DoD awards $17.6M for Petroleum Production & Distribution Equipment to West Electronics Inc
Contract Overview
Contract Amount: $17,657,600 ($17.7M)
Contractor: West Electronics Inc
Awarding Agency: Department of Defense
Start Date: 2003-03-28
End Date: 2010-05-01
Contract Duration: 2,591 days
Daily Burn Rate: $6.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200306!003976!2100!AE07 !TACOM - WARREN !DAAE0703DT078 !A!N! !N!0001 !20030328!20101231!054982574!054982574!054982574!N!WEST ELECTRONICS INC !INDUSTRIAL PARK !POPLAR !MT!59255!58975!085!30!POPLAR !ROOSEVELT !MONTANA !+000012578672!N!N!000000000000!3835!PETROLEUM PRODUCTION & DISTRIBUTION EQUIP !A8A!PETROLEUM !1HXT!INLAND PETROLEUM DIST SYSTEM !333913!E! !5!B!S! ! ! !99990909!B! ! !N!Z!A!U!J!2!001!K! !A!Y!A! ! !N!A!N!Y!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: POPLAR, ROOSEVELT County, MONTANA, 59255
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to WEST ELECTRONICS INC for work described as: 200306!003976!2100!AE07 !TACOM - WARREN !DAAE0703DT078 !A!N! !N!0001 !20030328!20101231!054982574!054982574!054982574!N!WEST ELECTRONICS INC !INDUSTRIAL PARK !POPLAR !MT!59255!58975!085!30!POPLAR !ROOSE… Key points: 1. Contract awarded to West Electronics Inc. for petroleum equipment. 2. The contract was not competed, raising potential value concerns. 3. The duration of the contract is over 7 years. 4. The sector is industrial equipment, specifically petroleum distribution systems.
Value Assessment
Rating: questionable
The contract value of $17.6M over approximately 7 years for petroleum production and distribution equipment appears high given the lack of competition. Benchmarking against similar contracts is difficult without more detailed specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may have resulted in a higher price than could have been achieved through a competitive bidding process.
Public Impact
Ensures continued supply of critical petroleum distribution equipment for military operations. Potential for higher costs due to non-competitive award. Supports a single contractor, West Electronics Inc., for this specific equipment.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for overpricing
Positive Signals
- Ensures supply of essential equipment
- Supports a specific industrial capability
Sector Analysis
This contract falls within the industrial equipment manufacturing sector, specifically for petroleum production and distribution systems. Spending benchmarks for this niche are not readily available but typically involve specialized manufacturing and robust supply chains.
Small Business Impact
The award went to West Electronics Inc., a firm located in Montana. There is no indication in the data whether this firm qualifies as a small business, nor is there information on subcontracting opportunities for small businesses.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure fair pricing and justification for the sole-source approach. Accountability for the procurement process and cost-effectiveness is crucial.
Related Government Programs
- Measuring and Dispensing Pump Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Long contract duration without clear performance metrics
- Limited transparency on justification for sole-source
Tags
measuring-and-dispensing-pump-manufactur, department-of-defense, mt, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to WEST ELECTRONICS INC. 200306!003976!2100!AE07 !TACOM - WARREN !DAAE0703DT078 !A!N! !N!0001 !20030328!20101231!054982574!054982574!054982574!N!WEST ELECTRONICS INC !INDUSTRIAL PARK !POPLAR !MT!59255!58975!085!30!POPLAR !ROOSEVELT !MONTANA !+000012578672!N!N!000000000000!3835!PETROLEUM PRODUCTION & DISTRIBUTION EQUIP !A8A!PETROLEUM !1HXT!INLAND PETROLEUM DIST SYSTEM !333913!E! !5!B!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is WEST ELECTRONICS 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 $17.7 million.
What is the period of performance?
Start: 2003-03-28. End: 2010-05-01.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of alternative sources. Without specific documentation, it's impossible to confirm the precise reason, but it significantly impacts the potential for competitive pricing and taxpayer value.
How does the unit cost of this equipment compare to industry standards, given the lack of competition?
Benchmarking the unit cost is challenging due to the sole-source nature of the award and the specific nature of 'Petroleum Production & Distribution Equipment.' A competitive process would normally provide a clearer market price. The absence of competition raises concerns that the unit cost may be higher than if multiple vendors had bid.
What is the long-term strategic value of this sole-source contract for the Department of Defense?
The long-term strategic value hinges on the criticality of the equipment and the contractor's unique ability to supply it. If West Electronics Inc. possesses proprietary technology or specialized manufacturing processes essential for national security, the sole-source award might be strategically justified despite the cost implications.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Measuring and Dispensing Pump Manufacturing
Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: INDUSTRIAL PARK, POPLAR, MT, 02
Business Categories: Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAE0703DT078
IDV Type: IDC
Timeline
Start Date: 2003-03-28
Current End Date: 2010-05-01
Potential End Date: 2010-05-01 00:00:00
Last Modified: 2011-10-07
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