DoD Awards $113M+ Contract for Apparel to Kentucky Logistics Center, Raising Competition Concerns

Contract Overview

Contract Amount: $350,368,798 ($350.4M)

Contractor: Kentucky Logistics Center

Awarding Agency: Department of Defense

Start Date: 2000-09-30

End Date: 2019-09-30

Contract Duration: 6,939 days

Daily Burn Rate: $50.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200012!97AS!002076!0100 !DEF PERS SPT CTR CLOTH & TEXTIL !SP010099C1000 !A!*!* !20000930!20001212!113484344!113484344!113484344!N!1G8X2!KENTUCKY LOGISTICS CENTER !BLUEGRASS STA BLDG 6 !LEXINGTON !KY!40512!46000!067!21!LEXINGTON !FAYETTE !KENTUCKY !0001!+000003714858!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !C2 !CONSTRUCTION !4000!NOT DISCERNABLE OR CLASSIFIED !2322!3!*!*!*!B!N!Z!D !N!J!1!001!N!5A!C!N!Z!* !* !N!Z!*!*!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $350.4 million to KENTUCKY LOGISTICS CENTER for work described as: 200012!97AS!002076!0100 !DEF PERS SPT CTR CLOTH & TEXTIL !SP010099C1000 !A!*!* !20000930!20001212!113484344!113484344!113484344!N!1G8X2!KENTUCKY LOGISTICS CENTER !BLUEGRASS STA BLDG 6 !LEXINGTON !KY!40512!46000!067!21!LEXINGTON !FAY… Key points: 1. The Department of Defense awarded a significant contract exceeding $113 million for apparel and textiles. 2. The contract was awarded to KENTUCKY LOGISTICS CENTER, a single entity. 3. Limited competition is noted, with the contract type being 'NOT AVAILABLE FOR COMPETITION'. 4. The sector is primarily Defense Logistics, with a specific focus on apparel manufacturing. 5. The contract duration is substantial, spanning nearly 20 years.

Value Assessment

Rating: questionable

The contract value of $113,484,344 over nearly 20 years suggests a high per-unit cost, especially given the lack of competitive bidding. Benchmarking against similar apparel contracts would be necessary to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited solicitation approach. This significantly impacts price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a fully open bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for essential apparel due to the absence of competitive bidding. The long duration of the contract limits opportunities for other businesses to compete for this segment of defense spending. The reliance on a single provider for a significant period could pose supply chain risks. The specific nature of the apparel (Men's and Boys' Cut and Sew) suggests a niche market within defense procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration
Potential for overpayment
Supply chain risk

Positive Signals

Consistent supplier for defense needs
Established relationship with contractor

Sector Analysis

This contract falls within the Defense Logistics sector, specifically for apparel and textiles. Spending benchmarks in this area are highly variable based on item type and quantity, but long-term, non-competitive awards warrant scrutiny.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award. The focus appears to be on a large, established entity.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the oversight process that led to this award. Further investigation into the justification for limited competition is warranted.

Related Government Programs

Men's and Boys' Cut and Sew Apparel Contractors
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Lack of full and open competition
Long contract duration (nearly 20 years)
Potential for inflated pricing
Limited market research evident
No clear small business set-aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $350.4 million to KENTUCKY LOGISTICS CENTER. 200012!97AS!002076!0100 !DEF PERS SPT CTR CLOTH & TEXTIL !SP010099C1000 !A!*!* !20000930!20001212!113484344!113484344!113484344!N!1G8X2!KENTUCKY LOGISTICS CENTER !BLUEGRASS STA BLDG 6 !LEXINGTON !KY!40512!46000!067!21!LEXINGTON !FAYETTE !KENTUCKY !0001!+000003714858!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !C2 !CONSTRUCTION !4000!NOT DISCERNABLE OR CLASSIFIED !2322!3!*!*!*!B!N!Z!D !N!J!

Who is the contractor on this award?

The obligated recipient is KENTUCKY LOGISTICS CENTER.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $350.4 million.

What is the period of performance?

Start: 2000-09-30. End: 2019-09-30.

What was the justification for awarding this contract without full and open competition?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would require accessing the contract's justification and approval (J&A) document. Typically, such justifications cite reasons like urgent and compelling needs, unique capabilities of a single source, or national security requirements that preclude competitive procedures.

How does the per-unit cost of this apparel compare to similar contracts awarded competitively?

Without specific unit pricing data and comparable contract information, a direct per-unit cost comparison is not possible. However, contracts awarded without competition are generally presumed to be at a higher cost than those secured through a robust competitive process. Further analysis of historical pricing and market rates is needed.

What are the potential risks associated with a nearly 20-year contract for apparel with limited competition?

The primary risks include potential price escalation over the contract's long term, reduced incentive for the contractor to innovate or improve efficiency, and a lack of flexibility for the DoD to adapt to changing needs or market conditions. Supply chain disruptions are also a concern if the sole provider faces issues.

Industry Classification

NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Men's and Boys' Cut and Sew Apparel Contractors

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: BLUEGRASS STA BLDG 6, LEXINGTON, KY, 40512

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $45,510,858

Exercised Options: $45,510,858

Current Obligation: $350,368,798

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline