DoD's $33.8M Contract for Machinery Manufacturing Services Awarded to SAAB, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $33,786,141 ($33.8M)
Contractor: Saab, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-03-30
End Date: 2014-02-28
Contract Duration: 1,066 days
Daily Burn Rate: $31.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LT2 IRS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $33.8 million to SAAB, INC. for work described as: LT2 IRS Key points: 1. The contract value of $33.8 million is significant for this machinery manufacturing sector. 2. SAAB, INC. secured the award through full and open competition, indicating a competitive bidding process. 3. The contract duration of 1066 days suggests a substantial, long-term requirement. 4. The firm fixed-price contract type aims to control costs for the Department of Defense.
Value Assessment
Rating: good
The contract's firm fixed-price structure suggests a focus on cost control. Benchmarking against similar machinery manufacturing contracts would provide a clearer picture of value, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically leads to better price discovery and potentially lower costs for the government. Multiple bidders likely participated, fostering a competitive environment.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, as the lowest price technically acceptable or best value offer was likely chosen.
Public Impact
Ensures the Department of Defense has necessary machinery manufacturing capabilities. Supports jobs within the machinery manufacturing sector. The competitive award process benefits government efficiency and cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if scope creep occurs despite fixed-price.
- Dependence on a single contractor for a significant duration.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type.
- Long-term contract provides stability for DoD needs.
Sector Analysis
This contract falls within the Other Commercial and Service Industry Machinery Manufacturing sector. Spending in this sector can vary widely based on defense needs and technological advancements. The $33.8M value is substantial for a single contract in this area.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business subcontracting opportunities were pursued or mandated.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the effectiveness of this oversight in ensuring performance and value requires further investigation.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration is lengthy (1066 days).
- No small business participation indicated.
- Specific machinery type not detailed.
- Potential for scope creep despite fixed-price.
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.8 million to SAAB, INC.. LT2 IRS
Who is the contractor on this award?
The obligated recipient is SAAB, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $33.8 million.
What is the period of performance?
Start: 2011-03-30. End: 2014-02-28.
What specific types of machinery are being manufactured or serviced under this contract, and how critical are they to DoD operations?
The provided data classifies the contract under 'Other Commercial and Service Industry Machinery Manufacturing' (NAICS 333319) but does not specify the exact machinery. Understanding the criticality of these items to DoD operations is essential for assessing the true value and risk associated with this $33.8 million award. Without this detail, it's difficult to gauge the impact of potential disruptions or the necessity of the procured items.
Given the 1066-day duration and firm fixed-price, what mechanisms are in place to manage potential scope creep or unforeseen technical challenges that could impact SAAB, INC.'s profitability and DoD's
While a firm fixed-price contract aims to cap costs, long durations and complex manufacturing can introduce risks. The contract likely includes clauses for change orders, but the process for approving scope adjustments and their cost implications needs scrutiny. Effective oversight by the Defense Contract Management Agency is crucial to prevent uncontrolled scope creep and ensure the government only pays for agreed-upon modifications, safeguarding taxpayer funds.
How does the $33.8 million award compare to industry benchmarks for similar machinery manufacturing contracts, considering the duration and scope?
The $33.8 million value for a 1066-day contract in the machinery manufacturing sector appears substantial. Benchmarking against similar contracts awarded through full and open competition would be necessary to definitively assess its value. Factors like the complexity of the machinery, required specifications, and the specific market conditions at the time of award would influence this comparison, impacting the assessment of whether the government secured a competitive price.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W900KK08R0001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Saab Aktiebolag
Address: 2602 CHALLENGER TECH, ORLANDO, FL, 32826
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,629,625
Exercised Options: $33,786,141
Current Obligation: $33,786,141
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK09D0405
IDV Type: IDC
Timeline
Start Date: 2011-03-30
Current End Date: 2014-02-28
Potential End Date: 2014-02-28 00:00:00
Last Modified: 2025-04-02
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