DoD Awards $19M for Petroleum Expeditionary Analysis Kits to D-2 Incorporated

Contract Overview

Contract Amount: $19,043,422 ($19.0M)

Contractor: D-2 Incorporated

Awarding Agency: Department of Defense

Start Date: 2025-07-28

End Date: 2026-10-31

Contract Duration: 460 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PETROLEUM EXPEDITIONARY ANALYSIS KIT (PEAK) DELIVERY ORDER W912CH25F0391 UNDER CONTRACT W56HZV24D0014 TO FUND OY2 ARMY PRODUCTION SYSTEMS AND CORRESPONDING CALIBRATION SUPPORT AND TRANSPORTATION.

Place of Performance

Location: BUZZARDS BAY, BARNSTABLE County, MASSACHUSETTS, 02532

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to D-2 INCORPORATED for work described as: PETROLEUM EXPEDITIONARY ANALYSIS KIT (PEAK) DELIVERY ORDER W912CH25F0391 UNDER CONTRACT W56HZV24D0014 TO FUND OY2 ARMY PRODUCTION SYSTEMS AND CORRESPONDING CALIBRATION SUPPORT AND TRANSPORTATION. Key points: 1. The award is for the PEAK system, crucial for Army production systems and calibration. 2. D-2 Incorporated secured this delivery order under a larger contract. 3. The contract was awarded via full and open competition, suggesting a competitive bidding process. 4. The duration of the order is 460 days, indicating a medium-term project.

Value Assessment

Rating: good

The award amount of $19M for a delivery order seems reasonable for specialized equipment and support. Benchmarking against similar complex analytical kits would provide further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair price for these critical petroleum analysis systems.

Public Impact

Ensures the Army has advanced capabilities for petroleum analysis in expeditionary environments. Supports the maintenance and calibration of vital production systems. The delivery order contributes to the readiness and operational effectiveness of military units. Procurement of specialized equipment like PEAK can influence market dynamics for similar technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if calibration or transportation needs exceed initial estimates.
Dependence on a single vendor for specialized support could pose a risk if issues arise.
The specific utility and long-term relevance of the PEAK system warrant ongoing assessment.

Positive Signals

Awarded under full and open competition, indicating a robust market.
Clear definition of deliverables including production systems, calibration, and transportation.
Firm fixed price contract type helps control costs.

Sector Analysis

This award falls within the Instruments and Related Products Manufacturing sector, specifically for industrial process variable measurement. Spending in this sector is often driven by defense and industrial modernization needs.

Small Business Impact

The data indicates this award was not set aside for small businesses, and the prime contractor is D-2 Incorporated. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting existing oversight mechanisms are in place. Monitoring performance and adherence to the firm fixed price will be key accountability measures.

Related Government Programs

Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for scope creep in calibration or transportation requirements.
Dependence on contractor's specialized knowledge for calibration.
Logistical challenges of delivering and supporting equipment in expeditionary environments.
Ensuring long-term sustainment and availability of the PEAK system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to D-2 INCORPORATED. PETROLEUM EXPEDITIONARY ANALYSIS KIT (PEAK) DELIVERY ORDER W912CH25F0391 UNDER CONTRACT W56HZV24D0014 TO FUND OY2 ARMY PRODUCTION SYSTEMS AND CORRESPONDING CALIBRATION SUPPORT AND TRANSPORTATION.

Who is the contractor on this award?

The obligated recipient is D-2 INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2025-07-28. End: 2026-10-31.

What is the specific operational advantage gained by the Army through the PEAK system, and how does it compare to previous methods?

The PEAK system likely provides enhanced accuracy, speed, and portability for petroleum analysis in deployed settings. This could translate to quicker decision-making regarding fuel quality, reduced logistical burdens for testing, and improved operational readiness. Comparing it to older, less integrated systems would highlight the technological advancement and its impact on mission effectiveness.

What are the potential risks associated with the calibration support and transportation components of this delivery order?

Risks include unforeseen complexities in calibration requiring specialized expertise or equipment, leading to delays or cost increases. Transportation risks involve potential damage to sensitive equipment during transit, logistical challenges in remote locations, and associated insurance or security costs. Ensuring robust logistical planning and contingency measures is crucial for mitigating these risks.

How effectively does the firm fixed price contract type manage the financial risks for this complex delivery order?

A firm fixed price contract is generally effective in shifting cost overrun risk to the contractor, providing budget certainty for the government. However, for complex systems involving specialized support and transportation, the initial price must accurately reflect all potential costs. If unforeseen technical challenges or logistical hurdles arise, the contractor may face financial strain, potentially impacting delivery or quality.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6 OTIS PARK DR, BOURNE, MA, 02532

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,043,422

Exercised Options: $19,043,422

Current Obligation: $19,043,422

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV24D0014

IDV Type: IDC

Timeline