DoD's $27.8M SCRAPER Contract with Caterpillar Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $27,865,293 ($27.9M)
Contractor: Caterpillar Inc
Awarding Agency: Department of Defense
Start Date: 2012-03-28
End Date: 2015-05-29
Contract Duration: 1,157 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SCRAPER (USMC)
Place of Performance
Location: MOSSVILLE, PEORIA County, ILLINOIS, 61552, UNITED STATES OF AMERICA
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $27.9 million to CATERPILLAR INC for work described as: SCRAPER (USMC) Key points: 1. Contract Value: $27.8 million for construction machinery. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Moderate risk due to fixed-price contract and duration. 4. Sector: Primarily construction machinery manufacturing.
Value Assessment
Rating: good
The contract value of $27.8 million for construction machinery appears reasonable given the duration and scope. Benchmarking against similar large-scale equipment procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the construction machinery.
Public Impact
Ensures availability of essential construction equipment for military operations. Supports the construction machinery manufacturing sector. Provides the Department of the Navy with necessary infrastructure development tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1157 days (over 3 years) could lead to price escalation risks.
- Fixed-price contract may not fully account for unforeseen material cost increases.
- Exclusion of sources in the competition phase warrants scrutiny for fairness.
Positive Signals
- Awarded through full and open competition, promoting market fairness.
- Contract value is substantial, indicating significant operational need.
- Caterpillar Inc. is a reputable manufacturer in the construction machinery sector.
Sector Analysis
This contract falls within the construction machinery manufacturing sector, which is crucial for infrastructure development and military base support. Spending benchmarks for similar heavy equipment procurements would be relevant for a deeper analysis.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this particular contract award. Further investigation would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and compliance checks.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration exceeds three years, increasing risk of price volatility.
- Fixed-price contract may not fully protect against unforeseen cost increases.
- Exclusion of sources in competition requires justification to ensure fairness.
- Lack of small business participation noted.
Tags
construction-machinery-manufacturing, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to CATERPILLAR INC. SCRAPER (USMC)
Who is the contractor on this award?
The obligated recipient is CATERPILLAR INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 2012-03-28. End: 2015-05-29.
What specific types of construction machinery were procured under this contract, and how do their features align with USMC operational requirements?
The contract specifies 'Construction Machinery Manufacturing' (NAICS 333120) but does not detail the exact types of machinery. Further analysis would require access to the contract's detailed specifications to understand if the procured equipment, such as bulldozers, excavators, or loaders, precisely meets the USMC's needs for tasks like base construction, repair, or logistical support.
What was the rationale for excluding specific sources during the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price?
The exclusion of sources typically occurs when specific technical requirements or existing infrastructure compatibility necessitate particular manufacturers or models. The rationale needs to be documented to ensure it was justified and not anticompetitive. While full and open competition aims for best value, any exclusion could potentially limit the competitive pool and influence the final price achieved.
How did the firm-fixed-price (FFP) structure impact the contractor's risk and the government's potential for cost savings or overruns over the 1157-day contract period?
A firm-fixed-price contract places the cost risk on the contractor. While this can lead to cost savings for the government if the contractor manages expenses efficiently, it also exposes the contractor to potential losses if costs exceed estimates. Over the 1157-day period, unforeseen market fluctuations in material or labor costs could significantly impact the contractor's profitability and potentially lead to claims or performance issues if not managed carefully.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing
Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785410R5117
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Caterpillar Inc. (UEI: 005070479)
Address: 14009 OLD GALENA RD TC-A, MOSSVILLE, IL, 61552
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,865,293
Exercised Options: $27,865,293
Current Obligation: $27,865,293
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,261,496
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785410D5117
IDV Type: IDC
Timeline
Start Date: 2012-03-28
Current End Date: 2015-05-29
Potential End Date: 2015-05-29 00:00:00
Last Modified: 2015-05-29
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