DoD awards $20.1M for powertrain cleaning systems, with Redtown Technical Services securing the definitive contract

Contract Overview

Contract Amount: $20,061,456 ($20.1M)

Contractor: Redtown Technical Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2026-03-31

Contract Duration: 917 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POWERTRAIN CLEANING SYSTEMS: 1. IMMERSION CLEANING SYSTEM, 2. WASTEWATER MINIMIZATION SYSTEM, 3. PRESSURE WASHING SYSTEM, AND 4. REVERSE OSMOSIS/DEIONIZED WATER SYSTEM.

Place of Performance

Location: NORMAN, CLEVELAND County, OKLAHOMA, 73072

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to REDTOWN TECHNICAL SERVICES, LLC for work described as: POWERTRAIN CLEANING SYSTEMS: 1. IMMERSION CLEANING SYSTEM, 2. WASTEWATER MINIMIZATION SYSTEM, 3. PRESSURE WASHING SYSTEM, AND 4. REVERSE OSMOSIS/DEIONIZED WATER SYSTEM. Key points: 1. The contract value of $20.1 million represents a significant investment in specialized industrial machinery. 2. Competition dynamics for this contract were complex, involving exclusion of sources after initial full and open competition. 3. The contract duration of 917 days suggests a substantial operational requirement for the cleaning systems. 4. The firm-fixed-price contract type indicates that pricing was established upfront, transferring some risk to the contractor. 5. The procurement falls under 'All Other Industrial Machinery Manufacturing,' a broad category indicating specialized, non-standard equipment. 6. The contract's geographic focus is Oklahoma, suggesting a specific installation or operational base for these systems.

Value Assessment

Rating: fair

The total contract value of $20.1 million for powertrain cleaning systems appears substantial. Benchmarking against similar specialized industrial machinery contracts is challenging due to the unique nature of the specified systems (immersion, wastewater minimization, pressure washing, reverse osmosis/deionized water). The firm-fixed-price structure suggests a negotiated price, but without detailed cost breakdowns or comparisons to commercial equivalents, a precise value-for-money assessment is difficult. The contract's base value of $218,770 suggests an initial phase or smaller scope, with the total potential value significantly higher.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while an initial broad competition may have occurred, certain sources were subsequently excluded, leading to a more limited field of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes reduce competition and potentially impact price discovery. The fact that there were two bidders suggests some level of interest, but the exclusion process warrants further scrutiny.

Taxpayer Impact: The limited competition resulting from the exclusion of sources may have led to a higher price for taxpayers than if a broader, unrestricted competition had been maintained. It also raises questions about the fairness and transparency of the initial bidding process.

Public Impact

The Department of the Army will benefit from advanced powertrain cleaning capabilities, likely improving maintenance efficiency and operational readiness. The contract will deliver four distinct systems: immersion cleaning, wastewater minimization, pressure washing, and reverse osmosis/deionized water systems. The primary geographic impact is in Oklahoma, where the systems will likely be installed or utilized. The contract supports the industrial machinery manufacturing sector, potentially impacting specialized manufacturing jobs and supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' after initial full and open competition raises concerns about potential anti-competitive practices or unjustified restrictions on bidders.
Lack of detailed cost breakdowns makes it difficult to ascertain if the $20.1 million represents a fair market price.
The specific nature of the systems means direct commercial benchmarking is difficult, potentially obscuring opportunities for cost savings.
The contract's duration of over two years suggests a long-term commitment, requiring careful monitoring of performance and evolving needs.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming the contractor can manage their expenses effectively.
The award to Redtown Technical Services, LLC, indicates a specific contractor has been identified as capable of meeting the requirement.
The inclusion of wastewater minimization and reverse osmosis/deionized water systems suggests a focus on environmental compliance and resource efficiency.

Sector Analysis

This contract falls within the Industrial Machinery Manufacturing sector, specifically 'All Other Industrial Machinery Manufacturing.' This category encompasses a wide range of specialized equipment not classified elsewhere. The market for such specialized cleaning systems is likely niche, driven by specific industrial or military requirements. Comparable spending benchmarks are difficult to establish without more granular data on the specific types and capabilities of the systems procured. The $20.1 million award is significant for a single contract in this specialized sub-sector.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. There is no explicit mention of small business subcontracting goals. This suggests that the primary focus was on technical capability and competition among larger or specialized firms, potentially limiting direct opportunities for small businesses within this specific procurement, though they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this definitive contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified systems within the agreed budget. Transparency could be enhanced by making the reasons for source exclusion publicly available and providing more detail on performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Industrial Machinery Manufacturing
Environmental Compliance Equipment
Military Maintenance Equipment
Specialized Cleaning Systems
Department of Defense Procurement

Risk Flags

Limited competition due to source exclusion.
Lack of detailed cost breakdown for value assessment.
Difficulty in benchmarking specialized equipment.
Potential for higher costs due to restricted bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to REDTOWN TECHNICAL SERVICES, LLC. POWERTRAIN CLEANING SYSTEMS: 1. IMMERSION CLEANING SYSTEM, 2. WASTEWATER MINIMIZATION SYSTEM, 3. PRESSURE WASHING SYSTEM, AND 4. REVERSE OSMOSIS/DEIONIZED WATER SYSTEM.

Who is the contractor on this award?

The obligated recipient is REDTOWN TECHNICAL SERVICES, 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 $20.1 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-03-31.

What were the specific reasons for excluding certain sources after the initial full and open competition?

The provided data indicates the contract type as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' but does not specify the reasons for exclusion. Typically, such exclusions might stem from a failure to meet minimum technical requirements, inability to provide required bonding or insurance, past performance issues, or specific national security concerns. Without further documentation from the agency, the precise rationale remains unclear. This lack of transparency can hinder a full understanding of the competitive landscape and potentially raise questions about fairness. Further investigation would require reviewing the contract award justification and source selection decision documents.

How does the $20.1 million contract value compare to similar powertrain cleaning system procurements by the DoD or other federal agencies?

Direct comparison of the $20.1 million contract value for these specific powertrain cleaning systems is challenging due to the specialized nature of the components (immersion, wastewater minimization, pressure washing, RO/DI water). Procurements for general industrial cleaning equipment might be lower, while large-scale depot-level maintenance facilities could involve higher overall costs but different system configurations. The value suggests a significant, potentially customized, solution. Benchmarking would require identifying contracts for similar multi-system integrated cleaning solutions, which are not commonly aggregated in public databases. The base value of $218,770 compared to the total potential of $20.1 million indicates substantial growth potential or phased delivery over the contract's 917-day duration.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

Specific Key Performance Indicators (KPIs) are not detailed in the provided data. However, for powertrain cleaning systems, likely KPIs would include cleaning effectiveness (e.g., contaminant removal rates), system uptime/reliability, water and energy consumption efficiency (especially given the wastewater minimization and RO/DI components), and turnaround time for cleaning operations. Risk mitigation strategies inherent in the firm-fixed-price (FFP) contract type include the contractor bearing the cost overruns. Additional mitigation might involve phased delivery schedules, performance bonds, liquidated damages clauses for delays or failures, and rigorous government inspection and acceptance testing protocols. The 'OK' status for 'st' and 'sn' fields might relate to contractor performance or location status, suggesting a baseline level of confidence.

What is the historical spending pattern for powertrain cleaning systems within the Department of the Army?

Historical spending patterns for 'powertrain cleaning systems' specifically are not detailed in the provided data. The procurement falls under the broader category of 'All Other Industrial Machinery Manufacturing' (NAICS 333248). Analyzing historical spending would require querying federal procurement databases (like FPDS or SAM.gov) for similar contracts awarded by the Department of the Army or other DoD branches over several fiscal years. This would involve searching for relevant Product Service Codes (PSCs) and keywords related to industrial cleaning, powertrain maintenance, and specific system types mentioned. Without this broader analysis, it's difficult to determine if the $20.1 million represents an increase, decrease, or consistent level of investment in this capability.

What is the potential impact of the wastewater minimization and reverse osmosis/deionized water systems on environmental compliance and resource management?

The inclusion of wastewater minimization and reverse osmosis/deionized water (RO/DI) systems indicates a strong emphasis on environmental stewardship and resource efficiency. Wastewater minimization aims to reduce the volume of contaminated water generated, lowering disposal costs and environmental impact. RO/DI systems produce highly purified water, which can be crucial for certain cleaning processes to prevent residue or mineral buildup, and potentially allow for water recycling and reuse within the system. This integration suggests the Department of the Army is prioritizing sustainable operations, potentially meeting or exceeding environmental regulations regarding water usage and discharge, and reducing the overall lifecycle cost associated with water acquisition and waste treatment.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › All Other Industrial Machinery Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912NW23R0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3100 MONITOR AVE, NORMAN, OK, 73072

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,061,456

Exercised Options: $20,061,456

Current Obligation: $20,061,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline