DoD awards $457M contract for service establishment equipment and supplies to W S DARLEY & CO

Contract Overview

Contract Amount: $78,143,234 ($78.1M)

Contractor: W S Darley & CO

Awarding Agency: Department of Defense

Start Date: 2025-09-08

End Date: 2027-07-22

Contract Duration: 682 days

Daily Burn Rate: $114.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4569564285!FUNCTION MODULE

Place of Performance

Location: ITASCA, DUPAGE County, ILLINOIS, 60143

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $78.1 million to W S DARLEY & CO for work described as: 4569564285!FUNCTION MODULE Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract has a duration of 682 days, suggesting a medium-term need for the supplies. 3. The award amount of $456,956,428.75 represents a significant investment in essential equipment and supplies. 4. The fixed-price contract type aims to control costs for the government. 5. The Defense Logistics Agency is the awarding agency, responsible for efficient logistics support. 6. The contract is for Service Establishment Equipment and Supplies Merchant Wholesalers, a critical category for military readiness.

Value Assessment

Rating: good

The total contract value is substantial at over $456 million. Benchmarking this against similar contracts for broad categories of 'Service Establishment Equipment and Supplies' is challenging without more specific product details. However, the fixed-price nature of the contract provides a degree of cost certainty for the government. The number of offers received (29) suggests a healthy level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This solicitation method implies that while the competition was intended to be open, certain sources may have been excluded prior to the final award. The solicitation received 29 offers, indicating a robust level of interest from potential bidders. The exclusion of sources prior to the final award warrants further investigation to understand the rationale and its potential impact on the breadth of competition.

Taxpayer Impact: While 29 offers were received, the exclusion of certain sources could mean that taxpayers did not benefit from the lowest possible price that might have been achieved with unrestricted competition.

Public Impact

Military personnel and units requiring service establishment equipment and supplies will benefit from this contract. The contract ensures the availability of essential goods for various defense operations. The geographic impact is national, supporting defense logistics across the United States. The contract supports the wholesale merchant industry for specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type needs clarification to ensure maximum taxpayer value.
Lack of specific product details makes it difficult to assess value for money comprehensively.
The contract duration and value could indicate potential for scope creep if not managed closely.

Positive Signals

The high number of offers (29) suggests strong market interest and potential for competitive pricing.
The firm fixed-price contract type helps mitigate cost overrun risks for the government.
Awarded by the Defense Logistics Agency, a specialized agency focused on efficient procurement.

Sector Analysis

This contract falls within the wholesale merchant category for specialized equipment and supplies, a segment of the broader defense logistics and industrial supply market. The defense sector relies heavily on such contracts to maintain operational readiness. Comparable spending benchmarks would typically be found within broader categories of military equipment and supplies, where billions are spent annually to equip and sustain forces.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Without this information, it is difficult to assess the direct impact on the small business ecosystem. However, the substantial value of the contract suggests potential opportunities for small businesses to participate as subcontractors if such provisions are included in the prime contract's terms.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Defense Logistics Agency (DLA) has internal oversight processes for contract management and performance. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract databases, though specific performance metrics and detailed oversight reports may not be publicly available.

Related Government Programs

Defense Logistics Agency Procurement
Military Equipment and Supplies
Wholesale Merchant Services
Federal Supply Schedule Contracts

Risk Flags

Competition Type: 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' requires further investigation into the rationale for excluding sources.
Scope Definition: The broad category of 'Service Establishment Equipment and Supplies' may lead to challenges in precise value benchmarking and performance monitoring.
Contractor Performance History: Detailed public data on W S DARLEY & CO's past performance for similar large-scale contracts is not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.1 million to W S DARLEY & CO. 4569564285!FUNCTION MODULE

Who is the contractor on this award?

The obligated recipient is W S DARLEY & CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $78.1 million.

What is the period of performance?

Start: 2025-09-08. End: 2027-07-22.

What is the specific nature of the 'Service Establishment Equipment and Supplies' being procured under this contract?

The provided data categorizes this contract under 'Service Establishment Equipment and Supplies Merchant Wholesalers.' This broad classification suggests the procurement of a wide range of items necessary for setting up or maintaining operational facilities and services. Examples could include tools, temporary structures, basic furniture, communication equipment, generators, and other logistical support items. Without a more detailed product list or Statement of Work, the exact nature remains general, making direct value comparisons difficult. However, the sheer volume and value indicate critical operational support needs for the Department of Defense.

How does the awarded price compare to historical spending for similar equipment and supplies by the Department of Defense?

Direct historical price comparisons for this specific contract are challenging without access to detailed historical procurement data for identical or highly similar items. The contract value of $456,956,428.75 is substantial. The Defense Logistics Agency (DLA) manages a vast portfolio of contracts, and this award represents a significant portion of their spending in the 'Service Establishment Equipment and Supplies' category. To perform a robust comparison, one would need to analyze DLA's spending trends over several fiscal years for comparable goods, considering factors like inflation, quantity variations, and specific item specifications. The number of offers (29) suggests a competitive market, which generally helps in achieving favorable pricing relative to market rates.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential supply chain disruptions, quality control issues with a broad range of goods, and the possibility of the contractor not meeting delivery schedules. Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, there's also a risk that the exclusion of certain bidders might have limited the competitive landscape, potentially impacting price. Mitigation strategies likely involve stringent contract terms, performance monitoring by the DLA, quality assurance inspections, and potentially backup suppliers or contingency plans outlined in the contract. The firm fixed-price structure also mitigates financial risk for the government regarding cost overruns.

What is the track record of W S DARLEY & CO in fulfilling similar government contracts?

W S DARLEY & CO has a history of receiving government contracts, particularly with defense agencies. Their past performance would be a critical factor considered during the source selection process for this award. A review of their contract history would reveal their experience in supplying equipment and supplies, their on-time delivery rates, and their record concerning quality and compliance. Agencies typically assess past performance to gauge a contractor's reliability and capability to meet the requirements of new contracts. Without specific performance data from prior contracts, it's difficult to definitively assess their track record here, but the award itself suggests a satisfactory past performance evaluation.

How does the competition level (29 offers) translate into value for taxpayers?

A high number of offers, such as the 29 received for this contract, generally indicates a competitive marketplace. This level of competition typically drives down prices as contractors vie for the award. For taxpayers, this means the government is more likely to secure goods and services at or near the lowest achievable market price. While the 'exclusion of sources' aspect needs further scrutiny, the overall breadth of bidders suggests that the government received a range of proposals, increasing the likelihood of a cost-effective outcome. This competitive pressure helps ensure that taxpayer funds are used efficiently.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Service Establishment Equipment and Supplies Merchant Wholesalers

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 325 SPRING LAKE DR, ITASCA, IL, 60143

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

Financial Breakdown

Contract Ceiling: $78,143,234

Exercised Options: $78,143,234

Current Obligation: $78,143,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1025

IDV Type: IDC

Timeline