DoD's $19.8M contract for fuel system kits awarded to Tech West JV II, with limited competition

Contract Overview

Contract Amount: $19,797,311 ($19.8M)

Contractor: Tech West JV II

Awarding Agency: Department of Defense

Start Date: 2011-01-03

End Date: 2013-08-31

Contract Duration: 971 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 120K FUEL SYSTEM SUPPLY POINT KITS - 10 EACH OPTIONAL 120K FUEL SYSTEM SUPPLY POINT KITS - 48 EACH OPTIONAL 300K FUEL SYSTEM SUPPLY POINT KITS - 19 EACH OPTIONAL 300K FUEL SYSTEM SUPPLY POINT KITS - 6 EACH

Place of Performance

Location: POPLAR, ROOSEVELT County, MONTANA, 59255

State: Montana Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to TECH WEST JV II for work described as: 120K FUEL SYSTEM SUPPLY POINT KITS - 10 EACH OPTIONAL 120K FUEL SYSTEM SUPPLY POINT KITS - 48 EACH OPTIONAL 300K FUEL SYSTEM SUPPLY POINT KITS - 19 EACH OPTIONAL 300K FUEL SYSTEM SUPPLY POINT KITS - 6 EACH Key points: 1. The contract value of $19.8 million for fuel system supply point kits appears to be a significant investment in logistical support. 2. Awarded to Tech West JV II, the contract's limited competition raises questions about potential price discovery and value for money. 3. The duration of the contract (971 days) suggests a sustained need for these critical fuel system components. 4. The specific nature of 'fuel system supply point kits' indicates a focus on operational readiness and maintenance within the Department of Defense. 5. The absence of a specific Product Service Code (PSC) might indicate a specialized or unique requirement. 6. The contract's base value of $20.4 million (implied by 'br') suggests the total award may have been slightly higher than the initial estimate.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar procurements for specialized fuel system components. The base value of $20.4 million for a duration of over two years suggests a moderate per-diem cost. However, the lack of competitive bidding limits the ability to definitively assess if the pricing represents optimal value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed openly, falling under a 'not available for competition' category. This suggests that either a sole source justification was made, or the procurement was limited to a specific set of contractors. The lack of broad competition means that the government did not benefit from a wide range of offers, potentially leading to higher prices than if multiple vendors had vied for the contract.

Taxpayer Impact: Limited competition means taxpayers may have paid a premium, as the government did not leverage the full potential of market forces to drive down costs.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential components for its fuel supply chain operations. The services delivered involve the provision of specialized kits crucial for maintaining and operating fuel systems. The geographic impact is likely widespread, supporting military operations across various locations where fuel infrastructure is deployed. Workforce implications may include manufacturing and logistics jobs related to the production and delivery of these kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Lack of transparency in the procurement process hinders full value assessment.
Potential for contractor lock-in due to specialized nature of the product.

Positive Signals

Contract awarded to a joint venture, potentially fostering collaboration and shared expertise.
The contract addresses a critical logistical need for the Department of Defense.
Long contract duration indicates a stable, long-term requirement, allowing for predictable resource allocation.

Sector Analysis

The procurement falls within the manufacturing sector, specifically related to pumps and dispensing equipment. The market for specialized military logistics components can be niche, with a limited number of manufacturers possessing the required technical capabilities and security clearances. Comparable spending benchmarks are difficult to ascertain without more specific product details, but the overall defense logistics market is substantial.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the procurement likely focused on larger, established manufacturers capable of meeting the specific technical and volume requirements, potentially limiting opportunities for small businesses in this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight bodies. Accountability measures would be tied to the contract's performance clauses and delivery schedules. Transparency is limited by the non-competitive nature of the award, making detailed public scrutiny of the pricing and selection process more difficult. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) procurements
Military Fuel Infrastructure Support
Army Operational Readiness Programs
Specialized Equipment Manufacturing Contracts

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to TECH WEST JV II. 120K FUEL SYSTEM SUPPLY POINT KITS - 10 EACH OPTIONAL 120K FUEL SYSTEM SUPPLY POINT KITS - 48 EACH OPTIONAL 300K FUEL SYSTEM SUPPLY POINT KITS - 19 EACH OPTIONAL 300K FUEL SYSTEM SUPPLY POINT KITS - 6 EACH

Who is the contractor on this award?

The obligated recipient is TECH WEST JV II.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2011-01-03. End: 2013-08-31.

What is the specific technical composition and function of the 'fuel system supply point kits'?

The provided data does not detail the exact technical specifications of the 'fuel system supply point kits.' However, based on the Product Service Code (PSC) '333913 - Measuring and Dispensing Pump Manufacturing,' these kits likely contain components related to the measurement, control, and dispensing of fuel at strategic supply points. This could include pumps, valves, meters, hoses, connectors, and associated hardware necessary for efficient and safe fuel transfer operations within military logistics chains. Their function is critical for ensuring operational readiness by providing reliable fuel access points for vehicles and equipment in diverse environments.

What was the justification for awarding this contract on a non-competitive basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION.' This typically implies that a justification for other than full and open competition was approved. Common reasons include the existence of only one responsible source, a compelling urgency, or a national security requirement that restricts the pool of potential contractors. Without access to the specific justification document, the precise reason remains unknown, but it signifies that the Department of Defense determined that a competitive process was not feasible or appropriate for this particular procurement.

How does the contract value of approximately $19.8 million compare to similar procurements for fuel system components?

Direct comparison is difficult without knowing the exact quantity and specifications of the kits. However, the total contract value of $19.8 million spread over 971 days (approximately 2.66 years) suggests an average annual expenditure of around $7.4 million. This figure needs to be contextualized by the specific nature of the components and the defense market. Given the specialized nature of military logistics equipment and the limited competition, this value could be within a reasonable range, but without benchmark data from competitive awards for similar items, it's hard to definitively assess value for money.

What is the track record of the contractor, Tech West JV II, with the Department of Defense?

The provided data indicates that Tech West JV II was awarded this specific contract. Further information regarding their past performance, other contracts with the DoD, and their overall track record would require access to broader federal procurement databases (like FPDS or SAM.gov). As a joint venture, its performance might be a composite of its member companies. A comprehensive assessment of their track record would involve reviewing past performance evaluations, any contract disputes, and their history of delivering similar goods or services to the government.

What are the potential risks associated with a non-competitive award for critical fuel system components?

The primary risk associated with a non-competitive award is the potential for inflated pricing due to the lack of market pressure. Taxpayers may end up paying more than necessary. Additionally, limited competition can reduce innovation, as contractors may have less incentive to improve products or processes when they are guaranteed the contract. There's also a risk of contractor complacency or reduced responsiveness to government needs. Finally, it raises concerns about transparency and fairness in the procurement process, potentially limiting the government's ability to secure the best possible value and quality.

How does this contract align with broader Department of Defense strategies for logistics and supply chain management?

This contract directly supports the DoD's logistical infrastructure by ensuring the availability of critical components for fuel supply points. Maintaining robust fuel supply chains is fundamental to military operations, enabling troop mobility and operational reach. Contracts like this, even if non-competitively awarded, reflect the DoD's ongoing commitment to modernizing and sustaining its logistical capabilities. The focus on specialized equipment underscores the need for tailored solutions to meet the unique demands of military environments, aligning with strategic goals of readiness and operational effectiveness.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Measuring and Dispensing Pump Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912GY10R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 INDUSTRIAL PARK, POPLAR, MT, 02

Business Categories: Category Business, Government, Native American Tribal Government, Labor Surplus Area Firm, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,797,311

Exercised Options: $19,797,311

Current Obligation: $19,797,311

Contract Characteristics

Cost or Pricing Data: NO

Timeline