VA's $19.2M U.S. Interment Flags contract awarded to A2Z SUPPLY CORP shows potential value concerns

Contract Overview

Contract Amount: $19,247,951 ($19.2M)

Contractor: A2Z Supply Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-10-01

End Date: 2018-03-21

Contract Duration: 1,997 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: U.S. INTERMENT FLAGS

Place of Performance

Location: STEVENSVILLE, RAVALLI County, MONTANA, 59870

State: Montana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.2 million to A2Z SUPPLY CORP for work described as: U.S. INTERMENT FLAGS Key points: 1. The contract duration of 1997 days (over 5 years) suggests a long-term commitment, potentially missing opportunities for re-competition and cost savings. 2. Awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', the competition dynamics warrant further investigation to ensure optimal pricing. 3. The fixed-price with economic price adjustment (EPA) contract type introduces risk of cost escalation, impacting budget predictability. 4. While the specific product is 'U.S. INTERMENT FLAGS', the broad NAICS code 'All Other Miscellaneous Textile Product Mills' may obscure specific market pricing. 5. The contract's value of $19.2M over nearly 2000 days averages to approximately $9,600 per day, requiring benchmarking against similar procurements. 6. The absence of small business set-aside (SB=false) and the contractor's size standard (ST=MT) suggest this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value-for-money for 'U.S. INTERMENT FLAGS' is challenging without more specific product details and market data. The contract's duration of nearly 2000 days for a $19.2 million award suggests an average daily cost of approximately $9,600. This rate needs to be compared against industry standards for similar textile products and government procurements to assess if it represents a competitive price. The economic price adjustment clause also introduces a variable that could increase the final cost beyond initial projections, making a definitive value assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This specific procurement method indicates that while full and open competition was intended, certain sources were excluded, possibly due to specific requirements or prior relationships. The number of bidders (NO=11) suggests a reasonable level of interest, but the exclusion of sources might have limited the overall competitive landscape. Further details on the reasons for exclusion would be necessary to fully understand the impact on price discovery.

Taxpayer Impact: The exclusion of certain sources, even with 11 bidders, could mean that taxpayers did not benefit from the lowest possible price that might have been achieved with unrestricted competition. It is important to ensure that the exclusion criteria were justified and did not unduly limit competition.

Public Impact

This contract directly supports the Department of Veterans Affairs' mission to honor deceased veterans by providing essential interment flags. The flags are likely distributed to national cemeteries, military funeral honors teams, and potentially to next of kin, ensuring proper ceremonial protocols are met. The geographic impact is nationwide, as veterans are interred across all states and territories. The contract supports jobs within the textile manufacturing sector, specifically within the 'All Other Miscellaneous Textile Product Mills' industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' could limit the pool of potential offerors, potentially impacting price competitiveness.
The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' clause introduces risk of cost overruns if material or labor costs increase significantly.
The long contract duration (1997 days) may lead to complacency and missed opportunities for leveraging market changes or technological advancements.
Lack of specific product details within the NAICS code makes it difficult to benchmark pricing effectively.
The contract does not appear to have a small business set-aside, potentially limiting opportunities for smaller enterprises in this sector.

Positive Signals

The award to A2Z SUPPLY CORP was the result of a competitive process, with 11 bidders indicating market interest.
The Department of Veterans Affairs is procuring a critical item that directly supports their mission to honor veterans.
The contract is a definitive contract, suggesting a clear agreement on terms and conditions.
The contract is for a specific product ('U.S. INTERMENT FLAGS'), indicating a defined need.
The contract is being managed by the Department of Veterans Affairs, an agency with established procurement processes.

Sector Analysis

The procurement falls within the broader textile manufacturing industry, specifically under the NAICS code for 'All Other Miscellaneous Textile Product Mills'. This sector encompasses a wide range of fabric-based products. The market for government-procured textile goods, such as flags, is often characterized by specific quality standards and delivery requirements. While precise market size data for U.S. Interment Flags is not readily available, the overall textile mill products industry in the U.S. generates billions in revenue annually. This contract represents a niche but important segment within that larger industrial landscape, serving a critical governmental function.

