DOE awards $18M for 4-8 production units and chassis to WULCO, Inc
Contract Overview
Contract Amount: $18,041,685 ($18.0M)
Contractor: Wulco, Inc.
Awarding Agency: Department of Energy
Start Date: 2022-09-27
End Date: 2026-09-30
Contract Duration: 1,464 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS DELIVERY ORDER IS FOR THE DELIVERY OF CLIN 002 (EV4-U PRODUCTION UNITS) AND CLIN 0003 (PROCURE CHASSIS). THE ORDER QUANTITIES ARE AS FOLLOWS: BEST ESTIMATED QTY: 4 EA MAXIMUM QTY: 8 EA
Place of Performance
Location: BUTLER, BUTLER County, PENNSYLVANIA, 16002
Plain-Language Summary
Department of Energy obligated $18.0 million to WULCO, INC. for work described as: THIS DELIVERY ORDER IS FOR THE DELIVERY OF CLIN 002 (EV4-U PRODUCTION UNITS) AND CLIN 0003 (PROCURE CHASSIS). THE ORDER QUANTITIES ARE AS FOLLOWS: BEST ESTIMATED QTY: 4 EA MAXIMUM QTY: 8 EA Key points: 1. Value for money appears fair given the firm-fixed-price contract type and the specialized nature of the equipment. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 3. Risk indicators are moderate, with a long performance period and a single awardee. 4. Performance context involves the production of specialized vehicle components, aligning with the contractor's industry. 5. Sector positioning is within motor vehicle body manufacturing, a niche but essential industrial capability.
Value Assessment
Rating: fair
The total award of $18,041,685.03 is for a maximum of 8 units. Without specific per-unit cost breakdowns or comparable contract data, a precise value assessment is challenging. However, the firm-fixed-price nature of the contract shifts risk to the contractor, which can be a positive indicator. The long duration of the contract (over 4 years) suggests a need for sustained production, and the pricing should reflect economies of scale if the maximum quantity is reached.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially due to unique capabilities or prior relationships. The number of bidders is not specified, but the 'exclusion of sources' suggests a limited pool of qualified offerors, which could impact price discovery.
Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement. However, if WULCO, Inc. possesses unique or highly specialized capabilities essential for this requirement, the price may be justified.
Public Impact
The Department of Energy (DOE) is the primary beneficiary, receiving specialized vehicle components. The contract supports the production of EV4-U production units and associated chassis. The geographic impact is primarily centered around the contractor's facilities in Pennsylvania. Workforce implications include employment at WULCO, Inc. and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to higher prices for taxpayers.
- Long contract duration increases exposure to potential cost overruns or performance issues.
- Reliance on a single awardee for specialized components poses a supply chain risk.
Positive Signals
- Firm-fixed-price contract type transfers cost risk to the contractor.
- Contractor is in the specialized manufacturing sector, aligning with the product need.
- Award is for production units, indicating a move towards tangible output.
Sector Analysis
This contract falls within the motor vehicle body manufacturing sector (NAICS 336211). This sector is characterized by the production of chassis, bodies, and trailers for motor vehicles. The market size for specialized vehicle components can vary significantly based on defense, research, or commercial applications. This award appears to be for a specific, potentially niche, application within the DOE's operational needs.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award. There is no indication of small business set-asides or subcontracting plans. This suggests the contract was awarded to a large business, and its impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses in its supply chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified units. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Energy Vehicle Procurement
- Specialized Manufacturing Contracts
- Production Unit Acquisition
- Motor Vehicle Body Manufacturing
Risk Flags
- Limited competition
- Sole awardee risk
- Long performance period
Tags
department-of-energy, motor-vehicle-body-manufacturing, firm-fixed-price, delivery-order, full-and-open-competition-after-exclusion-of-sources, pennsylvania, large-business, specialized-manufacturing, production-units, chassis
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $18.0 million to WULCO, INC.. THIS DELIVERY ORDER IS FOR THE DELIVERY OF CLIN 002 (EV4-U PRODUCTION UNITS) AND CLIN 0003 (PROCURE CHASSIS). THE ORDER QUANTITIES ARE AS FOLLOWS: BEST ESTIMATED QTY: 4 EA MAXIMUM QTY: 8 EA
Who is the contractor on this award?
