DoD's $29.3M gown contract awarded to New York Embroidery Studio Inc. amid pandemic demand

Contract Overview

Contract Amount: $29,289,393 ($29.3M)

Contractor: NEW York Embroidery Studio Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-21

End Date: 2021-03-08

Contract Duration: 168 days

Daily Burn Rate: $174.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 8507665556!REUSABLE ISOLATION GOWN, LEVE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10018

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to NEW YORK EMBROIDERY STUDIO INC. for work described as: 8507665556!REUSABLE ISOLATION GOWN, LEVE Key points: 1. Contract awarded during peak pandemic, suggesting potential urgency pricing. 2. Sole awardee for a critical medical supply highlights potential supply chain vulnerabilities. 3. Fixed-price contract offers some cost certainty but may not reflect true market value. 4. Limited competition could lead to higher prices than a more open bidding process. 5. Performance period of 168 days indicates a short-term need for the gowns. 6. Geographic concentration of the awardee in New York may limit broader supplier engagement.

Value Assessment

Rating: fair

The contract value of $29.3 million for reusable isolation gowns appears substantial, especially considering the 168-day performance period. Without specific per-unit cost data or comparable contract benchmarks from the same period, it's difficult to definitively assess value for money. However, the award to a single entity for a critical item during a period of high demand warrants scrutiny regarding potential price inflation due to market conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data does not specify the number of bids received. A single award suggests that either only one bidder met all requirements, or the evaluation process favored one proposal significantly. The level of competition directly impacts price discovery.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, a single award might suggest that the most competitive bids were not significantly lower than others, or that the specific requirements narrowed the field considerably.

Public Impact

Provides essential personal protective equipment (PPE) to Department of Defense personnel, ensuring their safety. Supports healthcare operations within military facilities by ensuring availability of critical medical supplies. The awardee, based in New York, contributes to the local economy through this contract. Ensures continuity of medical services for military personnel and their families.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price overpayment due to pandemic-driven demand.
Reliance on a single supplier for a critical item could pose a supply chain risk.
Lack of detailed cost breakdown makes it hard to verify the reasonableness of the price.
Limited information on the specific type and quality standards of the 'reusable' gowns.

Positive Signals

Awarded under full and open competition, theoretically allowing for competitive pricing.
Fixed-price contract structure provides cost certainty for the government.
The contractor is based in the US, supporting domestic manufacturing.
The contract addresses a critical need for PPE during a period of high demand.

Sector Analysis

The market for medical supplies, particularly PPE, experienced unprecedented demand and price volatility during 2020-2021 due to the COVID-19 pandemic. This contract falls within the broader healthcare and medical supplies manufacturing sector. Comparable spending benchmarks would need to consider the specific type of reusable gown and the prevailing market conditions at the time of award, which were characterized by supply shortages and increased costs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be indirect, potentially through subcontracting opportunities if New York Embroidery Studio Inc. chose to engage them. Without further information on subcontracting plans, the direct benefit to the small business ecosystem from this specific award is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) for performance monitoring and the Department of Defense's Inspector General for audits and investigations. Transparency is facilitated by public contract databases, but detailed cost breakdowns and performance metrics are often not publicly disclosed, limiting full accountability assessment.

Related Government Programs

Department of Defense Medical Supplies Procurement
Federal PPE Contracts
Surgical Appliance and Supplies Manufacturing Contracts
Defense Logistics Agency Contracts

Risk Flags

Potential for inflated pricing due to pandemic demand.
Single awardee for critical supply raises supply chain risk concerns.
Limited transparency on specific gown quality standards.
Lack of detailed cost breakdown hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to NEW YORK EMBROIDERY STUDIO INC.. 8507665556!REUSABLE ISOLATION GOWN, LEVE

Who is the contractor on this award?

The obligated recipient is NEW YORK EMBROIDERY STUDIO INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2020-09-21. End: 2021-03-08.

What was the specific type and quality standard of the reusable isolation gowns procured under this contract?

The contract details specify 'REUSABLE ISOLATION GOWN, LEVE' but do not provide further technical specifications or the exact quality standard (e.g., AAMI Level). Reusable gowns can vary significantly in material, durability, and protection level. Understanding the specific standard is crucial for assessing their suitability for the intended use and comparing their value against other PPE procurements. Without this information, it's difficult to determine if the gowns met the necessary clinical requirements or if they were a basic-level protective item.

How did the per-unit cost of these gowns compare to similar contracts awarded before or after the peak pandemic period?

Benchmarking the per-unit cost is challenging without specific unit pricing data from this contract and comparable contracts. However, the period of award (late 2020 to early 2021) was marked by extreme supply chain disruptions and elevated prices for PPE globally. It is highly probable that the per-unit cost was significantly higher than pre-pandemic levels. To provide a precise comparison, one would need to analyze contracts for similar gowns awarded in 2019 or mid-2021 onwards, adjusting for any changes in specifications or market conditions.

What was the rationale for awarding to a single entity, New York Embroidery Studio Inc., under 'full and open competition'?

Awarding to a single entity under full and open competition suggests that while multiple vendors may have bid, New York Embroidery Studio Inc.'s proposal was deemed the most advantageous according to the evaluation criteria. This could be due to factors such as price, technical approach, past performance, delivery timeline, or a combination thereof. It's also possible that the specific requirements of the solicitation, such as the need for reusable gowns with certain characteristics or rapid delivery, narrowed the field of capable bidders significantly, leading to only one compliant and competitive offer.

What is the track record of New York Embroidery Studio Inc. in supplying medical equipment to the federal government?

Publicly available data indicates New York Embroidery Studio Inc. has received federal contracts, including this significant award from the Defense Logistics Agency. However, their specific track record in supplying medical equipment, particularly isolation gowns, prior to this contract is not detailed in the provided data. A deeper dive into their contract history, performance reviews, and any past issues or successes related to medical supply delivery would be necessary to fully assess their reliability and experience in this specific domain.

What are the potential risks associated with relying on a single supplier for critical PPE during a public health crisis?

Relying on a single supplier for critical PPE, especially during a crisis like the COVID-19 pandemic, presents several risks. These include supply chain vulnerability – if the supplier faces production issues, labor shortages, or logistical problems, the entire supply chain for the government could be disrupted. There's also a risk of price gouging, as the single supplier may have significant leverage. Furthermore, a lack of competition can stifle innovation and reduce the incentive for the supplier to maintain high quality or efficiency over time. This contract's single award highlights the importance of robust contingency planning and potentially diversifying suppliers for future needs.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

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: 327 W 36TH ST RM 1102, NEW YORK, NY, 10018

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $29,289,393

Exercised Options: $29,289,393

Current Obligation: $29,289,393

Actual Outlays: $29,289,393

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C120D1312

IDV Type: IDC

Timeline