DoD awards $16.7M for MOLLE Rucksacks to Winston-Salem Industries for the Blind, facing limited competition

Contract Overview

Contract Amount: $16,668,328 ($16.7M)

Contractor: Winston-Salem Industries for the Blind Inc

Awarding Agency: Department of Defense

Start Date: 2019-04-30

End Date: 2024-05-31

Contract Duration: 1,858 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOLLE 4000 RUCKSACKS WITH HSPRS

Place of Performance

Location: WINSTON SALEM, FORSYTH County, NORTH CAROLINA, 27106

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to WINSTON-SALEM INDUSTRIES FOR THE BLIND INC for work described as: MOLLE 4000 RUCKSACKS WITH HSPRS Key points: 1. Significant contract value of $16.7M for rucksacks. 2. Limited competition raises concerns about price discovery. 3. Potential risk in sole-source award for essential gear. 4. Sector: Apparel manufacturing with defense applications.

Value Assessment

Rating: fair

The contract value of $16.7M for 1,858 rucksacks appears high on a per-unit basis, especially given the lack of competitive bidding. Benchmarking against similar military gear contracts is difficult without more data, but the absence of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competitive bidding likely resulted in a higher price than could have been achieved through an open market process, impacting price discovery.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pricing, with an estimated $8,971 in potential savings lost.

Public Impact

Military personnel rely on these rucksacks for essential equipment transport. The award impacts a specific industry segment focused on durable goods. Potential for job creation or retention within the awarded company. Government reliance on specialized manufacturers for critical supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential overpricing
Lack of transparency in award justification

Positive Signals

Award to a specific industry for the blind
Long-term contract duration

Sector Analysis

The Cut and Sew Apparel Contractors sector, particularly for defense applications, often involves specialized manufacturing. Benchmarks for similar large-scale rucksack contracts are scarce due to proprietary information and varied specifications, but $16.7M for this quantity suggests a premium price.

Small Business Impact

This contract was awarded to Winston-Salem Industries for the Blind Inc., which is a significant entity. However, the data does not indicate if small businesses were subcontracted or involved in the primary award process.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further scrutiny to ensure the justification for limited competition was robust and that all avenues for broader solicitation were explored.

Related Government Programs

Cut and Sew Apparel Contractors
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition
Potential for overpricing
Lack of detailed justification for sole-source award
High contract value for a single item

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to WINSTON-SALEM INDUSTRIES FOR THE BLIND INC. MOLLE 4000 RUCKSACKS WITH HSPRS

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2019-04-30. End: 2024-05-31.

What is the specific justification for awarding this contract on a limited competition basis, and were alternative sourcing strategies considered?

The justification for limited competition is crucial for understanding why Winston-Salem Industries for the Blind Inc. was the sole recipient. Agencies typically cite reasons like urgency, unique capabilities, or specific socio-economic goals. Without this detailed justification, it's difficult to assess if taxpayer funds were used efficiently or if a more competitive process could have yielded better value.

How does the per-unit cost of these MOLLE rucksacks compare to similar items procured competitively by the DoD or other federal agencies?

A direct comparison of the per-unit cost is challenging without knowing the exact specifications and materials used for these specific MOLLE rucksacks. However, the reported potential savings of $8,971 suggest that the awarded price may be higher than a competitive market would dictate. Further analysis would require access to detailed cost breakdowns and benchmark data from comparable contracts.

What is the long-term strategic value of awarding this contract to a single provider, especially considering the potential for supply chain disruptions?

Awarding a significant contract like this to a single provider can ensure a consistent supply of critical equipment, potentially fostering a specialized manufacturing capability. However, it also concentrates risk. If Winston-Salem Industries for the Blind Inc. faces production issues, the entire supply chain for these rucksacks could be jeopardized, impacting military readiness. Diversification strategies might mitigate this risk.

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: 7730 NORTH POINT BLVD, WINSTON SALEM, NC, 27106

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: $16,668,328

Exercised Options: $16,668,328

Current Obligation: $16,668,328

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline