DoD awards $31.3M contract for textile equipment to Purple Shovel, LLC, with no competition

Contract Overview

Contract Amount: $31,257,980 ($31.3M)

Contractor: Purple Shovel, LLC

Awarding Agency: Department of Defense

Start Date: 2014-12-11

End Date: 2015-07-07

Contract Duration: 208 days

Daily Burn Rate: $150.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF TE EQUIPMENT

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to PURPLE SHOVEL, LLC for work described as: IGF::OT::IGF TE EQUIPMENT Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential overpayment. 2. Limited competition suggests potential for higher costs compared to a more open bidding process. 3. The contract's short duration (208 days) may indicate a specific, immediate need rather than long-term strategic procurement. 4. Awarded by the Defense Contract Management Agency, indicating a focus on operational support or specific military requirements. 5. The 'All Other Miscellaneous Textile Product Mills' NAICS code suggests a niche product or service within the broader textile industry. 6. Firm Fixed Price contract type offers cost certainty but limits flexibility if requirements change.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids and specific details on the 'textile equipment' procured. The award of $31.3 million without competition raises concerns about whether the government secured the best possible price. Without comparable contracts or market data for this specific equipment, it's difficult to definitively assess value for money. The firm fixed-price nature provides cost certainty, but the absence of competition means the government may have paid a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Purple Shovel, LLC, was solicited. The data does not provide a justification for this sole-source award, such as a specific emergency or unique capability. The lack of competition means there was no opportunity for multiple vendors to bid, which typically drives down prices and encourages innovation. This approach limits the government's ability to explore a wider range of solutions and potentially secure more favorable terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to offer the lowest price. This limits the efficient use of public funds.

Public Impact

The primary beneficiary is Purple Shovel, LLC, the sole contractor awarded this significant sum. The contract delivers unspecified 'textile equipment' likely for use by the Department of Defense. The geographic impact is likely concentrated where the DoD utilizes this specific textile equipment, with Virginia noted as the state of the contracting agency. Workforce implications are tied to Purple Shovel, LLC's ability to produce or procure and deliver the required textile equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices for taxpayers.
Absence of a competitive process limits transparency in pricing and vendor selection.
The specific nature of 'textile equipment' and its sole-source award warrants further investigation into necessity and alternatives.

Positive Signals

Firm Fixed Price contract provides budget certainty for the government.
Award to a single entity can streamline delivery if that entity has unique capabilities.

Sector Analysis

The textile product mills sector encompasses establishments primarily engaged in manufacturing yarn, thread, fabric, and related products. This contract falls under the 'All Other Miscellaneous Textile Product Mills' category, suggesting a specialized segment within the industry. Federal spending in this sector can fluctuate based on defense needs, emergency preparedness, and specific material requirements. Without more detail on the 'textile equipment,' direct comparisons to broader industry spending benchmarks are difficult, but the $31.3 million award represents a substantial single procurement.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of subcontracting plans. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting opportunities. The focus is on a single, larger award to Purple Shovel, LLC.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contract compliance and performance. As a sole-source award, the justification for this procurement method would be a key area for oversight. Transparency is limited due to the lack of competition, making it harder to assess the full scope of oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) procurements
Department of Defense (DoD) General Services Administration (GSA) contracts
Federal Prison Industries (FPI) textile products
National Guard Bureau equipment purchases

Risk Flags

Sole-source award without clear justification
Lack of competitive bidding may lead to inflated pricing
Limited transparency regarding the specific equipment procured
Potential for suboptimal value for taxpayer money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to PURPLE SHOVEL, LLC. IGF::OT::IGF TE EQUIPMENT

Who is the contractor on this award?

The obligated recipient is PURPLE SHOVEL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

Start: 2014-12-11. End: 2015-07-07.

What specific type of 'textile equipment' was procured under this contract?

The provided data does not specify the exact type of 'textile equipment' procured. The NAICS code '314999 - All Other Miscellaneous Textile Product Mills' indicates it falls within the broader textile manufacturing industry, but it could range from specialized machinery for textile production to finished textile goods for military use. Without further details, it is impossible to determine the precise nature of the equipment, its intended application, or its criticality to Department of Defense operations. This lack of specificity hinders a thorough analysis of the contract's value and necessity.

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

The provided data indicates the contract was awarded as 'NOT COMPETED' (sole-source), but it does not include the specific justification for this procurement method. Typically, sole-source awards require a documented justification, such as the existence of only one responsible source, an unusual and compelling urgency, or a specific national defense requirement that only one contractor can meet. Without this justification, it is impossible to assess whether the sole-source award was appropriate or if it potentially bypassed opportunities for better pricing and wider vendor participation. This lack of transparency is a significant concern for ensuring fair and efficient government spending.

How does the contract value of $31.3 million compare to similar procurements for textile equipment?

Direct comparison of the $31.3 million contract value is difficult without knowing the specific type of 'textile equipment' procured. The NAICS code '314999' is broad. If the equipment is highly specialized or custom-made for military applications, its cost could be significantly higher than standard commercial textile machinery. However, the absence of competition for this substantial amount raises a red flag. In a competitive environment, similar procurements might yield lower prices due to vendor bidding. Further research into specific DoD procurements for comparable textile-related items, if available, would be necessary for a more accurate benchmark.

What is the track record of Purple Shovel, LLC in fulfilling government contracts, particularly sole-source awards?

The provided data does not offer details on Purple Shovel, LLC's past performance or track record with government contracts. To assess this, one would need to examine historical contract awards, performance reviews, and any past issues or successes. Understanding their experience, especially with sole-source procurements of similar value and complexity, is crucial for evaluating the risk associated with this award. A contractor with a strong history of successful delivery and fair pricing would mitigate some concerns, while a limited or problematic history would heighten them.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of $31.3 million include potential overpayment due to lack of price competition, limited innovation from a lack of market pressure, and reduced transparency in the procurement process. There's also a risk that the government might not be getting the most suitable or technologically advanced equipment available if other vendors were not considered. Furthermore, sole-source awards can sometimes indicate a lack of adequate market research or planning by the procuring agency. The short contract duration (208 days) might also suggest a rushed process, increasing the risk of unforeseen issues.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › All Other Miscellaneous Textile Product Mills

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23480 ROCK HAVE WAY STE 110B, STERLING, VA, 20166

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,257,980

Exercised Options: $31,257,980

Current Obligation: $31,257,980

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline