DoD Awards $21.8M for 14,368 Pallets to Knox County Association for Remarkable Citizens
Contract Overview
Contract Amount: $21,857,224 ($21.9M)
Contractor: Knox County Association for Remarkable Citizens, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-01-04
End Date: 2020-11-30
Contract Duration: 2,887 days
Daily Burn Rate: $7.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS IS A CONTRACT AWARD FOR A QUANTITY OF 14,368 155MM WOOD PALLETS FOR THE M795 THROUGH THE NIB/NISH PROGRAM FOR KNOX COUNTY ASSOCIATION FOR RETARDED CITIZENS.
Place of Performance
Location: VINCENNES, KNOX County, INDIANA, 47591
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $21.9 million to KNOX COUNTY ASSOCIATION FOR REMARKABLE CITIZENS, INC. for work described as: THIS IS A CONTRACT AWARD FOR A QUANTITY OF 14,368 155MM WOOD PALLETS FOR THE M795 THROUGH THE NIB/NISH PROGRAM FOR KNOX COUNTY ASSOCIATION FOR RETARDED CITIZENS. Key points: 1. Significant award for specialized wood pallets used in military munitions. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2013-2020) suggests a stable, ongoing need. 4. The sector is Wood Container and Pallet Manufacturing, a niche industrial area.
Value Assessment
Rating: questionable
The contract value is $21.8 million for 14,368 pallets. Without comparable contract data or a benchmark, it's difficult to definitively assess if this pricing is competitive. The 'NOT AVAILABLE FOR COMPETITION' status further complicates a direct value assessment.
Cost Per Unit: $1,521.00
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method can lead to higher prices as there is no market pressure to reduce costs. The specific justification for the sole-source award is not provided.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium compared to a competitively bid contract, as the government did not leverage market competition to secure the best possible price.
Public Impact
Ensures supply of critical components for military munitions (M795). Supports a specific organization (Knox County Association for Remarkable Citizens) through a sole-source contract. The long-term nature of the contract provides stability for the supplier. Potential for higher costs due to lack of competition impacts taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of clear justification for sole-source status.
- High per-unit cost without competitive benchmark.
- Long contract duration without apparent re-competition.
Positive Signals
- Ensures supply of a necessary component for military operations.
- Supports an organization with a social mission (implied by name).
Sector Analysis
The Wood Container and Pallet Manufacturing sector is essential for logistics and supply chains, particularly for industries requiring robust packaging like defense. Spending benchmarks are difficult to establish without more specific data on specialized military-grade pallets.
Small Business Impact
The contractor, Knox County Association for Remarkable Citizens, Inc., is listed as a small business (SB=false). This award does not appear to have a small business set-aside component.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing was fair and reasonable, and that competition was not improperly excluded. The long duration also suggests a need for periodic review of the contract's necessity and terms.
Related Government Programs
- Wood Container and Pallet Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award raises concerns about competition and price.
- Lack of justification for sole-source status.
- High per-unit cost without clear benchmark.
- Long contract duration without re-competition.
Tags
wood-container-and-pallet-manufacturing, department-of-defense, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.9 million to KNOX COUNTY ASSOCIATION FOR REMARKABLE CITIZENS, INC.. THIS IS A CONTRACT AWARD FOR A QUANTITY OF 14,368 155MM WOOD PALLETS FOR THE M795 THROUGH THE NIB/NISH PROGRAM FOR KNOX COUNTY ASSOCIATION FOR RETARDED CITIZENS.
Who is the contractor on this award?
The obligated recipient is KNOX COUNTY ASSOCIATION FOR REMARKABLE CITIZENS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.9 million.
What is the period of performance?
Start: 2013-01-04. End: 2020-11-30.
What was the specific justification for awarding this contract on a sole-source basis, and were any efforts made to explore competitive alternatives?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source award. However, the specific justification is missing. Typically, sole-source awards require detailed documentation justifying why only one source can meet the requirement. Without this, it's impossible to assess if competition was appropriately bypassed or if alternative solutions were overlooked, potentially impacting cost-effectiveness for taxpayers.
How does the per-unit cost of $1,521.00 for these specialized pallets compare to industry benchmarks or similar government contracts?
The per-unit cost of $1,521.00 for these 155mm wood pallets is exceptionally high. Without specific details on the pallet's construction, materials, and required certifications for munitions use, a direct comparison is difficult. However, standard industrial pallets are significantly cheaper. This high cost, coupled with the sole-source award, raises concerns about potential overpayment and the need for rigorous price validation.
Given the contract's duration from 2013 to 2020, what measures were in place to ensure continued value and relevance of the procured pallets?
A contract spanning seven years (2013-2020) requires robust oversight to ensure ongoing value. Key measures would include periodic reviews of the contract's necessity, performance monitoring of the supplier, and potential price adjustments based on market conditions or material costs. The lack of re-competition during this period suggests a stable requirement, but also missed opportunities to potentially secure better pricing or explore alternative suppliers if market conditions changed.
Industry Classification
NAICS: Manufacturing › Other Wood Product Manufacturing › Wood Container and Pallet Manufacturing
Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W52P1J12R0029
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2525 N 6TH ST, VINCENNES, IN, 47591
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: $23,057,224
Exercised Options: $21,857,224
Current Obligation: $21,857,224
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-01-04
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 12:11:00
Last Modified: 2020-10-30
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