DoD's $23.2M contract for Ammunition Control Points awarded to domestic, undisclosed entities

Contract Overview

Contract Amount: $23,240,788 ($23.2M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2006-09-18

End Date: 2009-04-29

Contract Duration: 954 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: AMMUNITION CONTROL POINTS (ACP)

Plain-Language Summary

Department of Defense obligated $23.2 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: AMMUNITION CONTROL POINTS (ACP) Key points: 1. The contract value of $23.2 million represents a significant investment in logistical support for ammunition. 2. Awarded under full and open competition, suggesting a broad market search for qualified vendors. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of 954 days indicates a medium-term need for these specialized services. 5. The lack of specific awardee information raises questions about transparency and potential market concentration. 6. The contract's focus on 'AMMUNITION CONTROL POINTS' highlights a critical, albeit niche, aspect of military logistics.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed nature of the awardees and the specific services provided under 'AMMUNITION CONTROL POINTS (ACP)'. Without comparable contract data or detailed service breakdowns, it's difficult to assess if the $23.2 million price represents good value for money. The fixed-price nature suggests an attempt to manage costs, but the overall value proposition remains unclear without further context on performance metrics and market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. The presence of 4 bids suggests a reasonable level of interest from the market. However, the lack of specific details on the number of bidders and the nature of the competition makes it difficult to definitively assess the effectiveness of the competition in driving down prices or ensuring the best possible value.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of suppliers to bid, potentially leading to lower prices and higher quality services. The fact that there were multiple bids suggests that taxpayer funds were likely used efficiently in this instance.

Public Impact

The primary beneficiaries are likely Department of Defense logistics and supply chain operations, ensuring efficient management of ammunition. Services delivered include the establishment and maintenance of systems or processes for controlling and tracking ammunition. The geographic impact is likely focused on military installations and operational theaters where ammunition is stored and managed. Workforce implications may involve specialized personnel in logistics, inventory management, and potentially IT support for control systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding awardees hinders assessment of contractor performance and potential conflicts of interest.
The specific nature of 'AMMUNITION CONTROL POINTS' is not detailed, making it hard to evaluate the necessity and scope of the services.
Limited information on performance metrics makes it difficult to gauge the effectiveness of the contract.
The contract's age (awarded in 2006) means current market conditions and technological advancements may not be reflected.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified vendors.
Fixed-price contract type is generally favorable for cost control.
The contract addresses a critical logistical need within the Department of Defense.
Multiple bids were received, indicating market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, though its specific application to 'AMMUNITION CONTROL POINTS' suggests a specialized niche within defense logistics. The market for such specialized logistical support services within the defense sector is often characterized by a limited number of highly qualified contractors. Comparable spending benchmarks are difficult to establish without more granular data on the services provided.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific details on subcontracting, it is presumed that the primary awardees, whose identities are undisclosed, managed the contract execution directly or through larger supply chains.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the terms of the fixed-price definitive contract, including delivery schedules and performance specifications. Transparency is limited by the undisclosed nature of the awardees. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Operations
Army Ammunition Activity
Military Supply Chain Management
Defense Contract Management Agency (DCMA)

Risk Flags

Lack of Awardee Identification
Ambiguous Service Description
Potential for Cost Overruns (despite fixed-price)
Limited Performance Data Availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to DOMESTIC AWARDEES (UNDISCLOSED). AMMUNITION CONTROL POINTS (ACP)

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2006-09-18. End: 2009-04-29.

What specific services are encompassed by 'AMMUNITION CONTROL POINTS (ACP)'?

The term 'AMMUNITION CONTROL POINTS (ACP)' is not a standard, widely defined term in public defense contracting literature. It likely refers to a system, process, or facility established to manage, track, secure, and control the inventory and movement of ammunition. This could involve physical security measures, digital inventory management systems, chain-of-custody protocols, and potentially maintenance or storage services for ammunition. Without further clarification from the Department of Defense or the contracting agency, the precise scope of services remains ambiguous. This ambiguity makes it challenging to assess the contract's true purpose, its necessity, and the value delivered for the $23.2 million expenditure.

How does the fixed-price contract type impact cost control for ammunition logistics?

A fixed-price contract type, such as the 'FIXED PRICE' (PT) designation for this contract, establishes a ceiling price for the work to be performed. This contract structure is generally favored by the government when the scope of work is well-defined and the risks of cost overruns are manageable. For ammunition logistics, a fixed-price contract incentivizes the contractor to perform the services efficiently to maximize profit. It shifts the risk of cost overruns to the contractor. However, if the scope of 'AMMUNITION CONTROL POINTS' was not fully understood at the time of award, or if unforeseen issues arose, the fixed price could lead to the contractor cutting corners on quality or service, or potentially seeking contract modifications. The effectiveness of this type for this specific contract depends heavily on the clarity of the statement of work and the contractor's ability to manage their costs within the agreed-upon price.

What are the implications of 'DOMESTIC AWARDEES (UNDISCLOSED)' for transparency and accountability?

The designation 'DOMESTIC AWARDEES (UNDISCLOSED)' significantly hampers transparency and accountability. While the awardees are domestic entities, the inability to identify them prevents public scrutiny of their track records, potential conflicts of interest, or their capacity to perform the contracted services. This lack of disclosure makes it difficult for watchdog organizations, researchers, and even other government agencies to assess the effectiveness of the procurement process and the value received for taxpayer money. Accountability is also weakened, as it becomes harder to link performance issues or contract disputes directly to a specific entity. This practice raises concerns about whether the government is achieving the best possible outcomes when key information about its partners is withheld.

How does the duration of 954 days (approximately 2.6 years) influence the assessment of this contract?

A contract duration of 954 days suggests a medium-term commitment for the services related to Ammunition Control Points. This duration implies that the services are not a short-term, ad-hoc need but rather a sustained requirement for the Department of the Army. For a fixed-price contract, a longer duration can sometimes introduce more risk related to changing market conditions, technological obsolescence, or unforeseen operational requirements. However, it also allows the contractor more time to amortize startup costs and potentially achieve economies of scale. From an assessment perspective, this duration necessitates evaluating the contractor's ability to maintain performance and adapt to potential changes over the contract period, while also considering whether the fixed price remains appropriate throughout its term.

What is the significance of the PSC code (if available) or NAICS code (236220) in understanding this contract?

The North American Industry Classification System (NAICS) code provided is 236220, which corresponds to 'Commercial and Institutional Building Construction'. This classification suggests that the contract may involve the construction, alteration, or repair of non-residential buildings. In the context of 'AMMUNITION CONTROL POINTS (ACP)', this could imply the construction or modification of facilities designed for ammunition storage, handling, or control. However, it's also possible that this code is used broadly, and the actual services are more focused on logistical systems or IT infrastructure within such buildings. The code provides a general industry context but requires further information to pinpoint the exact nature of the services rendered under this specific contract.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W917PM06R0049

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,240,788

Exercised Options: $23,240,788

Current Obligation: $23,240,788

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline