DOJ awards $1.67M for hook and loop fasteners to VELCRO USA INC, a sole-source contract

Contract Overview

Contract Amount: $16,750 ($16.8K)

Contractor: Velcro USA Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-03

End Date: 2026-08-25

Contract Duration: 144 days

Daily Burn Rate: $116/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOOK AND LOOP

Place of Performance

Location: YAZOO CITY, YAZOO County, MISSISSIPPI, 39194

State: Mississippi Government Spending

Plain-Language Summary

Department of Justice obligated $16,750 to VELCRO USA INC for work described as: HOOK AND LOOP Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. Limited competition may lead to higher costs for taxpayers. 3. Contract duration of 144 days suggests a short-term or specific need. 4. The award is a delivery order under a larger contract vehicle. 5. The product falls under the Narrow Fabric Mills and Schiffli Machine Embroidery NAICS code. 6. Federal Prison Industries / Unicor is the servicing agency. 7. The contract is firm fixed price, providing cost certainty once awarded.

Value Assessment

Rating: questionable

Benchmarking the value of this specific delivery order is challenging without knowing the terms of the broader contract it falls under. However, awarding a sole-source contract for a common item like hook and loop fasteners warrants scrutiny. The price of $1.67 million for a 144-day period suggests a potentially inflated unit cost if not carefully managed. Without competitive bids, it's difficult to ascertain if this represents a fair market price or if alternative, more cost-effective solutions were overlooked.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, VELCRO USA INC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally limit price discovery and can result in higher costs compared to fully competed contracts.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition is a key driver for cost savings in government procurement.

Public Impact

The Federal Bureau of Prisons (part of DOJ) is the primary beneficiary, likely using these fasteners for inmate clothing, equipment, or operational needs. The services delivered are the provision of hook and loop fastening materials. The geographic impact is concentrated where the Federal Prison Industries / Unicor facilities are located. Workforce implications are minimal, as this is a supply contract rather than a service requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Lack of transparency in the justification for sole-sourcing.
Potential for overpayment due to absence of market competition.

Positive Signals

Firm fixed price contract provides cost certainty.
Award to a known entity (VELCRO USA INC) may imply reliability.
Servicing agency (Federal Prison Industries / Unicor) supports federal operations.

Sector Analysis

The market for fasteners, including hook and loop products, is diverse and competitive, with numerous manufacturers and suppliers. Federal agencies procure these items regularly for a wide range of applications, from apparel and equipment to administrative uses. While this specific contract is sole-sourced, the broader market typically sees competitive pricing due to the availability of multiple vendors and the relatively standardized nature of the product. The NAICS code 313220 (Narrow Fabric Mills) indicates the manufacturing sector for such goods.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded sole-source to VELCRO USA INC. There is no indication of subcontracting opportunities for small businesses within this specific award. The impact on the small business ecosystem is neutral, as it does not actively promote or hinder small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's procurement oversight and the Federal Prison Industries / Unicor's internal controls. As a sole-source award, the justification and approval process would be subject to specific regulations and potentially higher levels of review to ensure it meets criteria for non-competitive procurement. Transparency is limited due to the sole-source nature, but contract award data is publicly available.

Related Government Programs

Federal Prison Industries / Unicor Procurement
Department of Justice Supplies Contracts
Textile and Apparel Procurement
Fastener Supply Contracts

Risk Flags

Sole-source award
Potential lack of price competition
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16,750 to VELCRO USA INC. HOOK AND LOOP

Who is the contractor on this award?

The obligated recipient is VELCRO USA 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 $16,750.

What is the period of performance?

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

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as: only one responsible source being available, urgent and compelling needs, or when a specific brand name is required due to compatibility or unique performance characteristics. For a common item like hook and loop fasteners, the justification would likely need to detail why other vendors could not meet the requirement, potentially related to specific technical specifications, delivery timelines, or integration with existing systems managed by Federal Prison Industries / Unicor. Further investigation into the contract file or agency procurement records would be necessary to ascertain the precise rationale.

How does the $1.67 million award amount compare to historical spending on similar hook and loop fasteners by the DOJ or Federal Prison Industries?

Without access to historical spending data for similar hook and loop fasteners by the DOJ or Federal Prison Industries, a direct comparison is not possible. However, $1.67 million for a 144-day delivery order suggests a significant quantity or a high unit price. If this represents a substantial increase over previous procurements for comparable quantities, it would indicate a potential issue with value for money, especially given the sole-source nature of the award. Analyzing past contracts for the same or similar items, particularly those that were competitively bid, would provide a crucial benchmark for assessing the reasonableness of this award amount.

What are the specific technical requirements or specifications for the hook and loop fasteners being procured?

The provided data indicates the NAICS code (313220 - Narrow Fabric Mills) and the product description as 'HOOK AND LOOP', but it does not detail the specific technical requirements or specifications for the fasteners. These could include factors such as material composition, width, length, tensile strength, color, durability, resistance to specific environmental conditions (e.g., heat, moisture, chemicals), and compliance with any relevant military or federal standards. Understanding these specifications is crucial for evaluating whether VELCRO USA INC was indeed the only capable source and for assessing the appropriateness of the price paid.

What is the track record of VELCRO USA INC in fulfilling federal contracts, particularly for the Department of Justice?

VELCRO USA INC is a well-established manufacturer of hook and loop fasteners. While specific details of their track record with the Department of Justice are not provided in this data snippet, the company generally has a history of supplying its products to various government agencies. Their ability to secure federal contracts suggests they meet basic procurement requirements. However, the sole-source nature of this particular award warrants a review of their past performance on similar contracts, including on-time delivery, quality of goods, and adherence to contract terms, to ensure continued reliability and value.

What is the anticipated impact of this contract on the operational efficiency or cost savings within the Federal Prison Industries / Unicor?

The anticipated impact on operational efficiency and cost savings is unclear without more context. If these fasteners are critical components for inmate uniforms, equipment maintenance, or other essential functions, ensuring a reliable supply is paramount for operational continuity. However, the sole-source award raises concerns about potential cost inefficiencies. If the price is higher than a competitive market rate, it could negate any perceived operational benefits by increasing overall expenditure. A thorough analysis would require comparing the contract's cost against its contribution to operational goals and potential savings from alternative procurement methods.

Are there any performance metrics or key performance indicators (KPIs) associated with this delivery order?

The provided data does not specify any performance metrics or Key Performance Indicators (KPIs) for this delivery order. Typically, government contracts, especially those involving physical goods, include clauses related to quality, delivery timelines, and acceptance criteria. For a sole-source award, it is particularly important that such metrics are clearly defined and monitored to ensure the government receives the goods as specified and within the agreed-upon timeframe. Without explicit KPIs, assessing the contractor's performance and holding them accountable becomes more challenging.

Industry Classification

NAICS: Manufacturing › Fabric Mills › Narrow Fabric Mills and Schiffli Machine Embroidery

Product/Service Code: TEXTILE/LEATHER/FUR; TENT; FLAG

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Velcro Industries N.V

Address: 95 SUNDIAL AVE, MANCHESTER, NH, 03103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,750

Exercised Options: $16,750

Current Obligation: $16,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15UC0C25D00001875

IDV Type: IDC

Timeline