DoD awards $17.5M contract for apparel production, with limited competition and a long performance period

Contract Overview

Contract Amount: $17,503,551 ($17.5M)

Contractor: Readyone Industries Inc

Awarding Agency: Department of Defense

Start Date: 2023-07-10

End Date: 2026-02-28

Contract Duration: 964 days

Daily Burn Rate: $18.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UIPE FOS AIR 2PUG PRODUCTION CONTRACT 2

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79936

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to READYONE INDUSTRIES INC for work described as: UIPE FOS AIR 2PUG PRODUCTION CONTRACT 2 Key points: 1. The contract's value of $17.5 million over approximately 32 months suggests a significant investment in apparel production. 2. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the extent of market research and potential for cost savings through broader bidding. 3. The firm fixed-price contract type offers cost certainty for the government, but may limit flexibility if requirements change. 4. The extended duration of 964 days (approx. 32 months) indicates a long-term need for these apparel items. 5. The contract is awarded to READYONE INDUSTRIES INC, suggesting a focus on established suppliers for this specific need. 6. The North American Industry Classification System (NAICS) code 315210 points to Cut and Sew Apparel Contractors, defining the specific industry segment.

Value Assessment

Rating: fair

Benchmarking the value of this $17.5 million contract is challenging without specific details on the quantity and type of apparel. However, the firm fixed-price structure provides some cost predictability. The absence of competitive bidding means a direct comparison to market rates or other similar contracts is difficult, potentially leading to a less optimal price than could be achieved through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis. This indicates that the contracting agency did not solicit bids from multiple sources. Reasons for this could include a specific national security requirement, a sole-source justification, or a lack of available vendors meeting the precise specifications. The limited competition means the government did not benefit from the price discovery mechanisms inherent in a broader bidding process.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective pricing available in the market. Without multiple bids, there's a risk that the awarded price is higher than it would have been in a fully competitive scenario.

Public Impact

The primary beneficiaries are likely military personnel who will receive the apparel produced under this contract. The contract delivers essential cut and sew apparel, crucial for operational readiness and uniform requirements. The geographic impact is centered in Texas, where the contractor READYONE INDUSTRIES INC is located. Workforce implications include job creation and maintenance within the apparel manufacturing sector, specifically in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Lack of transparency in the sole-source justification could mask inefficiencies.
Long contract duration might not adapt well to evolving material or design needs.
Firm fixed-price contracts can be disadvantageous if government requirements change significantly.

Positive Signals

Firm fixed-price contract provides budget certainty for the Department of the Army.
Award to an established contractor (READYONE INDUSTRIES INC) suggests reliability in production.
Contract supports domestic manufacturing and potentially jobs in Texas.

Sector Analysis

The apparel manufacturing sector, classified under NAICS code 315210, is a mature industry. Federal spending in this area typically supports military uniforms, specialized gear, and other textile-based equipment. While not a high-technology sector, it plays a vital role in national defense logistics. Benchmarking this contract's value requires comparing it against similar government procurements for apparel, considering factors like quantity, material, and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it is not a small business prime award. This means that the primary contract is not specifically targeted towards small businesses, and subcontracting opportunities for small businesses would depend on the prime contractor's own procurement practices and any flow-down requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a firm fixed-price contract, performance monitoring would focus on delivery schedules and quality of the apparel produced. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Uniforms Procurement
Department of Defense Apparel Contracts
Textile Manufacturing Support
Army Logistics and Supply Chain

Risk Flags

Limited Competition
Lack of Transparency in Award
Potential for Overpricing due to Sole Source

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to READYONE INDUSTRIES INC. UIPE FOS AIR 2PUG PRODUCTION CONTRACT 2

Who is the contractor on this award?

The obligated recipient is READYONE INDUSTRIES 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 $17.5 million.

What is the period of performance?

Start: 2023-07-10. End: 2026-02-28.

What specific types of apparel are being procured under this contract, and what are their intended uses?

The provided data indicates the contract falls under NAICS code 315210, 'Cut and Sew Apparel Contractors.' While the specific items are not detailed, this classification suggests the procurement involves the manufacturing of various types of clothing. Given the awarding agency is the Department of the Army, these could range from standard uniforms and combat attire to specialized gear or accessories. The exact nature of the apparel would be detailed in the contract's statement of work, which is not available in the provided data. Understanding the specific items is crucial for assessing value and performance.

What is the justification for awarding this contract on a sole-source basis, and were alternative sources considered?

The contract is explicitly marked as 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited-source award. The justification for such an award usually stems from unique capabilities of the contractor, urgent and compelling needs, or situations where only one responsible source can provide the required supplies or services. Without access to the official justification documentation (e.g., a Justification and Approval document), it's impossible to know the precise reasons. The absence of competition means that the government did not explore whether other qualified contractors could meet the requirements, potentially at a lower cost or with better terms.

How does the per-unit cost of the apparel compare to industry benchmarks or previous government contracts for similar items?

Determining the per-unit cost and comparing it to benchmarks is not possible with the current data. The total award amount is $17.5 million, and the contract duration is 964 days. However, the quantity of items to be produced is not specified. Without knowing the number of units, a per-unit cost cannot be calculated. Furthermore, the specific type and specifications of the apparel are unknown, making direct comparison to industry benchmarks or historical government contracts for similar items infeasible. A detailed analysis would require the contract's statement of work and unit pricing information.

What are the key performance metrics and quality assurance measures outlined in the contract?

The provided data does not detail the specific performance metrics or quality assurance measures for this contract. However, as a firm fixed-price contract awarded by the Department of the Army, it is expected to include clauses related to timely delivery, adherence to specifications (material, design, sizing), and overall quality of the manufactured apparel. The contracting officer and quality assurance representatives would be responsible for monitoring compliance. Typical measures might include inspection of goods upon receipt, testing of materials, and tracking delivery schedules against the established timeline. The effectiveness of these measures would be documented in contract performance reports.

What is the historical spending pattern with READYONE INDUSTRIES INC for similar apparel contracts?

To assess the historical spending pattern with READYONE INDUSTRIES INC, one would need access to a broader database of federal procurement data. The current information only provides details for this single $17.5 million contract. Analyzing past awards to this contractor would involve searching databases like FPDS or SAM.gov for previous contracts, noting their values, durations, types (e.g., competitive vs. sole-source), and the specific goods or services procured. This would help determine if this is a recurring need, if the contractor has a consistent track record, and whether spending has been increasing or decreasing over time.

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: 1414 ABILITY DR, EL PASO, TX, 79936

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: $17,503,551

Exercised Options: $17,503,551

Current Obligation: $17,503,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline