DoD awards $8M+ for miscellaneous fabricated metal products, with VAST INDUSTRIES, LLC as sole provider

Contract Overview

Contract Amount: $8,054,918 ($8.1M)

Contractor: Vast Industries, LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-26

End Date: 2026-11-26

Contract Duration: 638 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GIWW FY25 SUPPLIES

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to VAST INDUSTRIES, LLC for work described as: GIWW FY25 SUPPLIES Key points: 1. Contract awarded to a single vendor suggests limited market exploration. 2. Pricing for fabricated metal products needs benchmarking against similar DoD procurements. 3. The firm fixed-price structure shifts cost risk to the contractor. 4. Contract duration of nearly two years indicates a sustained need for these supplies. 5. Geographic location in Louisiana may influence logistics and regional economic impact. 6. Lack of competition raises questions about potential overpayment and value for money.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to assess if the $8.05 million awarded represents fair market value. Benchmarking against similar contracts for miscellaneous fabricated metal products within the Department of Defense is crucial. The firm fixed-price contract type, while beneficial for budget certainty, can lead to higher costs if competition is absent. Further analysis of the specific 'All Other Miscellaneous Fabricated Metal Product Manufacturing' category and its market rates is needed to determine if the price is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source contract to VAST INDUSTRIES, LLC. The absence of a competitive bidding process means that multiple vendors were not given the opportunity to offer their products or services. This limits the government's ability to leverage market forces to secure the best possible pricing and terms.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without competing bids, there is a risk that the awarded price is higher than it would have been in a competitive environment.

Public Impact

The Department of the Army will receive miscellaneous fabricated metal products essential for its operations. The contract supports VAST INDUSTRIES, LLC, a private sector entity, likely preserving or creating jobs within its workforce. The primary geographic impact is in Louisiana, where the contractor is located, potentially boosting the local economy. The services delivered are the manufacturing and supply of specific metal products, contributing to the DoD's logistical and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices and reduced value for taxpayer dollars.
Sole-source awards can indicate potential market concentration or insufficient outreach to potential suppliers.
The specific nature of 'All Other Miscellaneous Fabricated Metal Product Manufacturing' might obscure detailed cost breakdowns and performance metrics.

Positive Signals

Firm fixed-price contract provides cost certainty for the Department of Defense.
The contract duration suggests a stable and predictable supply chain for essential materials.
Awarding to a single entity can streamline the procurement process and reduce administrative overhead.

Sector Analysis

The procurement falls under the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' sector, a broad category encompassing a wide range of metal goods not specified elsewhere. This sector is critical for supporting various industrial and governmental needs, including defense. The market size for such fabricated metal products is substantial, driven by demand from construction, manufacturing, and government agencies. This contract represents a specific, albeit undefined, portion of that broader market spending.

Small Business Impact

This contract does not appear to have a small business set-aside (SS=false, SB=false). There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary awardee is VAST INDUSTRIES, LLC, and no specific provisions for small business participation have been identified in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is limited due to the sole-source nature and lack of detailed public information on the specific products. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Supply Chain Management
Army Materiel Command (AMC) Procurement
Fabricated Metal Product Manufacturing Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on specific product details.
Potential for above-market pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to VAST INDUSTRIES, LLC. GIWW FY25 SUPPLIES

Who is the contractor on this award?

The obligated recipient is VAST INDUSTRIES, 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 $8.1 million.

What is the period of performance?

Start: 2025-02-26. End: 2026-11-26.

What is the specific nature of the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' being procured?

The provided data does not specify the exact nature of the 'All Other Miscellaneous Fabricated Metal Product Manufacturing' being procured under contract number [Contract Number]. This category (NAICS code 332999) is very broad and can include items such as metal tanks, industrial valves, pipe fittings, screw machine products, and other fabricated metal items. Without further details, it is impossible to assess the criticality, technical specifications, or precise application of these supplies. This lack of specificity hinders a thorough value analysis and risk assessment, as the complexity, material costs, and manufacturing processes can vary significantly within this classification.

How does the awarded price compare to similar sole-source contracts for fabricated metal products?

Direct comparison of the $8.05 million award to similar sole-source contracts for fabricated metal products is challenging without knowing the specific items procured. However, sole-source awards inherently carry a higher risk of non-competitive pricing. To benchmark effectively, one would need to identify contracts with similar scope, volume, and complexity, ideally those awarded competitively, to establish a market price range. The absence of competitive data for this specific award means that a definitive value-for-money assessment is currently not feasible. Further investigation into historical pricing for comparable items, if available, would be necessary.

What are the potential risks associated with a sole-source award for these fabricated metal products?

The primary risk associated with this sole-source award is the potential for inflated pricing due to the lack of competition. Without competing bids, VAST INDUSTRIES, LLC may not have been incentivized to offer the lowest possible price. Other risks include potential complacency in quality or delivery timelines, as there is no immediate threat of losing future business to competitors. Furthermore, a sole-source award can indicate a lack of market research or an inability to identify alternative suppliers, which could represent a systemic issue in the procurement process for these types of goods. This could also limit innovation and the adoption of new manufacturing techniques.

What is VAST INDUSTRIES, LLC's track record with government contracts, particularly sole-source awards?

Information regarding VAST INDUSTRIES, LLC's specific track record with government contracts, especially sole-source awards, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like FPDS-NG or SAM.gov) to review their contract history, past performance evaluations, and any previous sole-source awards. Understanding their history of performance, delivery timeliness, quality compliance, and pricing trends on prior contracts is crucial for assessing the reliability and value proposition of this current award. Without this historical context, evaluating the contractor's suitability and the wisdom of a sole-source decision is speculative.

What is the historical spending pattern for 'All Other Miscellaneous Fabricated Metal Product Manufacturing' by the Department of Defense?

The provided data snippet does not contain historical spending patterns for this specific category. To determine historical spending, one would need to query federal procurement databases for all contracts awarded under NAICS code 332999 by the Department of Defense over several fiscal years. Analyzing this data would reveal trends in spending volume, average contract values, the prevalence of competitive versus sole-source awards, and key contractors. Such an analysis would help contextualize the current $8.05 million award within the broader DoD procurement landscape for these types of products and identify any significant deviations or patterns.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W912P825R0012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 118 VILLAGE ST STE C, SLIDELL, LA, 70458

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,054,918

Exercised Options: $8,054,918

Current Obligation: $8,054,918

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline