DoD Awards $101.5M for Truck and Tractor Parts, Limited Competition
Contract Overview
Contract Amount: $1,586,258,589 ($1.6B)
Contractor: BAE Systems Survivability Systems LLC
Awarding Agency: Department of Defense
Start Date: 2000-04-10
End Date: 2009-09-30
Contract Duration: 3,460 days
Daily Burn Rate: $458.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200007!2100!001389!AE07 !TACOM - WARREN !DAAE0700CS019 !A!*!* !20000410!20010630!101487239!101487239!101487239!N!6W728!KROLL-O GARA COMPANY !9113 LE SAINT DR !FAIRFIELD !OH!45014!25970!017!39!FAIRFIELD !BUTLER !OHIO !0001!+000024462234!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A1A!AIRFRAMES AND SPARES !1AIC!APACHE (AH-64) ADV ATTACK !3728!3!*!*!*!B!A!*!D !N!J!1!001!N!1G!Z!N!E!* !* !Y!C!*!Z!Z!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: FAIRFIELD, BUTLER County, OHIO, 45014
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $1.59 billion to BAE SYSTEMS SURVIVABILITY SYSTEMS LLC for work described as: 200007!2100!001389!AE07 !TACOM - WARREN !DAAE0700CS019 !A!*!* !20000410!20010630!101487239!101487239!101487239!N!6W728!KROLL-O GARA COMPANY !9113 LE SAINT DR !FAIRFIELD !OH!45014!25970!017!39!FAIRFIELD !BUT… Key points: 1. Contract awarded for wheeled trucks and tractor parts. 2. BAE Systems is the prime contractor. 3. Limited competition may impact price discovery. 4. Spending is within the Defense sector.
Value Assessment
Rating: fair
The contract value of $101.5M for truck and tractor parts appears high compared to industry benchmarks for similar components, suggesting potential overpricing or unique specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection. This approach can lead to higher prices due to a lack of competitive pressure to offer the best value.
Taxpayer Impact: Taxpayer funds may be used inefficiently due to the absence of competitive bidding, potentially increasing the overall cost of defense procurement.
Public Impact
Ensures continued availability of critical truck and tractor components for military operations. Supports a specific defense contractor, BAE Systems, and its supply chain. Potential for higher costs to taxpayers due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential overpricing
- Lack of transparency in pricing
Positive Signals
- Ensures supply of essential equipment
- Supports established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically for wheeled trucks and tractor parts. Spending in this area is critical for military logistics and operations, but often subject to higher costs due to specialized requirements and limited suppliers.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in defense spending.
Oversight & Accountability
The limited competition aspect raises questions about the oversight applied to ensure fair pricing and value for taxpayer money. Further review of the justification for sole-source or limited competition is warranted.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for overpricing
- Lack of small business participation
- Insufficient justification for limited competition
Tags
truck-trailer-manufacturing, department-of-defense, oh, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.59 billion to BAE SYSTEMS SURVIVABILITY SYSTEMS LLC. 200007!2100!001389!AE07 !TACOM - WARREN !DAAE0700CS019 !A!*!* !20000410!20010630!101487239!101487239!101487239!N!6W728!KROLL-O GARA COMPANY !9113 LE SAINT DR !FAIRFIELD !OH!45014!25970!017!39!FAIRFIELD !BUTLER !OHIO !0001!+000024462234!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A1A!AIRFRAMES AND SPARES !1AIC!APACHE (AH-64) ADV ATTACK !3728!3!*!*!*!B!A!*!D !N!J!
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS SURVIVABILITY SYSTEMS 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 $1.59 billion.
What is the period of performance?
Start: 2000-04-10. End: 2009-09-30.
What was the justification for limiting competition on this contract?
The justification for limiting competition is not provided in the data. Typically, such decisions are based on factors like unique technical requirements, urgent needs, or the unavailability of alternative sources. Without this information, it's difficult to assess if the limited competition was truly necessary or if it was a missed opportunity for better pricing.
How does the unit cost compare to commercial equivalents?
A direct comparison of unit cost to commercial equivalents is not possible without detailed specifications of the parts procured. However, given the 'fair' rating for value and the limited competition, it is probable that the unit costs are higher than commercially available, non-military-grade alternatives.
What is the long-term impact of awarding contracts with limited competition on defense readiness?
While awarding contracts with limited competition can ensure the immediate supply of critical components, it can also lead to higher costs and reduced innovation over the long term. Over-reliance on limited competition may stifle market competition, potentially impacting the overall cost-effectiveness and technological advancement of defense equipment.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
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: BAE Systems PLC (UEI: 217304393)
Address: 9113 LE SAINT DR, FAIRFIELD, OH, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2000-04-10
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2013-05-31
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