DoD Spends $48.9M on Armored Bulldozers in Egypt, Sole-Sourced from Caterpillar
Contract Overview
Contract Amount: $48,909,117 ($48.9M)
Contractor: Caterpillar Inc
Awarding Agency: Department of Defense
Start Date: 2020-07-24
End Date: 2024-05-05
Contract Duration: 1,381 days
Daily Burn Rate: $35.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PROCUREMENT OF ARMORED CONSTRUCTION BULLDOZERS IN EGYPT
Place of Performance
Location: PEORIA, PEORIA County, ILLINOIS, 61629
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $48.9 million to CATERPILLAR INC for work described as: PROCUREMENT OF ARMORED CONSTRUCTION BULLDOZERS IN EGYPT Key points: 1. Significant investment in specialized construction equipment for overseas operations. 2. Sole-source procurement raises questions about price competitiveness. 3. Contract duration of over 3 years suggests long-term need. 4. Focus on armored vehicles highlights operational risks in the region.
Value Assessment
Rating: questionable
The contract value of $48.9M for armored bulldozers is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar specialized equipment procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method can lead to higher prices as there is no market pressure to offer the best value.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this specialized equipment.
Public Impact
Ensures operational capability for construction tasks in potentially hazardous environments. Supports U.S. military presence and infrastructure projects abroad. Potential for cost overruns due to lack of competitive pricing. Limited visibility into the specific end-use and necessity of armored bulldozers in Egypt.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of price competition
- High contract value
Positive Signals
- Addresses specific operational needs
- Procurement for critical infrastructure/support
Sector Analysis
The procurement falls under Construction Machinery Manufacturing. Spending in this sector can vary widely based on infrastructure needs and defense requirements. The $48.9M is a significant amount for specialized, armored equipment.
Small Business Impact
The data does not indicate any participation or subcontracting opportunities for small businesses in this sole-source procurement.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The Department of the Army's justification for this sole-source award needs thorough review.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- High contract value warrants scrutiny.
- Potential for cost overruns.
- Limited transparency on specific operational needs.
- No indication of small business participation.
Tags
construction-machinery-manufacturing, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.9 million to CATERPILLAR INC. PROCUREMENT OF ARMORED CONSTRUCTION BULLDOZERS IN EGYPT
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 $48.9 million.
What is the period of performance?
Start: 2020-07-24. End: 2024-05-05.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
Sole-source awards typically occur when only one responsible source can provide the required supplies or services. The Department of Defense must provide a detailed justification, often citing unique capabilities or urgent needs. Steps to ensure fair pricing might include historical price analysis, independent cost estimates, or negotiation with the sole provider, though competition is the primary driver of optimal pricing.
What are the specific risks associated with operating armored bulldozers in Egypt, and how does this procurement mitigate them?
Operating heavy machinery in potentially unstable or hostile environments like Egypt necessitates protection for personnel and equipment. Armored bulldozers are designed to withstand threats such as small arms fire or explosive devices, enabling construction and engineering tasks to proceed safely. This procurement directly addresses the risk of personnel injury or equipment destruction during critical operations.
How does the $48.9M expenditure on these bulldozers align with broader U.S. foreign policy objectives and infrastructure development goals in the region?
The expenditure likely supports U.S. strategic interests by enabling infrastructure projects, military base construction, or humanitarian aid efforts in Egypt. Ensuring operational capability through specialized equipment like armored bulldozers can facilitate stability and demonstrate U.S. commitment. The effectiveness hinges on whether these projects directly contribute to stated foreign policy and development objectives.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912ER20R0032
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Caterpillar Inc.
Address: 100 NE ADAMS ST AB6310, PEORIA, IL, 61629
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,909,117
Exercised Options: $48,909,117
Current Obligation: $48,909,117
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $9,798,625
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-24
Current End Date: 2024-05-05
Potential End Date: 2024-05-05 00:00:00
Last Modified: 2024-08-20
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