DoD Awards $37.4M for Caterpillar Bulldozers, Sole-Source Contract Raises Concerns

Contract Overview

Contract Amount: $37,403,834 ($37.4M)

Contractor: Caterpillar Inc

Awarding Agency: Department of Defense

Start Date: 2010-03-11

End Date: 2011-12-31

Contract Duration: 660 days

Daily Burn Rate: $56.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CATERPILLAR TRACK TYPE TRACTOR BULLDOZERS

Plain-Language Summary

Department of Defense obligated $37.4 million to CATERPILLAR INC for work described as: CATERPILLAR TRACK TYPE TRACTOR BULLDOZERS Key points: 1. Significant award value of $37.4 million for construction machinery. 2. Sole-source procurement limits competitive pricing and potentially increases costs. 3. Contract awarded by the Department of the Army for bulldozers. 4. Focus on construction machinery manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $37.4 million is substantial for construction machinery. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for Caterpillar bulldozers.

Cost Per Unit: $56,672

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This method bypasses competitive bidding, which can lead to higher prices and reduced opportunities for other manufacturers.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these bulldozers.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency in pricing due to sole-source nature. Potential for reduced innovation if competition is consistently avoided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
Potential for overpayment

Positive Signals

Specific equipment type procured
Clear contract end date

Sector Analysis

The Department of Defense is a significant buyer in the Construction Machinery Manufacturing sector. This award for Caterpillar bulldozers aligns with typical equipment needs for military construction and infrastructure projects.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. Further investigation would be needed to confirm.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value and that competition was appropriately considered.

Related Government Programs

Construction Machinery Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to CATERPILLAR INC. CATERPILLAR TRACK TYPE TRACTOR BULLDOZERS

Who is the contractor on this award?

The obligated recipient is CATERPILLAR 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 $37.4 million.

What is the period of performance?

Start: 2010-03-11. End: 2011-12-31.

What justification was provided for awarding this contract on a sole-source basis, and was it thoroughly reviewed?

Sole-source awards typically require a strong justification, such as a unique capability or lack of alternatives. A thorough review by the contracting agency is crucial to ensure this justification is valid and that all reasonable efforts to promote competition were made. Without this information, it's difficult to assess the necessity of bypassing competitive processes.

How does the per-unit cost of $56,672 compare to market rates for similar Caterpillar bulldozers purchased competitively?

Benchmarking this per-unit cost against competitively procured Caterpillar bulldozers is essential. If this price is significantly higher, it suggests potential overpayment due to the sole-source nature. A detailed market analysis comparing features, age, and condition would be necessary for an accurate assessment.

What is the long-term strategy for acquiring construction equipment, and does it prioritize competitive sourcing?

Understanding the broader acquisition strategy is important. If sole-source awards are becoming a pattern for essential equipment like bulldozers, it could indicate systemic issues in procurement planning or market research. A strategy that emphasizes competition whenever feasible ensures better value and fosters a healthier industrial base.

Industry Classification

NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912ER09R0098

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caterpillar Inc. (UEI: 005070479)

Address: 14009 OLD GALENA RD TC-A, MOSSVILLE, IL, 16

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

Financial Breakdown

Contract Ceiling: $37,403,834

Exercised Options: $37,403,834

Current Obligation: $37,403,834

Contract Characteristics

Cost or Pricing Data: NO

Timeline