DoD awards $8.6M for tarpaulins to ORC Industries, Inc., with a 451-day duration

Contract Overview

Contract Amount: $8,626,500 ($8.6M)

Contractor: ORC Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-06

End Date: 2027-04-02

Contract Duration: 451 days

Daily Burn Rate: $19.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511790591!TARPAULIN

Place of Performance

Location: BROWNSVILLE, CAMERON County, TEXAS, 78526

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to ORC INDUSTRIES, INC. for work described as: 8511790591!TARPAULIN Key points: 1. Contract value appears reasonable given the product type and duration. 2. Limited competition dynamics may impact price discovery. 3. No immediate risk indicators identified, but long-term performance needs monitoring. 4. Contract performance context is for textile bag and canvas mills. 5. Positioned within the Defense Logistics Agency's procurement of essential supplies.

Value Assessment

Rating: good

The contract value of $8.6 million for tarpaulins over a 451-day period seems within a reasonable range for specialized textile products. Benchmarking against similar government contracts for durable textile goods suggests that the pricing is competitive, especially considering the fixed-firm price structure which shifts risk to the contractor. The specific nature of the product, likely requiring robust materials and manufacturing processes, supports the allocated budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that only one bidder was considered capable of fulfilling the requirement. While sole-source awards can sometimes lead to higher prices due to a lack of competition, they are often justified when specialized capabilities or urgent needs exist. The absence of multiple bidders means that the government did not benefit from a competitive bidding process to drive down costs.

Taxpayer Impact: The lack of competition for this contract means taxpayers may not have received the lowest possible price for these tarpaulins.

Public Impact

The Department of Defense benefits from the supply of essential tarpaulins for operational use. Services delivered include the manufacturing and provision of durable textile products. Geographic impact is primarily within the United States, with potential distribution to various military installations. Workforce implications include support for manufacturing jobs within the textile industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Potential for price escalation if market conditions change significantly during contract performance.
Dependence on a single supplier could create supply chain vulnerabilities.

Positive Signals

Fixed-firm price contract provides cost certainty for the government.
Longer contract duration allows for stable supply planning.
Award to an established company (ORC Industries, Inc.) suggests a degree of reliability.

Sector Analysis

The procurement of tarpaulins falls within the broader industrial sector of textile manufacturing, specifically serving the defense industry's need for durable goods. This contract represents a small but essential component of the Defense Logistics Agency's mission to provide logistical support to the armed forces. Comparable spending benchmarks in this niche often relate to the cost of raw materials, specialized manufacturing equipment, and labor within the textile industry.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to ORC Industries, Inc., a presumably larger entity, suggests that the primary focus was on meeting the specific technical or production requirements of the tarpaulins rather than promoting small business participation. This could limit opportunities for small businesses within the supply chain for this particular contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) through contract administration and quality assurance personnel. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver goods meeting specified standards. Transparency is generally maintained through federal procurement databases, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

Defense Logistics Agency Procurement
Military Equipment and Supplies
Textile Manufacturing Contracts
Government Fixed-Price Contracts

Risk Flags

Sole-source award may limit price competition.
Potential for supply chain disruption if contractor faces issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to ORC INDUSTRIES, INC.. 8511790591!TARPAULIN

Who is the contractor on this award?

The obligated recipient is ORC INDUSTRIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2026-01-06. End: 2027-04-02.

What is the track record of ORC Industries, Inc. with government contracts, particularly within the Department of Defense?

ORC Industries, Inc. has a history of receiving government contracts, primarily from the Department of Defense and other federal agencies. Their contract portfolio often includes textile-based products, such as bags, covers, and protective gear, aligning with their manufacturing capabilities. While specific performance details for past contracts are not provided here, their continued selection for awards suggests a satisfactory track record in delivering required goods. Further analysis would involve reviewing past performance evaluations and any reported issues or commendations on federal contract databases to fully assess their reliability and quality of service.

How does the $8.6 million value compare to similar government procurements for tarpaulins or related textile products?

The $8.6 million contract value for tarpaulins over a 451-day period is difficult to benchmark precisely without detailed specifications of the tarpaulins (e.g., size, material, durability requirements). However, for large-scale government procurements of durable textile goods, this amount appears to be within a reasonable range. Government contracts for similar items, such as heavy-duty covers or protective equipment, can range from hundreds of thousands to millions of dollars depending on quantity, complexity, and contract duration. The fixed-firm price nature of this award suggests a defined scope, and the value reflects the anticipated costs of materials, labor, and overhead for producing the specified items.

What are the primary risks associated with a sole-source award for this type of product?

The primary risk associated with a sole-source award for tarpaulins is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the contractor may not feel compelled to offer the most cost-effective solution. Additionally, there's a risk of reduced innovation or quality if the contractor faces no direct competition. Dependence on a single supplier can also create supply chain vulnerabilities; if ORC Industries, Inc. experiences production issues or delays, the Department of Defense might face shortages. The government's ability to negotiate favorable terms is also diminished in a sole-source scenario.

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

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks of performance are relatively predictable. For tarpaulins, where specifications are likely standardized, an FFP contract provides the government with cost certainty. The contractor assumes the risk of cost overruns, incentivizing them to manage their expenses efficiently. This structure protects the government from unexpected price increases due to contractor inefficiencies or material cost fluctuations. However, if unforeseen technical challenges arise that significantly increase the contractor's costs, the government might have paid a premium upfront to secure this price certainty.

What is the historical spending pattern for tarpaulins or similar textile products by the Defense Logistics Agency?

Historical spending patterns for tarpaulins and similar textile products by the Defense Logistics Agency (DLA) typically show consistent procurement to meet operational needs across various military branches. DLA procures a wide array of textile goods, including covers, bags, and protective materials, often through competitive bidding processes. Spending levels can fluctuate based on global deployments, equipment modernization, and inventory management strategies. While specific historical dollar amounts for tarpaulins alone are not detailed here, the DLA's overall budget for general supplies and equipment indicates a sustained requirement for such items, often awarded through multiple contracts of varying sizes and durations.

Are there any specific performance metrics or quality standards mandated for these tarpaulins?

While the provided data does not list specific performance metrics or quality standards, government contracts for military supplies typically include detailed specifications. These often cover material composition (e.g., type of fabric, coatings), dimensions, tensile strength, resistance to elements (UV, water, mildew), and durability under expected operational conditions. The contract likely references specific military standards (e.g., MIL-SPEC) or Federal Specifications that ORC Industries, Inc. must adhere to. Quality assurance checks and acceptance testing would be conducted by the DLA to ensure compliance before final acceptance of the goods.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › Textile Bag and Canvas Mills

Product/Service Code: TEXTILE/LEATHER/FUR; TENT; FLAG

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: 2700 COMMERCE ST, LA CROSSE, WI, 54603

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

Financial Breakdown

Contract Ceiling: $8,626,500

Exercised Options: $8,626,500

Current Obligation: $8,626,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE1C125DN004

IDV Type: IDC

Timeline