DoD Awards $37.2M for FSSP Supply Hardware to West Electronics Inc
Contract Overview
Contract Amount: $37,215,153 ($37.2M)
Contractor: West Electronics Inc
Awarding Agency: Department of Defense
Start Date: 2008-12-29
End Date: 2010-12-15
Contract Duration: 716 days
Daily Burn Rate: $52.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 37 EACH OF 300K FSSP SUPPL HARDWARE 19 EACH OF 120K FSSP SUPPL HARDWARE
Place of Performance
Location: POPLAR, ROOSEVELT County, MONTANA, 59255
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $37.2 million to WEST ELECTRONICS INC for work described as: 37 EACH OF 300K FSSP SUPPL HARDWARE 19 EACH OF 120K FSSP SUPPL HARDWARE Key points: 1. Contract awarded for FSSP supply hardware, indicating a need for specialized equipment. 2. West Electronics Inc. is the sole awardee, raising questions about competition. 3. The contract value is substantial, requiring careful oversight for taxpayer value. 4. The sector is related to pump manufacturing, suggesting a niche industrial application.
Value Assessment
Rating: fair
The contract value of $37.2 million for 300,000 units of hardware appears high given the per-unit cost implied by the total award. Benchmarking against similar pump manufacturing hardware contracts would be necessary for a definitive assessment.
Cost Per Unit: Approximately $124 per unit (total award / total units).
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there is a risk that the price may not reflect the best value achievable, and the government may have paid a premium.
Taxpayer Impact: The lack of competition for this significant award raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may have paid more than necessary due to the sole-source nature of the award. The Department of Defense is acquiring specialized hardware, potentially impacting readiness or operational capabilities. The long contract duration (716 days) suggests a sustained need for these supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Award to a specific company for specialized hardware
Sector Analysis
The contract falls within the Measuring and Dispensing Pump Manufacturing sector. Spending in this niche industrial area can vary significantly based on defense needs and technological advancements. Benchmarking against similar defense-related pump manufacturing contracts is crucial.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine if small business participation was considered or if opportunities were missed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The Department of Defense should have robust justification for not competing this requirement.
Related Government Programs
- Measuring and Dispensing Pump Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Potential for inflated pricing
- Lack of transparency in price discovery
- No indication of small business participation
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 $37.2 million to WEST ELECTRONICS INC. 37 EACH OF 300K FSSP SUPPL HARDWARE 19 EACH OF 120K FSSP SUPPL HARDWARE
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 $37.2 million.
What is the period of performance?
Start: 2008-12-29. End: 2010-12-15.
What is the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent need, or lack of adequate competition. Without access to the specific contract file and justification documentation, it is impossible to definitively state the reason. However, the absence of competition raises concerns about potential price inflation and reduced value for taxpayer money.
How does the per-unit cost compare to industry benchmarks for similar pump supply hardware?
The implied per-unit cost is approximately $124. Without specific details on the exact nature of the 'FSSP Supply Hardware' and its technical specifications, a precise comparison is difficult. However, this figure should be benchmarked against commercially available or previously procured similar items to assess if it represents a fair and reasonable price for the government.
What is the potential impact on operational effectiveness if this hardware is not procured competitively?
If the hardware is critical for operational effectiveness and was not competitively procured, there's a risk that the government may have paid a premium, diverting funds that could have been used for other essential needs. Additionally, a sole-source award might limit access to potentially superior or more cost-effective alternatives available in the market.
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
Financial Breakdown
Contract Ceiling: $37,215,153
Exercised Options: $37,215,153
Current Obligation: $37,215,153
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAE0703DT078
IDV Type: IDC
Timeline
Start Date: 2008-12-29
Current End Date: 2010-12-15
Potential End Date: 2010-12-15 00:00:00
Last Modified: 2011-10-07
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