DOE's $24.5M armored tractor contract awarded to XPER, Inc. under full and open competition
Contract Overview
Contract Amount: $24,527,742 ($24.5M)
Contractor: Xper, Inc.
Awarding Agency: Department of Energy
Start Date: 2013-02-20
End Date: 2018-02-19
Contract Duration: 1,825 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIVE YEAR INDEFINITE-DELIVERY, INDEFINITE-QUANTITY CONTRACT FOR THE DEVELOPMENT AND PRODUCTION OF REPLACEMENT ARMORED TRACTORS FOR THE OFFICE OF SECURE TRANSPORTATION- NA-15.
Place of Performance
Location: BUTLER, BUTLER County, PENNSYLVANIA, 16002
Plain-Language Summary
Department of Energy obligated $24.5 million to XPER, INC. for work described as: FIVE YEAR INDEFINITE-DELIVERY, INDEFINITE-QUANTITY CONTRACT FOR THE DEVELOPMENT AND PRODUCTION OF REPLACEMENT ARMORED TRACTORS FOR THE OFFICE OF SECURE TRANSPORTATION- NA-15. Key points: 1. Contract awarded for replacement armored tractors, indicating a need for updated or expanded fleet capabilities. 2. The contract type is a Firm Fixed Price (FFP), which shifts cost risk to the contractor. 3. Awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a specific justification for limiting initial bidders. 4. The contract duration is five years, allowing for phased development and production. 5. The North American Industry Classification System (NAICS) code 336992 points to specialized vehicle manufacturing. 6. The contract value of $24.5M over five years suggests a significant investment in secure transportation assets.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the armored tractors' capabilities and the market for such specialized vehicles. The firm fixed price structure is generally favorable for the government, as it caps costs. However, the total contract value over five years for specialized vehicles warrants scrutiny to ensure it aligns with the expected operational lifespan and performance requirements.
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 competition was sought, certain sources were excluded, possibly due to specific technical requirements, security clearances, or prior performance. The number of bidders is not specified, but the 'exclusion of sources' suggests a potentially narrower competitive pool than a standard full and open competition.
Taxpayer Impact: The exclusion of sources may limit the potential for the most competitive pricing, as fewer vendors were likely considered. Taxpayers may not have benefited from the broadest possible market competition.
Public Impact
The Office of Secure Transportation (OST) benefits from updated and reliable armored tractor capabilities for its mission. Services delivered include the development and production of specialized armored vehicles. The geographic impact is likely concentrated where OST operates, primarily within the United States. Workforce implications may include specialized manufacturing jobs in the defense or transportation equipment sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for higher costs due to limited competition after source exclusion.
- Risk of technology obsolescence if development timelines are not met or if market advancements outpace production.
- Dependence on a single contractor for a critical asset could pose supply chain risks.
Positive Signals
- Firm Fixed Price contract structure limits cost overruns for the government.
- Five-year duration allows for planned integration and deployment of new assets.
- Award to XPER, Inc. suggests they met specific technical and capability requirements for secure transport.
Sector Analysis
This contract falls within the broader defense and transportation manufacturing sector, specifically focusing on armored vehicles. The market for such specialized equipment is niche, often involving a limited number of manufacturers with the requisite security clearances and technical expertise. Comparable spending benchmarks would likely be found within defense procurement for specialized ground vehicles, where costs can vary significantly based on armor, mobility, and mission-specific features.
Small Business Impact
The provided data does not indicate any small business set-asides or subcontracting plans. Given the specialized nature of armored vehicle manufacturing, it is possible that the prime contractor is a large business, and subcontracting opportunities for small businesses might be limited to specific components or services not requiring specialized defense manufacturing capabilities.
Oversight & Accountability
Oversight would typically be managed by the Department of Energy's Office of Secure Transportation and its contracting officers. Accountability measures would be tied to the contract's performance metrics, delivery schedules, and quality standards. Transparency is generally maintained through contract award databases, though specific technical details of the armored tractors may be sensitive.
Related Government Programs
- Department of Defense Armored Vehicle Procurement
- Secure Transportation Logistics
- Specialized Vehicle Manufacturing Contracts
- Department of Energy Fleet Management
Risk Flags
- Limited competition due to source exclusion.
- Potential for cost overruns if scope changes or unforeseen issues arise.
