DOJ's $15.4M metal stamping contract awarded to SX Industries, Inc. for prison industries

Contract Overview

Contract Amount: $15,438 ($15.4K)

Contractor: SX Industries, Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-03

End Date: 2026-08-25

Contract Duration: 144 days

Daily Burn Rate: $107/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RAW MATERIALS - METAL PRODUCTS

Place of Performance

Location: STOUGHTON, NORFOLK County, MASSACHUSETTS, 02072

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $15,437.5 to SX INDUSTRIES, INC for work described as: RAW MATERIALS - METAL PRODUCTS Key points: 1. Contract awarded to a government-owned entity, raising questions about true market competition. 2. Fixed-price contract type suggests cost certainty for the government. 3. Short performance period (144 days) indicates a focused, immediate need. 4. Awarded under Simplified Acquisition Procedures (SAP), suggesting a smaller-scale procurement. 5. No indication of small business participation or set-asides. 6. Geographic concentration in Massachusetts for delivery.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the awardee being a government-owned entity (Federal Prison Industries / Unicor). While the firm fixed-price structure provides cost certainty, the lack of true market competition means a direct comparison to commercial pricing is not feasible. The award amount of $15.4 million for a 144-day delivery period for metal stamping products suggests a significant volume or specialized nature of the items required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves less formal competition than larger procurements. While the specific competition details are not provided, SAP awards can sometimes involve a limited number of bidders or pre-qualified vendors. The award to Federal Prison Industries (Unicor) suggests a preference or mandate to utilize government-owned manufacturing capabilities, potentially limiting broader market competition.

Taxpayer Impact: The limited competition, especially when awarding to a government entity, may mean taxpayers are not benefiting from the most cost-effective pricing achievable through a wider, open market solicitation.

Public Impact

The Department of Justice benefits from the supply of metal stamping products, likely for use within federal correctional facilities or other agency operations. The services delivered are metal stamping, closure, and related metal product manufacturing. The geographic impact is concentrated in Massachusetts, where the products will be delivered. Workforce implications are primarily within Federal Prison Industries, utilizing inmate labor and civilian staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to awardee being a government-owned entity.
Lack of transparency on the specific competitive process under SAP.
Potential for higher costs compared to open market competition.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to a government entity supports its mission and inmate rehabilitation programs.
Short performance period indicates timely fulfillment of a specific need.

Sector Analysis

The metal stamping industry (NAICS 332119) is a mature sector involving the production of various metal components. Federal Prison Industries (Unicor) operates within this sector, leveraging its unique position to fulfill government requirements. This contract represents a portion of the government's overall spending on manufactured goods, with Unicor often being a go-to source for specific items, potentially at prices not directly comparable to commercial benchmarks.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to Federal Prison Industries (Unicor), a government-owned entity, typically does not involve the same small business participation requirements as private sector contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting and procurement offices. As Federal Prison Industries is a government entity, internal oversight mechanisms are in place. Transparency regarding the specific competitive process and pricing justification under SAP could be enhanced.

Related Government Programs

Federal Prison Industries (Unicor) Contracts
Department of Justice Procurement
Metal Product Manufacturing Contracts
Simplified Acquisition Procedures (SAP) Awards

Risk Flags

Limited Competition
Potential for Non-Market Pricing
Reliance on Government-Owned Entity

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15,437.5 to SX INDUSTRIES, INC. RAW MATERIALS - METAL PRODUCTS

Who is the contractor on this award?

The obligated recipient is SX INDUSTRIES, INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison Industries / Unicor).

What is the total obligated amount?

The obligated amount is $15,437.5.

What is the period of performance?

Start: 2026-04-03. End: 2026-08-25.

What is the track record of SX Industries, Inc. (Federal Prison Industries / Unicor) in fulfilling similar metal stamping contracts for the government?

Federal Prison Industries (Unicor) has a long history of manufacturing and supplying goods to federal agencies, including metal products. Their mandate is to provide employment and job training for federal inmates. While specific performance data for this exact type of metal stamping contract may not be publicly detailed, Unicor generally fulfills its contractual obligations. However, the nature of their operations, utilizing inmate labor, means their cost structures and production efficiencies can differ significantly from private sector manufacturers. Past performance reviews, if available through government contracting databases, would offer more granular insights into their reliability and quality for specific product categories.

How does the pricing of this $15.4 million contract compare to similar metal stamping procurements in the open market?

Direct comparison of this contract's pricing to open market benchmarks is difficult because the awardee is Federal Prison Industries (Unicor), a government-owned entity. Unicor's pricing is influenced by its mission to employ inmates and its internal cost structure, which may not align with private sector market dynamics driven by profit motives and commercial competition. While the contract is firm fixed-price, indicating a set cost for the government, the absence of robust competition means it's not possible to definitively state if this represents the best value achievable in a fully open market. Analysis would require comparing Unicor's quoted prices against detailed cost breakdowns or bids from private sector companies for identical or highly similar specifications.

What are the primary risks associated with this contract, considering the awardee and procurement method?

The primary risks associated with this contract stem from the awardee being Federal Prison Industries (Unicor) and the procurement method being Simplified Acquisition Procedures (SAP). A key risk is the potential for suboptimal value for money due to limited competition; Unicor's pricing may not be as competitive as it could be in an open market. There's also a risk related to production capacity and lead times, as Unicor's operations can be subject to inmate availability and training levels. Furthermore, the SAP process, while efficient for smaller procurements, might not provide the same level of scrutiny or transparency as larger, more formally competed contracts, potentially masking inefficiencies or higher-than-market costs.

How effective is the government in leveraging its purchasing power through contracts like this, especially when awarding to internal entities?

The government's effectiveness in leveraging purchasing power through contracts with internal entities like Federal Prison Industries (Unicor) is a mixed picture. On one hand, it supports the government's internal mission, provides employment for inmates, and can offer stable demand for specific products. On the other hand, it bypasses the competitive pressures that typically drive down prices and foster innovation in the private sector. While Unicor aims for competitive pricing, the lack of direct comparison with multiple private bidders means the government might not always achieve the absolute lowest cost. Effectiveness here is also measured by mission accomplishment (inmate employment) alongside cost, making a purely financial benchmark incomplete.

What are the historical spending patterns for metal stamping products by the Department of Justice and other federal agencies?

Historical spending patterns for metal stamping products by the Department of Justice and other federal agencies show a consistent demand, often fulfilled through various channels. Agencies procure such items for a range of uses, from office supplies and equipment components to specialized parts for facilities or vehicles. Federal Prison Industries (Unicor) is a significant supplier within this category, historically receiving a substantial portion of these contracts. Other agencies may also procure similar items through open market contracts, GSA schedules, or other government-wide acquisition contracts. Analyzing historical data would reveal trends in volume, pricing, and the proportion awarded to Unicor versus private sector vendors.

Industry Classification

NAICS: Manufacturing › Forging and Stamping › Metal Crown, Closure, and Other Metal Stamping (except Automotive)

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1551 CENTRAL ST, STOUGHTON, MA, 02072

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,438

Exercised Options: $15,438

Current Obligation: $15,438

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15UC0C23D00001693

IDV Type: IDC

Timeline