Department of Defense's $22.3M in miscellaneous durable goods purchases in FY10 highlights broad spending across wholesale sectors

Contract Overview

Contract Amount: $22,276,151 ($22.3M)

Contractor: GPC Consolidated Reporting

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2010-09-30

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MISCELLANEOUS GPC PURCHASES - LARGE BUSINESS - (FY10)

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to GPC CONSOLIDATED REPORTING for work described as: MISCELLANEOUS GPC PURCHASES - LARGE BUSINESS - (FY10) Key points: 1. Spending in FY10 for miscellaneous durable goods reached over $22 million, indicating a significant allocation to this category. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The primary agency involved was the Department of Defense, with the Air Force as the specific service. 4. The North American Industry Classification System (NAICS) code 423990 points to 'Other Miscellaneous Durable Goods Merchant Wholesalers'. 5. The contract type was a Firm Fixed Price delivery order, providing cost certainty for the government. 6. The duration of the contract was one day, suggesting a transactional purchase rather than a long-term service agreement.

Value Assessment

Rating: fair

Benchmarking the value of $22.3 million for miscellaneous durable goods purchased in a single day (FY10) is challenging without specific item details. However, the sheer volume suggests substantial procurement. Comparing this to other GPC consolidated reporting or similar wholesale durable goods purchases would be necessary for a more precise value assessment. The firm fixed-price nature offers some cost control, but the lack of detailed performance metrics makes a comprehensive value-for-money evaluation difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders, as noted in the data, suggests a moderate level of competition for this procurement. While more than one bidder is positive, the exact number (3) doesn't necessarily guarantee the most competitive pricing without further analysis of the bids submitted and the market landscape for these specific durable goods.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best prices, potentially leading to cost savings. A competitive environment helps ensure that government funds are used efficiently.

Public Impact

The primary beneficiaries are likely the various branches of the Department of Defense, which received the miscellaneous durable goods. The services delivered encompass the provision of a wide range of durable goods, essential for military operations and support. The geographic impact is primarily within the United States, supporting defense installations and activities. Workforce implications could include jobs in manufacturing, logistics, and distribution within the wholesale durable goods sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific item details makes it difficult to assess if the most cost-effective durable goods were procured.
The single-day duration for such a large sum raises questions about the nature of the transaction and potential for bulk discounts.
Limited information on performance metrics prevents a thorough evaluation of the quality and suitability of the goods received.

Positive Signals

Awarded under full and open competition, which typically fosters competitive pricing.
The use of a Firm Fixed Price contract provides cost certainty for the government.
Consolidated reporting suggests an effort to streamline and manage procurement data.

Sector Analysis

The procurement falls under the wholesale trade sector, specifically dealing with miscellaneous durable goods. This sector is vast and includes items ranging from industrial equipment to consumer durables. The $22.3 million spent in FY10 by the Department of Defense represents a portion of the government's overall spending on tangible assets. Comparable spending benchmarks would require analyzing other large-scale procurements of durable goods by defense agencies or similar large organizations, considering the specific types of goods purchased.

Small Business Impact

The data indicates that this contract was awarded to a large business and was not specifically set aside for small businesses. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, though large businesses may engage small businesses in their broader supply chains.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's internal procurement regulations and auditing processes. As a GPC (Government Purchase Card) consolidated report, it suggests a level of decentralized purchasing, which typically has specific spending limits and oversight controls managed by cardholders and their supervisors. Transparency is limited by the lack of detailed itemization, but the contract award itself is likely subject to federal procurement transparency rules. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Procurement
General Services Administration (GSA) Schedules
Department of Defense Supply Chain Management
Government Purchase Card Program Spending

Risk Flags

Lack of specific item details
Limited performance metrics
Short contract duration for large value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to GPC CONSOLIDATED REPORTING. MISCELLANEOUS GPC PURCHASES - LARGE BUSINESS - (FY10)

Who is the contractor on this award?

The obligated recipient is GPC CONSOLIDATED REPORTING.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2010-09-30. End: 2010-09-30.

What specific types of 'miscellaneous durable goods' were purchased under this contract?

The provided data identifies the purchase under NAICS code 423990, 'Other Miscellaneous Durable Goods Merchant Wholesalers,' and categorizes it as 'MISCELLANEOUS GPC PURCHASES - LARGE BUSINESS'. However, it does not specify the exact types of durable goods procured. These could range widely, from tools and equipment to furniture or specialized components, depending on the needs of the Department of the Air Force at the time. Without itemized details, it's impossible to determine the precise nature of the goods acquired.

How does the $22.3 million spending compare to historical trends for this category within the Department of Defense?

Analyzing the $22.3 million spending in FY10 requires historical context. To compare, one would need to examine prior fiscal years' spending data for similar 'miscellaneous durable goods' procurements by the Department of Defense, particularly the Air Force. This would involve looking at spending trends under the GPC program or other procurement vehicles for this NAICS code or similar categories. A significant deviation from historical averages could indicate a surge in demand, a change in procurement strategy, or a one-time large acquisition.

What was the average price per unit for the goods purchased, and how does it benchmark against market rates?

The provided data does not include information on the quantity of items purchased or their individual prices, making it impossible to calculate a per-unit cost. Therefore, a direct benchmark against market rates for specific items cannot be performed. To assess this, detailed transaction records listing item quantities and unit prices would be required. Without this granularity, the value assessment remains high-level.

What risks are associated with a single-day, large-value purchase of miscellaneous durable goods?

A significant risk associated with a large-value, single-day purchase is the potential for inadequate due diligence or rushed decision-making, which could lead to suboptimal pricing or the acquisition of unsuitable goods. There's also a risk of insufficient competition if the timeframe was too short to attract a wide range of bidders. Furthermore, without detailed itemization and performance tracking, verifying the actual need and utility of the goods post-purchase becomes challenging, increasing the risk of waste or inefficient use of funds.

Given the 'full and open competition' and 3 bidders, what is the likely impact on price discovery and overall value for taxpayers?

Full and open competition, even with only three bidders, generally supports better price discovery than limited or sole-source contracts. The presence of multiple bidders encourages them to offer competitive pricing to win the contract. However, the optimal number of bidders for robust price discovery can vary by market. With three bidders, there's a reasonable chance that the government secured a competitive price, but it's not as assured as with a larger pool. Taxpayers benefit from this competition by likely avoiding inflated prices that might occur in less competitive scenarios.

What is the track record of the 'large business' contractor in providing miscellaneous durable goods to the federal government?

The provided data identifies the awardee as a 'large business' but does not specify the contractor's name. Therefore, assessing their specific track record in providing miscellaneous durable goods to the federal government is not possible with this information alone. A thorough analysis would require identifying the contractor and then reviewing their past performance evaluations, contract history, and any reported issues or successes in fulfilling similar government requirements.

Industry Classification

NAICS: Wholesale Trade › Miscellaneous Durable Goods Merchant Wholesalers › Other Miscellaneous Durable Goods Merchant Wholesalers

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DRIVE STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,276,151

Exercised Options: $22,276,151

Current Obligation: $22,276,151

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701210D9002

IDV Type: IDC

Timeline