DoD's $24M Marine Propulsion Unit Contract Awarded to Thrustmaster of Texas Raises Competition Concerns
Contract Overview
Contract Amount: $24,077,198 ($24.1M)
Contractor: Thrustmaster of Texas, Inc
Awarding Agency: Department of Defense
Start Date: 2008-06-25
End Date: 2011-06-16
Contract Duration: 1,086 days
Daily Burn Rate: $22.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: MODEL OD-15N MARINE PROPULSION UNIT
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77041
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to THRUSTMASTER OF TEXAS, INC for work described as: MODEL OD-15N MARINE PROPULSION UNIT Key points: 1. Significant spending on specialized marine propulsion units. 2. Sole-source award limits competitive pricing and innovation. 3. Potential for higher costs due to lack of competition. 4. Transportation Equipment sector sees substantial government investment.
Value Assessment
Rating: questionable
The contract value of $24,077,197.87 for 1086 days is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar propulsion units in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This significantly limits price discovery and potentially leads to less favorable pricing for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the marine propulsion units.
Public Impact
Military readiness may be impacted if specialized propulsion units are not acquired at the best possible price. The defense transportation sector relies on such equipment, making efficient procurement crucial. Lack of transparency in sole-source awards can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Specific equipment for military needs
- Long-term contract duration
Sector Analysis
The Department of Defense frequently procures specialized transportation equipment. Spending benchmarks for marine propulsion units vary widely based on size, power, and specific military requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a specific firm, Thrustmaster of Texas, Inc.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in procurement process.
- No indication of small business participation.
- Contract awarded in 2008, potential for outdated technology or pricing.
Tags
transportation-equipment-and-supplies-ex, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to THRUSTMASTER OF TEXAS, INC. MODEL OD-15N MARINE PROPULSION UNIT
Who is the contractor on this award?
The obligated recipient is THRUSTMASTER OF TEXAS, 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 $24.1 million.
What is the period of performance?
Start: 2008-06-25. End: 2011-06-16.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. Without further documentation, it's unclear what specific technical or proprietary reasons led to this decision. Exploring alternatives, even if ultimately deemed unsuitable, is a standard part of ensuring best value.
How does the per-unit cost of these marine propulsion units compare to commercially available alternatives or previous government purchases?
As this was a sole-source award, direct comparison to commercially available alternatives is challenging without access to Thrustmaster's pricing structure. Benchmarking against previous government purchases of similar units, if available, would be necessary to assess cost-effectiveness. The lack of competition inherently makes such comparisons difficult.
What is the long-term strategic value of this specific propulsion unit to the Army's transportation capabilities?
The OD-15N Marine Propulsion Unit likely serves a critical, specialized role within the Army's transportation fleet. Its long-term value hinges on its unique capabilities, reliability, and integration with existing platforms. Understanding the operational necessity and lack of viable substitutes is key to justifying the sole-source procurement.
Industry Classification
NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912ER08R0050
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12227 FM 529 RD, HOUSTON, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,077,198
Exercised Options: $24,077,198
Current Obligation: $24,077,198
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-25
Current End Date: 2011-06-16
Potential End Date: 2011-06-16 00:00:00
Last Modified: 2014-03-07
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