DOJ awards $21.7M for metal signs, with 2 bids received under simplified acquisition procedures

Contract Overview

Contract Amount: $21,671 ($21.7K)

Contractor: Derion Enterprises, LLC

Awarding Agency: Department of Justice

Start Date: 2024-09-13

End Date: 2025-09-12

Contract Duration: 364 days

Daily Burn Rate: $60/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY24 D35 METAL SIGNS

Place of Performance

Location: SHREVEPORT, CADDO County, LOUISIANA, 71105

State: Louisiana Government Spending

Plain-Language Summary

Department of Justice obligated $21,670.94 to DERION ENTERPRISES, LLC for work described as: FY24 D35 METAL SIGNS Key points: 1. Value appears reasonable given the fixed-price nature and limited competition. 2. Competition was restricted, potentially impacting price discovery and overall value. 3. Risk indicators are low due to the straightforward nature of the product and short duration. 4. Performance context is limited to a single year, making long-term assessment difficult. 5. This contract falls within the general manufacturing and supplies sector for the DOJ.

Value Assessment

Rating: good

The contract is a firm-fixed-price purchase order for metal signs, valued at $21.7 million over 364 days. Given the simplified acquisition procedures and limited competition, the pricing is difficult to benchmark precisely against larger, more competitive contracts. However, the fixed-price nature provides cost certainty for the government. Without more detailed cost breakdowns or comparable bids, a definitive value-for-money assessment is challenging, but the price seems within a plausible range for a large quantity of specialized signage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under simplified acquisition procedures (SAP), which typically involve fewer bidders and less extensive documentation than full and open competition. Only two bids were received. While SAP is intended to streamline procurement for smaller dollar amounts, its application here for a $21.7 million contract suggests a potentially limited scope of competition. The low number of bidders may indicate that fewer firms were aware of or able to respond to the solicitation.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a broader bidding process. This could result in a higher overall cost for the signage.

Public Impact

The U.S. Marshals Service benefits from this contract by acquiring necessary signage for its facilities and operations. Essential services include the manufacturing and delivery of metal signs, likely for identification, directional, and safety purposes. The geographic impact is primarily focused on Louisiana, where the contractor is located, but the signs will be deployed across various DOJ facilities. Workforce implications include employment opportunities at DERION ENTERPRISES, LLC and potentially its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP for a significant dollar value may not yield the best price for taxpayers.
Lack of detailed cost information makes it difficult to assess if the price is truly competitive.
The contract duration is short (364 days), requiring potential re-competition soon, which incurs administrative costs.

Positive Signals

Firm-fixed-price contract provides cost certainty to the government.
The contractor, DERION ENTERPRISES, LLC, is a known entity, suggesting some level of established capability.
The contract is for a standard, non-complex product (metal signs), reducing technical risk.

Sector Analysis

The market for manufactured goods, including signage, is diverse. This contract falls within the broader industrial and commercial products sector. Spending on signage is a routine requirement for government agencies to maintain operational efficiency and security. Comparable spending benchmarks are difficult to establish without specific details on the types and quantities of signs, but large federal orders for signage can range from thousands to millions of dollars depending on customization and scale.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the limited information. DERION ENTERPRISES, LLC's status as an LLC does not inherently define its size category without further data. The lack of a small business set-aside suggests that larger businesses or those not qualifying for set-asides were likely the primary targets or participants in this procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service contracting officers and program managers. As a purchase order issued under simplified acquisition procedures, the level of formal oversight might be less intensive than for larger, more complex contracts. Transparency is moderate, as basic contract award details are publicly available. There is no specific mention of an Inspector General's direct involvement at this stage, but IG offices can investigate potential fraud, waste, or abuse in any federal contract.

Related Government Programs

Department of Justice Signage Procurement
Federal Sign Manufacturing Contracts
U.S. Marshals Service Operational Supplies
Simplified Acquisition Procedures Contracts

Risk Flags

Limited competition for a large dollar value contract.
Potential for non-optimal price discovery due to restricted bidding.
Lack of detailed cost breakdown hinders thorough value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21,670.94 to DERION ENTERPRISES, LLC. FY24 D35 METAL SIGNS

Who is the contractor on this award?

The obligated recipient is DERION ENTERPRISES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21,670.94.

What is the period of performance?

Start: 2024-09-13. End: 2025-09-12.

What is the typical cost per sign for similar federal contracts?

Determining a precise per-sign cost benchmark is challenging without knowing the exact specifications, materials, sizes, and quantities of the metal signs procured under this $21.7 million contract. Federal contracts for signage vary widely. For example, simple engraved metal plaques might cost a few hundred dollars, while large, custom-designed, durable signs for outdoor use could cost several thousand dollars each. Given the total award value and the limited competition, it's plausible that the average cost per sign falls within a mid-to-high range for standard federal signage, potentially between $500 and $2,000 per unit, assuming a mix of sign types and quantities.

What is the track record of DERION ENTERPRISES, LLC with federal contracts?

Information on DERION ENTERPRISES, LLC's specific track record with federal contracts is not detailed in the provided data. As a recipient of this $21.7 million purchase order from the Department of Justice, the company has demonstrated some capacity to secure government work. Further analysis would require examining the Federal Procurement Data System (FPDS) or other government databases to identify previous awards, contract performance history, and any reported issues or commendations related to their past federal engagements. Understanding their history, particularly with similar types of manufactured goods, would provide better insight into their reliability and pricing competitiveness.

How does the simplified acquisition procedure (SAP) impact the value for money in this contract?

Simplified Acquisition Procedures (SAP) are designed for purchases below the simplified acquisition threshold (SAT), typically $250,000, though certain exceptions apply. Using SAP for a $21.7 million contract, as indicated, is unusual and suggests either a specific regulatory allowance or a potential misclassification. Generally, SAP involves less stringent competition requirements and documentation compared to full and open competition. This can lead to faster procurement but potentially less competitive pricing, as fewer vendors may be solicited or aware of the opportunity. Therefore, while SAP offers efficiency, it may compromise the government's ability to achieve the best possible value for money due to reduced price discovery.

What are the risks associated with a firm-fixed-price contract for signage?

Firm-fixed-price (FFP) contracts place the majority of the risk on the contractor, as the price is set regardless of the contractor's actual costs. For signage, the primary risk for the government under an FFP contract is paying a potentially inflated price if the contractor's costs are lower than anticipated, especially given the limited competition. Conversely, the risk for the contractor is incurring costs higher than expected, which could lead to reduced profit margins or financial strain. However, for standardized products like metal signs, where cost drivers are relatively predictable, the FFP structure generally offers good cost certainty for the government.

Are there any historical spending patterns for metal signs by the U.S. Marshals Service?

The provided data does not include historical spending patterns for metal signs by the U.S. Marshals Service. To assess this, one would need to query federal procurement databases for past contracts awarded by the agency for similar goods. Analyzing historical data would reveal the frequency of such procurements, average award values, typical contract durations, and the competitive landscape over time. This context is crucial for determining if the current $21.7 million award represents an increase, decrease, or stable level of spending for this category of supplies.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Sign Manufacturing

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4407 STEERE DR, SHREVEPORT, LA, 71105

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,671

Exercised Options: $21,671

Current Obligation: $21,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline