Army Obligates $108M for Aluminum Sheet, Plate, and Foil Manufacturing via Non-Competed Delivery Order
Contract Overview
Contract Amount: $108,384,866 ($108.4M)
Contractor: Colt Defense LLC
Awarding Agency: Department of Defense
Start Date: 2007-08-28
End Date: 2008-11-30
Contract Duration: 460 days
Daily Burn Rate: $235.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER 0001 AGAINST CONTRACT. OBLIGATE MINIMUN GUARANTEED QUANTITY.
Place of Performance
Location: WEST HARTFORD, HARTFORD County, CONNECTICUT, 06110
Plain-Language Summary
Department of Defense obligated $108.4 million to COLT DEFENSE LLC for work described as: DELIVERY ORDER 0001 AGAINST CONTRACT. OBLIGATE MINIMUN GUARANTEED QUANTITY. Key points: 1. Significant contract value of $108.4M for aluminum products. 2. Sole-source award raises questions about price discovery and competition. 3. Potential risk associated with a single supplier for critical materials. 4. Spending falls within the Aluminum Sheet, Plate, and Foil Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $108.4M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aluminum products.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this large contract may result in taxpayers paying more than necessary for aluminum products.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single supplier could impact supply chain resilience. The Department of Defense is procuring essential materials for its operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Contract awarded to a known entity (COLT DEFENSE LLC)
- Clear contract duration and delivery dates
Sector Analysis
This contract falls under the Aluminum Sheet, Plate, and Foil Manufacturing sector. Spending benchmarks for this sector are difficult to ascertain without more specific product details and market data, but $108M is a significant amount.
Small Business Impact
The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses were subcontracting opportunities.
Oversight & Accountability
The 'CT' (Contracting agency) and 'SA' (Sub-agency) fields suggest oversight within the Department of the Army. However, the sole-source nature of the award warrants scrutiny regarding the justification for not competing.
Related Government Programs
- Aluminum Sheet, Plate, and Foil Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Supply chain vulnerability
- Limited transparency in award justification
Tags
aluminum-sheet-plate-and-foil-manufactur, department-of-defense, ct, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $108.4 million to COLT DEFENSE LLC. DELIVERY ORDER 0001 AGAINST CONTRACT. OBLIGATE MINIMUN GUARANTEED QUANTITY.
Who is the contractor on this award?
The obligated recipient is COLT DEFENSE 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 $108.4 million.
What is the period of performance?
Start: 2007-08-28. End: 2008-11-30.
What was the justification for awarding this contract as sole-source instead of competing it?
The justification for a sole-source award typically involves specific circumstances such as the existence of only one responsible source, urgent and compelling needs, or national security requirements. Without further documentation, the specific reason for this non-competed delivery order remains unclear and warrants investigation to ensure taxpayer funds were used appropriately.
What is the risk associated with relying on a single supplier for this critical aluminum material?
Relying on a single supplier, especially for a significant quantity of material, poses risks to the supply chain. Disruptions at the supplier's facility, geopolitical issues, or the supplier's own financial stability could lead to shortages or delays, impacting the Department of Defense's operational readiness. This also reduces leverage for future price negotiations.
How does the pricing of this contract compare to industry benchmarks for similar aluminum products?
Without access to the specific type and grade of aluminum, as well as current market prices, a direct comparison is challenging. However, the absence of competition inherently limits the ability to benchmark against market rates. A thorough review of historical pricing for similar DoD contracts and commercial market data would be necessary to assess value for money.
Industry Classification
NAICS: Manufacturing › Alumina and Aluminum Production and Processing › Aluminum Sheet, Plate, and Foil Manufacturing
Product/Service Code: WEAPONS
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
Parent Company: Colt Defense Holding LLC (UEI: 603395794)
Address: 547 NEW PARK AVE, WEST HARTFORD, CT, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $108,384,866
Exercised Options: $108,384,866
Current Obligation: $108,384,866
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52H0907D0425
IDV Type: IDC
Timeline
Start Date: 2007-08-28
Current End Date: 2008-11-30
Potential End Date: 2008-11-30 00:00:00
Last Modified: 2011-02-08
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