DoD Spends $41.3M on Vest Repurposing, Lacking Competition
Contract Overview
Contract Amount: $41,374,214 ($41.4M)
Contractor: Sourceamerica
Awarding Agency: Department of Defense
Start Date: 2019-03-15
End Date: 2023-12-31
Contract Duration: 1,752 days
Daily Burn Rate: $23.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VEST REPURPOSING M&D
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $41.4 million to SOURCEAMERICA for work described as: VEST REPURPOSING M&D Key points: 1. Significant spending on a niche apparel item. 2. Sole-source award limits price discovery and potential savings. 3. High contract value raises questions about efficiency. 4. Lack of competition may indicate market limitations or strategic choices.
Value Assessment
Rating: questionable
The contract value of $41.3M over nearly 5 years is substantial for specialized apparel. Without competitive benchmarks, it's difficult to assess if this pricing is optimal compared to similar, albeit potentially less specialized, contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits the government's ability to discover the lowest possible price and may lead to higher costs than if multiple vendors had competed.
Taxpayer Impact: The lack of competition on a $41.3M contract means taxpayers may be paying more than necessary for these vests.
Public Impact
Specialized military gear procurement. Impact on niche apparel manufacturing sector. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of clear justification for sole-source
Positive Signals
- Definitive contract provides clear scope
- Firm fixed price limits cost overrun risk
Sector Analysis
The apparel and textile manufacturing sector, particularly for specialized military items, can be niche. Spending benchmarks are difficult to establish without knowing the exact specifications and quantities, but $41.3M is a considerable sum for this type of product.
Small Business Impact
The data does not indicate whether small businesses were involved in this sole-source procurement. Typically, sole-source awards limit opportunities for small businesses unless they are the specific entity being contracted with.
Oversight & Accountability
The sole-source nature of this contract warrants further oversight to ensure the price paid was fair and reasonable and that competition was appropriately considered or justified.
Related Government Programs
- Cut and Sew Apparel Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- High dollar value
- Lack of competitive pricing data
- Potential for overpayment
Tags
cut-and-sew-apparel-contractors, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.4 million to SOURCEAMERICA. VEST REPURPOSING M&D
Who is the contractor on this award?
The obligated recipient is SOURCEAMERICA.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $41.4 million.
What is the period of performance?
Start: 2019-03-15. End: 2023-12-31.
What is the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' and awarded as 'sole-source'. A detailed justification would typically be required by federal acquisition regulations, outlining why full and open competition was not feasible or in the government's best interest. This could be due to unique capabilities, urgent needs, or specific government property requirements.
What are the risks associated with this sole-source contract?
The primary risk is paying a non-competitive price, potentially exceeding fair market value. Other risks include a lack of innovation from the vendor, potential for complacency, and the missed opportunity to foster broader market competition and develop alternative sources for future needs.
How does this spending align with the Department of the Army's mission effectiveness?
Assuming the vests are essential for operational readiness, the spending contributes to mission effectiveness. However, the lack of competition raises questions about the cost-effectiveness of this contribution. Ensuring the vests meet critical needs at a reasonable price is key to aligning spending with overall mission goals.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8401 OLD COURTHOUSE RD, VIENNA, VA, 22182
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,374,214
Exercised Options: $41,374,214
Current Obligation: $41,374,214
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-15
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2024-07-03
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