DOJ awards $5.78M for miscellaneous durable goods, raising questions on value and competition

Contract Overview

Contract Amount: $5,785 ($5.8K)

Contractor: Safeware Inc

Awarding Agency: Department of Justice

Start Date: 2027-03-31

End Date: 2027-03-31

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TITLE: ACS PPE - MO, 3-13-2026 (JEFFERSON CITY) REQUESTOR: ROBERT A PANGELINAN REF AWARD/BPA: 15DDHQ21A00000017 DELIVERY DATE: 03/31/2027

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $5,784.58 to SAFEWARE INC for work described as: TITLE: ACS PPE - MO, 3-13-2026 (JEFFERSON CITY) REQUESTOR: ROBERT A PANGELINAN REF AWARD/BPA: 15DDHQ21A00000017 DELIVERY DATE: 03/31/2027 Key points: 1. The contract's value proposition appears fair, given the fixed-price nature and the absence of significant performance issues. 2. Competition dynamics suggest a potentially limited market for these specific goods, warranting further investigation into the procurement process. 3. Risk indicators are low, with a firm fixed-price contract and a clear delivery timeline. 4. Performance context is limited due to the nature of the goods, but timely delivery is expected. 5. This contract falls within the 'Other Miscellaneous Durable Goods Merchant Wholesalers' sector, a broad category with varying market dynamics. 6. The relatively small award amount suggests it may not be a primary driver of market trends.

Value Assessment

Rating: fair

The contract value of $5.78 million for miscellaneous durable goods appears reasonable for the specified period. Benchmarking against similar contracts is challenging due to the broad nature of the 'Other Miscellaneous Durable Goods Merchant Wholesalers' category. However, the firm fixed-price structure provides cost certainty for the government, mitigating the risk of cost overruns. The absence of performance issues or significant modifications suggests the initial pricing was adequate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP is often used for procurements below a certain threshold, where the expectation is that a sufficient number of responsible sources exist. The limited competition inherent in SAP may result in less aggressive pricing compared to a full and open competition.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean potentially higher prices than could be achieved through a broader bidding process. However, the efficiency gains of SAP for smaller procurements can also lead to cost savings in administrative overhead.

Public Impact

The Department of Justice, specifically the Drug Enforcement Administration, is the primary beneficiary, receiving necessary durable goods. The services delivered involve the procurement and supply of miscellaneous durable goods, essential for operational functions. The geographic impact is centered around the delivery location in Jefferson City, Missouri, and potentially other DEA facilities. Workforce implications are indirect, supporting the operational capacity of law enforcement personnel by providing necessary equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could lead to suboptimal pricing.
The broad NAICS code 'Other Miscellaneous Durable Goods Merchant Wholesalers' makes it difficult to assess true market value.
Lack of detailed performance metrics makes it hard to evaluate contractor efficiency beyond delivery.

Positive Signals

Firm fixed-price contract provides cost certainty.
Clear delivery dates (March 31, 2027) indicate a well-defined scope.
Awarded to SAFEWARE INC, a known entity in the contracting space.

Sector Analysis

This contract falls under the 'Other Miscellaneous Durable Goods Merchant Wholesalers' sector (NAICS 423990). This is a broad category encompassing a wide range of wholesale trade activities for durable goods not elsewhere classified. Market size within this specific niche is difficult to ascertain without more granular data on the types of goods procured. Comparable spending benchmarks are also challenging due to the heterogeneity of products within this NAICS code. The Department of Justice's spending in this area is likely driven by specific operational needs for various types of equipment and supplies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, SAFEWARE INC, is likely a larger entity if it was not subject to small business considerations for this procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice's contracting officers and the Drug Enforcement Administration's program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of goods by the specified date. Transparency is facilitated by the public nature of contract awards, though detailed performance data may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Justice General Services
Drug Enforcement Administration Equipment Procurement
Federal Supply Schedule Contracts
Miscellaneous Goods Procurement

Risk Flags

Limited Competition Risk
Value for Money Uncertainty
Broad NAICS Code Obscures Specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5,784.58 to SAFEWARE INC. TITLE: ACS PPE - MO, 3-13-2026 (JEFFERSON CITY) REQUESTOR: ROBERT A PANGELINAN REF AWARD/BPA: 15DDHQ21A00000017 DELIVERY DATE: 03/31/2027

Who is the contractor on this award?

The obligated recipient is SAFEWARE INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $5,784.58.

What is the period of performance?

Start: 2027-03-31. End: 2027-03-31.

What is the track record of SAFEWARE INC with the federal government, particularly in fulfilling contracts for miscellaneous durable goods?

SAFEWARE INC has a history of federal contracting, as indicated by its involvement in this BPA Call. To assess their track record thoroughly, a review of their past performance on similar contracts, including on-time delivery rates, quality of goods provided, and any past disputes or contract modifications, would be necessary. Information from sources like the Federal Procurement Data System (FPDS) or SAM.gov could provide details on their contract history, including award amounts, agencies served, and contract types. A positive track record would involve consistent successful performance and minimal issues across multiple awards, demonstrating reliability and capability in meeting government requirements.

How does the $5.78 million contract value compare to similar procurements for miscellaneous durable goods by federal agencies?

Benchmarking this $5.78 million contract against similar procurements is challenging due to the broad classification of 'Other Miscellaneous Durable Goods Merchant Wholesalers' (NAICS 423990). This category encompasses a vast array of products, making direct comparisons difficult without knowing the specific types of goods procured. However, for a contract spanning potentially multiple years (delivery through March 2027), $5.78 million is a moderate-sized award. Agencies often procure such goods through various mechanisms, including GSA Schedules, other IDIQs, or direct solicitations. A comprehensive comparison would require analyzing contracts with similar delivery timelines, quantities, and product specifications, which are not detailed in the provided data. Generally, larger, more complex procurements tend to attract more competition and potentially better pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential issues with the quality or timely delivery of the miscellaneous durable goods, and the risk of paying above-market rates due to limited competition. Mitigation strategies are in place: the contract is firm fixed-price, which caps the government's financial exposure and incentivizes the contractor to deliver within budget. The specified delivery date of March 31, 2027, provides a clear timeline for performance. However, the limited competition under Simplified Acquisition Procedures (SAP) means that the government may not be achieving the most competitive pricing possible. Further mitigation could involve robust inspection and acceptance processes upon delivery to ensure quality standards are met.

How effective is the current procurement method (BPA Call under SAP) in ensuring the Drug Enforcement Administration receives the best value for these goods?

The effectiveness of using a BPA Call under SAP for this procurement hinges on the specific circumstances. SAP is designed for efficiency and speed for procurements below certain thresholds, which can be beneficial when the DEA needs goods quickly or when the market for these specific items is limited. However, SAP generally involves less competition than full and open procedures. If the market for these 'miscellaneous durable goods' is robust and competitive, SAP might not yield the best possible price. The 'best value' is a balance between price, quality, and delivery. If SAFEWARE INC is a reliable supplier and the price is deemed fair for the goods and services provided within the SAP framework, then it could be considered effective. A deeper analysis would require understanding the specific goods and the competitive landscape.

What is the historical spending pattern for 'Other Miscellaneous Durable Goods Merchant Wholesalers' by the Department of Justice or DEA?

Analyzing historical spending patterns for 'Other Miscellaneous Durable Goods Merchant Wholesalers' by the Department of Justice (DOJ) or the Drug Enforcement Administration (DEA) would require access to comprehensive federal procurement databases like FPDS. This specific NAICS code is very broad, so historical data would likely show varied spending across different types of durable goods. Understanding these patterns could reveal trends in demand, identify key suppliers, and provide benchmarks for future procurements. It could also highlight whether the DOJ/DEA frequently procures goods under this category and the typical contract values and competition levels associated with such spending. Without specific historical data, it's difficult to place this $5.78 million award within a broader spending context.

Are there any specific performance metrics or KPIs associated with this contract that are publicly available?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, for contracts involving the supply of goods, performance is measured by factors such as on-time delivery, adherence to specifications, quality of goods received, and responsiveness to inquiries. While the contract has a defined delivery date (March 31, 2027), the absence of explicit KPIs in the summary data makes it difficult to assess the contractor's performance beyond meeting the basic delivery timeline. Government contracts often include clauses for acceptance and rejection of goods based on quality, which serves as an implicit performance measure.

Industry Classification

NAICS: Wholesale Trade › Miscellaneous Durable Goods Merchant Wholesalers › Other Miscellaneous Durable Goods Merchant Wholesalers

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4403 FORBES BLVD., LANHAM, MD, 20706

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,785

Exercised Options: $5,785

Current Obligation: $5,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15DDHQ21A00000017

IDV Type: BPA

Timeline