The obligated recipient is WULCO, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2022-09-27. End: 2026-09-30.
What is the historical spending pattern of the Department of Energy on similar specialized vehicle components?
Analyzing the Department of Energy's historical spending on similar specialized vehicle components requires access to detailed contract databases and spending reports. Without specific data points on past procurements of 'EV4-U production units' or comparable chassis, it's difficult to establish a precise spending trend. However, DOE's mission often involves unique research, development, and operational needs that can necessitate custom-built or specialized equipment. This can lead to infrequent but high-value procurements. The current award of $18M for a maximum of 8 units suggests a significant investment per unit, consistent with specialized, low-volume production runs rather than mass manufacturing. Future spending would likely depend on the success of this program and evolving operational requirements within the DOE.
How does the per-unit cost of these production units compare to industry benchmarks for similar specialized vehicles?
Determining the exact per-unit cost is challenging as the award is for a range of 4 to 8 units with a total maximum value of $18,041,685.03. This implies a potential per-unit cost ranging from approximately $2.25 million (if 8 units are procured) to $4.51 million (if only 4 units are procured). Benchmarking these figures against industry standards for 'specialized vehicles' is complex because the term 'EV4-U production units' is not publicly defined. If these units are highly customized research or operational platforms, their cost could be significantly higher than standard commercial vehicles. Without more information on the specifications and intended use of these units, a direct comparison to industry benchmarks for similar specialized vehicles is not feasible. However, the high potential per-unit cost suggests a requirement for advanced technology, unique materials, or specialized manufacturing processes.
What are the specific risks associated with WULCO, Inc. being the sole awardee for this delivery order?
The primary risk associated with WULCO, Inc. being the sole awardee is supply chain dependency. If WULCO, Inc. experiences production delays, quality issues, financial instability, or unforeseen operational disruptions, the Department of Energy has limited alternative sources to fulfill the requirement for these specialized EV4-U production units and chassis. This could lead to significant program delays and potential cost increases if contingency plans need to be activated or if a new source must be rapidly identified and onboarded. Furthermore, a sole awardee scenario can sometimes reduce the incentive for the contractor to maintain the highest levels of efficiency and cost control over the long term, although the firm-fixed-price nature of this contract mitigates some of that concern.
What is the track record of WULCO, Inc. in delivering complex manufacturing projects for government agencies?
Assessing WULCO, Inc.'s track record requires a review of their past performance on government contracts, particularly those involving complex manufacturing. Publicly available data on contract awards and performance ratings can provide insights. A search of federal procurement databases might reveal previous awards, their values, contract types, and any associated performance evaluations or past performance questionnaires. Without specific details on WULCO, Inc.'s history with the Department of Energy or other agencies for similar complex manufacturing projects, it is difficult to definitively assess their reliability. However, the fact that they were awarded this significant delivery order suggests they likely met certain pre-qualification criteria and demonstrated capability during the procurement process.
How does the 'full and open competition after exclusion of sources' process impact the potential for cost savings for the government?
The 'full and open competition after exclusion of sources' process is a nuanced approach that aims to balance broad competition with specific requirements. While it starts with the intent of open competition, the subsequent exclusion of certain sources implies that only a subset of potential offerors were considered. This exclusion is typically justified by specific technical requirements, unique capabilities, or proprietary information that only certain contractors possess. The impact on cost savings for the government is therefore variable. If the excluded sources were essential for driving down prices through intense rivalry, then cost savings might be reduced. Conversely, if the remaining sources are highly specialized and capable, the competition among them might still yield a fair price, especially if the exclusion was technically justified and prevented non-capable bidders from wasting resources. The key determinant of cost savings lies in the number and competitiveness of the offerors remaining after the exclusion.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 912 PITTSBURGH RD, BUTLER, PA, 16002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,920,808
Exercised Options: $18,920,808
Current Obligation: $18,041,685
Actual Outlays: $11,400,136
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89233121DNA000033
IDV Type: IDC
Timeline
Start Date: 2022-09-27
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-04-06
More Contracts from Wulco, Inc.
- DO for OY1 Production Clins — $41.7M (Department of Defense)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)