Dod's $6.16M High Angle Mountaineering Kits Contract Awarded to Sourceamerica With No Competition

Contract Overview

Contract Amount: $6,163,898 ($6.2M)

Contractor: Sourceamerica

Awarding Agency: Department of Defense

Start Date: 2025-05-30

End Date: 2026-06-04

Contract Duration: 370 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HIGH ANGLE MOUNTAINEERING KITS (HAMK)

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to SOURCEAMERICA for work described as: HIGH ANGLE MOUNTAINEERING KITS (HAMK) Key points: 1. The contract's value of $6.16 million for mountaineering kits raises questions about cost-effectiveness given the lack of competitive bidding. 2. The sole-source award to SOURCEAMERICA limits price discovery and potentially increases the cost to taxpayers. 3. A single awardee suggests potential risks related to contractor performance and reliance on one supplier. 4. The contract duration of 370 days provides a defined period for delivery, but performance monitoring will be key. 5. The procurement falls under Apparel Accessories and Other Apparel Manufacturing, indicating a specific niche requirement. 6. The absence of small business set-aside flags indicates this contract was not specifically targeted to support small businesses.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for HIGH ANGLE MOUNTAINEERING KITS. The firm fixed-price structure provides cost certainty for the government, but the lack of competition means there's no direct market comparison to assess if the price is optimal. The total award amount of $6.16 million for a 370-day period warrants scrutiny to ensure it aligns with the value of the specialized equipment provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to SOURCEAMERICA, meaning it was not competed. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from a bidding war among suppliers.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to secure the best possible value for public funds.

Public Impact

Personnel in specialized military units requiring high-angle mountaineering capabilities will benefit from the provision of these kits. The contract ensures the delivery of essential equipment for training and operational readiness in challenging environments. The geographic impact is likely concentrated within military installations or operational areas where such specialized skills are required. The contract supports the workforce within SOURCEAMERICA and potentially its manufacturing partners involved in producing these kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing compared to a competitive procurement.
Sole-source awards can create a dependency on a single supplier, increasing risk if performance issues arise.
Limited transparency into the pricing structure due to the absence of competitive bids.
Potential for less innovation or product improvement without market-driven incentives.
The specific nature of 'HIGH ANGLE MOUNTAINEERING KITS' might indicate a niche market with limited suppliers, but this was not substantiated through competition.

Positive Signals

The firm fixed-price contract type offers cost predictability for the government.
SOURCEAMERICA is an organization focused on employing individuals with disabilities, potentially aligning with social value objectives.
The contract specifies a clear delivery period, allowing for defined performance expectations.
The award ensures critical equipment is provided to military personnel who require it for specific operational needs.

Sector Analysis

The procurement of specialized mountaineering equipment falls within the broader 'Apparel Accessories and Other Apparel Manufacturing' sector. This sector encompasses a wide range of goods, from everyday clothing to highly specialized gear. While specific market size data for 'high-angle mountaineering kits' is not readily available, the defense industry frequently procures niche equipment to meet unique operational requirements. Comparable spending benchmarks are difficult to establish due to the specialized nature and sole-source award.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mandated within the award details provided. SOURCEAMERICA, as the awardee, has a mission to employ individuals with disabilities, which may indirectly involve small businesses in their supply chain, but this is not explicitly detailed in the contract information. The absence of set-aside provisions means opportunities for small businesses to directly compete or subcontract on this specific award are not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense contracting officers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Clothing and Equipment Procurement
Specialized Outdoor Gear Contracts
Department of Defense Logistics and Supply Chain
SOURCEAMERICA Contracts
Apparel and Accessories Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to SOURCEAMERICA. HIGH ANGLE MOUNTAINEERING KITS (HAMK)

Who is the contractor on this award?

The obligated recipient is SOURCEAMERICA.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2025-05-30. End: 2026-06-04.

What is the track record of SOURCEAMERICA in delivering similar specialized equipment to the Department of Defense?

Information regarding SOURCEAMERICA's specific track record in delivering 'HIGH ANGLE MOUNTAINEERING KITS' to the Department of Defense is not detailed in the provided data. SOURCEAMERICA is known for its mission to employ individuals with disabilities through various government contracts. While they have experience fulfilling federal contracts, the specifics of their performance on similar niche equipment procurements, especially sole-source awards, would require further investigation into past performance reports and contract histories. Assessing their past performance on comparable items would be crucial to understanding their capability and reliability for this specific requirement.

How does the per-unit cost of these mountaineering kits compare to market rates for similar commercial products?

Direct comparison of per-unit costs is difficult without knowing the exact specifications of the kits and the quantity ordered. As this was a sole-source award, there is no competitive data to benchmark against. However, a general assessment can be made by researching commercially available high-angle mountaineering kits from reputable outdoor gear retailers. If the government's per-unit cost significantly exceeds prices for comparable commercial-off-the-shelf (COTS) items, it would indicate potential overpricing. The firm fixed-price nature means the government agreed to a set price, but the absence of competition limits the ability to confirm if this price represents fair market value.

What are the primary risks associated with a sole-source award for specialized military equipment?

The primary risks associated with a sole-source award for specialized military equipment include potential overpricing due to the lack of competitive pressure, limited innovation as the contractor may not feel compelled to improve products or processes, and increased dependency on a single supplier. If the sole-source contractor experiences production issues, quality control problems, or financial instability, it could lead to significant delays or disruptions in supplying critical equipment to the military. Furthermore, the absence of competition reduces transparency in pricing and can make it harder for the government to ensure it is receiving the best value for taxpayer dollars.

What is the expected effectiveness of these kits in supporting military operations or training?

The effectiveness of the HIGH ANGLE MOUNTAINEERING KITS (HAMK) is directly tied to their ability to meet the specific operational and training requirements of military personnel operating in high-angle or mountainous terrain. These kits are presumed to contain specialized gear such as ropes, harnesses, anchors, ascenders, descenders, and potentially protective equipment designed for safety and functionality in such environments. Their effectiveness will be measured by their durability, reliability under stress, ease of use by trained personnel, and contribution to mission success or training objectives. The contract's firm fixed-price nature suggests the government has defined these requirements and expects the delivered kits to meet them.

What has been the historical spending pattern for HIGH ANGLE MOUNTAINEERING KITS by the Department of Defense?

The provided data does not include historical spending patterns for HIGH ANGLE MOUNTAINEERING KITS. This specific contract represents a $6.16 million award over approximately one year. Without access to historical procurement databases or specific program spending reports, it is impossible to determine if this represents an increase, decrease, or consistent level of spending for such equipment. Understanding past spending would require searching for previous contracts for similar items, noting award types (competed vs. sole-source), quantities, and total values to establish a trend.

Are there alternative suppliers for HIGH ANGLE MOUNTAINEERING KITS that could have been considered?

The fact that this contract was awarded on a sole-source basis to SOURCEAMERICA suggests that the Department of the Army either determined that only SOURCEAMERICA could meet the requirement or did not conduct a thorough market research effort to identify potential alternatives. In a sole-source scenario, the government must justify why competition is not feasible or not in the government's best interest. Without further details on the justification for the sole-source award, it's difficult to definitively state whether alternative suppliers exist. However, the existence of a commercial market for mountaineering equipment implies that other suppliers likely exist, raising questions about the necessity of a sole-source procurement.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Apparel Accessories and Other Apparel Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8401 OLD COURTHOUSE RD, VIENNA, VA, 22182

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,163,898

Exercised Options: $6,163,898

Current Obligation: $6,163,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline