DoD Awards $18.9M to West Electronics for FSSP Hardware, Sole-Source
Contract Overview
Contract Amount: $18,934,477 ($18.9M)
Contractor: West Electronics Inc
Awarding Agency: Department of Defense
Start Date: 2010-03-04
End Date: 2011-11-10
Contract Duration: 616 days
Daily Burn Rate: $30.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 16 EACH FSSP 300K WEI BASE HARDWARE AND 11 EACH FSSP 120K WEI BASE HARDWARE
Place of Performance
Location: POPLAR, ROOSEVELT County, MONTANA, 59255
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to WEST ELECTRONICS INC for work described as: 16 EACH FSSP 300K WEI BASE HARDWARE AND 11 EACH FSSP 120K WEI BASE HARDWARE Key points: 1. Significant award value of $18.9M for specialized hardware. 2. Sole-source procurement raises questions about price discovery and competition. 3. Contract duration of 616 days suggests a substantial project timeline. 4. Focus on pump manufacturing aligns with defense logistics needs.
Value Assessment
Rating: questionable
The total award of $18,934,477 for 16 units of FSSP 300K and 11 units of FSSP 120K hardware appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the pricing is fair market value compared to similar specialized equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers as there was no market pressure to drive down prices.
Taxpayer Impact: The absence of competition in this sole-source award likely means taxpayers did not benefit from potential cost savings that a competitive bidding process could have provided.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The Department of Defense is acquiring critical hardware for its operations. Specialized pump manufacturing capabilities are being utilized for this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Specific hardware requirement met
- Established vendor relationship (implied)
Sector Analysis
The Department of Defense's spending in the pump manufacturing sector (NAICS 333913) can be substantial, particularly for specialized equipment. Benchmarks for similar sole-source contracts are difficult to establish, but competitive awards typically yield better pricing.
Small Business Impact
This contract was awarded to West Electronics Inc. and does not indicate any specific provisions or benefits for small businesses. The sole-source nature further suggests it was not aimed at fostering small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the justification for not competing the contract was valid and that the pricing negotiated was reasonable, despite the lack of competitive pressure.
Related Government Programs
- Measuring and Dispensing Pump Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for inflated pricing
- Limited opportunity for small business participation
- Long contract duration may indicate project complexity or potential delays
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 $18.9 million to WEST ELECTRONICS INC. 16 EACH FSSP 300K WEI BASE HARDWARE AND 11 EACH FSSP 120K WEI BASE 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 $18.9 million.
What is the period of performance?
Start: 2010-03-04. End: 2011-11-10.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of other sources. Without further documentation, it's unclear if West Electronics Inc. possesses unique technology or if other factors like limited market availability or specific integration requirements led to this decision. A thorough review would confirm if competitive options were genuinely exhausted.
How does the per-unit cost of the FSSP hardware compare to industry benchmarks or previous competitive procurements for similar equipment?
Given the sole-source nature and the absence of publicly available benchmark data for this specific FSSP hardware, a direct cost comparison is challenging. However, the total award of $18.9M for 27 units suggests a high per-unit cost. Further analysis would require access to internal DoD cost estimates or data from comparable, competitively awarded contracts for specialized pump systems.
What is the operational impact and necessity of the FSSP 300K and 120K hardware for the Department of the Army?
The FSSP (Forward Support Platform?) hardware likely plays a critical role in the Army's logistical or operational capabilities, possibly related to fuel, water, or other fluid management in deployed environments. The specific 'WEI BASE HARDWARE' designation suggests it's a core component. Understanding its function is key to assessing the necessity of this significant sole-source investment.
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: $18,934,477
Exercised Options: $18,934,477
Current Obligation: $18,934,477
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAE0703DT078
IDV Type: IDC
Timeline
Start Date: 2010-03-04
Current End Date: 2011-11-10
Potential End Date: 2011-11-10 00:00:00
Last Modified: 2011-10-20
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