Small Business Impact

This contract does not appear to have been awarded as a small business set-aside (SB=false). The contractor's size standard is listed as 'MT', which typically refers to 'Manufacturing - Textile Mill Products', but without further context, it's difficult to ascertain if A2Z SUPPLY CORP itself is a small business. The absence of a set-aside means that larger businesses could compete, and there's no explicit requirement for subcontracting to small businesses within this award. This could limit opportunities for small businesses to participate in the supply chain for these essential flags.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a definitive contract, it implies a structured agreement with defined terms and conditions. Accountability measures would typically be embedded within the contract clauses, including performance standards, delivery schedules, and payment terms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense - Funeral Honors Program
National Cemetery Administration - Flag Distribution
Federal Supply Schedule - Textiles and Textile Products
Veteran Benefits Administration - Support Services

Risk Flags

Potential for cost overruns due to Economic Price Adjustment.
Limited competition due to exclusion of sources.
Lack of specific product details hindering value benchmarking.
Long contract duration may miss market efficiencies.
No explicit small business set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.2 million to A2Z SUPPLY CORP. U.S. INTERMENT FLAGS

Who is the contractor on this award?

The obligated recipient is A2Z SUPPLY CORP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2012-10-01. End: 2018-03-21.

What is the track record of A2Z SUPPLY CORP in fulfilling government contracts, particularly for textile products?

A review of publicly available contract data indicates that A2Z SUPPLY CORP has been awarded federal contracts. However, detailed information regarding their performance history, including past delivery performance, quality control, and any past performance issues or awards, is not extensively detailed in the provided data. To fully assess the contractor's reliability, a deeper dive into their contract performance evaluations (e.g., CPARS reports) and any history of contract modifications or disputes would be necessary. Understanding their experience with similar products and volumes is crucial for evaluating the risk associated with this current award.

How does the average daily cost of this contract compare to similar government procurements for interment flags or comparable textile items?

The average daily cost for this contract is approximately $9,600 ($19.2M / 1997 days). Benchmarking this figure requires access to detailed pricing data for similar government contracts for interment flags or other specialized textile products. Without specific comparable contract data, it is difficult to definitively state whether this represents a competitive price. Factors such as material quality, specific flag dimensions, production complexity, and delivery requirements can significantly influence per-unit or daily costs. A comprehensive value analysis would involve comparing this rate against recent awards for similar items, considering any differences in specifications and contract terms.

What are the specific risks associated with the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (EPA) contract type for this procurement?

The primary risk associated with an EPA contract is cost escalation. While the base price is fixed, the economic price adjustment clause allows for increases in the contract price based on fluctuations in specified economic factors, such as raw material costs (e.g., cotton, dyes) or labor wages. For a contract spanning nearly 2000 days, there is a significant potential for these costs to rise over time. This introduces uncertainty into the total expenditure for the government, making budget forecasting more challenging. The VA must carefully monitor the economic indicators tied to the EPA to manage potential cost overruns and ensure that price adjustments are justified and within reasonable limits.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation for this contract?

This designation indicates that the contract was intended to be competed openly, but certain potential sources were deliberately excluded from the bidding process. The reasons for exclusion are not specified in the provided data but could include factors like specific technical capabilities, past performance requirements, or unique qualifications. While 11 bidders participated, the exclusion of some sources might have limited the breadth of competition. This could potentially impact the final price achieved, as a more restricted pool of bidders might lead to less aggressive pricing compared to a truly unrestricted full and open competition. Understanding the justification for the exclusion is key to assessing its impact on value for taxpayers.

What is the historical spending pattern for U.S. Interment Flags by the Department of Veterans Affairs?

The provided data only reflects a single contract award for 'U.S. INTERMENT FLAGS' totaling $19.2 million from October 2012 to March 2018. To understand historical spending patterns, data from previous years and potentially other agencies procuring similar items would be needed. Analyzing prior contracts, their values, durations, and awardees would reveal trends in demand, pricing, and competition over time. Without this broader historical context, it's difficult to determine if the $19.2 million award represents a typical, increased, or decreased level of spending for this specific item.

Are there any specific performance metrics or quality standards mandated for these U.S. Interment Flags within the contract?

The provided data does not specify the performance metrics or quality standards for the U.S. Interment Flags. Typically, government contracts for such items would reference specific military specifications (e.g., MIL-SPEC) or federal standards (e.g., FF-P-81F) that dictate material composition, dimensions, durability, colorfastness, and manufacturing tolerances. The absence of this detail in the summary data means that a thorough assessment of product quality and adherence to standards cannot be made. It is crucial that the contract includes clear, measurable quality requirements to ensure the flags meet the solemn purpose for which they are intended.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › All Other Miscellaneous Textile Product Mills

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA798S-12-R-0001

Offers Received: 11

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 302 MAIN ST, STEVENSVILLE, MT, 59870

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,247,951

Exercised Options: $19,247,951

Current Obligation: $19,247,951

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline