DoD's $221.5M SPEAR HARD ARMOR contract awarded to Leading Technology Composites Inc. for ballistic protection

Contract Overview

Contract Amount: $22,150,410 ($22.2M)

Contractor: Leading Technology Composites Inc

Awarding Agency: Department of Defense

Start Date: 2012-09-20

End Date: 2013-09-19

Contract Duration: 364 days

Daily Burn Rate: $60.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPEAR HARD ARMOR

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67213

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to LEADING TECHNOLOGY COMPOSITES INC for work described as: SPEAR HARD ARMOR Key points: 1. Value for money assessed through comparison with similar ballistic protection contracts. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the sole-source nature and potential for limited oversight. 4. Performance context is within the U.S. Special Operations Command's need for advanced armor. 5. Sector positioning is within the defense manufacturing industry, specifically personal protective equipment.

Value Assessment

Rating: fair

The contract value of $221.5 million for SPEAR HARD ARMOR is substantial. Benchmarking against similar ballistic protection contracts is challenging without specific performance metrics and unit costs. However, the firm fixed-price nature suggests that the contractor bears the risk of cost overruns. The absence of competitive bidding raises questions about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Leading Technology Composites Inc., was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in cases of urgent need where competition is not feasible. The lack of multiple bidders limits the government's ability to leverage market competition to drive down prices.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, it's difficult to ascertain if the price reflects true market value or if a more cost-effective solution could have been found through a competitive process.

Public Impact

Special Operations Forces personnel benefit from advanced ballistic protection, enhancing their survivability in high-risk environments. The contract delivers critical personal protective equipment essential for mission success and operator safety. Geographic impact is national, supporting elite military units across various operational theaters. Workforce implications include sustained employment at Leading Technology Composites Inc. and its supply chain within the advanced materials manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and transparency.
Potential for higher costs compared to a competitively bid contract.
Limited public information on the specific technological advantages justifying the sole-source award.

Positive Signals

Addresses critical need for advanced ballistic protection for special operations.
Firm fixed-price contract shifts cost overrun risk to the contractor.
Award to a specialized manufacturer likely ensures high-quality, tailored protective gear.

Sector Analysis

The defense manufacturing sector, particularly the segment focused on personal protective equipment and advanced materials, is characterized by high R&D investment and stringent performance requirements. Contracts for body armor and ballistic protection are crucial for equipping military personnel. Spending in this area can fluctuate based on threat assessments and technological advancements. Comparable spending benchmarks would typically involve other contracts for advanced body armor systems awarded to specialized manufacturers.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The award to a single, likely established, prime contractor suggests that the primary benefits will accrue to the prime and its direct suppliers, potentially bypassing the small business ecosystem unless specific subcontracting plans are in place and actively managed.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command contracting and program management offices. Accountability measures would be tied to contract deliverables, performance standards, and adherence to the firm fixed-price terms. Transparency is limited by the sole-source nature of the award, with public disclosure typically restricted to basic contract award information.

Related Government Programs

Body Armor Contracts
Personal Protective Equipment
Special Operations Forces Equipment
Advanced Materials Manufacturing
Department of Defense Procurement

Risk Flags

Sole-source award may limit cost savings.
Lack of competitive bidding reduces transparency.
Potential for higher unit costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to LEADING TECHNOLOGY COMPOSITES INC. SPEAR HARD ARMOR

Who is the contractor on this award?

The obligated recipient is LEADING TECHNOLOGY COMPOSITES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2012-09-20. End: 2013-09-19.

What is the track record of Leading Technology Composites Inc. in delivering similar ballistic protection systems to the U.S. military?

Leading Technology Composites Inc. has a history of providing advanced composite materials and armor solutions. While specific details on past performance for the SPEAR HARD ARMOR system are not publicly detailed in this summary, the company's specialization in composites suggests a relevant technical capability. A deeper dive into contract performance reports and past awards would be necessary to fully assess their track record. However, the sole-source award implies that the U.S. Special Operations Command deemed them capable of meeting the specific, potentially unique, requirements of this particular armor system.

How does the unit cost of the SPEAR HARD ARMOR compare to other advanced ballistic protection systems procured by the DoD?

Direct comparison of unit costs for the SPEAR HARD ARMOR is difficult without knowing the exact quantity of units procured under the $221.5 million contract and the specific configuration of the armor. The contract's 'All Other Miscellaneous Manufacturing' (NAICS 339999) code and 'SPEAR HARD ARMOR' designation suggest a specialized product. Without competitive bidding, establishing a precise market benchmark is challenging. However, advanced ballistic protection systems for special operations forces are generally high-cost items due to the advanced materials, rigorous testing, and specific threat mitigation requirements involved.

What are the primary risks associated with a sole-source award for critical defense equipment like body armor?

The primary risks associated with a sole-source award for critical defense equipment include a lack of price competition, potentially leading to inflated costs for taxpayers. There's also a risk of reduced innovation if alternative solutions are not explored. Furthermore, reliance on a single supplier can create supply chain vulnerabilities, especially if the contractor faces production issues or financial instability. Oversight becomes even more critical to ensure the government is receiving the best value and that the equipment meets stringent performance and safety standards.

How effective is the SPEAR HARD ARMOR system in meeting the protection requirements for U.S. Special Operations Command personnel?

The effectiveness of the SPEAR HARD ARMOR system is directly tied to its ability to meet the specific ballistic protection requirements defined by the U.S. Special Operations Command (SOCOM). While the contract value and duration suggest a significant procurement, detailed performance data and independent testing results are not publicly available in this summary. SOCOM's decision to award this contract, even on a sole-source basis, implies a belief in the system's capability to provide necessary protection. However, ongoing monitoring and evaluation of field performance would be crucial to confirm its effectiveness.

What has been the historical spending trend for similar ballistic protection systems by the Department of Defense?

Historical spending on ballistic protection systems by the Department of Defense has generally trended upwards, driven by evolving threats, technological advancements in materials science, and the need to equip a growing number of personnel, particularly within special operations. The DoD consistently allocates significant funds to personal protective equipment, including body armor, helmets, and other ballistic-resistant gear. Spending can be influenced by deployment levels, new program requirements, and the lifecycle of existing equipment. The $221.5 million for this specific contract is part of a larger, ongoing investment in soldier protection.

Are there any known issues or concerns regarding the quality or performance of armor provided by Leading Technology Composites Inc. in previous contracts?

Based on the provided data summary, there are no explicit mentions of known issues or concerns regarding the quality or performance of armor provided by Leading Technology Composites Inc. in previous contracts. The sole-source award suggests that SOCOM had confidence in the contractor's ability to meet requirements. However, a comprehensive assessment would require reviewing contract performance histories, any reported deficiencies, or quality assurance reports associated with their prior work for the government.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

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: 2626 W MAY ST, WICHITA, KS, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,150,410

Exercised Options: $22,150,410

Current Obligation: $22,150,410

Contract Characteristics

Cost or Pricing Data: NO

Timeline