- Risk of technological obsolescence in specialized vehicle manufacturing.
Tags
defense, transportation, armored-vehicles, secure-transportation, firm-fixed-price, department-of-energy, limited-competition, specialized-manufacturing, indefinite-delivery-indefinite-quantity, usa
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $24.5 million to XPER, INC.. FIVE YEAR INDEFINITE-DELIVERY, INDEFINITE-QUANTITY CONTRACT FOR THE DEVELOPMENT AND PRODUCTION OF REPLACEMENT ARMORED TRACTORS FOR THE OFFICE OF SECURE TRANSPORTATION- NA-15.
Who is the contractor on this award?
The obligated recipient is XPER, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $24.5 million.
What is the period of performance?
Start: 2013-02-20. End: 2018-02-19.
What specific technical requirements led to the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' award?
The exclusion of sources in a 'Full and Open Competition After Exclusion of Sources' award typically stems from stringent technical specifications, unique security clearance requirements, or the need for specialized manufacturing capabilities that only a limited number of contractors possess. For armored tractors used in secure transport, these exclusions could relate to specific ballistic protection levels, advanced navigation and communication systems, engine performance under extreme conditions, or the contractor's ability to meet rigorous background checks and facility security protocols. Without further details from the solicitation or award justification, it is difficult to pinpoint the exact reasons, but they are generally tied to ensuring the highest level of security, reliability, and performance for sensitive government operations.
How does the $24.5 million five-year contract value compare to similar procurements for specialized armored vehicles?
Comparing the $24.5 million value for five years of armored tractor development and production requires context on the specific capabilities and quantities. Armored vehicles, especially those designed for secure transport with advanced protection and mobility features, are inherently expensive. A single unit could range from hundreds of thousands to millions of dollars depending on its complexity. If this contract covers multiple vehicles, the total value appears within a plausible range for specialized defense or security equipment over a five-year period. However, a precise benchmark would necessitate knowing the number of units, the specific threat environment they are designed for, and the level of customization involved. Without this granular data, it's challenging to definitively state if the price represents excellent value or is inflated.
What are the primary risks associated with a five-year indefinite-delivery, indefinite-quantity (IDIQ) contract for specialized vehicle manufacturing?
The primary risks associated with a five-year IDIQ contract for specialized vehicle manufacturing include potential cost growth if initial estimates are inaccurate, though the Firm Fixed Price (FFP) nature of the definitive contracts issued under the IDIQ mitigates this for the government. A significant risk is technological obsolescence; if the development cycle is lengthy or market advancements occur rapidly, the delivered vehicles might be outdated by the end of the contract. Contractor performance risk is also present; delays in development or production, quality control issues, or the contractor facing financial instability could disrupt the supply of critical assets. Furthermore, the 'exclusion of sources' aspect suggests a potentially smaller pool of expertise, which could limit options if the primary contractor encounters insurmountable issues.
What is the track record of XPER, Inc. in manufacturing similar specialized or armored vehicles for government contracts?
Information regarding XPER, Inc.'s specific track record in manufacturing similar specialized or armored vehicles for government contracts is not detailed in the provided data. To assess their suitability, a review of their past performance on contracts with the Department of Defense, Department of Homeland Security, or other agencies involved in vehicle procurement would be necessary. This would include examining their history of on-time delivery, adherence to quality standards, cost control, and overall customer satisfaction. Without this background information, it's difficult to gauge their experience level and reliability for this particular high-stakes contract.
How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact price discovery and potential savings for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' method impacts price discovery by narrowing the competitive field. While it allows for competition among the remaining eligible sources, it inherently limits the number of potential bidders compared to a standard 'Full and Open Competition.' This reduction in competition can lead to less aggressive bidding and potentially higher prices than might be achieved in a broader market. Taxpayers may realize fewer savings because the government foregoes the opportunity to solicit bids from all capable vendors. The justification for excluding sources must be robust to ensure that the benefits of competition among the selected few outweigh the potential loss of broader market leverage.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Xper Holdings, Inc. (UEI: 081556471)
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: $24,527,742
Exercised Options: $24,527,742
Current Obligation: $24,527,742
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-02-20
Current End Date: 2018-02-19
Potential End Date: 2018-02-19 00:00:00
Last Modified: 2020-05-05
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