Department of Justice awards $19.8M contract for treadmills, raising questions about value and necessity

Contract Overview

Contract Amount: $19,782 ($19.8K)

Contractor: Woodway USA Inc

Awarding Agency: Department of Justice

Start Date: 2024-08-27

End Date: 2025-08-26

Contract Duration: 364 days

Daily Burn Rate: $54/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY24 D25 W/LOUISIANA TREADMILL

Place of Performance

Location: WAUKESHA, WAUKESHA County, WISCONSIN, 53186

State: Wisconsin Government Spending

Plain-Language Summary

Department of Justice obligated $19,782.17 to WOODWAY USA INC for work described as: FY24 D25 W/LOUISIANA TREADMILL Key points: 1. The contract's value appears high for athletic equipment, warranting a closer look at unit costs and alternatives. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The duration of the contract (364 days) is standard for this type of procurement. 4. The specific need for high-value treadmills by the U.S. Marshals Service requires further justification. 5. The procurement falls under sporting goods manufacturing, a sector with diverse pricing structures. 6. No small business set-aside was applied, indicating the primary awardee is likely a larger entity.

Value Assessment

Rating: questionable

Benchmarking the cost of these treadmills against commercial equivalents is crucial. Given the significant award amount, it's essential to determine if the specifications and features justify the price compared to similar government or commercial purchases. Without detailed specifications, it's difficult to definitively assess value, but the overall dollar figure raises concerns about potential overspending for athletic equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bids received, the competition level suggests a degree of market interest. However, the number of bidders does not inherently guarantee the most competitive pricing, especially if the specialized nature of the equipment limits the pool of qualified vendors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to drive down prices through market forces. The presence of multiple bidders suggests that taxpayer dollars are being used in a process designed to achieve the best possible value.

Public Impact

Federal law enforcement personnel, specifically the U.S. Marshals Service, are the primary beneficiaries, likely for fitness and rehabilitation programs. The services delivered involve the provision of athletic equipment (treadmills). The geographic impact is not specified but likely serves facilities managed by the U.S. Marshals Service nationwide. Workforce implications are minimal, primarily related to the logistics of delivery and installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High dollar amount for athletic equipment warrants scrutiny for potential overpricing.
Lack of detailed justification for specialized treadmill features.
Potential for better value through alternative procurement methods or bulk purchasing.
Need to confirm if the treadmills meet essential operational requirements versus luxury features.

Positive Signals

Procured through full and open competition, indicating a structured and potentially fair process.
Awarded to a single vendor, suggesting a clear selection based on stated criteria.
Contract duration is standard, allowing for predictable supply.

Sector Analysis

This contract falls within the sporting and athletic goods manufacturing sector. The market for commercial treadmills is vast, with prices ranging significantly based on features, durability, and brand. Government procurements in this sector often aim for durable, high-use equipment, which can command higher prices than consumer models. Benchmarking against other federal contracts for similar fitness equipment would provide further context on pricing.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary awardee is likely a larger entity capable of fulfilling the contract requirements independently. The impact on the small business ecosystem is minimal in this instance, as the procurement did not prioritize small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service's contracting and program management offices. Accountability measures would include performance monitoring against delivery schedules and equipment specifications. Transparency is facilitated by the public nature of federal contract awards, though detailed justifications for specific equipment choices may not be readily available.

Related Government Programs

Federal Law Enforcement Fitness Programs
General Services Administration (GSA) Schedule purchases for athletic equipment
Department of Defense fitness equipment procurements

Risk Flags

High Unit Cost Potential
Lack of Detailed Specification Justification
Potential for Over-Specification
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $19,782.17 to WOODWAY USA INC. FY24 D25 W/LOUISIANA TREADMILL

Who is the contractor on this award?

The obligated recipient is WOODWAY USA INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $19,782.17.

What is the period of performance?

Start: 2024-08-27. End: 2025-08-26.

What specific features and durability standards do these treadmills possess that justify the high cost?

The provided data does not detail the specific features or durability standards of the treadmills. However, government procurements for law enforcement or military often require commercial-grade or higher equipment designed for intensive, continuous use, which can significantly increase costs compared to standard consumer models. Factors such as motor power, deck size, cushioning systems, pre-programmed workouts, and robust construction for heavy users contribute to higher price points. Without the detailed specifications from the solicitation document, it is impossible to ascertain the exact justification for the cost. Further investigation into the solicitation's Performance Work Statement (PWS) would be necessary to understand the technical requirements driving the price.

How does the per-unit cost of these treadmills compare to similar federal contracts or commercial market rates?

The total award is $19.8 million over 364 days, with 4 bids received. To determine the per-unit cost, we would need the quantity of treadmills procured. Assuming a hypothetical quantity, say 1,000 units, the per-unit cost would be approximately $19,800. This figure appears exceptionally high for treadmills, even for high-end commercial models, which typically range from $2,000 to $10,000. Federal contracts for similar equipment, especially those procured through GSA Schedules or other competitive processes, often yield better pricing. A detailed comparison would require accessing the solicitation and award details to identify the quantity and specific models, then benchmarking against GSA Advantage, other agency solicitations, and major commercial retailers.

What is the track record of WOODWAY USA INC in fulfilling federal contracts, particularly for athletic equipment?

WOODWAY USA INC is a known manufacturer of treadmills, often marketed for their durability and specialized features, including those used in rehabilitation and high-intensity training environments. A review of federal contract databases (e.g., FPDS, SAM.gov) would reveal their history of awards. Key aspects to examine would include the total value of contracts awarded, the agencies they've served, past performance reviews, and any instances of contract disputes or terminations. Their specialization suggests they are a qualified vendor, but their track record in fulfilling large-scale federal orders at competitive prices needs to be assessed.

Are there alternative solutions or equipment that could meet the U.S. Marshals Service's fitness needs at a lower cost?

The U.S. Marshals Service's specific requirements for fitness equipment are not detailed in the provided data. However, alternative solutions could include procuring less specialized or consumer-grade treadmills if the operational demands allow, negotiating bulk discounts with multiple vendors, or exploring leasing options rather than outright purchase. Furthermore, the agency might consider a wider range of fitness equipment beyond treadmills to offer a more comprehensive and potentially cost-effective fitness program. A thorough needs assessment and market research phase would be critical to identifying the most economical and effective solutions.

What is the historical spending pattern for athletic equipment by the U.S. Marshals Service and the Department of Justice?

Historical spending data for athletic equipment by the U.S. Marshals Service and the broader Department of Justice would need to be accessed through federal procurement databases. Analyzing past awards for treadmills, exercise bikes, weightlifting equipment, and other fitness apparatus over several fiscal years would reveal trends in spending levels, types of equipment purchased, and average costs. This analysis could highlight whether this $19.8 million award represents a significant increase or is consistent with previous procurement activities, providing context for the current contract's scale and potential value.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Sporting and Athletic Goods Manufacturing

Product/Service Code: RECREATIONAL/ATHLETIC EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15M10224QA4700237

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: W229N591 FOSTER CT, WAUKESHA, WI, 53186

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

Financial Breakdown

Contract Ceiling: $19,782

Exercised Options: $19,782

Current Obligation: $19,782

Actual Outlays: $19,782

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F087GA

IDV Type: FSS

Timeline