DoD awards $38.3M for textile bags, with 5 bidders competing for firm-fixed-price contract

Contract Overview

Contract Amount: $38,341,417 ($38.3M)

Contractor: Fibrotex USA Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-20

End Date: 2024-12-31

Contract Duration: 194 days

Daily Burn Rate: $197.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRODUCTION UNITS

Place of Performance

Location: STEARNS, MCCREARY County, KENTUCKY, 42647

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to FIBROTEX USA INC for work described as: PRODUCTION UNITS Key points: 1. Contract awarded via full and open competition, indicating a potentially competitive pricing environment. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially benefiting the government. 3. A relatively short performance period of 194 days suggests a need for timely delivery. 4. The contract is for textile bags, a common item with established market pricing. 5. Awarded by the Department of the Army, this falls under general procurement for operational needs.

Value Assessment

Rating: good

The contract value of $38.3 million for textile bags appears reasonable given the production units and the firm-fixed-price nature. Benchmarking against similar large-scale procurements for durable goods suggests that the pricing is likely competitive, especially considering the number of bidders. The fixed-price model is generally favorable for the government in stable markets, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bidders participating. This level of competition is generally positive, suggesting that multiple vendors had the opportunity to bid, which can drive down prices and encourage innovation. The presence of five bidders indicates a healthy market for this type of product.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as the government has access to the broadest possible pool of suppliers, leading to better price discovery and value.

Public Impact

The Department of Defense (Army) is the primary beneficiary, receiving essential textile bags for operational use. Services delivered include the production and delivery of textile bags. The geographic impact is centered in Kentucky, where the contractor is located. Workforce implications include employment at FIBROTEX USA INC and potentially its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single contractor for a specific quantity of goods could pose supply chain risks if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type limits cost escalation for the government.
Contractor is based in Kentucky, potentially supporting regional economic activity.

Sector Analysis

The textile bag and canvas mills sector (NAICS 314910) is a niche but essential part of the broader manufacturing industry. This contract represents a significant procurement within this specific sub-sector. Comparable spending benchmarks would typically involve other large government contracts for durable goods or specialized textile products, where competition and pricing structures are key evaluation factors.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to FIBROTEX USA INC, a single entity, suggests that the primary focus was on meeting the large-scale production needs of the Department of Defense, rather than specifically fostering small business participation through this particular award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle (implied), oversight would focus on adherence to the terms and conditions, delivery schedules, and quality standards. The firm-fixed-price nature simplifies some aspects of financial oversight by capping the total cost. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Procurement
Army Logistics Support
Textile Manufacturing Contracts
Durable Goods Procurement

Risk Flags

Potential for supply chain disruption
Timeliness of delivery critical due to short performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to FIBROTEX USA INC. PRODUCTION UNITS

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 $38.3 million.

What is the period of performance?

Start: 2024-06-20. End: 2024-12-31.

What is the historical spending pattern for textile bags by the Department of the Army?

Analyzing historical spending for textile bags by the Department of the Army requires access to detailed procurement databases. Generally, such spending fluctuates based on operational tempo, strategic needs, and inventory management cycles. Large-scale procurements like this one often occur when existing stocks are depleted or when new operational requirements emerge. Without specific historical data for this exact item (e.g., specific types of bags), it's difficult to provide precise figures. However, the Department of Defense is a consistent purchaser of various textile products for logistical and operational support, making this contract a typical, albeit substantial, expenditure within that broader category.

How does the per-unit cost of these textile bags compare to market rates or similar government contracts?

Determining the precise per-unit cost requires knowing the exact specifications and quantity of bags produced under this $38.3 million contract. The data provided indicates a total value of $38,341,417.44 and 38,341,417.44 production units, suggesting a nominal per-unit cost of approximately $1.00. This figure needs to be evaluated against the specific type, material, durability, and intended use of the bags. For standard, non-specialized textile bags, a $1.00 per-unit cost could be competitive, especially given the large volume. However, if these are highly specialized or reinforced bags, the cost might be lower than market expectations for similar high-specification items, or it could reflect a fair market price achieved through competitive bidding.

What is FIBROTEX USA INC's track record with government contracts, particularly with the Department of Defense?

FIBROTEX USA INC's track record with government contracts, especially with the Department of Defense, would typically be assessed through databases like SAM.gov or FPDS. A review would look at past awards, performance history, any past performance issues, and the types of goods or services previously provided. For this specific contract, the award suggests a satisfactory past performance or a competitive bid that met the government's requirements. Without access to their detailed contract history, it's presumed that they met the necessary criteria for this award. Further investigation into their contract portfolio would reveal their experience level and reliability.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators for this contract would likely revolve around timely delivery, quality of the textile bags produced, and adherence to specifications. The firm-fixed-price nature incentivizes the contractor to meet these KPIs efficiently. Performance measurement would involve inspections of delivered goods to ensure they meet the required standards (e.g., material strength, dimensions, stitching integrity) and tracking delivery against the schedule (2024-12-31 end date). Contract officers and quality assurance personnel would be responsible for monitoring these aspects. Failure to meet KPIs could result in penalties or contract termination, depending on the severity.

Are there any identified risks associated with this contract, such as supply chain vulnerabilities or technical challenges?

Potential risks for this contract include supply chain disruptions for raw materials (textiles, threads, fasteners), labor shortages at the manufacturing facility, or unforeseen production issues that could impact delivery timelines. Given the relatively short performance period (194 days), any delays could be critical. The firm-fixed-price structure means the contractor bears the financial risk of cost overruns due to these issues. The government's risk is primarily related to receiving the goods on time and to specification. Mitigation strategies would involve close monitoring of the contractor's progress and supply chain.

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: $38,341,417

Exercised Options: $38,341,417

Current Obligation: $38,341,417

Actual Outlays: $31,700,000

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