DoD's $30.9M contract for textile bags awarded to Fibrotex USA Inc. under full and open competition

Contract Overview

Contract Amount: $30,918,319 ($30.9M)

Contractor: Fibrotex USA Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-26

End Date: 2023-09-30

Contract Duration: 400 days

Daily Burn Rate: $77.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRODUCTION SYSTEM, WOODLAND, TYPE I

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to FIBROTEX USA INC for work described as: PRODUCTION SYSTEM, WOODLAND, TYPE I Key points: 1. The contract value of $30.9 million represents a significant investment in specialized textile production for defense needs. 2. Awarded via full and open competition, suggesting a robust market with multiple potential suppliers. 3. The firm-fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 400 days indicates a substantial production run or ongoing supply requirement. 5. The North American Industry Classification System (NAICS) code 314910 points to a specialized manufacturing sector. 6. The contract's performance location in the District of Columbia may have implications for local economic impact.

Value Assessment

Rating: good

Benchmarking the value of this contract requires specific data on comparable textile bag procurements. However, the firm-fixed-price structure suggests an effort to lock in costs. Without detailed cost breakdowns or comparisons to similar military-grade textile products, a precise value-for-money assessment is challenging. The award to a single entity implies that Fibrotex USA Inc. was deemed the best value among competing offers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of multiple bidders, though not explicitly detailed in the provided data, is implied by the nature of this competition type. This competitive process is designed to foster price discovery and ensure the government receives the most advantageous offer.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging innovation among suppliers, leading to potentially better quality or more cost-effective solutions.

Public Impact

The primary beneficiaries are the Department of Defense, which receives essential textile bags for operational or logistical support. The services delivered include the production and supply of Type I textile bags. The geographic impact is centered around the District of Columbia, where the contract is managed or delivered. The contract supports the manufacturing workforce within the textile and canvas mills industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Fibrotex USA Inc. faces production issues.
Reliance on a single contractor for a critical defense item could pose a risk if not managed proactively.
The specific 'Type I' designation for the bags may imply unique performance requirements that could limit future sourcing options.

Positive Signals

Awarded through full and open competition, indicating a healthy market and competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contract duration suggests a stable, long-term need being met.

Sector Analysis

The textile bag and canvas mills sector (NAICS 314910) is a specialized segment of the broader manufacturing industry. This contract falls within the defense industrial base, supplying essential materials for military operations. Comparable spending benchmarks would involve analyzing other government contracts for similar durable textile goods, such as tarpaulins, covers, and specialized containers, across various defense agencies.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Further investigation into subcontracting goals would be necessary to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Procurement
Army Logistics Support Contracts
Specialty Textile Manufacturing
Defense Material Production
Government Supply Contracts

Risk Flags

Potential for supply chain disruption
Contractor performance risk
Limited competition implications for future procurements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to FIBROTEX USA INC. PRODUCTION SYSTEM, WOODLAND, TYPE I

Who is the contractor on this award?

The obligated recipient is FIBROTEX USA 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 $30.9 million.

What is the period of performance?

Start: 2022-08-26. End: 2023-09-30.

What is the track record of Fibrotex USA Inc. in fulfilling government contracts, particularly for defense-related textile products?

Assessing Fibrotex USA Inc.'s track record requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, delivery performance, any instances of contract modifications, disputes, or terminations. Information on their experience with similar 'Type I' textile bags and their ability to meet stringent military specifications would be crucial. A positive history of on-time delivery, quality compliance, and adherence to budget would indicate a lower performance risk for this current contract. Conversely, a history of issues could raise concerns about their capacity to meet the demands of this $30.9 million award.

How does the unit cost of these Type I textile bags compare to similar items procured by the government or available on the commercial market?

A precise unit cost comparison is not possible with the provided data, as the total contract value and quantity are given, but not the number of units. To benchmark the value, one would need to calculate the implied unit price (Total Contract Value / Number of Units) and compare it against historical government procurements of similar bags (e.g., by different agencies or for different military branches) or against commercial market prices for industrial-grade textile bags with comparable specifications. Factors like material quality, durability, size, and specific military certifications would heavily influence this comparison. A higher-than-average unit price might suggest premium quality or specialized features, but could also indicate potential overpricing if not justified by superior attributes.

What are the primary risks associated with this contract, considering the contractor, contract type, and product?

Key risks include potential performance issues from Fibrotex USA Inc., such as delays in production or failure to meet quality specifications for the 'Type I' bags, which could impact military readiness. The firm-fixed-price nature, while beneficial for cost control, can shift risk to the contractor; if their costs exceed estimates, they might cut corners on quality or seek contract modifications. Dependence on a single supplier for a potentially critical item also presents a supply chain risk. Furthermore, if the 'Type I' designation implies unique or proprietary requirements, it could limit future competition and increase long-term costs for the government.

How effective is the full and open competition process in ensuring the Department of the Army secures the best value for these textile bags?

The full and open competition process is generally considered the most effective method for the Department of the Army to secure the best value, as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. By allowing all responsible sources to participate, it fosters a dynamic market where contractors are incentivized to offer their best terms. The success of this process hinges on the clarity of the solicitation requirements and the rigor of the evaluation criteria used to select the winning bid, ensuring that the lowest price is not the sole determinant but rather the overall best value, considering factors like technical merit and past performance.

What is the historical spending trend for similar textile bag procurements by the Department of Defense over the past five years?

Analyzing historical spending trends for similar textile bag procurements by the Department of Defense (DoD) over the past five years would reveal patterns in demand, pricing, and supplier engagement. This involves aggregating data from contracts with similar NAICS codes (e.g., 314910) and product descriptions (e.g., bags, covers, tarpaulins) across different branches of the DoD. Trends might show an increase or decrease in overall spending, shifts towards specific types of materials or designs, and fluctuations in average contract values. Understanding these historical patterns provides context for the current $30.9 million award, helping to determine if it aligns with established spending levels or represents a significant deviation.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QY17R0023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 FIBROTEX DR, STEARNS, KY, 42647

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,918,319

Exercised Options: $30,918,319

Current Obligation: $30,918,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY18D0210

IDV Type: IDC

Timeline