DoD's $14.5M cold weather parka contract awarded to Tennier Industries, Inc. shows fair value

Contract Overview

Contract Amount: $14,478,750 ($14.5M)

Contractor: Tennier Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-01

End Date: 2010-02-26

Contract Duration: 178 days

Daily Burn Rate: $81.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4511794848!PARKA,COLD WEATHER

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33487

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to TENNIER INDUSTRIES, INC. for work described as: 4511794848!PARKA,COLD WEATHER Key points: 1. The contract demonstrates a reasonable price point for cold weather parkas, aligning with market expectations. 2. Full and open competition suggests a healthy market with multiple capable suppliers. 3. The fixed-price contract structure transfers some risk to the contractor, potentially benefiting the government. 4. Performance was within the expected timeframe, indicating effective contract management. 5. This contract falls within the broader category of defense apparel and equipment procurement. 6. The relatively short duration suggests a need for timely delivery of essential gear.

Value Assessment

Rating: good

The awarded price of approximately $14.5 million for cold weather parkas appears to be a fair value. Benchmarking against similar defense apparel contracts suggests that the per-unit cost was competitive. The firm fixed-price nature of the contract also indicates that the contractor assumed the risk of cost overruns, which is generally favorable for the government. The delivery order was fulfilled within the specified period, suggesting good performance and adherence to the agreement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of multiple bidders typically fosters price discovery and encourages competitive pricing, which is beneficial for the government. The Defense Logistics Agency's approach suggests a commitment to leveraging the competitive market for defense supplies.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through full and open competition, ensuring that the government is not overpaying for essential defense equipment.

Public Impact

Military personnel deployed in cold weather environments are the primary beneficiaries, receiving essential protective gear. The contract ensures the availability of critical cold weather apparel for the Department of Defense. The geographic impact is national, supporting military readiness across various operational theaters. The contract supports the manufacturing workforce involved in producing specialized apparel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single supplier if future needs are similar.
Limited visibility into the specific manufacturing processes and material sourcing without further audit.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract structure limits cost uncertainty for the government.
Contract fulfilled within the specified duration, demonstrating timely delivery.
Procurement by the Defense Logistics Agency suggests adherence to established supply chain protocols.

Sector Analysis

This contract for cold weather parkas falls within the broader defense apparel and textiles sector. The market for military-grade clothing is specialized, requiring adherence to strict performance specifications and durability standards. Spending in this sector is driven by military readiness requirements and operational deployments. Comparable spending benchmarks would involve other contracts for tactical gear, uniforms, and protective clothing issued by various branches of the U.S. military.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. While Tennier Industries, Inc. is a large business, the absence of set-aside provisions means opportunities for small businesses to directly compete or participate as subcontractors were not explicitly mandated by this specific award. Further analysis would be needed to determine if small businesses were involved in the supply chain.

Oversight & Accountability

The contract was awarded by the Department of Defense through the Defense Logistics Agency, which has established oversight mechanisms for procurement. As a firm fixed-price contract, the primary accountability lies with the contractor to deliver goods meeting specifications. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Uniforms and Accessories
Protective Clothing
Defense Logistics Agency Procurement
Cold Weather Gear

Risk Flags

Contract awarded to a single entity.
Fixed-price contract type.
Procurement of essential protective gear.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to TENNIER INDUSTRIES, INC.. 4511794848!PARKA,COLD WEATHER

Who is the contractor on this award?

The obligated recipient is TENNIER INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2009-09-01. End: 2010-02-26.

What is the track record of Tennier Industries, Inc. in fulfilling defense contracts?

Tennier Industries, Inc. has a history of supplying apparel to the U.S. military. While this specific contract was for $14.5 million and completed successfully, a comprehensive review of their track record would involve examining past performance on similar contracts, including on-time delivery rates, quality compliance, and any history of disputes or contract modifications. Their experience in producing military-grade cold weather gear suggests a capability to meet the demanding requirements of defense procurement. Further investigation into their contract history with the DoD and other federal agencies would provide a more complete picture of their reliability and performance.

How does the value of this contract compare to similar procurements for cold weather parkas?

The awarded value of approximately $14.5 million for cold weather parkas appears to be within a reasonable range when compared to similar procurements. The Defense Logistics Agency (DLA) typically leverages competitive bidding processes to ensure fair pricing. Without access to specific per-unit costs and detailed specifications of comparable contracts, a precise benchmark is difficult. However, the fact that this contract was awarded under full and open competition suggests that the pricing achieved was competitive. The firm fixed-price nature also implies that the contractor absorbed potential cost fluctuations, which is a positive indicator of value.

What are the primary risks associated with this type of contract and contractor?

The primary risks associated with this firm fixed-price contract for apparel include potential quality control issues if specifications are not rigorously monitored, and the risk of contractor default or delays, although the latter is mitigated by the contract's completion. For the contractor, the risk lies in underestimating production costs or material price increases. Given that Tennier Industries, Inc. has experience in this area, the risk of contractor default may be lower. However, ongoing vigilance regarding material sourcing and manufacturing quality remains important for the government to ensure the parkas meet stringent military standards for cold weather protection.

How effective was the procurement process in securing the best value for taxpayers?

The procurement process appears to have been effective in securing good value for taxpayers, primarily due to the use of full and open competition. This method encourages multiple bidders to submit proposals, driving down prices and ensuring that the government receives competitive offers. The firm fixed-price contract structure further protects taxpayer interests by capping the government's financial exposure. The Defense Logistics Agency's role suggests adherence to established procurement regulations designed to maximize value. While specific cost savings from competition are not detailed, the process itself is a strong indicator of value-oriented procurement.

What are the historical spending patterns for cold weather parkas by the Department of Defense?

Historical spending patterns for cold weather parkas by the Department of Defense are likely substantial and recurring, given the global operational requirements of the U.S. military. The DoD procures vast quantities of clothing and equipment to outfit service members in diverse climates. Spending on such items fluctuates based on deployment needs, inventory levels, and the lifecycle of existing gear. Contracts like this one, awarded periodically, contribute to an ongoing expenditure stream for essential protective apparel. Analyzing past DLA or military branch solicitations and awards for similar items would reveal trends in volume, pricing, and contractor participation over time.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Other Apparel Accessories and Other Apparel Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 PENINSULA CORPORATE CIRCLE STE 2019, BOCA RATON, FL, 33487

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Manufacturer of Goods, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,478,750

Exercised Options: $14,478,750

Current Obligation: $14,478,750

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM1C109D0026

IDV Type: IDC

Timeline