Department of Defense awarded $29.4M for miscellaneous durable goods, highlighting a competitive procurement process

Contract Overview

Contract Amount: $29,400,341 ($29.4M)

Contractor: GPC Consolidated Reporting

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2011-09-30

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GPC - LARGE BUSINESS FY11

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to GPC CONSOLIDATED REPORTING for work described as: GPC - LARGE BUSINESS FY11 Key points: 1. The contract was awarded under full and open competition, suggesting a robust market for these goods. 2. A firm-fixed-price contract type indicates that cost risks are primarily borne by the contractor. 3. The single delivery order suggests a specific, defined need rather than an ongoing service requirement. 4. The award was made to a large business, with no specific small business set-aside noted. 5. The procurement falls under 'Other Miscellaneous Durable Goods Merchant Wholesalers', a broad category. 6. The contract duration was zero, implying immediate fulfillment or a very short performance period.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the 'miscellaneous durable goods' procured. The total award amount of $29.4 million is significant, but its value-for-money depends entirely on the nature and quantity of the goods. Given it was a single delivery order with a zero duration, it suggests a one-time purchase. Without comparable contract data for similar specific items, assessing pricing and value against market rates is difficult. The firm-fixed-price structure, however, provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders (no=3) suggests a reasonable level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited solicitations.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than if the contract had been awarded without adequate competition.

Public Impact

The primary beneficiaries are likely military personnel and operations within the Department of the Air Force, who will receive the procured durable goods. The services delivered involve the provision of miscellaneous durable goods, essential for various operational and logistical needs. The geographic impact is primarily within the operational areas of the Department of the Air Force, though the goods themselves could be distributed widely. Workforce implications are minimal for the government, as the contract is for goods, not services requiring direct government personnel management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific itemization for 'miscellaneous durable goods' makes it difficult to assess if the procured items were truly necessary or if better alternatives existed.
The zero contract duration is unusual and raises questions about the fulfillment timeline and potential for delays if not managed closely.
Award to a large business without a small business set-aside might limit opportunities for smaller, specialized suppliers in this market segment.

Positive Signals

The contract was awarded through full and open competition, indicating a fair and transparent procurement process.
The firm-fixed-price contract type shifts cost risk to the contractor, providing budget certainty for the government.
The existence of multiple bidders (3) suggests a healthy competitive environment for these types of goods.

Sector Analysis

The procurement falls under the broad category of 'Other Miscellaneous Durable Goods Merchant Wholesalers'. This sector encompasses a wide range of products, from furniture and fixtures to specialized equipment. Federal spending in this area supports various government functions, including base operations, logistics, and equipment replacement. Comparable spending benchmarks are difficult to establish due to the generic nature of the goods described, but the Department of Defense is a significant purchaser of durable goods across numerous categories to maintain its global operations.

Small Business Impact

This contract was not set aside for small businesses (sb=false) and was awarded to a large business (indicated by the data source 'GPC - LARGE BUSINESS'). This means that opportunities for small businesses to directly compete for or subcontract on this specific award were likely limited. While not a direct subcontracting vehicle, the absence of a small business set-aside means the primary contract value did not flow through small business channels.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Air Force's contracting and program management offices. As a delivery order under a larger contract vehicle (implied by GPC), oversight would focus on ensuring the goods delivered meet specifications and are received appropriately. Transparency is moderate, as the award details are publicly available, but the lack of specific itemization limits deeper scrutiny. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule Contracts
Department of Defense Procurement Data
Miscellaneous Durable Goods Procurement
Air Force Logistics and Supply Chain Management

Risk Flags

Lack of Specificity in Goods Description
Unusual Contract Duration (Zero Days)
Potential Missed Small Business Opportunities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to GPC CONSOLIDATED REPORTING. GPC - LARGE BUSINESS FY11

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 $29.4 million.

What is the period of performance?

Start: 2011-09-30. End: 2011-09-30.

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

The provided data does not specify the exact nature of the 'miscellaneous durable goods' procured. The NAICS code 423990 covers 'Other Miscellaneous Durable Goods Merchant Wholesalers,' which can include a vast array of items such as furniture, fixtures, sporting goods, musical instruments, and various other non-consumer durable goods. Without further detail, it's impossible to determine the specific items. This lack of specificity makes it challenging to assess the necessity, appropriateness, or potential for waste associated with the purchase. Future analysis would benefit from identifying the specific line items or product descriptions within the contract.

How does the $29.4 million award compare to typical spending for similar goods by the Department of the Air Force?

Comparing the $29.4 million award for 'miscellaneous durable goods' to typical spending is difficult due to the broad and non-specific nature of the category. The Department of the Air Force procures a wide range of durable goods, from aircraft components to office furniture. If these goods were standard office furnishings or basic equipment, $29.4 million might represent a substantial portion of annual spending in that niche. However, if they were specialized operational equipment, this amount could be relatively modest. Benchmarking requires identifying comparable contracts for specific types of durable goods purchased by the Air Force or other DoD branches over similar periods.

What are the potential risks associated with a contract having a zero-day duration?

A zero-day contract duration is highly unusual and typically implies that the goods were either already in possession, delivered immediately upon award, or the contract represents a very short-term fulfillment obligation that concluded on the award date. The primary risk is a lack of clarity regarding performance expectations and timelines. If the intent was for immediate delivery, any delay could be problematic. If it signifies a completed transaction on the award date, it raises questions about the procurement process itself – why was a contract needed if the goods were already delivered or acquired? This could indicate administrative inefficiencies or a need for better planning in contract initiation.

Given the award to a large business, what are the implications for small business participation in this contract category?

The award to a large business for $29.4 million, without a small business set-aside, suggests that small businesses were either not primary bidders or were not selected for this specific contract. This means that a significant portion of federal spending in this 'miscellaneous durable goods' category, at least for this particular transaction, did not directly benefit the small business sector. While large businesses may subcontract, the initial award bypasses direct small business set-aside opportunities. This highlights a potential gap in ensuring small business participation in certain federal procurement categories, necessitating proactive measures like targeted set-asides or encouraging large prime contractors to utilize small business subcontractors.

How does the firm-fixed-price (FFP) contract type influence the government's financial risk?

The firm-fixed-price (FFP) contract type significantly reduces the government's financial risk. Under an FFP agreement, the contractor is obligated to provide the specified goods or services for a predetermined price, regardless of their actual costs incurred. This means that any cost overruns experienced by the contractor are absorbed by the contractor, not the government. Conversely, if the contractor manages their costs efficiently and achieves a profit margin higher than anticipated, that benefit remains with the contractor. For the government, the primary advantage of FFP is budget certainty and predictability, as the total cost is known upfront, assuming the scope of work does not change.

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: $29,400,341

Exercised Options: $29,400,341

Current Obligation: $29,400,341

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA711511D9002

IDV Type: IDC

Timeline