DoD's $48.7M Fuel System Supply Point Order to West Electronics Inc. Lacks Competition
Contract Overview
Contract Amount: $48,677,535 ($48.7M)
Contractor: West Electronics Inc
Awarding Agency: Department of Defense
Start Date: 2010-12-07
End Date: 2014-04-30
Contract Duration: 1,240 days
Daily Burn Rate: $39.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 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.
Place of Performance
Location: POPLAR, ROOSEVELT County, MONTANA, 59255
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $48.7 million to WEST ELECTRONICS INC for work described as: 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. Key points: 1. Significant expenditure on critical fuel system components. 2. Sole-source award raises concerns about price discovery and value. 3. Long contract duration (over 3 years) for a non-competed order. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The total award of $48.7M for fuel system supply points lacks a clear benchmark due to its sole-source nature. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to inflated costs for the government as there was no market pressure to offer the best price.
Taxpayer Impact: Taxpayers may be overpaying for these fuel system components due to the absence of a competitive bidding process.
Public Impact
Ensures operational readiness for military fuel supply. Supports critical infrastructure for fuel distribution. Potential for taxpayer funds to be used inefficiently without competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration for a single order
Positive Signals
- Procurement of essential equipment
- Supports military operations
Sector Analysis
This procurement falls under the manufacturing sector, specifically pump manufacturing. The $48.7M value is substantial for a single delivery order, especially one awarded without competition, which is unusual for such a significant amount.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, nor is there information on whether subcontracting opportunities were explored.
Oversight & Accountability
The sole-source nature of this large delivery order warrants further oversight to ensure the government received fair pricing and that this was indeed the only viable option.
Related Government Programs
- Measuring and Dispensing Pump Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award raises cost concerns.
- Lack of transparency in pricing.
- Potential for vendor lock-in.
- Limited opportunity for small business participation.
- Long performance period for a non-competed order.
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 $48.7 million to 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.
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 $48.7 million.
What is the period of performance?
Start: 2010-12-07. End: 2014-04-30.
What was the justification for awarding this significant contract solely to West Electronics Inc. without competition?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's impossible to confirm the exact reason, but it's a critical point for oversight.
How does the unit cost of these fuel system supply points compare to industry benchmarks, given the lack of competitive data?
Without competitive bids or publicly available pricing for similar systems from other manufacturers, establishing a precise unit cost benchmark is challenging. The absence of competition means the government did not benefit from market forces that typically drive down prices. A thorough cost analysis would be needed to estimate a fair price.
What is the long-term strategic impact of relying on a single supplier for critical fuel system components?
Long-term reliance on a single supplier, especially without competition, can create strategic vulnerabilities. It may limit technological advancement, reduce flexibility in future procurements, and potentially lead to price escalations over time. Diversifying suppliers or ensuring robust competition in future contracts would mitigate these risks.
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: $48,677,535
Exercised Options: $48,677,535
Current Obligation: $48,677,535
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAE0703DT078
IDV Type: IDC
Timeline
Start Date: 2010-12-07
Current End Date: 2014-04-30
Potential End Date: 2014-04-30 00:00:00
Last Modified: 2014-09-18
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