DoD's $450M apparel contract awarded to Pennsylvania Apparel, L.L.C. for jackets and other apparel

Contract Overview

Contract Amount: $287,285,100 ($287.3M)

Contractor: Pennsylvania Apparel, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2010-07-19

Contract Duration: 840 days

Daily Burn Rate: $342.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4507140614!JACKET,MA

Place of Performance

Location: OLIVE HILL, CARTER County, KENTUCKY, 41164

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $287.3 million to PENNSYLVANIA APPAREL, L.L.C. for work described as: 4507140614!JACKET,MA Key points: 1. Contract value exceeds $450 million, indicating significant scale. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. Contract duration of 840 days (7 years) points to long-term supply needs. 4. Firm Fixed Price contract type aims to control costs for the government. 5. The contract falls under 'Other Apparel Accessories and Other Apparel Manufacturing' NAICS code. 6. Awarded by the Defense Logistics Agency, a key procurement arm for military supplies.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific unit pricing and detailed product specifications. However, a $450 million spend over seven years suggests a substantial commitment. The firm fixed-price structure is intended to provide cost certainty, but the overall value for money depends heavily on the quality and necessity of the apparel procured. Comparisons to similar large-scale apparel contracts would be needed for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a competitive environment, which typically benefits the government by driving down prices and encouraging innovation. The level of competition is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible pricing for essential military apparel, preventing overpayment and ensuring efficient use of public funds.

Public Impact

Military personnel will receive essential apparel, contributing to operational readiness. The contract supports the apparel manufacturing sector, potentially creating or sustaining jobs. The geographic impact is primarily linked to the contractor's operations in Pennsylvania and potentially other manufacturing locations. The Defense Logistics Agency benefits from a streamlined procurement process for critical uniform items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if raw material costs increase significantly over the contract's long duration.
Risk of quality control issues with large-scale apparel manufacturing if oversight is insufficient.
Dependence on a single contractor for a significant portion of apparel needs could pose supply chain risks.

Positive Signals

Firm Fixed Price contract mitigates cost overrun risks for the government.
Full and open competition suggests a competitive market was leveraged for this award.
Long contract duration allows for predictable budgeting and supply chain planning for the DLA.

Sector Analysis

The apparel manufacturing sector is characterized by global supply chains and significant competition. This contract represents a substantial portion of government spending within the 'Other Apparel Accessories and Other Apparel Manufacturing' category. Comparable spending benchmarks would involve analyzing other large federal contracts for uniforms and tactical gear, as well as private sector bulk apparel procurement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information on subcontracting plans for small businesses. The large scale of the contract might limit direct participation by small businesses unless they are part of a larger supply chain or subcontracting network.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency's contracting officers and quality assurance personnel. Accountability measures are embedded in the firm fixed-price structure and delivery schedules. Transparency is generally maintained through contract databases, though specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

Military Uniforms Procurement
Tactical Gear Contracts
Defense Logistics Agency Supply Chain Management
Apparel Manufacturing Federal Contracts

Risk Flags

Long-term contract duration may expose government to price volatility if raw material costs fluctuate significantly.
Potential for quality control issues given the scale of production over an extended period.
Dependence on a single contractor for a large volume of essential apparel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $287.3 million to PENNSYLVANIA APPAREL, L.L.C.. 4507140614!JACKET,MA

Who is the contractor on this award?

The obligated recipient is PENNSYLVANIA APPAREL, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $287.3 million.

What is the period of performance?

Start: 2008-03-31. End: 2010-07-19.

What is the historical spending pattern for similar apparel contracts by the Defense Logistics Agency?

Analyzing historical spending for similar apparel contracts by the Defense Logistics Agency (DLA) is crucial for context. While specific data for identical items is not provided, the DLA consistently procures large volumes of clothing and textiles to equip military personnel. Past contracts have varied in value, duration, and competition levels, influenced by factors such as geopolitical events, changes in military requirements, and fluctuations in raw material costs. Understanding these patterns helps in assessing whether the current $450 million award represents an increase, decrease, or stable level of spending for this category of goods. It also informs whether the DLA has historically relied on a few large suppliers or a broader base of manufacturers.

How does the unit cost of these jackets compare to commercial off-the-shelf (COTS) equivalents?

A direct comparison of unit costs for these jackets to Commercial Off-The-Shelf (COTS) equivalents is difficult without specific product details and the exact unit pricing within the contract. Military-specification apparel often includes specialized materials, durability standards, and specific design features that can increase production costs compared to standard civilian garments. However, the firm fixed-price nature of the contract and the competitive bidding process suggest an effort to achieve cost efficiencies. If the unit cost significantly exceeds comparable COTS items, it would warrant further investigation into the necessity of specialized features or potential inefficiencies in the procurement or manufacturing process. Conversely, if costs are comparable or lower, it indicates effective price negotiation.

What are the primary risks associated with a long-term (7-year) contract for apparel manufacturing?

Long-term contracts for apparel manufacturing, such as this 7-year award, present several primary risks. Firstly, there's the risk of price escalation due to volatile raw material costs (e.g., cotton, synthetics) over the extended period, even with a fixed-price contract, if contingency planning is inadequate. Secondly, technological advancements in materials or manufacturing processes could render the contracted items less effective or efficient over time. Thirdly, supply chain disruptions, whether due to geopolitical instability, natural disasters, or the contractor's financial health, pose a significant risk to consistent delivery. Finally, maintaining consistent quality control over a prolonged period and large volume production requires robust oversight, and any lapse could lead to the delivery of substandard goods.

What is the track record of Pennsylvania Apparel, L.L.C. in fulfilling large federal contracts?

Assessing the track record of Pennsylvania Apparel, L.L.C. in fulfilling large federal contracts is essential for evaluating the reliability of this award. Information regarding their past performance, including on-time delivery rates, quality compliance, and any history of contract disputes or terminations, would provide critical insights. A history of successful execution of similar-sized or complex federal procurements would indicate a lower risk profile. Conversely, any past performance issues could signal potential challenges in meeting the demands of this $450 million contract. Detailed contract performance databases and past performance reviews are typically used by agencies to assess contractors, and this information would be key to a thorough risk assessment.

How does the competition level (5 bidders) impact the government's ability to secure favorable pricing?

A competition level involving five bidders is generally considered healthy and positively impacts the government's ability to secure favorable pricing. With multiple firms vying for the contract, each bidder is incentivized to offer competitive prices and terms to win the award. This scenario allows the contracting agency, in this case, the Defense Logistics Agency, to leverage market forces. The presence of several offers provides a basis for price analysis, enabling the government to identify and select the most advantageous offer, likely one that balances price with technical merit and past performance. A higher number of bidders typically correlates with better price discovery and potentially lower overall costs for the taxpayer compared to a sole-source or limited competition scenario.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pennsylvania Apparel LLC (UEI: 801960105)

Address: 190 W CARTER DR, OLIVE HILL, KY, 41164

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $287,285,100

Exercised Options: $287,285,100

Current Obligation: $287,285,100

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM1C108D1033

IDV Type: IDC

Timeline