DoD awards $26.9M for HDD Redesign and Sustainment to 3M Company, a sole-source contract
Contract Overview
Contract Amount: $26,886,297 ($26.9M)
Contractor: 3M Company
Awarding Agency: Department of Defense
Start Date: 2012-05-10
End Date: 2016-05-09
Contract Duration: 1,460 days
Daily Burn Rate: $18.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HDD RE-DESING AND SUSTAINMENT
Place of Performance
Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84157, UNITED STATES OF AMERICA
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $26.9 million to 3M COMPANY for work described as: HDD RE-DESING AND SUSTAINMENT Key points: 1. Contract awarded to a single vendor (3M Company) for HDD Redesign and Sustainment. 2. Significant contract value of $26.9 million over four years. 3. Lack of competition raises concerns about potential overpricing and value for money. 4. The IT sector, specifically software publishing, is the focus of this expenditure.
Value Assessment
Rating: questionable
The contract value of $26.9 million for HDD redesign and sustainment over four years appears high given the lack of competitive bidding. Without market research or comparable contracts, it's difficult to assess if the pricing is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive pressure.
Public Impact
Taxpayers may be overpaying for HDD redesign and sustainment services due to the lack of competition. The Department of Defense is relying on a single vendor, potentially creating a dependency. Limited transparency into the justification for a sole-source award could obscure potential inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Contract awarded to established vendor (3M Company)
Sector Analysis
This contract falls within the IT sector, specifically software publishing, with a significant value of $26.9 million. Benchmarks for similar redesign and sustainment contracts in this niche are difficult to ascertain without competitive data.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, missing an opportunity for their participation and contribution.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the justification was sound and that the pricing reflects fair market value, despite the lack of competition.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency into justification
- Dependency on a single vendor
- No small business participation
Tags
software-publishers, department-of-defense, ut, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.9 million to 3M COMPANY. HDD RE-DESING AND SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is 3M COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $26.9 million.
What is the period of performance?
Start: 2012-05-10. End: 2016-05-09.
What was the specific justification for awarding this contract on a sole-source basis to 3M Company, and was a thorough market analysis conducted to ensure no other capable vendors could fulfill the r
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available competition. Without access to the specific contract file and its supporting documentation, it's impossible to determine the exact reasoning or confirm the extent of market analysis performed. This information is crucial for assessing the necessity of bypassing competitive procedures and ensuring taxpayer funds are used efficiently.
How does the per-unit cost or overall pricing of this $26.9 million contract compare to industry benchmarks for similar HDD redesign and sustainment services, especially considering the lack of compet
Without access to detailed cost breakdowns or comparable contract data from the market, a precise comparison is challenging. However, sole-source contracts inherently carry a higher risk of inflated pricing due to the absence of competitive pressure. A thorough review of the contract's pricing structure against industry standards for similar IT sustainment services would be necessary to identify potential cost savings or overpayments.
What are the long-term implications for the Department of the Navy's operational effectiveness and technological advancement if they remain reliant on a single vendor for critical HDD redesign and sus
Long-term reliance on a sole-source vendor can lead to several risks, including vendor lock-in, reduced innovation, and potential price increases over time as competition is stifled. This dependency could hinder the Navy's ability to adopt newer technologies or adapt quickly to evolving threats. It also limits opportunities for other companies to contribute their expertise, potentially impacting overall system resilience and cost-effectiveness.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6523612R0018
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3M CENTER BLDG 220 11W 02, SAINT PAUL, MN, 55144
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: $30,481,928
Exercised Options: $26,886,297
Current Obligation: $26,886,297
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-05-10
Current End Date: 2016-05-09
Potential End Date: 2017-05-09 00:00:00
Last Modified: 2015-09-10
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