DoD's $3.1M Simmonds Precision Instruments Purchase Order Faces Scrutiny for Limited Competition and Potential Value Concerns

Contract Overview

Contract Amount: $3,145,539 ($3.1M)

Contractor: Simmonds Precision Products Inc

Awarding Agency: Department of Defense

Start Date: 2021-05-18

End Date: 2025-12-31

Contract Duration: 1,688 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8508139844!MISCELLANEOUS

Place of Performance

Location: VERGENNES, ADDISON County, VERMONT, 05491

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $3.1 million to SIMMONDS PRECISION PRODUCTS INC for work described as: 8508139844!MISCELLANEOUS Key points: 1. The contract's value-for-money is questionable due to a lack of competitive bidding, potentially leading to inflated prices. 2. Competition dynamics are heavily skewed towards a sole-source or limited-source award, raising concerns about price discovery. 3. Risk indicators include the absence of a competitive process and a long performance period, increasing potential for cost overruns. 4. Performance context is limited, as this is a purchase order for instruments, making direct comparison to larger, complex contracts difficult. 5. Sector positioning places this within the Instruments and Related Products Manufacturing sub-sector, a niche area within Defense Logistics. 6. The contract's duration and fixed-price nature suggest a need for robust oversight to ensure continued value.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.1 million purchase order for instruments is challenging without a competitive baseline. The fixed-price nature provides some cost certainty, but the lack of competition means there's no market validation of the pricing. Compared to similar sole-source procurements for specialized instruments, the price might be within an acceptable range, but without competitive bids, it's difficult to ascertain if taxpayers are receiving the best possible value. Further analysis of the specific instruments and their market rates would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited-source procurement. The data does not specify the number of bidders, but the 'NOT COMPETED' designation strongly suggests that only one source was solicited or available. This lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the most cost-effective solution. It raises questions about whether alternative suppliers were considered or if unique circumstances justified bypassing a broader solicitation.

Taxpayer Impact: The absence of competition means taxpayers may not benefit from the price reductions typically achieved through a bidding process. This could result in higher overall costs for the instruments procured.

Public Impact

The Department of Defense benefits from the acquisition of necessary instruments for its operations. Services delivered include the provision of specialized instruments for measurement, display, and control of industrial process variables. The geographic impact is primarily within the Department of Defense's operational footprint, with the contractor based in Vermont. Workforce implications are likely minimal, primarily affecting the supplier's workforce and potentially a small number of government personnel involved in oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competitively bid contract.
Long contract duration (over 4 years) increases the risk of price escalation or performance issues going unnoticed.
Fixed-price contract with no clear mechanism for price adjustments could be disadvantageous if market conditions change significantly.
Limited information on the specific instruments and their criticality makes it hard to assess the true value proposition.
The 'NOT COMPETED' status warrants further investigation into the justification for bypassing competitive procedures.

Positive Signals

The contract is a firm fixed-price award, providing cost certainty for the government.
The supplier, Simmonds Precision Products Inc., is likely a specialized provider, potentially offering unique capabilities.
The contract is managed by the Defense Logistics Agency, which has established procurement processes.
The performance period is clearly defined, allowing for planning and resource allocation.

Sector Analysis

This contract falls within the Instruments and Related Products Manufacturing sector, specifically for industrial process variable measurement and control. This is a specialized niche within the broader manufacturing industry. The Defense Logistics Agency (DLA) frequently procures such items to support military operations. Comparable spending benchmarks are difficult to establish without knowing the exact nature and quantity of the instruments, but DLA's annual spending on instruments and related products runs into hundreds of millions of dollars, supporting a wide array of defense needs.

Small Business Impact

The data indicates that small business participation (ss and sb fields) is false for this contract. Therefore, there are no direct small business set-aside provisions or subcontracting requirements explicitly mentioned for this award. This means that opportunities for small businesses to participate in this specific procurement are likely limited to being a supplier to the prime contractor, Simmonds Precision Products Inc., if the prime is not a small business itself. The impact on the broader small business ecosystem is minimal for this particular contract.

