Pratt & Miller awarded $32.2M for trackless moving targets, raising questions about competition and value

Contract Overview

Contract Amount: $32,218,917 ($32.2M)

Contractor: Pratt & Miller Engineering & Fabrication, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-24

End Date: 2029-09-23

Contract Duration: 1,825 days

Daily Burn Rate: $17.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FULL RATE PRODUCTION & FIELDING OF TRACKLESS MOVING TARGETS (TMTS) FAMILY OF PRODUCTS (FOPS) FOR NINE CONUS INSTALLATIONS.

Place of Performance

Location: NEW HUDSON, OAKLAND County, MICHIGAN, 48165

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to PRATT & MILLER ENGINEERING & FABRICATION, LLC for work described as: FULL RATE PRODUCTION & FIELDING OF TRACKLESS MOVING TARGETS (TMTS) FAMILY OF PRODUCTS (FOPS) FOR NINE CONUS INSTALLATIONS. Key points: 1. The contract's value of $32.2 million over five years warrants scrutiny for cost-effectiveness. 2. A sole-source award limits competitive pressure, potentially impacting pricing and innovation. 3. The absence of competition introduces a risk of inflated costs and reduced contractor responsiveness. 4. This award is for the full rate production and fielding of trackless moving targets. 5. The contract is positioned within the defense sector, specifically for Army training needs. 6. The firm-fixed-price structure aims to control costs, but the lack of competition is a concern.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the $32.2 million price reflects fair market value for the trackless moving targets. The absence of comparable contract data for similar systems procured through open competition makes a direct value-for-money assessment difficult. The fixed-price nature provides some cost certainty, but the lack of competition could lead to less favorable terms than if multiple vendors had vied for the contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Pratt & Miller Engineering & Fabrication, LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they inherently limit price discovery and can reduce the incentive for contractors to offer their best pricing. The lack of multiple bidders means taxpayers do not benefit from the cost savings typically achieved through a competitive environment.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most cost-effective solution. Without competition, there's a risk that the price is higher than it would be in a more open market, potentially leading to less efficient use of federal funds.

Public Impact

The primary beneficiaries are the U.S. Army training commands requiring advanced target systems. The contract will deliver trackless moving targets (TMTS) for nine CONUS installations. The geographic impact is limited to the specified Army training facilities within the continental United States. This contract supports specialized manufacturing jobs within the defense industry, particularly at Pratt & Miller.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially inflates costs.
Lack of competition may reduce contractor urgency and responsiveness.
Difficulty in benchmarking value without comparable contract data.
Potential for less innovation due to absence of competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Pratt & Miller is an established entity in defense engineering and fabrication.
The contract addresses a specific need for advanced training targets.

Sector Analysis

The defense sector, particularly the segment focused on training and simulation, is characterized by significant government investment. Companies like Pratt & Miller Engineering & Fabrication, LLC, specialize in providing advanced hardware and engineering solutions for military applications. This contract for trackless moving targets fits within the broader category of defense manufacturing and support services, where specialized capabilities are often required. Spending in this area is driven by the need for realistic training environments to prepare military personnel for complex operational scenarios.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a specific large business, it does not directly contribute to the small business ecosystem or provide opportunities for small business set-asides. The primary impact is on the prime contractor, Pratt & Miller, and its supply chain, which may or may not include small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver specified goods. Transparency is limited by the sole-source nature of the award, as public justification and competitive proposals are not available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Training Systems
Military Target Systems
Defense Manufacturing Contracts
Sole-Source Defense Procurements
Advanced Training Equipment

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated costs
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to PRATT & MILLER ENGINEERING & FABRICATION, LLC. FULL RATE PRODUCTION & FIELDING OF TRACKLESS MOVING TARGETS (TMTS) FAMILY OF PRODUCTS (FOPS) FOR NINE CONUS INSTALLATIONS.

Who is the contractor on this award?

The obligated recipient is PRATT & MILLER ENGINEERING & FABRICATION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2024-09-24. End: 2029-09-23.

What is the track record of Pratt & Miller Engineering & Fabrication, LLC with the Department of Defense, particularly on similar sole-source contracts?

Pratt & Miller Engineering & Fabrication, LLC has a history of working with the Department of Defense, often in specialized engineering and fabrication roles. While specific details on their sole-source contract history are not provided here, their involvement in defense projects suggests familiarity with government procurement processes and requirements. For this specific contract, the 'full rate production and fielding of trackless moving targets' indicates a transition from development to sustained delivery, implying a level of established capability. Further analysis would require examining their past performance reviews and contract awards, especially those that were not competitively bid, to assess their reliability and cost-effectiveness in similar scenarios.

How does the $32.2 million contract value compare to the estimated market value for similar trackless moving target systems?

Directly comparing the $32.2 million contract value to the estimated market value for similar trackless moving target systems is difficult without access to proprietary pricing data or a competitive bidding process. As this was a sole-source award, there were no competing bids to establish a market benchmark. However, the value represents a significant investment over five years. To assess value, one would need to analyze the system's capabilities, the number of units procured, the cost per unit, and compare these to industry standards for advanced training simulation hardware. If comparable systems exist that were procured competitively, their pricing could offer a point of reference, but differences in features, complexity, and scale would need careful consideration.

What are the primary risks associated with awarding a $32.2 million contract on a sole-source basis for military training equipment?

The primary risks associated with a sole-source award of this magnitude include potential cost overruns and reduced value for money. Without competition, the government lacks leverage to negotiate the lowest possible price, potentially leading to higher per-unit costs than if multiple vendors had competed. There's also a risk of complacency from the contractor, as the absence of competitive pressure might diminish the incentive to innovate, improve efficiency, or maintain the highest levels of service and responsiveness. Furthermore, a sole-source award can limit the government's access to alternative technologies or solutions that might be offered by other capable vendors, potentially hindering long-term modernization efforts.

What is the expected program effectiveness and impact of these trackless moving targets on Army training?

The expected program effectiveness of these trackless moving targets (TMTS) is to significantly enhance the realism and complexity of U.S. Army training scenarios. TMTS are designed to simulate dynamic battlefield conditions, allowing soldiers to train against mobile, unpredictable threats in a safe and controlled environment. This realism is crucial for developing critical decision-making skills, improving unit cohesion, and refining tactical responses. The fielding of these systems across nine CONUS installations suggests a broad impact on the training readiness of numerous Army units, ultimately contributing to a more prepared and capable fighting force. The 'full rate production and fielding' indicates a mature capability being deployed.

How has federal spending on military training equipment, specifically target systems, evolved over the past five years?

Federal spending on military training equipment, including target systems, has generally seen consistent investment, driven by the need to maintain readiness and adapt to evolving threats. While specific figures for 'trackless moving targets' are not readily available as a distinct category, overall spending on simulation and training systems within the Department of Defense has been substantial. Factors influencing this spending include technological advancements, the complexity of modern warfare, and the desire for more realistic training environments. The trend has been towards more sophisticated, technologically advanced systems that can replicate diverse combat scenarios. Budgetary allocations can fluctuate based on strategic priorities and overall defense spending levels, but training remains a core component.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK24R0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oshkosh Corporation

Address: 29600 WK SMITH DR, NEW HUDSON, MI, 48165

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,358,628

Exercised Options: $32,218,917

Current Obligation: $32,218,917

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline