DoD awards $6.5M contract for men's apparel, with potential for significant future orders

Contract Overview

Contract Amount: $6,546,000 ($6.5M)

Contractor: Winston-Salem Industries for the Blind Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-09

End Date: 2027-06-27

Contract Duration: 809 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511295666!LINER,MULTI PURPOSE

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28806

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to WINSTON-SALEM INDUSTRIES FOR THE BLIND INC for work described as: 8511295666!LINER,MULTI PURPOSE Key points: 1. Contract awarded to a non-profit organization focused on employing individuals with disabilities. 2. Pricing appears competitive based on limited available benchmarks. 3. Sole-source award raises questions about potential cost savings through competition. 4. Contract duration extends over two years, indicating a sustained need for these goods. 5. Geographic concentration of the contractor in North Carolina. 6. Focus on apparel manufacturing aligns with established industrial capabilities.

Value Assessment

Rating: good

The awarded amount of $6.5 million for men's and boys' apparel manufacturing appears reasonable given the contract duration and the nature of the goods. Benchmarking against similar Department of Defense apparel contracts suggests that the pricing is within an acceptable range. However, without more detailed cost breakdowns or comparisons to commercial market rates for equivalent products, a definitive value-for-money assessment is challenging. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not detailed in the provided data. Sole-source awards can sometimes lead to higher prices compared to competitive procurements due to the lack of market pressure. The absence of multiple bidders limits the government's ability to explore a wider range of solutions and pricing.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. While the award supports a valuable social mission, exploring competitive options could potentially yield cost savings.

Public Impact

The primary beneficiaries are individuals with disabilities employed by Winston-Salem Industries for the Blind. The contract will deliver men's and boys' cut and sew apparel, likely for military personnel or related government use. The geographic impact is concentrated in North Carolina, where the contractor is located. The contract supports employment and vocational training for a vulnerable workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Limited transparency into the cost structure of the sole-source award.
Potential for price increases in future contract modifications or renewals without competition.

Positive Signals

Supports a social mission by employing individuals with disabilities.
Contractor has a established presence in apparel manufacturing.
Firm fixed-price contract provides budget certainty.

Sector Analysis

The men's and boys' cut and sew apparel manufacturing sector is a mature industry. This contract falls under the broader defense logistics and general manufacturing categories. The Department of Defense is a significant purchaser of apparel, often procuring items for uniforms, field gear, and general use. Comparable spending in this sector can vary widely based on item type, quantity, and specific requirements, but multi-million dollar contracts for apparel are common.

Small Business Impact

This contract was awarded to Winston-Salem Industries for the Blind, a non-profit organization. As such, it is not subject to standard small business set-aside requirements. There is no indication of subcontracting plans for small businesses within this award. The focus is on fulfilling the mission of the primary contractor.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a sole-source award, it may receive additional scrutiny from agencies like the Defense Contract Audit Agency (DCAA) to ensure fair and reasonable pricing. Transparency is limited by the nature of the sole-source award, but contract modifications and performance reports would typically be available through federal procurement databases. Inspector General oversight would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Apparel Procurement
Federal Prison Industries (UNICOR) Apparel Manufacturing
General Services Administration (GSA) Schedule Contracts for Apparel

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency into cost structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to WINSTON-SALEM INDUSTRIES FOR THE BLIND INC. 8511295666!LINER,MULTI PURPOSE

Who is the contractor on this award?

The obligated recipient is WINSTON-SALEM INDUSTRIES FOR THE BLIND INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2025-04-09. End: 2027-06-27.

What is the track record of Winston-Salem Industries for the Blind with federal contracts?

Winston-Salem Industries for the Blind (WSiB) has a history of serving federal agencies, particularly the Department of Defense, through contracts for manufactured goods. As a non-profit organization, its primary mission is to provide employment and training for individuals who are blind or visually impaired. WSiB often leverages its manufacturing capabilities, including textile and apparel production, to fulfill government requirements. While specific details on past contract performance metrics (e.g., on-time delivery, quality ratings) are not provided in this data snippet, their continued engagement with the DoD suggests a generally satisfactory performance history. Their status as a preferred provider for certain government needs, especially those aligned with their social mission, often facilitates sole-source or limited competition awards.

How does the $6.5 million contract value compare to similar DoD apparel procurements?

The $6.5 million contract value for men's and boys' apparel is a significant but not unusual amount for Department of Defense procurements. The DoD is a major consumer of textiles and apparel, frequently issuing contracts for uniforms, tactical gear, and general clothing items. Contracts of this magnitude are typically awarded for multi-year durations or for substantial quantities. When compared to other DoD apparel contracts, this value falls within a common range. However, a precise comparison is difficult without knowing the specific types of garments, materials, quantities, and delivery schedules involved. The firm fixed-price nature of this award suggests a defined scope, which aids in price predictability, but the absence of competitive bidding makes direct value-for-money comparisons challenging.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract award is the potential for paying a higher price than would be achieved through a competitive bidding process. Without competing offers, the government lacks the market pressure that typically drives down costs and encourages innovation. This can lead to reduced value for taxpayer dollars. Another risk is the limited visibility into the contractor's cost structure, making it harder to ascertain if the price is truly fair and reasonable. Furthermore, if the contractor experiences production issues or cost overruns, the government's ability to negotiate favorable terms for modifications may be constrained due to the lack of alternative sources. Finally, relying on a single source can create supply chain vulnerability if the contractor faces unforeseen operational disruptions.

How effective is the firm fixed-price contract type in managing costs for this apparel procurement?

The firm fixed-price (FFP) contract type is generally effective in managing costs for predictable procurements like apparel manufacturing, especially when the scope of work is well-defined. Under an FFP contract, the contractor assumes most of the risk for cost overruns, and the government pays a set price. This provides budget certainty for the Department of Defense, as the total cost is known upfront, barring any contract modifications. For the contractor, it incentivizes efficiency and cost control to maximize profit. However, the effectiveness of FFP in ensuring the *best* price is diminished in a sole-source scenario. While the price is fixed, it might be a higher fixed price than could have been negotiated competitively. The FFP structure is most beneficial when coupled with robust competition.

What are the historical spending patterns for men's and boys' apparel by the Department of Defense?

The Department of Defense has a consistent and substantial historical spending pattern on men's and boys' apparel, encompassing a wide range of items from basic undergarments and t-shirts to specialized uniforms and tactical clothing. Annual spending can reach hundreds of millions, if not billions, of dollars across all branches of the military. This spending is driven by the continuous need to equip service members, replace worn-out items, and procure specialized clothing for different climates and operational requirements. Procurement methods vary, including competitive bids, sole-source awards (often to organizations like Industries for the Blind or Federal Prison Industries), and requirements contracts. Historical data indicates a steady demand for these goods, making apparel a significant and ongoing category within the DoD's procurement portfolio.

Industry Classification

NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Men’s and Boys’ Cut and Sew Apparel Manufacturing

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 240 SARDIS RD, ASHEVILLE, NC, 28806

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: $6,546,000

Exercised Options: $6,546,000

Current Obligation: $6,546,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C120DB084

IDV Type: IDC

Timeline