DoD awards $39.3M contract for textile bags, highlighting potential value in specialized manufacturing

Contract Overview

Contract Amount: $39,314,881 ($39.3M)

Contractor: Fibrotex USA Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-10

End Date: 2025-06-30

Contract Duration: 385 days

Daily Burn Rate: $102.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROD UNITS DK WOODL ALPINE TYPE I

Place of Performance

Location: STEARNS, MCCREARY County, KENTUCKY, 42647

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to FIBROTEX USA INC for work described as: PROD UNITS DK WOODL ALPINE TYPE I Key points: 1. Contract value appears reasonable given the specialized nature of the product and the firm-fixed-price structure. 2. Full and open competition suggests a healthy market for this type of defense supply. 3. The contract duration of 385 days indicates a steady demand for these essential items. 4. Performance will be monitored closely to ensure quality and timely delivery of critical supplies. 5. This contract positions the supplier within the broader defense industrial base for textile products.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. While specific per-unit cost benchmarks are not readily available without further market research, the total award amount of $39.3 million for an estimated 385-day duration suggests a moderate investment. Comparing this to similar historical awards for specialized textile products would be necessary for a more precise value assessment, but the competitive nature of the award implies a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of 5 bidders suggests a competitive environment, which typically leads to better pricing and quality for the government. This level of competition is a positive sign for price discovery and ensures a broad base of potential suppliers is considered.

Taxpayer Impact: A competitive bidding process for this contract helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation among suppliers.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential textile bags for operational use. The contract supports the production and delivery of specialized textile products vital for military logistics. The geographic impact is centered in Kentucky, where the contractor is located, potentially supporting local employment and economic activity. This award contributes to the readiness and operational capability of the armed forces by ensuring a supply of necessary equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole contractor faces unforeseen production issues.
Ensuring consistent quality control across all delivered units will be critical.

Positive Signals

Awarded through full and open competition, indicating a robust market and multiple capable suppliers.
Firm-fixed-price contract provides cost predictability for the government.
Contract duration allows for sustained supply and planning.
Contractor is located in Kentucky, potentially supporting regional economic development.

Sector Analysis

This contract falls within the broader textile manufacturing sector, specifically serving the defense industry's need for durable bags and canvas products. The market for military-grade textiles is characterized by stringent quality requirements and often involves specialized materials and production processes. Comparable spending benchmarks would involve analyzing other DoD contracts for similar logistical or protective textile items, which can vary significantly based on material, size, and intended use.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary award went to a larger entity or that small business participation was not a specific focus of this procurement. Further analysis would be needed to determine if small businesses are involved further down the supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified goods at the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Logistics Support
Defense Industrial Base
Textile Manufacturing
Army Procurement
Tactical Gear

Risk Flags

Potential for material degradation if not suited for intended environment.
Risk of inconsistent quality control impacting product durability.
Dependence on a single supplier for a critical item.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to FIBROTEX USA INC. PROD UNITS DK WOODL ALPINE 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 $39.3 million.

What is the period of performance?

Start: 2024-06-10. End: 2025-06-30.

What is the historical spending pattern for similar textile bag contracts by the Department of Defense?

Analyzing historical spending for similar textile bag contracts by the Department of Defense requires access to extensive procurement databases. Generally, the DoD procures a wide variety of textile products, including bags, for numerous applications ranging from individual soldier equipment to large-scale logistical support. Spending patterns are influenced by factors such as operational tempo, strategic priorities, and the development of new materials or designs. Contracts for specialized items like durable, military-grade bags often involve firm-fixed-price agreements to manage costs. The frequency and value of these awards can fluctuate based on equipment modernization cycles and the depletion of existing inventories. Without specific data on past awards for 'DK WOODL ALPINE TYPE I' bags, it's difficult to provide precise historical figures, but the current $39.3 million award suggests a significant, albeit potentially episodic, requirement for such items.

How does the number of bidders (5) compare to the average for similar defense textile procurements?

The presence of 5 bidders for this Department of Defense contract for textile bags suggests a moderately competitive market. For many standard defense procurements, the number of bidders can vary widely. Highly specialized or niche items might see fewer bidders, while more common supplies could attract a larger pool. Five bidders generally indicates that the requirement was well-publicized and that there are multiple capable manufacturers in the market. This number is often considered healthy, as it provides sufficient competition to drive reasonable pricing and quality without being so large as to suggest an overly fragmented or inefficient bidding process. However, comparing this to the 'average' requires defining 'similar' very precisely – are we looking at bags of this specific type, material, or intended use? A more direct comparison would involve analyzing the competition levels of recent DoD contracts within the 'Textile Bag and Canvas Mills' industry code (NAICS 314910) to establish a more accurate benchmark.

What are the key performance indicators (KPIs) typically used to evaluate contractors for textile supply contracts like this one?

Key Performance Indicators (KPIs) for textile supply contracts typically focus on ensuring the government receives high-quality products delivered on time and within budget. For this specific contract, common KPIs would likely include: 1. **On-Time Delivery:** Measuring the percentage of orders delivered by the specified deadline. Late deliveries can disrupt military operations and logistics. 2. **Quality Acceptance Rate:** Tracking the percentage of delivered items that meet all specified technical requirements and pass quality inspections. Rejection rates indicate potential manufacturing or material issues. 3. **Contract Compliance:** Ensuring adherence to all contract terms, including specifications, packaging, and documentation requirements. 4. **Responsiveness:** Evaluating the contractor's ability to respond to inquiries, address issues, and adapt to potential changes in requirements. 5. **Cost Control:** While this is a firm-fixed-price contract, efficient production and minimal cost overruns for the contractor are indirectly beneficial for long-term pricing. These KPIs are crucial for assessing contractor performance and ensuring the effectiveness of the supply chain.

What is the potential impact of this contract on the small business ecosystem within the textile manufacturing sector?

Given that this contract was awarded under full and open competition and does not appear to have a small business set-aside, its direct impact on the small business ecosystem might be limited. The primary awardee, FIBROTEX USA INC, is likely a larger entity capable of fulfilling the contract's demands. However, indirect impacts are possible. The prime contractor may engage small businesses as subcontractors for specific components, materials, or specialized services, thereby providing them with opportunities. Conversely, if the prime contractor is a large, established firm, it might also represent increased competition for smaller businesses vying for similar, albeit smaller, contracts. The overall effect depends on the prime contractor's subcontracting strategy and the specific capabilities of small businesses within the relevant supply chain. Without explicit subcontracting plans or data, it's difficult to definitively assess the net benefit or challenge to small businesses.

Are there any specific risks associated with the 'DK WOODL ALPINE TYPE I' product designation that warrant attention?

The designation 'DK WOODL ALPINE TYPE I' likely refers to a specific type of durable, potentially weather-resistant textile bag, possibly designed for specific environmental conditions or operational roles (e.g., 'DK' could imply dark color, 'WOODL' might relate to woodland or camouflage patterns, 'ALPINE' could suggest suitability for mountainous or cold environments, and 'TYPE I' denotes a specific classification or standard). Risks associated with such a product could include: 1. **Material Performance:** Ensuring the textile materials meet stringent durability, water resistance, and UV stability requirements, especially if intended for prolonged outdoor or harsh environment use. 2. **Manufacturing Consistency:** Maintaining uniform quality across all units, particularly regarding stitching, seam strength, and material integrity, to prevent premature failure. 3. **Specification Adherence:** Precisely meeting the 'TYPE I' classification and any associated military standards (e.g., MIL-SPEC) is critical for operational effectiveness. Deviations could render the bags unsuitable for their intended purpose. 4. **Supply Chain Vulnerability:** Reliance on specific raw materials or manufacturing processes could introduce risks if those elements become scarce or unavailable.

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: 5

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: $39,314,881

Exercised Options: $39,314,881

Current Obligation: $39,314,881

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