DoD Awards $98M for FMTV B-Kits, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $98,188,307 ($98.2M)
Contractor: Xper, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-11
End Date: 2019-09-30
Contract Duration: 2,210 days
Daily Burn Rate: $44.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 160 EA PRODUCTION FMTV B-KITS PACKEGED 4 EA IN ISO CONTAINER, FIRST ARTICLE TESTS AND CDRL SUPPORT (BASE CONTRACT AWARD)
Place of Performance
Location: BUTLER, BUTLER County, PENNSYLVANIA, 16002
Plain-Language Summary
Department of Defense obligated $98.2 million to XPER, INC. for work described as: 160 EA PRODUCTION FMTV B-KITS PACKEGED 4 EA IN ISO CONTAINER, FIRST ARTICLE TESTS AND CDRL SUPPORT (BASE CONTRACT AWARD) Key points: 1. Contract awarded to XPER, INC. for $98.19M for FMTV B-Kits. 2. Competition method was 'Full and Open Competition after Exclusion of Sources', suggesting a competitive process with specific source considerations. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. This award falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector. 5. The contract duration is 2210 days, indicating a long-term supply requirement.
Value Assessment
Rating: good
The contract value of $98.19M for 160 EA Production FMTV B-Kits appears reasonable given the specialized nature of military vehicle components. Benchmarking against similar complex defense manufacturing contracts would provide a more precise assessment.
Cost Per Unit: $613,677 per B-Kit (approximate)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources'. This indicates that while competition was sought, certain sources may have been excluded based on specific criteria, potentially impacting the breadth of price discovery.
Taxpayer Impact: The use of full and open competition, even with exclusions, aims to secure competitive pricing for taxpayers. The firm fixed price structure further protects the government from cost overruns.
Public Impact
Ensures continued production of essential FMTV B-Kits for military operations. Supports the defense industrial base and associated jobs. Provides critical components for armored vehicle readiness. The long-term nature of the contract offers supply chain stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential impact of 'Exclusion of Sources' on ultimate price competitiveness.
- Long contract duration (2210 days) may require ongoing performance monitoring.
- Dependence on a single contractor for a critical component.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Awarded through a competitive process.
- Supports readiness of military vehicles.
Sector Analysis
This contract falls within the Defense sector, specifically Military Armored Vehicle manufacturing. Spending in this area is driven by military modernization, operational needs, and geopolitical factors. Benchmarks for similar complex vehicle component contracts are typically in the hundreds of thousands to millions of dollars per unit, depending on complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract was awarded by the Department of Defense's Defense Contract Management Agency, suggesting established oversight mechanisms. However, the long duration necessitates continuous monitoring of performance and compliance.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for less competitive pricing due to source exclusion.
- Long contract duration increases risk of performance degradation or obsolescence.
- Dependence on a single contractor for critical components.
- Complexity of military vehicle component manufacturing.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.2 million to XPER, INC.. 160 EA PRODUCTION FMTV B-KITS PACKEGED 4 EA IN ISO CONTAINER, FIRST ARTICLE TESTS AND CDRL SUPPORT (BASE CONTRACT AWARD)
Who is the contractor on this award?
The obligated recipient is XPER, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $98.2 million.
What is the period of performance?
Start: 2013-09-11. End: 2019-09-30.
What specific criteria led to the exclusion of certain sources in this 'Full and Open Competition after Exclusion of Sources' award, and how might this have affected the final price?
The specific criteria for excluding sources are not detailed in the provided data. Typically, such exclusions might be based on technical capabilities, past performance, security clearances, or specific manufacturing expertise required for the FMTV B-Kits. If these exclusions significantly limited the pool of qualified bidders, it could potentially lead to less aggressive pricing compared to a truly unrestricted full and open competition.
Given the firm fixed price nature, what are the primary risks to the government if XPER, INC. encounters unforeseen production challenges or cost increases?
With a firm fixed price contract, the primary risk to the government is minimal regarding cost overruns due to contractor-incurred issues. XPER, INC. assumes the risk of increased costs. However, the government could face risks related to delivery delays, quality issues, or contractor default if XPER, INC. struggles to meet contract terms, potentially impacting military readiness.
How does the production of FMTV B-Kits contribute to the overall effectiveness and readiness of the U.S. military's vehicle fleet?
FMTV (Family of Medium Tactical Vehicles) B-Kits are essential components that enable the modularity and upgradeability of these vehicles. Their production ensures that the military can maintain, repair, and enhance its tactical vehicle fleet, which is crucial for logistics, troop transport, and various operational roles. Reliable B-Kit availability directly supports the overall effectiveness and readiness of ground forces.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W56HZV12R0089
Offers Received: 7
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: $99,356,666
Exercised Options: $98,188,307
Current Obligation: $98,188,307
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-11
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2021-11-03
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