Oversight & Accountability

Oversight for this purchase order would typically fall under the purview of the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the firm fixed-price purchase order, focusing on timely delivery and adherence to specifications. Transparency is generally limited for 'NOT COMPETED' awards, with justifications for the procurement method often being internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency Procurement
Industrial Process Control Instruments
Military Equipment Manufacturing
Sole-Source Procurements
Fixed-Price Purchase Orders

Risk Flags

Lack of Competition
Potential for Overpricing
Long Contract Duration
Limited Transparency
No Small Business Set-Aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.1 million to SIMMONDS PRECISION PRODUCTS INC. 8508139844!MISCELLANEOUS

Who is the contractor on this award?

The obligated recipient is SIMMONDS PRECISION PRODUCTS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2021-05-18. End: 2025-12-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which strongly suggests a sole-source award. However, the specific justification for this determination is not included in the data. Typically, sole-source awards require a formal justification, such as the unique capability of a single contractor, urgent and compelling needs that preclude competition, or a follow-on contract where only one source can provide the necessary compatibility. Without access to the contract file or associated documentation, the precise reason for bypassing competitive procedures remains unknown. Further inquiry with the Defense Logistics Agency would be necessary to obtain this critical information and assess its validity.

How does the pricing of these instruments compare to similar market offerings, given the lack of competition?

Directly comparing the pricing of these instruments is challenging due to the 'NOT COMPETED' status, which prevents a market-driven price discovery. Without competitive bids, it's difficult to ascertain if Simmonds Precision Products Inc. offered the most cost-effective solution. To assess value, one would need to benchmark the unit prices against commercially available instruments with similar specifications or against historical pricing for comparable items procured competitively by the government or other entities. The $3.1 million total value, spread over nearly five years, suggests a moderate annual spend, but the per-unit cost is the critical factor for value assessment. A detailed analysis of the specific instrument types and their market rates is required.

What are the potential risks associated with a sole-source award for instruments with a long performance period?

A sole-source award for instruments with a long performance period (May 2021 to December 2025) carries several risks. Firstly, the lack of competition means the government is reliant on a single supplier, potentially limiting leverage if issues arise. Secondly, the extended duration increases the risk of price increases if market conditions change, even with a fixed-price contract, if the initial pricing did not adequately account for long-term inflation or material cost fluctuations. Performance degradation or obsolescence of the instruments over time without competitive pressure to innovate or upgrade is another concern. Finally, without regular competitive review, there's a reduced incentive for the contractor to maintain optimal efficiency and quality throughout the contract life.

What is the track record of Simmonds Precision Products Inc. in fulfilling government contracts, particularly sole-source awards?

Information regarding the specific track record of Simmonds Precision Products Inc. in fulfilling government contracts, especially sole-source awards, is not provided in the given data. A comprehensive assessment would require accessing contract performance databases (like the Federal Procurement Data System - FPDS) to review past awards, performance ratings, and any reported issues or disputes. Understanding their history with similar types of instruments and their reliability in meeting delivery schedules and quality standards would be crucial. Without this historical data, it's difficult to gauge their reliability and past performance in executing government obligations.

Are there any mechanisms in place to ensure the instruments remain technologically relevant and meet evolving DoD requirements throughout the contract duration?

The provided data does not detail specific mechanisms for ensuring technological relevance or adaptation to evolving DoD requirements within this fixed-price purchase order. Typically, contracts with long durations might include clauses for technical refresh, performance reviews, or options for upgrades. However, for a 'NOT COMPETED' award, such provisions might be less common or less robust than in a competitively negotiated contract. The onus would likely be on the Defense Logistics Agency to proactively monitor technological advancements and engage with Simmonds Precision Products Inc. regarding potential updates or modifications, possibly through contract modifications if feasible and justified.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPE4A520Q0879

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 100 PANTON RD, VERGENNES, VT, 05491

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: $3,145,539

Exercised Options: $3,145,539

Current Obligation: $3,145,539

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $85,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline