DoD's $20.8M Contract for Machinery Manufacturing Services Awarded to SAAB, INC
Contract Overview
Contract Amount: $20,793,317 ($20.8M)
Contractor: Saab, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-11-04
End Date: 2014-12-01
Contract Duration: 392 days
Daily Burn Rate: $53.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
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 $20.8 million to SAAB, INC. for work described as: LT2 - IRS Key points: 1. The contract value is $20.8 million, awarded by the Department of the Army. 2. SAAB, INC. secured the contract through full and open competition. 3. The contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code. 4. This award represents a single delivery order with a fixed price.
Value Assessment
Rating: good
The contract uses a Firm Fixed Price (FFP) type, which is standard for this type of procurement. The award amount of $20.8 million appears reasonable for machinery manufacturing services, though a direct comparison to similar contracts would require more detailed benchmarking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition suggests that taxpayer funds were likely used efficiently by fostering a competitive bidding process.
Public Impact
Ensures the Department of the Army has necessary machinery manufacturing capabilities. Supports industrial manufacturing sector through government contracts. SAAB, INC. benefits from a significant government contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Limited insight into the exact nature of the machinery manufactured.
- Potential for cost overruns if not managed tightly despite FFP.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Contract awarded to a known entity (SAAB, INC.).
Sector Analysis
The machinery manufacturing sector is diverse, encompassing a wide range of industrial equipment. Government contracts in this area often support defense, infrastructure, or specialized industrial needs. Benchmarks for this specific sub-sector are difficult to ascertain without more granular data on the machinery type.
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 participation was sought as a subcontractor.
Oversight & Accountability
The contract was awarded via a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a standalone order. Oversight would focus on delivery timelines, quality of manufactured goods, and adherence to contract terms.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a single vendor.
- Limited detail on specific deliverables.
- No indication of small business subcontracting.
- Potential for quality control issues with manufactured goods.
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 $20.8 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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.8 million.
What is the period of performance?
Start: 2013-11-04. End: 2014-12-01.
What specific types of machinery were manufactured under this contract, and how do they align with the Department of the Army's operational needs?
The provided data does not specify the exact types of machinery manufactured. It falls under NAICS code 333319, 'Other Commercial and Service Industry Machinery Manufacturing.' To assess alignment, a review of the contract's statement of work and the Army's equipment requirements would be necessary. This would clarify if the machinery supports logistics, maintenance, or other critical functions.
Given the $20.8 million value and fixed-price nature, what are the primary risks associated with this contract for the government?
The primary risks include potential quality issues if SAAB, INC. cuts corners to maintain profitability, or if the machinery does not meet precise specifications. There's also a risk of scope creep if requirements change significantly post-award, potentially leading to change orders that could increase the total cost despite the FFP structure. Delays in delivery could also impact Army operations.
How effective was the full and open competition in ensuring the best value for taxpayers on this machinery manufacturing contract?
Full and open competition is generally effective in driving best value by encouraging multiple bids and promoting competitive pricing. Without access to the bidding process details, it's presumed that this method yielded a competitive price for the machinery. However, true effectiveness is best measured by comparing the final price against independent cost estimates and market rates for similar equipment.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Saab Aktiebolag (UEI: 354001059)
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: $20,823,106
Exercised Options: $20,823,106
Current Obligation: $20,793,317
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: 2013-11-04
Current End Date: 2014-12-01
Potential End Date: 2014-12-01 00:00:00
Last Modified: 2016-07-06
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