DoD Awards $34.8M to West Electronics for Pump Manufacturing Hardware, Sole-Source Contract
Contract Overview
Contract Amount: $34,795,585 ($34.8M)
Contractor: West Electronics Inc
Awarding Agency: Department of Defense
Start Date: 2010-03-04
End Date: 2012-08-10
Contract Duration: 890 days
Daily Burn Rate: $39.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 55 EACH FSSP 120K WEI OCO HARDWARE
Place of Performance
Location: POPLAR, ROOSEVELT County, MONTANA, 59255
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $34.8 million to WEST ELECTRONICS INC for work described as: 55 EACH FSSP 120K WEI OCO HARDWARE Key points: 1. Significant contract value of $34.8 million awarded to West Electronics Inc. 2. The contract was awarded on a sole-source basis, raising questions about competition. 3. The product service code (PSC) is 333913, related to pump manufacturing. 4. This spending falls under the Department of Defense's procurement activities.
Value Assessment
Rating: questionable
The contract value of $34.8 million for pump manufacturing hardware needs further benchmarking against similar sole-source procurements. Without competitive bids, it's difficult to ascertain if the firm fixed price represents optimal value for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition in this $34.8 million award may result in taxpayers paying a premium for the hardware.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense is acquiring essential pump manufacturing hardware. West Electronics Inc. is the sole recipient of this significant contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Contract awarded to a specific company
- Clear product/service category
Sector Analysis
This procurement falls within the manufacturing sector, specifically pump manufacturing. Benchmarking against similar sole-source hardware contracts within the Department of Defense is crucial for assessing value.
Small Business Impact
The data does not indicate whether small businesses were involved in this sole-source contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for not seeking competitive proposals. Oversight should focus on the necessity of this procurement method.
Related Government Programs
- Measuring and Dispensing Pump Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price discovery.
- No indication of small business participation.
Tags
measuring-and-dispensing-pump-manufactur, department-of-defense, mt, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to WEST ELECTRONICS INC. 55 EACH FSSP 120K WEI OCO 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 $34.8 million.
What is the period of performance?
Start: 2010-03-04. End: 2012-08-10.
What is the justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm the absence of other capable sources?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. A thorough market research should have been conducted to validate that no other responsible sources exist or can be developed to meet the agency's needs within a reasonable timeframe.
How does the firm fixed price of this contract compare to industry benchmarks for similar pump manufacturing hardware, especially considering the lack of competition?
Without competitive bids, it is challenging to establish a precise benchmark. However, the government should have conducted an independent cost estimate or utilized historical pricing data for comparable sole-source procurements. Any significant deviation from expected costs would be a red flag requiring further investigation.
What is the long-term strategy for acquiring this type of hardware, and will future procurements be competed to ensure better value for taxpayer dollars?
The long-term strategy should ideally involve transitioning to a competitive procurement process for future needs, if feasible. Agencies should explore options for breaking down requirements, encouraging new market entrants, or leveraging existing contracts with competitive pricing to maximize efficiency and cost savings.
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, 59255
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: $34,795,585
Exercised Options: $34,795,585
Current Obligation: $34,795,585
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAE0703DT078
IDV Type: IDC
Timeline
Start Date: 2010-03-04
Current End Date: 2012-08-10
Potential End Date: 2012-08-10 12:08:00
Last Modified: 2018-10-17
More Contracts from West Electronics Inc
- Delivery Order 0019 to Contract Daae07-03-D-T078 (ordering Year 8) for the Procurement of QTY 27, 300K Fuel System Supply Point's (fssp) and QTY 45, 120K Fssp's — $48.7M (Department of Defense)
- 37 Each of 300K Fssp Suppl Hardware 19 Each of 120K Fssp Suppl Hardware — $37.2M (Department of Defense)
- 16 Each Fssp 300K WEI Base Hardware and 11 Each Fssp 120K WEI Base Hardware — $18.9M (Department of Defense)
- 200306!003976!2100!AE07 !tacom - Warren !daae0703dt078 !A!N! !N!0001 !20030328!20101231!054982574!054982574!054982574!n!west Electronics Inc !industrial Park !poplar !mt!59255!58975!085!30!poplar !roosevelt !montana !+000012578672!n!n!000000000000!3835!petroleum Production & Distribution Equip !a8a!petroleum !1hxt!inland Petroleum Dist System !333913!E! !5!B!S! ! ! !99990909!B! ! !n!z!a!u!j!2!001!k! !A!Y!A! ! !n!a!n!y!e! ! ! !d!a!000!a!b!n! ! ! ! ! ! !0001! ! — $17.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)