DoD Awards $75.9M Firm Fixed Price Contract to Colt Defense for Army FMS Colombia

Contract Overview

Contract Amount: $75,859,897 ($75.9M)

Contractor: Colt Defense LLC

Awarding Agency: Department of Defense

Start Date: 2007-12-13

End Date: 2009-08-30

Contract Duration: 626 days

Daily Burn Rate: $121.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER FOR FY08 ARMY REQUIREMENTS AND FMS COLOMBIA.

Place of Performance

Location: WEST HARTFORD, HARTFORD County, CONNECTICUT, 06110

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $75.9 million to COLT DEFENSE LLC for work described as: DELIVERY ORDER FOR FY08 ARMY REQUIREMENTS AND FMS COLOMBIA. Key points: 1. Contract awarded to Colt Defense LLC for aluminum products. 2. Significant award value of $75.9 million. 3. Contract is a Delivery Order (DO) under an existing agreement. 4. No indication of small business participation. 5. Foreign Military Sales (FMS) to Colombia is a key aspect.

Value Assessment

Rating: fair

The contract is a firm fixed price type, which typically offers good value certainty. However, without knowing the specific requirements and the competitive landscape at the time of the original award, assessing the absolute value is difficult. The benchmark for Aluminum Sheet, Plate, and Foil Manufacturing (NAICS 331315) would be needed for a more precise comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition scenario. This could be due to a specific existing contract vehicle or a sole-source justification not detailed here. Limited competition can sometimes lead to less favorable pricing for the government compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this contract, which supports Army requirements and FMS to Colombia. The lack of competition raises questions about whether the best possible price was secured.

Public Impact

Supports U.S. Army operational needs and foreign military sales. Funds allocated for aluminum products used in defense applications. Potential impact on the defense industrial base, specifically Colt Defense. International relations implications through FMS to Colombia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Not competed
Lack of small business set-aside
Foreign Military Sales component

Positive Signals

Firm Fixed Price contract type
Supports critical Army requirements
Long-term delivery period

Sector Analysis

This contract falls under the Aluminum Sheet, Plate, and Foil Manufacturing sector (NAICS 331315). Spending in this sector for defense applications can fluctuate based on military readiness needs and specific equipment requirements. Benchmarks would typically be derived from historical contract data for similar aluminum products within the defense industry.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false) and there is no indication of a small business set-aside (st: CT). This suggests that the prime contractor, Colt Defense LLC, is likely a large business, and opportunities for small businesses to participate as subcontractors are not explicitly detailed in this award notice.

Oversight & Accountability

As a Delivery Order (DO), this contract likely falls under a larger, pre-existing contract that would have undergone initial oversight. However, the 'not competed' status for this specific DO warrants scrutiny to ensure the pricing and terms are justified and that the original contract vehicle allowed for such an award without further competition.

Related Government Programs

Aluminum Sheet, Plate, and Foil Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract not competed
Potential for higher pricing due to lack of competition
No small business participation indicated
Reliance on a single supplier (Colt Defense LLC)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.9 million to COLT DEFENSE LLC. DELIVERY ORDER FOR FY08 ARMY REQUIREMENTS AND FMS COLOMBIA.

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 $75.9 million.

What is the period of performance?

Start: 2007-12-13. End: 2009-08-30.

What was the justification for not competing this significant delivery order, and how does the pricing compare to market rates for similar aluminum products?

The justification for not competing this delivery order is not provided in the data. Typically, non-competitive awards are made when there's a sole-source justification, a follow-on requirement to a previously competed contract, or if it's part of a specific program requiring unique capabilities. A thorough price analysis comparing the $75.9 million award to benchmark data for aluminum sheet, plate, and foil manufacturing would be necessary to assess if the government received fair and reasonable pricing.

What are the specific risks associated with awarding a $75.9 million contract without competition, particularly concerning potential cost overruns or quality issues?

The primary risk of awarding a large contract without competition is the potential for paying inflated prices due to a lack of market pressure. Without competitive bids, there's less incentive for the contractor to offer the lowest possible price. Additionally, oversight becomes even more critical to ensure the quality of the aluminum products meets stringent military specifications and that the delivery schedule is adhered to, as there are fewer external checks and balances.

How effectively does this contract support the stated Army requirements and FMS to Colombia, and what is the long-term strategic value?

This contract directly supports the stated Army requirements and FMS to Colombia by providing necessary aluminum products. The firm fixed price nature suggests a commitment to delivering specific goods within a set budget, contributing to operational readiness. The long-term strategic value lies in maintaining a supply chain for critical materials for both U.S. defense needs and allied support, potentially strengthening international partnerships through FMS.

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: $75,859,897

Exercised Options: $75,859,897

Current Obligation: $75,859,897

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52H0907D0425

IDV Type: IDC

Timeline