Value Assessment
Rating: fair
The total award of $11.2M for a variety of specific military components and lists appears to be a reasonable price for the scope. Benchmarking is difficult without more granular data on each item, but the fixed-price nature suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a specific reason for limiting the pool of potential bidders. This method can sometimes lead to higher prices if the eligible sources are few or have unique capabilities.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment and logistical support. The limited competition raises questions about whether the best possible price was achieved for the taxpayer.
Public Impact
Ensures readiness by providing necessary components for armored vehicles. Supports military logistics through the procurement of ASLs and PLLs. Contributes to the operational effectiveness of military ground vehicles. Funds are directed towards specialized manufacturing within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may impact price competitiveness.
- Specific component details are not fully itemized in the provided data.
- Long contract duration (over 4 years) could introduce cost escalation risks if not managed.
Positive Signals
- Firm Fixed Price contract type provides cost certainty.
- Supports critical military operational needs.
- Awarded to a small business, potentially supporting economic goals.
Sector Analysis
This spending falls within the Defense Industrial Base, specifically manufacturing of military vehicles and components. Benchmarks for similar procurements are highly variable based on specific item types and quantities, but this award represents a significant investment in specialized military hardware.
Small Business Impact
Globe Tech LLC is identified as a small business. This award contributes to the government's goal of supporting small businesses in the defense contracting space. Further analysis would be needed to determine the overall impact on small business utilization goals.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting prior oversight. The 'Exclusion of Sources' clause warrants scrutiny to ensure proper justification and adherence to procurement regulations. The duration of the contract also necessitates ongoing performance monitoring.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may result in suboptimal pricing.
- Lack of detailed itemization hinders granular cost analysis.
- Potential for price escalation over the contract's extended duration.
- Justification for source exclusion requires verification.
- Reliance on a single awardee for critical components.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.2 million to GLOBE TECH LLC. DELIVERY ORDER FOR THE PROCUREMENT OF 23 EHP ROLLERS, 25 AUTHORIZED STOCKAGE LISTS (ASLS), 11 PRESCRIBED LOAD LISTS (PLL), AND 23 BASIC ISSUE ITEMS (BIIS).
Who is the contractor on this award?
The obligated recipient is GLOBE TECH 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 $11.2 million.
What is the period of performance?
Start: 2024-10-28. End: 2029-04-30.
What specific justification was provided for excluding sources in this 'Full and Open Competition after Exclusion of Sources' award, and how did it impact the final price?
The justification for excluding sources is critical for understanding the competitive landscape and potential price impacts. If only a few sources were eligible due to unique capabilities or proprietary technology, the price might be higher than in a truly open competition. Conversely, if the exclusion was procedural or based on minor criteria, it could represent a missed opportunity for better value.
How does the unit cost of the 23 EHP rollers compare to similar procurements by other government agencies or commercial entities?
Benchmarking the unit cost of the EHP rollers is essential for assessing value for money. Without specific unit pricing data, a direct comparison is impossible. However, if data were available, it would reveal whether the government is paying a fair market price, potentially identifying overspending or cost savings opportunities for future acquisitions.
What is the long-term strategic value of procuring these specific ASLs, PLLs, and BIIS, beyond immediate operational needs?
The strategic value lies in ensuring sustained logistical support and operational readiness for the military. These lists and items are fundamental to maintaining equipment and supply chains, reducing downtime, and enabling prolonged deployments. Their procurement signifies a commitment to long-term military preparedness and self-sufficiency in critical areas.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 40300 PLYMOUTH RD, PLYMOUTH, MI, 48170
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $11,218,267
Exercised Options: $11,218,267
Current Obligation: $11,218,267
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV19D0101
IDV Type: IDC
Timeline
Start Date: 2024-10-28
Current End Date: 2029-04-30
Potential End Date: 2029-04-30 12:04:00
Last Modified: 2026-02-04
More Contracts from Globe Tech LLC
- Countermine — $33.1M (Department of Defense)
- First DO Issued From Multiple Award Idiq. QTY 107 Issued to Globe Tech — $26.1M (Department of Defense)
- This Order IS for the Procurement of 187,958 M24 81 MM FIN Assembly and 189,854 M27 60 MM FIN Assembly AS a Single Award During Ordering Period TWO — $4.9M (Department of Defense)
- This Action IS for the Acquisition of 10,198 M28 81MM Mortar Tail FIN Assemblies Delivered to Pine Bluff Arsenal — $3.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)