DoD Awards $56.8M for Abrams Tank Tracks to LOC Performance Products LLC
Contract Overview
Contract Amount: $56,853,479 ($56.9M)
Contractor: LOC Performance Products LLC
Awarding Agency: Department of Defense
Start Date: 2025-06-17
End Date: 2026-10-10
Contract Duration: 480 days
Daily Burn Rate: $118.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ABRAMS FOV T158LL TRACK - SECOND ORDERING PERIOD DELIVERY ORDER.
Place of Performance
Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $56.9 million to LOC PERFORMANCE PRODUCTS LLC for work described as: ABRAMS FOV T158LL TRACK - SECOND ORDERING PERIOD DELIVERY ORDER. Key points: 1. Significant contract value for critical military hardware. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on armored vehicle components highlights defense sector spending. 4. Long-term delivery schedule suggests sustained demand for these parts.
Value Assessment
Rating: questionable
The contract value of $56.8M for tank tracks is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for high-durability vehicle components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition for this significant award could lead to increased taxpayer expenditure if the price is not optimized.
Public Impact
Ensures continued operational readiness for Abrams tanks. Supports a specific manufacturer within the defense industrial base. Potential for higher costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long-term commitment
Positive Signals
- Ensures supply of critical components
- Supports domestic manufacturing
Sector Analysis
This contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is driven by defense readiness requirements and modernization efforts, with benchmarks often set by historical procurement data and specific system needs.
Small Business Impact
The data indicates this contract was not awarded to a small business. The prime contractor, LOC Performance Products LLC, is likely a larger entity, meaning small business participation through subcontracting is not explicitly detailed here.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is justified and that future procurements explore competitive options where feasible.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Dependency on a single supplier.
- Lack of transparency in price justification.
- Long contract duration without competitive review.
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 $56.9 million to LOC PERFORMANCE PRODUCTS LLC. ABRAMS FOV T158LL TRACK - SECOND ORDERING PERIOD DELIVERY ORDER.
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 $56.9 million.
What is the period of performance?
Start: 2025-06-17. End: 2026-10-10.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Oversight bodies should review the documentation supporting this decision. To ensure fair pricing, the agency might conduct market research, use historical pricing data, or engage in detailed cost analysis with the contractor, though competitive benchmarking is absent.
What are the potential risks associated with relying on a single supplier for critical tank components?
Relying on a single supplier for critical components like Abrams tank tracks poses risks such as supply chain disruptions if the sole source faces production issues, quality control problems, or price increases due to lack of competition. It also limits the government's leverage in negotiations and could hinder innovation if alternative suppliers are not explored.
How does this contract contribute to the overall effectiveness and readiness of the Abrams tank fleet?
This contract is crucial for maintaining the operational effectiveness and readiness of the Abrams tank fleet by ensuring a steady supply of essential components. Reliable track systems are vital for mobility and performance in demanding combat environments. Consistent availability of these parts directly supports training, maintenance, and deployment capabilities.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $56,853,479
Exercised Options: $56,853,479
Current Obligation: $56,853,479
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912CH24D0025
IDV Type: IDC
Timeline
Start Date: 2025-06-17
Current End Date: 2026-10-10
Potential End Date: 2026-10-10 12:10:00
Last Modified: 2026-01-05
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