DoD's $5.9M Apparel Contract Awarded to Ametrine Inc. Raises Questions on Competition and Value

Contract Overview

Contract Amount: $5,890,394 ($5.9M)

Contractor: Ametrine Inc

Awarding Agency: Department of Defense

Start Date: 2025-08-03

End Date: 2026-08-03

Contract Duration: 365 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: APPAREL ACCESSORIES AND OTHER APPAREL MANUFACTURING

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to AMETRINE INC for work described as: APPAREL ACCESSORIES AND OTHER APPAREL MANUFACTURING Key points: 1. The contract's value, while significant, requires benchmarking against similar defense apparel procurements to ascertain true value for money. 2. The sole-source nature of this award limits competitive pressure, potentially impacting pricing and innovation. 3. Key risk indicators include the lack of a competitive bidding process and the fixed-price contract type, which may not fully account for unforeseen cost escalations. 4. Performance context is limited due to the contract's recent award, with future delivery orders shaping the performance narrative. 5. This contract falls within the broader 'Apparel Accessories and Other Apparel Manufacturing' sector, a niche but essential component of military logistics. 6. The absence of small business set-aside considerations warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking this $5.9 million contract against similar Department of Defense apparel procurements is crucial for assessing value. The fixed-price nature provides cost certainty for the government, but without competitive bids, it's difficult to definitively state if the pricing is optimal. The contract's duration and scope will be key factors in a more thorough value assessment once performance data becomes available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Ametrine Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they inherently reduce price discovery and may lead to higher costs compared to a fully competed contract.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without competing offers, there's less incentive for the awarded contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of Defense, which will receive essential apparel accessories, and Ametrine Inc., the awarded contractor. The contract will deliver specific apparel accessories and other apparel manufacturing services, crucial for military readiness and operations. The geographic impact is primarily centered around the contractor's operational base and the delivery locations specified by the Department of the Army. Workforce implications will be felt by Ametrine Inc. and potentially its supply chain partners, requiring skilled labor for manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Sole-source award limits transparency in the procurement process.
Fixed-price contract could pose risks if material costs escalate unexpectedly.
Absence of small business participation needs further investigation.

Positive Signals

Contract awarded to a single entity, potentially streamlining communication and delivery.
Fixed-price contract offers budget certainty for the government.
Specific North American Industry Classification System (NAICS) code indicates a specialized manufacturing capability.

Sector Analysis

The 'Apparel Accessories and Other Apparel Manufacturing' sector (NAICS 315990) encompasses a range of specialized production. While not as large as some industrial sectors, it plays a critical role in supplying essential goods, including those for government and military use. Benchmarking spending in this niche requires comparison with other defense-related apparel contracts or similar government procurements for specialized clothing items.

Small Business Impact

This contract does not appear to have a small business set-aside designation, nor is there an indication of mandatory subcontracting goals for small businesses. The sole-source nature further complicates the assessment of small business participation. Future analysis should investigate whether Ametrine Inc. intends to utilize small business subcontractors or if opportunities were missed due to the procurement method.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense's contracting and financial management offices. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified goods. Transparency is limited due to the sole-source award, but contract details and performance may be subject to reporting requirements and potential Inspector General reviews if issues arise.

Related Government Programs

Department of Defense Clothing and Textiles
Military Uniform and Equipment Procurement
Apparel Manufacturing Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award lacks competitive justification.
Potential for above-market pricing due to lack of competition.
Limited transparency in procurement process.
No clear indication of small business participation or subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to AMETRINE INC. APPAREL ACCESSORIES AND OTHER APPAREL MANUFACTURING

Who is the contractor on this award?

The obligated recipient is AMETRINE 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 $5.9 million.

What is the period of performance?

Start: 2025-08-03. End: 2026-08-03.

What is Ametrine Inc.'s track record with federal contracts, particularly within the Department of Defense?

A review of federal procurement data is necessary to fully assess Ametrine Inc.'s track record. Without specific contract history details provided, it's challenging to evaluate their past performance, delivery timeliness, and quality of goods for previous government awards. Understanding their history with similar apparel manufacturing contracts, especially for the Department of Defense, would provide crucial context for this current award. A lack of extensive federal contract history might increase perceived risk, while a strong history would bolster confidence in their ability to meet the current contract's requirements.

How does the $5.9 million value of this contract compare to similar apparel procurements by the Department of Defense?

To benchmark the $5.9 million value, one would need to analyze historical Department of Defense contracts for comparable apparel accessories and manufacturing services. This involves identifying contracts with similar scope, quantity, and material specifications. If this contract represents a significantly higher cost per unit or overall value compared to previously awarded, competitively bid contracts for similar items, it could indicate a potential overpayment or a justifiable reason for the sole-source award due to unique specifications. Conversely, if it aligns with or is lower than comparable contracts, it might suggest reasonable pricing, despite the lack of competition.

What are the specific risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bids, Ametrine Inc. may not have been incentivized to offer the lowest possible price. Additionally, sole-source awards can reduce transparency in the procurement process and may signal a lack of available qualified vendors or a failure to adequately plan for competitive sourcing. This can also limit opportunities for small businesses to participate as prime contractors or subcontractors, potentially impacting the broader industrial base.

What are the implications of the 'FIRM FIXED PRICE' contract type for this procurement?

A Firm Fixed Price (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. This offers the government budget certainty, as the total cost is known upfront. However, it places the risk of cost overruns on the contractor. If Ametrine Inc. incurs higher-than-expected costs for materials, labor, or other expenses, their profit margin will decrease. Conversely, if they manage costs efficiently, their profit could be higher. For the government, the main implication is that they are protected from cost increases but may have paid a premium upfront to account for the contractor's risk.

What is the historical spending pattern for 'Apparel Accessories and Other Apparel Manufacturing' by the Department of Defense?

Analyzing historical spending patterns for NAICS code 315990 within the Department of Defense (DoD) would reveal the typical volume and value of contracts awarded in this sector. This data can indicate whether this $5.9 million contract is an outlier, a continuation of a trend, or a significant increase in spending. Understanding past procurement strategies, such as the frequency of sole-source versus competitive awards, and average contract values, provides essential context for evaluating the current award's significance and potential efficiency.

Are there any specific performance metrics or deliverables outlined in the contract that can be used to assess program effectiveness?

The provided data does not detail specific performance metrics or deliverables. However, for a contract of this nature, typical metrics would include on-time delivery rates, quality control standards (e.g., defect rates), adherence to specifications, and potentially sustainability or ethical sourcing requirements. The effectiveness of the program will be judged by Ametrine Inc.'s ability to consistently meet these (unspecified) requirements throughout the contract period. Without access to the full contract document, a thorough assessment of program effectiveness is not possible.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 900 E OLD SETTLERS BLVD, ROUND ROCK, TX, 78664

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,890,394

Exercised Options: $5,890,394

Current Obligation: $5,890,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY20D0009

IDV Type: IDC

Timeline