DoD's $17.2M fabrication contract for lock components awarded to Steward Machine Co. Inc

Contract Overview

Contract Amount: $17,194,154 ($17.2M)

Contractor: Steward Machine CO Inc

Awarding Agency: Department of Defense

Start Date: 2009-09-24

End Date: 2012-09-29

Contract Duration: 1,101 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::96 3134::TAS, RECOVERY - FABRICATION OF MITER GATES, CULVERT VALVES AND BULKHEADS FOR THE CHICKAMAUGA LOCK, NASHVILLE DISTRICT USACE

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35202

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to STEWARD MACHINE CO INC for work described as: TAS::96 3134::TAS, RECOVERY - FABRICATION OF MITER GATES, CULVERT VALVES AND BULKHEADS FOR THE CHICKAMAUGA LOCK, NASHVILLE DISTRICT USACE Key points: 1. Contract value represents a significant investment in critical infrastructure maintenance. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract indicates a substantial, long-term need for these fabricated parts. 5. Geographic location of the contractor in Alabama may influence local economic impact. 6. The specific nature of the components (miter gates, culvert valves) points to specialized manufacturing capabilities.

Value Assessment

Rating: good

The contract value of approximately $17.2 million for fabricated structural metal components appears reasonable given the specialized nature and scale of the items. Without specific benchmarks for miter gates and culvert valves, direct comparison is difficult. However, the fixed-price nature of the contract suggests that the government sought to control costs upfront. The number of bids received (6) indicates a degree of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was broad, certain sources may have been excluded based on specific criteria. Six bids were received, suggesting a healthy level of competition for this specialized requirement. The open competition generally allows for price discovery and encourages contractors to offer competitive pricing to secure the award.

Taxpayer Impact: The open competition, despite potential source exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source award. Multiple bidders ensure that the government is not locked into a single provider's pricing.

Public Impact

The U.S. Army Corps of Engineers (Nashville District) benefits from the reliable supply of essential components for lock operations. Miter gates and culvert valves are critical for maintaining navigation and water management functions at the Chickamauga Lock. The contract supports specialized manufacturing jobs within the fabrication sector, likely in Alabama. Improved functionality and longevity of the Chickamauga Lock contribute to regional transportation and economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if specialized fabrication capacity is limited.
Risk of component obsolescence if technology advances rapidly during the contract period.
Dependence on a single contractor for critical, specialized parts.

Positive Signals

Fixed-price contract limits cost escalation risks.
Awarded through open competition, suggesting competitive pricing.
Contract duration aligns with long-term infrastructure needs.

Sector Analysis

This contract falls within the fabricated structural metal manufacturing sector, a key component of the broader industrial and defense manufacturing base. The market for specialized heavy fabrication, particularly for infrastructure like locks and dams, is often characterized by a limited number of highly capable firms. Spending in this sector is driven by infrastructure investment, maintenance, and defense readiness requirements. Comparable spending benchmarks would typically involve other large-scale fabrication projects for civil works or military applications.

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 contractor, Steward Machine Co. Inc., is likely a larger entity. The absence of small business set-asides means that opportunities for small businesses in this specific contract are limited unless they are part of the supply chain for the prime contractor.

Oversight & Accountability

The contract is managed by the Department of the Army, likely through the U.S. Army Corps of Engineers. Oversight would typically involve contract specialists monitoring performance, delivery schedules, and quality control. As a purchase order, it may fall under standard procurement regulations. Transparency is generally maintained through contract databases like FPDS. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

USACE Civil Works Construction
Navigation Lock Maintenance
Fabricated Metal Products Manufacturing
Department of Defense Procurement

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of quality defects in critical structural components.
Contractor's capacity to meet production demands within the specified timeframe.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to STEWARD MACHINE CO INC. TAS::96 3134::TAS, RECOVERY - FABRICATION OF MITER GATES, CULVERT VALVES AND BULKHEADS FOR THE CHICKAMAUGA LOCK, NASHVILLE DISTRICT USACE

Who is the contractor on this award?

The obligated recipient is STEWARD MACHINE CO 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 $17.2 million.

What is the period of performance?

Start: 2009-09-24. End: 2012-09-29.

What is the track record of Steward Machine Co. Inc. with federal contracts, particularly with the Department of Defense?

Steward Machine Co. Inc. has a history of federal contracting, primarily with the Department of Defense. Data indicates multiple awards, including this significant purchase order for fabricated components. Analyzing their past performance, including contract values, types, and any reported issues or successes, would provide further insight into their reliability and capability. Their experience with similar large-scale fabrication projects for government entities is a key indicator of their suitability for such contracts. A review of their contract history might reveal patterns in delivery times, quality adherence, and overall customer satisfaction from the government's perspective.

How does the $17.2 million contract value compare to similar fabrication contracts for lock components?

Directly comparing the $17.2 million value requires access to a database of similar fabrication contracts for lock components, which is not readily available. However, the value suggests a substantial procurement, likely encompassing complex and large-dimensioned items like miter gates and valves. Factors influencing this value include material costs, specialized labor, engineering, manufacturing complexity, and the specific requirements of the Chickamauga Lock. The contract's duration (over 3 years) also contributes to the total value. Benchmarking against other large infrastructure projects involving heavy fabrication would be necessary for a more precise value assessment.

What are the primary risks associated with this type of fabrication contract, and how are they mitigated?

Key risks include potential delays in fabrication and delivery due to specialized manufacturing processes, material availability issues, or unforeseen technical challenges. Cost overruns are mitigated by the 'FIRM FIXED PRICE' contract type, which shifts most of the financial risk to the contractor. Quality control is crucial to ensure the components meet stringent specifications for critical infrastructure. The government mitigates risks through detailed technical specifications, quality assurance surveillance, and performance monitoring. The contractor's experience and the competitive bidding process also serve as risk mitigation factors.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers?

This contracting approach aims to balance broad competition with specific requirements that might necessitate excluding certain types of sources. By allowing multiple qualified bidders to compete, it generally promotes price discovery and encourages competitive pricing, which benefits taxpayers. The exclusion of sources, if justified and properly documented, ensures that only capable contractors participate, potentially leading to better quality and fewer performance issues. The effectiveness hinges on the clarity of exclusion criteria and the thoroughness of the competition among the remaining eligible bidders. Six bids suggest sufficient competition was maintained.

What is the historical spending pattern for fabricated structural metal manufacturing by the Department of the Army?

Historical spending data for fabricated structural metal manufacturing by the Department of the Army would reveal trends in investment in infrastructure, base support, and potentially defense-related structures. This specific contract for lock components aligns with the Army Corps of Engineers' mission to maintain and improve inland waterways and navigation systems. Analyzing past spending in this NAICS code (332312) would show whether this $17.2 million award is typical, an increase, or a decrease in investment for such specialized fabrication services. It would also indicate the frequency and scale of similar procurements.

What are the implications of the contract duration (1101 days) on the overall value and risk?

A contract duration of 1101 days (approximately three years) for fabricating miter gates and culvert valves indicates a significant, long-term requirement for these critical components. This extended period allows the contractor to plan production, procure materials, and potentially achieve economies of scale, which could contribute to better value. However, a longer duration also increases the exposure to market fluctuations (e.g., material price changes) and potential technological obsolescence, although the latter is less likely for heavy mechanical components. The fixed-price nature helps lock in the cost, but the government must ensure the specifications remain relevant throughout the period.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912P509B0019

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3911 13TH AVE N, BIRMINGHAM, AL, 35234

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

Financial Breakdown

Contract Ceiling: $17,194,154

Exercised Options: $17,194,154

Current Obligation: $17,194,154

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline