Bantec, Inc. (Bantec) operates as a product and service company targeting the U.S. Government, state governments, municipalities, hospitals, universities, manufacturers, and other building owners.
Bantec also provides product procurement, distribution, and logistics services through its wholly-owned subsidiary, Howco Distributing Co. (Howco), to the United States Department of Defense and Defense Logistics Agency.
The company’s revenues from the U.S. Government largely result from contracts aw...
Bantec, Inc. (Bantec) operates as a product and service company targeting the U.S. Government, state governments, municipalities, hospitals, universities, manufacturers, and other building owners.
Bantec also provides product procurement, distribution, and logistics services through its wholly-owned subsidiary, Howco Distributing Co. (Howco), to the United States Department of Defense and Defense Logistics Agency.
The company’s revenues from the U.S. Government largely result from contracts awarded to the company under various U.S. Government programs, primarily defense-related programs with the Department of Defense (DoD), as well as a broad range of programs with the Department of Homeland Security, the intelligence community, and other departments and agencies.
Growth Strategy
The company views acquisitions as its primary growth vehicle, with an eye on franchising some of these acquisitions. The company is looking for companies that will ultimately complement each other where the company can cross sell its customers a wide variety of goods and services. For example, the company is looking to purchase a distributor or manufacturer that will enable the company to sell new products to the U.S. government through its subsidiary, Howco.
Drone Sales
Through the company’s Drone USA website (droneusainc.com) and through limited direct selling efforts, the company offers police, fire, the U.S. government drone programs. The company’s drone programs constitute selling its customers drones, drone accessories, accident reconstruction software, drone training, drone services, counter-drone technology, certificates of authorization (COAs) and Waivers.
Acquisitions
The company is looking to acquire companies in the manufacturing, distributing and/or service industries. These are the company’s potential and intended divisions: Bantec Air, Bantec Robotics, Bantec Environmental, Bantec Logistics, and Bantec Solar.
Bantec Sanitizing
The company is looking to acquire a commercial cleaning company that the company can either rebrand to Bantec Sanitizing or continue on with purchased brand name and ultimately franchise the newly acquired commercial cleaning company. In the company’s post-covid era, sanitizing offices, hospitals, universities, and other facilities will remain a priority for businesses looking to ensure healthy workforces.
Howco’s Business
Howco is a premier supplier of spare and replacement parts to a wide variety of Federal Government agencies, the U.S. military prime contractors and commercial customers worldwide. Howco’s services encompass bid solicitation, contract management, packaging and logistics for construction, transportation, mining and heavy equipment spare and replacement parts to customers worldwide utilizing a wide variety of supply chain solutions.
Howco’s Government Services Contracts
Howco enters into various types of contracts with the company’s customers, such as Indefinite Delivery, Indefinite Quantity (IDIQ), Cost-Plus-Fixed-Fee (CPFF) Level of Effort (LOE), Cost-Plus-Fixed-Fee (CPFF) Completion, Cost-reimbursement (CR), Firm-Fixed-Price (FFP), Fixed-Price Incentive (FPI), and Time-and-Materials (T&M). The majority of Howco’s revenues are derived from FFP contracts.
IDIQ contracts provide for an indefinite quantity of services or stated limits of supplies for a fixed period. They are used when the customer cannot determine, above a specified minimum, the precise quantities of supplies or services that the government will require during the contract period. IDIQs help streamline the contract process and speed service delivery. IDIQ contracts are most often used for service contracts and architect-engineering services. Awards are usually for base years and option years. The customer places delivery orders (for supplies) or task orders (for services) against a basic contract for individual requirements. Minimum and maximum quantity limits are specified in the basic contract as either a number of units (for supplies) or as dollar values (for services).
CPFF LOE contracts will be issued when the scope of work is defined in general terms requiring only that the contractor devote a specified LOE for a stated time period. A CPFF completion contract will be issued when the scope of work defines a definite goal or target which leads to an end product deliverable (e.g., a final report of research accomplishing the goal or target).
CR contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the contracting officer and are suitable for use only when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract.
FFP contract will be issued when acquiring supplies or services on the basis of definite or detailed specifications and fair and reasonable prices can be established at the outset.
FPI target delivery contract will be issued when acquiring supplies or services on the basis of reasonably definite or detailed specifications and cost can be reasonably predicted at the outset wherein the cost risk will be shared.
T&M contracts provide for acquiring supplies or services on the basis of direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and actual cost for materials.
Competition
Drone USA, LLC (Drone USA)
The competition for Drone USA (the company’s wholly-owned subsidiary) mainly consists of resellers of drones who sell to law enforcement, fire departments, security companies and the U.S. government. These competitors primarily are Amazon, Best Buy, Drone Nerds, SYNNEX and other distributors of drones. On the training front, the company’s competitors consist of SMG and other training suppliers.
Howco
Among the company’s U.S. based competitors are JGILS that supplies parts manufactured by Fairbanks Morse/Coltec and other brands, Ohio Cat that supplies Caterpillar parts, and Kampi Components and Brighton Cromwell, both of which compete with the company in several brands.
History
The company was founded in 1972. It was incorporated in 1972 in Delaware. The company was formerly known as Bantek, Inc. and changed its name to Bantec, Inc. in 2020.
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