DoD awards $40.7M for military trailers, with limited competition and a firm fixed price contract

Contract Overview

Contract Amount: $40,735,203 ($40.7M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2010-04-20

End Date: 2010-12-16

Contract Duration: 240 days

Daily Burn Rate: $169.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BV MILITARY TRAILER AND WARRANTY

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $40.7 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: BV MILITARY TRAILER AND WARRANTY Key points: 1. The contract value of $40.7 million for military trailers and warranty indicates a significant investment in logistical support. 2. The 'NOT COMPETED' status suggests potential limitations in market exploration and price discovery for this acquisition. 3. A firm fixed-price contract structure aims to provide cost certainty for the government, shifting risk to the contractor. 4. The award to AMERICAN SCIENCE & ENGINEERING INC for irradiation apparatus manufacturing, while seemingly unrelated, is the listed contractor. 5. The contract duration of 240 days (8 months) suggests a focused, short-term need for these trailers. 6. The small business indicators are false, meaning this award did not prioritize small business participation.

Value Assessment

Rating: fair

Benchmarking the value of $40.7 million for military trailers is challenging without specific details on the trailer type, quantity, and included warranty services. However, the 'NOT COMPETED' nature of the award raises questions about whether the government secured the best possible price. A firm fixed-price contract provides cost predictability, but the absence of competitive bidding means there's no direct market comparison to assess value for money. Further analysis would require understanding the specific requirements and comparing them to similar procurements, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating that a competitive bidding process was not utilized. This typically occurs when only one source is capable of meeting the requirement, or in specific emergency situations. The lack of competition means there were likely no other bidders, limiting the government's ability to compare offers and potentially negotiate a lower price. This approach can sometimes lead to higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that typically arise from a bidding process. The government may have paid a premium due to the lack of alternative offers.

Public Impact

Military personnel and logistics units are the primary beneficiaries, receiving essential equipment for operational support. The contract delivers military trailers, crucial for transporting equipment and supplies in various operational environments. The geographic impact is likely focused on military installations and operational theaters where these trailers are deployed. The award supports the contractor's workforce involved in manufacturing and delivering these specialized trailers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices for taxpayers.
Contractor's primary business is irradiation apparatus manufacturing, raising questions about expertise in military trailers.
Short contract duration might indicate a specific, non-recurring need rather than a long-term strategic acquisition.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarding to a single contractor can expedite delivery if they are uniquely qualified or have existing capacity.

Sector Analysis

The defense sector is characterized by complex and specialized equipment procurement. Military trailers are a critical component of logistical support, enabling the movement of personnel and materiel. The market for such equipment can be specialized, with a limited number of manufacturers capable of meeting stringent military specifications. The $40.7 million award falls within the typical range for significant defense equipment procurements, though specific benchmarks are difficult without more detailed specifications.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, AMERICAN SCIENCE & ENGINEERING INC, is not identified as a small business. This award does not appear to contribute to the small business contracting goals of the Department of Defense.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. The firm fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring delivery of the specified trailers and warranty services according to the contract terms. Accountability measures would involve contract performance monitoring and adherence to delivery schedules. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Military Logistics Support Equipment
Tactical Vehicle Procurement
Defense Supply Chain Management
Heavy Equipment Manufacturing Contracts

Risk Flags

Lack of Competition
Contractor Capability Mismatch (Primary NAICS vs. Contract Type)
Limited Transparency on Justification for Non-Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.7 million to AMERICAN SCIENCE & ENGINEERING INC. BV MILITARY TRAILER AND WARRANTY

Who is the contractor on this award?

The obligated recipient is AMERICAN SCIENCE & ENGINEERING 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 $40.7 million.

What is the period of performance?

Start: 2010-04-20. End: 2010-12-16.

What specific type of military trailer was procured under this contract, and what are its key specifications?

The provided data does not specify the exact type or key specifications of the military trailers procured. The contract is broadly categorized under 'BV MILITARY TRAILER AND WARRANTY'. Without further details, it's impossible to ascertain if these are standard cargo trailers, specialized transport vehicles, or units with unique environmental protection capabilities. The PSC code is also blank, which would typically offer more insight into the nature of the goods or services. Understanding the specific requirements is crucial for a comprehensive value assessment.

Why was this contract awarded on a 'NOT COMPETED' basis, and what were the justifications?

The justification for awarding this contract on a 'NOT COMPETED' basis is not detailed in the provided data. Typically, sole-source or non-competed awards are made when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need, or when specific national security concerns preclude competition. Without the official justification documentation (e.g., a Justification and Approval document), it is impossible to determine the precise reasons. This lack of transparency limits the ability to assess if competition was genuinely not feasible or if it was an administrative choice.

How does the contractor, AMERICAN SCIENCE & ENGINEERING INC, with a primary NAICS code of 334517 (Irradiation Apparatus Manufacturing), possess the capability to supply military trailers?

The provided data lists AMERICAN SCIENCE & ENGINEERING INC as the contractor with a primary NAICS code of 334517, which pertains to Irradiation Apparatus Manufacturing. This presents a potential disconnect, as military trailer manufacturing typically falls under different industrial classifications related to vehicle manufacturing or heavy equipment. It is possible that AMERICAN SCIENCE & ENGINEERING INC has diversified its operations, acquired a subsidiary with relevant manufacturing capabilities, or is acting as a prime contractor managing subcontractors who actually produce the trailers. Alternatively, there might be an error in the data associating the contractor with this specific contract or its primary NAICS code.

What is the expected performance period and delivery schedule for these military trailers?

The contract has a duration of 240 days, which equates to approximately 8 months. The start date was April 20, 2010, and the end date was December 16, 2010. This relatively short performance period suggests that the procurement was for a specific, time-bound requirement rather than an ongoing, long-term need for trailers. It implies a focused effort on manufacturing and delivering the specified quantity of trailers within this timeframe, potentially for a particular operation or deployment.

What are the implications of the firm fixed-price (FFP) contract type for cost control and risk management in this procurement?

A Firm Fixed-Price (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with maximum cost certainty, as the total expenditure is known upfront. The risk of cost overruns is placed squarely on the contractor. For the government, this is advantageous for budgeting and financial planning. However, in a non-competed scenario, the initial FFP might be set at a higher baseline to account for the contractor's perceived risks or lack of competitive pressure, potentially negating some of the cost-saving benefits.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911QY10R0024

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,818,439

Exercised Options: $40,735,203

Current Obligation: $40,735,203

Contract Characteristics

Cost or Pricing Data: NO

Timeline