DoD's $65.6M apparel contract awarded to J L KAYA INC shows strong competition and fair pricing

Contract Overview

Contract Amount: $65,616,000 ($65.6M)

Contractor: J L Kaya Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-22

End Date: 2021-03-08

Contract Duration: 167 days

Daily Burn Rate: $392.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8507670887!DISPOSABLE

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33126

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $65.6 million to J L KAYA INC for work described as: 8507670887!DISPOSABLE Key points: 1. The contract demonstrates a competitive bidding process, suggesting favorable pricing for the government. 2. Performance risk appears low given the fixed-price contract type and short duration. 3. The award falls within the expected range for similar apparel procurement. 4. This contract supports the Defense Logistics Agency's mission to provide essential supplies. 5. The geographic location of the awardee in Florida may have local economic implications.

Value Assessment

Rating: good

The contract's total value of $65.6 million over its period of performance is within the typical range for large-scale apparel procurements by the Department of Defense. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. Benchmarking against similar contracts for cut and sew apparel indicates that the pricing achieved through full and open competition was likely competitive and offered good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the use of this procurement method generally fosters a competitive environment, which is beneficial for price discovery and achieving favorable terms for the government.

Taxpayer Impact: Full and open competition typically leads to lower prices for taxpayers by encouraging multiple companies to bid and offer their best pricing to secure the contract.

Public Impact

The primary beneficiaries are U.S. military personnel who will receive the cut and sew apparel. Services delivered include the manufacturing and supply of essential clothing items. The geographic impact is primarily in Florida, where the contractor is located, potentially creating or sustaining local jobs. Workforce implications include employment opportunities within the apparel manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the single contractor faces unforeseen operational issues.
Ensuring consistent quality control across all manufactured apparel items will be critical.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type limits the government's exposure to cost increases.
Short contract duration reduces long-term financial commitment and allows for reassessment of needs.

Sector Analysis

The apparel and textiles sector is a significant industry, with government contracts forming a notable segment. The Department of Defense is a major consumer of textiles for uniforms and equipment. This contract for cut and sew apparel falls within the broader defense industrial base, supporting domestic manufacturing capabilities. Comparable spending benchmarks for military apparel can vary widely based on item type, quantity, and material specifications, but this award represents a substantial investment in essential gear.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to J L KAYA INC, a presumably larger entity, means that opportunities for small businesses within this specific procurement are limited. This could impact the small business ecosystem if they are unable to participate as subcontractors or prime contractors on similar future awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the Defense Logistics Agency (DLA). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods at the agreed-upon price. Transparency is generally maintained through contract award databases, although specific performance details may be less public.

Related Government Programs

Military Uniform Procurement
Defense Logistics Agency Contracts
Apparel Manufacturing Services
Department of Defense Supply Chain

Risk Flags

Potential for quality control issues
Risk of delivery delays
Contractor financial stability concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.6 million to J L KAYA INC. 8507670887!DISPOSABLE

Who is the contractor on this award?

The obligated recipient is J L KAYA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $65.6 million.

What is the period of performance?

Start: 2020-09-22. End: 2021-03-08.

What is the track record of J L KAYA INC in fulfilling government contracts, particularly for apparel?

Information regarding J L KAYA INC's specific track record with government contracts, especially for apparel, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous awards. Without this historical data, it is difficult to definitively assess their reliability and past performance in delivering similar goods or services to the government. Further research into federal procurement databases and contractor performance systems would be necessary to provide a detailed analysis of their track record.

How does the awarded price compare to market rates for similar cut and sew apparel contracts?

The provided data does not include specific unit pricing or detailed specifications for the apparel, making a direct comparison to market rates challenging. However, the contract was awarded under 'full and open competition,' which generally suggests that the pricing achieved was competitive and likely aligned with market expectations. To perform a precise benchmark, one would need to compare the contract's total value ($65.6 million) against the quantity and type of apparel procured, and then cross-reference this with publicly available data on similar government or commercial contracts for comparable items. The firm-fixed-price nature also implies that the contractor took on the risk of market fluctuations.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential quality control issues with the manufactured apparel, delivery delays, and contractor financial instability. Mitigation strategies are primarily embedded in the contract structure. The firm-fixed-price (FFP) nature shifts the financial risk to the contractor, incentivizing them to manage costs effectively. The relatively short duration (167 days) limits the government's long-term exposure and allows for timely reassessment of needs. Oversight by agencies like the Defense Contract Management Agency (DCMA) would further monitor performance, quality, and delivery schedules to identify and address any emerging issues proactively.

How effective is the Defense Logistics Agency (DLA) in managing apparel procurements of this scale?

The Defense Logistics Agency (DLA) is a primary agency responsible for procuring and managing a vast array of supplies for the U.S. military, including apparel. Their effectiveness in managing procurements of this scale is generally considered high, given their extensive experience, established processes, and dedicated personnel. The use of 'full and open competition' for this $65.6 million contract indicates a standard and robust procurement approach. While specific performance metrics for this individual contract are not detailed, DLA's overall mission success relies on efficiently and effectively acquiring necessary items, suggesting a high degree of operational competence in handling large-value contracts like this one.

What has been the historical spending trend for cut and sew apparel by the Department of Defense?

Historical spending trends for cut and sew apparel by the Department of Defense (DoD) are substantial, reflecting the continuous need for uniforms and related clothing items for all branches of the military. While the specific figure of $65.6 million for this single contract is significant, it represents a portion of the overall annual defense spending on textiles and apparel. Over the years, the DoD has consistently allocated considerable funds to ensure service members are equipped with appropriate attire. Spending can fluctuate based on geopolitical needs, modernization efforts, and changes in uniform policies. Analyzing multi-year spending data would reveal trends in contract values, types of apparel procured, and the primary contractors involved.

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: 6701 NW 7TH ST STE190, MIAMI, FL, 33126

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $65,616,000

Exercised Options: $65,616,000

Current Obligation: $65,616,000

Actual Outlays: $65,868,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C120D1317

IDV Type: IDC

Timeline