DoD Awards $18.7M Firm Fixed Price Contract for Apparel to Readyone Industries Inc
Contract Overview
Contract Amount: $18,705,177 ($18.7M)
Contractor: Readyone Industries Inc
Awarding Agency: Department of Defense
Start Date: 2024-06-13
End Date: 2027-05-30
Contract Duration: 1,081 days
Daily Burn Rate: $17.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MATERIAL LOT 1
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79936
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.7 million to READYONE INDUSTRIES INC for work described as: MATERIAL LOT 1 Key points: 1. Contract value of $18.7M awarded to a single vendor. 2. No competition was available for this award. 3. Potential risk associated with sole-source procurement and lack of price discovery. 4. Spending falls within the 'Cut and Sew Apparel Contractors' sector.
Value Assessment
Rating: fair
The contract value of $18.7M for apparel over approximately 3 years appears reasonable given the lack of competitive bidding. Benchmarking against similar sole-source contracts would be necessary for a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no competition was sought. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: Taxpayer funds are being expended without the benefit of competitive pricing, potentially leading to a less efficient use of resources.
Public Impact
Ensures supply of essential apparel for military personnel. Supports a single contractor, potentially impacting market dynamics. Lack of competition raises questions about long-term cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No price benchmark available
Positive Signals
- Firm fixed price contract type
- Clear end date for contract performance
Sector Analysis
This contract falls under the Cut and Sew Apparel Contractors sector, which is a common area for government procurement. Spending benchmarks for this sector are highly variable based on specific item types and quantities.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to compete.
Oversight & Accountability
Oversight will be crucial to ensure Readyone Industries Inc. meets contract specifications and delivery timelines, especially given the sole-source nature of the award.
Related Government Programs
- Cut and Sew Apparel Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of bidding.
- Dependency on a single supplier.
- No small business participation indicated.
Tags
cut-and-sew-apparel-contractors, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.7 million to READYONE INDUSTRIES INC. MATERIAL LOT 1
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 $18.7 million.
What is the period of performance?
Start: 2024-06-13. End: 2027-05-30.
What is the justification for the sole-source award, and were alternative competitive strategies explored?
The justification for a sole-source award is critical for understanding why competition was not pursued. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of market availability. Without this justification, it's difficult to assess if the government received the best possible value or if taxpayer funds were used efficiently.
How does the unit cost compare to industry benchmarks for similar apparel items, even without direct competition?
While direct competition is absent, comparing the implied unit cost to publicly available industry benchmarks for similar apparel items is essential. This analysis can reveal potential overpricing or confirm the reasonableness of the award price. If the unit cost significantly deviates from benchmarks, it warrants further investigation into the contract's value.
What are the risks associated with relying on a single supplier for this critical apparel material?
Sole-source contracts carry inherent risks, including potential supply chain disruptions if the single supplier faces issues, lack of innovation, and reduced leverage for future negotiations. For critical materials, this reliance can impact readiness and operational continuity. Mitigation strategies should be in place to address these potential vulnerabilities.
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: $18,705,177
Exercised Options: $18,705,177
Current Obligation: $18,705,177
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-13
Current End Date: 2027-05-30
Potential End Date: 2027-05-30 00:00:00
Last Modified: 2026-01-13
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