DoD's $4.9M container reclamation contract awarded to Newview Oklahoma, Inc. for packaging and labeling services

Contract Overview

Contract Amount: $4,924,624 ($4.9M)

Contractor: Newview Oklahoma, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2026-09-29

Contract Duration: 1,461 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8509431173!CONTAINER RECLAMATION SERVICE

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $4.9 million to NEWVIEW OKLAHOMA, INC. for work described as: 8509431173!CONTAINER RECLAMATION SERVICE Key points: 1. Value for money appears fair given the fixed-price nature and duration, but detailed cost breakdowns are unavailable. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and innovation. 3. Risk indicators are moderate, with a long contract duration and sole-source award presenting potential challenges. 4. Performance context is limited due to the 'NOT AVAILABLE FOR COMPETITION' status, making direct comparisons difficult. 5. Sector positioning places this contract within the broader Defense Logistics Agency's support services for packaging and labeling. 6. The contract's value is modest within the overall defense spending landscape.

Value Assessment

Rating: fair

The contract's total value of $4.9 million over approximately four years suggests a moderate annual spend. As a firm-fixed-price contract, the financial risk is largely borne by the contractor, which can be beneficial for the government. However, without a competitive bidding process, it's difficult to benchmark the pricing against market rates or other similar contracts. The lack of detailed cost information prevents a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one bidder, Newview Oklahoma, Inc., was considered for this requirement. The lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price. It suggests that either there were unique capabilities required that only this contractor possessed, or the justification for a sole-source award was not fully transparent.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces opportunities for other businesses to compete for government contracts.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Logistics Agency, which receives essential packaging and labeling services. The services delivered include container reclamation, packaging, and labeling, crucial for military logistics and supply chain operations. The geographic impact is centered in Oklahoma, where Newview Oklahoma, Inc. is based, potentially supporting local employment. Workforce implications may include job creation or retention at Newview Oklahoma, Inc. and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Long contract duration (approx. 4 years) increases exposure to potential cost overruns or performance issues without competitive checks.
Lack of transparency in the 'NOT AVAILABLE FOR COMPETITION' justification raises concerns about fairness and efficiency.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract supports critical defense logistics functions.
Award to a specific company may indicate specialized capabilities required for the service.

Sector Analysis

This contract falls within the broader 'Other Services' category, specifically related to packaging and labeling, which are essential support functions for numerous industries, including defense. The market for such services is diverse, ranging from small specialized firms to larger logistics providers. Benchmarking is challenging without more specific details on the nature of the 'container reclamation' and the exact scope of packaging and labeling required.

Small Business Impact

The contract indicates that small business participation was not a primary consideration, as the award was sole-source and the contractor's size status is not specified as a small business set-aside. There is no explicit mention of subcontracting goals for small businesses. This contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Logistics Agency's contract management and administration. As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source nature and the lack of publicly available performance metrics or detailed cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Logistics Agency Support Services
Department of Defense Packaging and Labeling Contracts
Federal Logistics and Supply Chain Management
Container Reclamation Services

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed justification for sole-source award.
Long contract duration without competitive review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.9 million to NEWVIEW OKLAHOMA, INC.. 8509431173!CONTAINER RECLAMATION SERVICE

Who is the contractor on this award?

The obligated recipient is NEWVIEW OKLAHOMA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-29.

What specific criteria led to the sole-source justification for this contract?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is the basis for a sole-source justification. However, the specific criteria or circumstances that led to this determination are not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the government's needs, often due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without further documentation from the awarding agency (Defense Logistics Agency), the precise reasons remain unclear. This lack of transparency can raise questions about whether competition was genuinely impossible or if alternative procurement methods were overlooked.

How does the annual cost of this contract compare to similar packaging and labeling services within the DoD?

Comparing the annual cost of this contract, approximately $1.2 million ($4.9M / 4 years), to similar packaging and labeling services within the DoD is challenging without more specific data. The 'container reclamation' aspect suggests a specialized service beyond standard packaging. Furthermore, the sole-source nature of this award means there was no competitive bidding to establish a market-driven price. To conduct a meaningful comparison, one would need to identify contracts with similar scopes of work, geographic locations, and service complexities, ideally those awarded competitively. Benchmarking would require access to detailed contract databases and analysis of service-specific cost drivers, which are not available in the provided summary.

What are the potential risks associated with a four-year firm-fixed-price contract awarded on a sole-source basis?

A four-year firm-fixed-price contract awarded on a sole-source basis presents several potential risks. Firstly, the lack of competition means the government may be paying a premium price, as there was no pressure from competing bids to drive costs down. Secondly, the long duration, coupled with the sole-source award, reduces the government's flexibility to adapt to changing needs or to seek better value if market conditions or contractor performance change. If the contractor's costs increase significantly due to unforeseen circumstances, they are protected by the fixed price, but if their costs decrease, the government may not benefit. Finally, without ongoing competition, there's a reduced incentive for the contractor to innovate or proactively improve efficiency beyond what is contractually required, potentially leading to complacency over the contract's life.

What performance metrics or oversight mechanisms are in place for Newview Oklahoma, Inc. under this contract?

The provided data does not specify the performance metrics or detailed oversight mechanisms in place for Newview Oklahoma, Inc. under this contract. Standard federal contracts typically include clauses for performance standards, quality assurance surveillance plans (QASPs), and delivery schedules. However, the level of detail and rigor for these mechanisms can vary significantly. Given the sole-source nature and the lack of readily available performance data, it is assumed that the Defense Logistics Agency has internal processes for monitoring contractor performance, likely through a Contracting Officer's Representative (COR). Without access to the full contract or performance reports, a definitive assessment of oversight effectiveness cannot be made.

What is the historical spending pattern for container reclamation and packaging services by the Defense Logistics Agency?

The provided data focuses on a single contract and does not offer historical spending patterns for container reclamation and packaging services by the Defense Logistics Agency (DLA). To understand historical spending, one would need to analyze DLA's procurement data over several fiscal years, identifying all contracts related to these services. This analysis would reveal trends in contract values, number of awards, types of competition (competitive vs. sole-source), and average contract durations. Such a review could indicate whether spending on these services has increased or decreased, and whether the DLA has historically relied on sole-source awards for such requirements or has actively pursued competitive procurements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › Packaging and Labeling Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SP330022R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 501 N DOUGLAS AVE, OKLAHOMA CITY, OK, 73106

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,216,355

Exercised Options: $4,924,624

Current Obligation: $4,924,624

Actual Outlays: $973,322

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline