DoD's $430M gown contract awarded to COULMED PRODUCTS GROUP LLC for disposable isolation gowns

Contract Overview

Contract Amount: $43,088,616 ($43.1M)

Contractor: Coulmed Products Group LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-18

End Date: 2021-03-18

Contract Duration: 181 days

Daily Burn Rate: $238.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 8507660631!DISPOSABLE ISOLATION GOWN, LE

Place of Performance

Location: SPRINGFIELD, UNION County, NEW JERSEY, 07081

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $43.1 million to COULMED PRODUCTS GROUP LLC for work described as: 8507660631!DISPOSABLE ISOLATION GOWN, LE Key points: 1. Value for money appears fair given the firm-fixed-price structure and 181-day duration. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a short performance period and a single delivery order. 4. Performance context is within the Defense Logistics Agency's need for medical supplies. 5. Sector positioning is within the broader healthcare and personal protective equipment (PPE) market.

Value Assessment

Rating: fair

The contract's total value of $430,886,160 for 181 days of disposable isolation gowns suggests a significant per-day expenditure. Without specific unit volume or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type provides cost certainty for the government. Benchmarking against similar large-scale PPE procurements during the pandemic would be necessary for a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, which can lead to better pricing and quality. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for this significant award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value through a wide range of offers and competitive pricing pressures.

Public Impact

Beneficiaries include military personnel and potentially other federal agencies requiring medical supplies. Services delivered include the provision of disposable isolation gowns. Geographic impact is primarily within the United States, supporting domestic supply chains. Workforce implications may involve manufacturing and logistics jobs related to gown production and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in PPE markets during periods of high demand.
Dependence on a single delivery order for a large quantity of critical supplies.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded under full and open competition, suggesting a competitive process.
Short performance period limits long-term financial commitment and market risk.

Sector Analysis

This contract falls within the broader healthcare and medical supplies sector, specifically focusing on personal protective equipment (PPE). The market for disposable isolation gowns is substantial, driven by healthcare facility needs, public health emergencies, and industrial safety requirements. The Defense Logistics Agency's procurement of such items highlights the government's role as a major consumer in this sector, often influencing market dynamics and supply chain resilience.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary awardee is likely a larger entity, and opportunities for small businesses would primarily arise if they are part of the supply chain or subcontracting network of the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial accountability. The Defense Logistics Agency (DLA) Contracting Command is responsible for the award and administration. Transparency is facilitated through contract databases like FPDS-NG, though detailed cost breakdowns are often proprietary. Inspector General oversight would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Medical Supplies
Personal Protective Equipment (PPE)
Defense Logistics Agency Procurements
Federal Supply Schedule (FSS) Contracts
Emergency Preparedness Supplies

Risk Flags

Potential for supply chain disruption due to single delivery order.
Price volatility in PPE markets.
Dependence on contractor's production capacity and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.1 million to COULMED PRODUCTS GROUP LLC. 8507660631!DISPOSABLE ISOLATION GOWN, LE

Who is the contractor on this award?

The obligated recipient is COULMED PRODUCTS GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $43.1 million.

What is the period of performance?

Start: 2020-09-18. End: 2021-03-18.

What was the historical spending on disposable isolation gowns by the Department of Defense prior to this contract?

Analyzing historical spending on disposable isolation gowns by the Department of Defense (DoD) prior to this $430 million contract requires access to detailed procurement data over several fiscal years. Typically, spending on such items can fluctuate significantly based on global health situations, military readiness requirements, and strategic stockpiling initiatives. In the period leading up to and during the COVID-19 pandemic, demand for PPE, including isolation gowns, surged dramatically, leading to unprecedented procurement levels across all federal agencies. Without specific historical data points, it's difficult to provide exact figures, but it is reasonable to assume that spending on isolation gowns was considerably lower in non-pandemic years compared to the surge observed during the pandemic response.

How does the per-unit cost of these disposable isolation gowns compare to market rates or similar government contracts?

Determining the precise per-unit cost and comparing it to market rates or similar government contracts is challenging without the specific quantity of gowns procured under this $430 million contract. The contract value represents the total obligation, not necessarily the final expenditure, and the unit price is dependent on the volume. However, given the firm-fixed-price nature and the context of a large-scale procurement, the government likely aimed for competitive pricing. Benchmarking would involve comparing the implied unit price (Total Contract Value / Number of Gowns) against other DLA or HHS contracts for similar gowns awarded around the same period, considering factors like gown material, barrier protection level (e.g., AAMI levels), and delivery timelines. Prices for isolation gowns saw significant inflation during peak pandemic demand, so comparisons to pre-pandemic contracts would likely show a substantial increase.

What are the primary risks associated with a single delivery order for such a large quantity of essential medical supplies?

A primary risk associated with a single delivery order for a large quantity of essential medical supplies like disposable isolation gowns is supply chain disruption. If the sole supplier, COULMED PRODUCTS GROUP LLC, faces production issues, raw material shortages, transportation delays, or quality control problems, the entire delivery could be jeopardized, leaving the Department of Defense without critical inventory. This concentration of risk is amplified by the short performance period (181 days), implying an urgent need. Furthermore, if the gowns do not meet specifications upon delivery, the government's recourse might be limited by the contract terms and the time required to re-procure, potentially leading to critical shortages during a period of high demand.

What is the track record of COULMED PRODUCTS GROUP LLC in fulfilling large federal contracts, particularly for medical supplies?

Assessing the track record of COULMED PRODUCTS GROUP LLC requires a review of their past performance on federal contracts, specifically looking at their history with the Department of Defense (DoD) and the Defense Logistics Agency (DLA). Information on their prior experience with large-scale procurements of medical supplies, such as isolation gowns, is crucial. Key indicators include on-time delivery rates, quality compliance, contract modifications, and any past performance issues or disputes. A company's ability to successfully manage complex supply chains, maintain quality standards, and meet demanding delivery schedules for critical items like PPE is paramount. Without specific historical contract data for COULMED PRODUCTS GROUP LLC, it's difficult to definitively assess their capabilities, but the award of this significant contract suggests they met the government's pre-qualification criteria.

How does the $430 million contract value compare to the total annual budget for the Defense Logistics Agency's medical supply division?

The $430 million contract value for disposable isolation gowns represents a substantial portion of the Defense Logistics Agency's (DLA) spending on medical supplies, particularly if this procurement occurred during a period of heightened demand, such as a pandemic. The DLA's overall budget for medical materiel is in the billions of dollars annually, supporting the healthcare needs of the U.S. military services and other federal partners. A single contract of this magnitude, while significant, is likely one of many large awards made by DLA to ensure adequate stock levels. To provide precise context, one would need to compare this contract value against DLA's specific annual budget allocations for medical supplies and its historical spending patterns for PPE over several years.

Industry Classification

NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Cut and Sew Apparel Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44 COMMERCE ST, SPRINGFIELD, NJ, 07081

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,088,616

Exercised Options: $43,088,616

Current Obligation: $43,088,616

Actual Outlays: $43,153,236

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C120D1320

IDV Type: IDC

Timeline