DoD awards $12.6M for metal tank manufacturing, with delivery orders extending through late 2027

Contract Overview

Contract Amount: $12,569,175 ($12.6M)

Contractor: Isometrics Inc

Awarding Agency: Department of Defense

Start Date: 2025-12-03

End Date: 2027-09-30

Contract Duration: 666 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HIPPO - FY26 DO - 17 TRANCHE & 100 SYSTEMS CR AWARD

Place of Performance

Location: REIDSVILLE, ROCKINGHAM County, NORTH CAROLINA, 27320

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to ISOMETRICS INC for work described as: HIPPO - FY26 DO - 17 TRANCHE & 100 SYSTEMS CR AWARD Key points: 1. Contract value appears reasonable given the duration and scope of manufacturing and system integration. 2. Full and open competition suggests a healthy market for this specialized manufacturing capability. 3. Potential risks include supply chain disruptions for specialized materials and manufacturing capacity. 4. Performance context is critical; delivery timelines and quality standards will be key indicators. 5. This contract positions the supplier within the defense industrial base for heavy gauge metal fabrication. 6. The firm fixed-price structure shifts cost risk to the contractor, potentially incentivizing efficiency.

Value Assessment

Rating: good

The contract value of $12.6 million over approximately two years for 17 tranches and 100 systems suggests a per-unit cost that needs further benchmarking. However, the firm fixed-price nature indicates that the contractor has assumed the cost risk. Without specific details on the complexity of the 'systems' and the exact specifications of the 'tranches,' a precise value-for-money assessment is challenging. Comparing this to similar DoD awards for specialized metal fabrication and integration would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the award. The specific number of bidders is not provided, but the designation suggests a robust bidding process.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces and encourages a wider pool of suppliers, preventing potential price gouging.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Army, receiving critical equipment for operational readiness. The contract will deliver 17 tranches and 100 integrated systems, likely for military applications. The geographic impact is centered around the contractor's facility in North Carolina, with potential downstream effects on local suppliers. Workforce implications include skilled manufacturing jobs in metal fabrication, welding, and systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if material prices fluctuate significantly, despite the fixed-price contract.
Risk of delivery delays due to complex manufacturing processes or unforeseen supply chain issues.
Ensuring consistent quality across all 100 systems and 17 tranches will be a key challenge.

Positive Signals

Firm fixed-price contract incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive market, likely leading to better pricing.
The award indicates the contractor possesses the necessary technical capabilities for specialized manufacturing.

Sector Analysis

This contract falls within the manufacturing sector, specifically focusing on heavy gauge metal tank production and system integration for defense applications. The market for such specialized defense manufacturing is often characterized by a limited number of highly capable firms due to stringent quality and technical requirements. Comparable spending benchmarks would involve analyzing other DoD contracts for similar fabricated metal products and integrated systems, considering factors like material complexity, volume, and technological sophistication.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary awardee is likely a larger entity capable of handling the full scope of work. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for materials, components, or specialized services.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) and the relevant Department of the Army program office. Accountability measures are embedded in the firm fixed-price contract terms, with penalties for non-performance or quality issues. Transparency is facilitated through contract award databases, though detailed operational oversight specifics are typically internal to the agency.

Related Government Programs

Department of Defense Procurement
Army Weapons Systems Manufacturing
Heavy Gauge Metal Fabrication
Defense Industrial Base Support
Military Logistics Equipment

Risk Flags

Supply Chain Vulnerability
Quality Control Complexity
Delivery Schedule Adherence
Material Cost Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to ISOMETRICS INC. HIPPO - FY26 DO - 17 TRANCHE & 100 SYSTEMS CR AWARD

Who is the contractor on this award?

The obligated recipient is ISOMETRICS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2025-12-03. End: 2027-09-30.

What is the specific nature of the '100 systems' being integrated with the metal tanks, and what are their intended military applications?

The provided data does not specify the exact nature or intended military applications of the '100 systems' integrated with the metal tanks. These systems could range from environmental controls, communication equipment, power generation units, or specialized operational modules depending on the Army's requirements. Understanding the complexity and criticality of these integrated systems is essential for a comprehensive assessment of the contract's value and risk. Further details would likely be found in the contract's statement of work (SOW) or technical exhibits, which are not publicly available in this abbreviated format. The 'HIPPO - FY26 DO - 17 TRANCHE & 100 SYSTEMS CR AWARD' designation suggests a specific program or project within the Army's portfolio.

How does the per-unit cost of these tanks and integrated systems compare to similar defense procurements or commercial equivalents?

A precise per-unit cost comparison is not feasible with the provided data alone. The total award is $12.6 million for 17 tranches and 100 systems. This breaks down to approximately $126,000 per system (considering the 100 systems) or roughly $741,176 per tranche (considering the 17 tranches). However, the relationship between tranches and systems is unclear. To benchmark effectively, one would need to compare these figures against historical DoD contracts for similar heavy-gauge metal tanks, considering factors like size, material specifications, and the complexity of integrated electronic or mechanical systems. Commercial equivalents are unlikely to be directly comparable due to the specialized nature and stringent requirements of military equipment.

What are the key performance indicators (KPIs) and quality assurance measures stipulated in the contract to ensure successful delivery?

The provided data does not detail the specific Key Performance Indicators (KPIs) or quality assurance measures for this contract. However, standard practice for Department of the Army contracts, especially those involving manufacturing and system integration, includes rigorous quality assurance provisions. These typically involve inspections at various production stages, material testing, functional testing of integrated systems, and adherence to specific military standards (e.g., MIL-STD). The firm fixed-price nature implies that the contractor bears significant responsibility for meeting quality standards, with potential penalties for defects or non-conformance. The contract's duration and phased delivery (17 tranches) suggest a structured approach to quality checks throughout the performance period.

What is Isometrics Inc.'s track record with the Department of Defense, particularly in manufacturing similar heavy-gauge metal products or integrated systems?

Information regarding Isometrics Inc.'s specific track record with the Department of Defense for manufacturing similar heavy-gauge metal products or integrated systems is not included in the provided data. A thorough assessment would require reviewing Isometrics Inc.'s contract history with the DoD, including past performance evaluations, any instances of contract disputes, and the types and scale of previous projects. This information is typically available through federal procurement databases like SAM.gov or FPDS, which track contract awards and performance. Without this historical context, it's difficult to definitively assess their capability and reliability for this specific $12.6 million award.

What is the historical spending trend for similar metal tank manufacturing or integrated systems procurement by the Department of the Army?

The provided data does not offer historical spending trends for similar procurements. To analyze this, one would need to examine the Department of the Army's spending patterns over several fiscal years for contracts categorized under NAICS code 332420 (Metal Tank Manufacturing) or related codes, focusing on those involving system integration and firm fixed-price awards. This analysis would help determine if the $12.6 million award represents an increase, decrease, or stable level of investment in this capability. Factors such as evolving military requirements, technological advancements, and budget allocations would influence these trends.

Industry Classification

NAICS: Manufacturing › Boiler, Tank, and Shipping Container Manufacturing › Metal Tank (Heavy Gauge) Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

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: 1266 N SCALES ST, REIDSVILLE, NC, 27320

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

Financial Breakdown

Contract Ceiling: $12,569,175

Exercised Options: $12,569,175

Current Obligation: $12,569,175

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV21D0068

IDV Type: IDC

Timeline