Wulco Inc. awarded $41.7M for military vehicle components, with delivery expected by late 2026

Contract Overview

Contract Amount: $41,656,953 ($41.7M)

Contractor: Wulco Inc

Awarding Agency: Department of Defense

Start Date: 2024-03-14

End Date: 2026-11-13

Contract Duration: 974 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DO FOR OY1 PRODUCTION CLINS.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45237

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $41.7 million to WULCO INC for work described as: DO FOR OY1 PRODUCTION CLINS. Key points: 1. Contract value appears reasonable given the specialized nature of military vehicle components. 2. Full and open competition after exclusion of sources suggests a potentially limited but justified bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period of nearly two years allows for structured production and delivery. 5. Contractor Wulco Inc. is positioned to supply critical components within the defense industrial base. 6. The award is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $41.7 million for military armored vehicle components seems aligned with industry benchmarks for specialized manufacturing. While direct comparisons are difficult without knowing the exact specifications and quantities, the firm fixed-price nature suggests a negotiated price that Wulco Inc. believes is profitable. The award amount is substantial but not exceptionally high for defense manufacturing, indicating a potentially fair price for the goods and services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, possibly due to specific technical requirements, existing relationships, or prior performance. The exact number of bidders is not specified, but the exclusion suggests a more focused competition than a truly open one, which could impact price discovery.

Taxpayer Impact: The limited competition, while potentially justified by technical needs, means taxpayers may not have benefited from the lowest possible price achievable in a broader bidding environment.

Public Impact

The primary beneficiaries are the Department of Defense and potentially military personnel who will utilize the armored vehicles equipped with these components. Services delivered include the manufacturing and supply of critical components for military armored vehicles. The geographic impact is primarily within Ohio, where Wulco Inc. is located, and potentially at the military installation receiving the components. Workforce implications include job creation and maintenance at Wulco Inc. and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to result in higher-than-market prices.
Dependence on a single contractor for critical components could pose supply chain risks.
Ensuring adherence to strict military specifications and quality control throughout production.

Positive Signals

Firm fixed-price contract reduces the risk of cost overruns for the government.
Delivery order structure suggests Wulco Inc. is an established supplier within a larger framework.
Award to a domestic manufacturer supports the U.S. industrial base.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of military vehicles and their components. The market for such specialized parts is often characterized by high barriers to entry due to technical expertise, stringent quality requirements, and long qualification processes. Spending in this area is driven by military readiness needs and modernization programs. Comparable spending benchmarks would typically involve other contracts for similar vehicle components or vehicle manufacturing, often in the multi-million dollar range.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist within Wulco Inc.'s supply chain, but this is not explicitly detailed in the provided information. The overall impact on the small business ecosystem is likely indirect, depending on Wulco's sourcing practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and quality assurance representatives. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified components by the deadline. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Vehicle Manufacturing
Defense Procurement
Armored Vehicle Components
Department of the Army Contracts
Wulco Inc. Contracts

Risk Flags

Limited competition may impact price.
Potential supply chain dependencies.
Ensuring adherence to strict military specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.7 million to WULCO INC. DO FOR OY1 PRODUCTION CLINS.

Who is the contractor on this award?

The obligated recipient is WULCO INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $41.7 million.

What is the period of performance?

Start: 2024-03-14. End: 2026-11-13.

What is Wulco Inc.'s track record with the Department of Defense, particularly in supplying military vehicle components?

Wulco Inc. has a history of receiving contracts from the Department of Defense, as indicated by this award and potentially others. To assess their track record thoroughly, one would need to examine their past performance on similar contracts, including on-time delivery rates, quality compliance, and any history of disputes or contract modifications. Analyzing previous awards for military vehicle components would provide specific insights into their experience and reliability in this niche. A review of contract databases and performance reports would be necessary to determine if they have consistently met or exceeded expectations in delivering complex defense matériel.

How does the $41.7 million award compare to similar contracts for military armored vehicle components?

Comparing the $41.7 million award requires identifying contracts for comparable military armored vehicle components, considering factors like vehicle type, component complexity, quantity, and the specific manufacturer. Without access to a detailed database of such contracts and their specific line items, a precise benchmark is challenging. However, for specialized, high-value components like those for armored vehicles, awards in the tens of millions of dollars are not uncommon, especially for production runs or significant upgrades. The firm fixed-price nature suggests a negotiated value, and further analysis would involve benchmarking against other awarded contracts for similar systems or components to ascertain if this represents a fair market price.

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

The primary risks include potential supply chain disruptions, quality control issues with specialized components, and the possibility that the 'limited' competition resulted in a less favorable price for the government. Mitigation strategies are evident in the contract structure: the firm fixed-price (FFP) terms shift cost overrun risk to Wulco Inc., incentivizing efficient production. The performance period (nearly two years) allows for structured manufacturing and delivery, reducing immediate supply risks. Oversight by the Department of the Army, including quality assurance, is crucial for ensuring component quality. The 'exclusion of sources' aspect, however, warrants scrutiny to ensure it was fully justified and didn't unduly limit competitive pricing.

What is the expected effectiveness of the components being supplied under this contract for military operations?

The effectiveness of the components is directly tied to their role in the overall military armored vehicle's performance, survivability, and operational readiness. Assuming Wulco Inc. meets the stringent military specifications and quality standards required for defense applications, these components are expected to function reliably under demanding combat conditions. Their successful integration into the vehicles will contribute to the platform's intended capabilities, whether that involves enhanced protection, mobility, or combat effectiveness. The long-term effectiveness will also depend on the durability and maintenance requirements of the components throughout the vehicle's lifecycle.

How does this contract fit into the broader historical spending patterns for military vehicle components by the Department of Defense?

This $41.7 million award represents a specific instance within the Department of Defense's consistent and substantial spending on military hardware, including vehicle components. Historical spending patterns reveal a continuous need for modernization, maintenance, and replacement of vehicle fleets, often involving multi-year contracts and significant investments. Awards like this are typical for specialized manufacturing within the defense sector, reflecting ongoing procurement strategies to maintain readiness and technological superiority. Analyzing historical data would show trends in contract values, types of components procured, and the primary contractors involved in this segment of defense spending.

What are the implications of the 'delivery order' status for this contract?

The designation of this award as a 'delivery order' (DO) implies that it is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. This structure allows the government to procure specific quantities of goods or services over a defined period, often with pre-negotiated terms and pricing. For taxpayers, this means the $41.7 million is part of a potentially larger contract ceiling. It suggests Wulco Inc. has an established relationship or framework agreement with the Army, enabling streamlined procurement of these components as needed, rather than initiating a new full procurement process for each requirement.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6899 STEGER DR, CINCINNATI, OH, 45237

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

Financial Breakdown

Contract Ceiling: $41,656,953

Exercised Options: $41,656,953

Current Obligation: $41,656,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV24D0019

IDV Type: IDC

Timeline