Department of the Army awarded COLT DEFENSE LLC a $24.5M contract for aluminum sheet, plate, and foil manufacturing

Contract Overview

Contract Amount: $24,547,614 ($24.5M)

Contractor: Colt Defense LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-15

End Date: 2010-04-30

Contract Duration: 592 days

Daily Burn Rate: $41.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DO 0017

Place of Performance

Location: WEST HARTFORD, HARTFORD County, CONNECTICUT, 06110

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to COLT DEFENSE LLC for work described as: DO 0017 Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The duration of the contract (592 days) suggests a significant need for the specified aluminum products. 3. The absence of small business set-aside indicates that large businesses were likely the primary focus for this procurement. 4. The fixed-price contract type aims to provide cost certainty, but the sole-source nature may limit its effectiveness. 5. The specific North American Industry Classification System (NAICS) code 331315 points to a specialized manufacturing sector.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the lack of publicly available comparable contract data. The raw dollar amount of $24.5 million for aluminum manufacturing over approximately 1.6 years appears substantial, but without competitive bids or detailed cost breakdowns, it's difficult to definitively assess if it represents good value for money. The absence of competition suggests potential for higher-than-market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, COLT DEFENSE LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no direct price comparison or incentive for vendors to offer their best pricing.

Taxpayer Impact: Taxpayers may have paid a premium for these aluminum products due to the absence of competitive bidding, as the government did not leverage market forces to secure the lowest possible price.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential aluminum materials for its operations. The contract supports the manufacturing of aluminum sheet, plate, and foil, crucial components for various defense applications. The geographic impact is primarily centered around the contractor's location in Connecticut, potentially supporting local employment and industry. The contract implies a need for skilled labor in the aluminum manufacturing sector, contributing to the defense industrial base workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially leads to higher costs for taxpayers.
Lack of competition raises concerns about whether the most innovative or cost-effective solutions were considered.
Limited transparency into the justification for a sole-source award.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Contract awarded to a known entity (COLT DEFENSE LLC), potentially indicating a pre-existing relationship or specialized capability.
Firm Fixed Price contract type provides budget certainty for the Department of the Army.
Contract duration suggests a sustained need for the supplied materials.

Sector Analysis

The aluminum manufacturing sector is a critical component of the broader industrial base, providing essential materials for numerous industries, including defense, aerospace, and automotive. The NAICS code 331315 specifically covers the production of aluminum sheet, plate, and foil. Spending in this sector can fluctuate based on demand from major government programs and commercial markets. Without specific market size data for this niche, it's difficult to benchmark this $24.5 million contract, but it represents a significant investment for the Department of the Army within this specialized manufacturing area.

Small Business Impact

This contract does not appear to have included a small business set-aside, as indicated by the 'sb': false field. Consequently, there is no direct analysis of how this contract specifically benefits small businesses through set-asides. The implications for small business subcontracting are also not detailed in the provided data, suggesting that the primary awardee, COLT DEFENSE LLC, was not mandated to engage small businesses for a significant portion of the work under this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are generally embedded within the contract terms, including delivery schedules and quality specifications. Transparency is limited by the sole-source nature of the award; the justification for not competing the contract would be a key document for assessing transparency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Procurement
Defense Industrial Base Manufacturing
Aluminum and Metal Production
Army Logistics and Materiel Command Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to COLT DEFENSE LLC. DO 0017

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 $24.5 million.

What is the period of performance?

Start: 2008-09-15. End: 2010-04-30.

What is the specific justification for awarding this contract on a sole-source basis to COLT DEFENSE LLC?

The provided data indicates the contract was awarded under 'DO' (Defense Order) and classified as 'NOT COMPETED'. A 'DO' rating typically signifies a priority rating for defense production, often used during times of national emergency or for critical defense needs. The 'NOT COMPETED' status implies that the Department of the Army determined that competition was not feasible or not in the best interest of national defense for this specific procurement. Common justifications for sole-source awards include the existence of only one responsible source, urgent and compelling needs that preclude full and open competition, or specific national security requirements. Without access to the official justification documentation (e.g., a Justification and Approval document), the precise reasons remain speculative but likely relate to unique capabilities, existing production lines, or critical timing for defense readiness.

How does the $24.5 million contract value compare to typical annual spending on aluminum sheet, plate, and foil manufacturing by the Department of Defense?

Determining the precise annual spending benchmark for aluminum sheet, plate, and foil manufacturing by the Department of Defense (DoD) is complex without access to comprehensive historical spending databases. The provided data shows a single contract award of $24.5 million to COLT DEFENSE LLC with a duration of 592 days (approximately 1.6 years). This suggests an average annual value of roughly $15.3 million ($24.5M / 1.6 years). While this is a significant sum for a single contract, it is difficult to ascertain if it represents a typical or anomalous level of spending for the DoD in this specific manufacturing niche. The DoD procures a vast array of materials, and spending can fluctuate significantly year-to-year based on specific program requirements, modernization efforts, and geopolitical factors. Further analysis would require aggregating spending data across multiple contracts and fiscal years within the relevant NAICS codes (e.g., 331315).

What are the potential risks associated with a sole-source contract of this magnitude for specialized manufacturing?

Sole-source contracts, especially for specialized manufacturing like aluminum products, carry several inherent risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most competitive bid. This can result in taxpayers paying more than necessary. Secondly, without competitive evaluation, there's a risk that the chosen contractor may not possess the most advanced technology or the most efficient production processes available in the market. Thirdly, sole-source awards can create a dependency on a single supplier, which can be problematic if that supplier experiences production issues, financial instability, or decides to exit the market. Finally, the absence of a competitive process can reduce transparency and make it harder to hold the contractor accountable for performance and cost-effectiveness compared to a scenario with multiple bidders vying for the contract.

What is the significance of the NAICS code 331315 (Aluminum Sheet, Plate, and Foil Manufacturing) in the context of this contract?

The North American Industry Classification System (NAICS) code 331315 precisely categorizes the primary business activity of the goods or services being procured. In this case, it signifies that the Department of the Army is acquiring aluminum sheet, plate, and foil manufactured by COLT DEFENSE LLC. This code is crucial for understanding the specific industrial sector involved and for benchmarking purposes. It allows analysts to compare this contract to others within the same manufacturing sub-sector, identify key players in the industry, and assess the overall market dynamics. For the Department of Defense, procuring materials under this NAICS code indicates a need for foundational components that are likely used in the production of vehicles, aircraft, weapons systems, or other defense matériel where aluminum's properties (lightweight, strength, corrosion resistance) are advantageous.

What does the 'DO' award type and 'NOT COMPETED' status imply about the urgency or criticality of this procurement?

The 'DO' award type, often associated with Defense Orders, and the 'NOT COMPETED' status strongly suggest that this procurement was considered urgent and critical for national defense. Defense Orders are typically issued by the Department of Defense to prioritize production and delivery of materials or services essential for national security. When combined with 'NOT COMPETED,' it implies that the standard competitive bidding process was bypassed due to compelling reasons, such as an immediate need that could not be met through lengthy solicitations, the unavailability of multiple qualified sources, or a requirement for highly specialized capabilities possessed by only one entity. This indicates that the Department of the Army viewed the acquisition of these aluminum products as a high priority, potentially linked to ongoing military operations, readiness requirements, or the production of time-sensitive defense systems.

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: $24,547,614

Exercised Options: $24,547,614

Current Obligation: $24,547,614

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52H0907D0425

IDV Type: IDC

Timeline