DoD awards $3.29M for IHPS Retention System, highlighting potential value concerns

Contract Overview

Contract Amount: $3,238,718 ($3.2M)

Contractor: SAN Antonio Lighthouse for the Blind

Awarding Agency: Department of Defense

Start Date: 2023-11-30

End Date: 2025-04-30

Contract Duration: 517 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IHPS RETENTION SYSTEM - DELIVERY ORDER 0005 FOR 68,748 SYSTEMS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78210

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $3.2 million to SAN ANTONIO LIGHTHOUSE FOR THE BLIND for work described as: IHPS RETENTION SYSTEM - DELIVERY ORDER 0005 FOR 68,748 SYSTEMS Key points: 1. The contract's value appears high relative to the number of systems procured, warranting further cost analysis. 2. Limited competition raises questions about price discovery and potential overpayment. 3. The fixed-price contract type shifts some risk to the government, but performance monitoring is crucial. 4. The procurement is for a specific system, suggesting a need for specialized manufacturing capabilities. 5. The duration of the contract extends over 1.5 years, indicating ongoing production and delivery requirements. 6. The contractor, San Antonio Lighthouse for the Blind, has a mission-driven focus, which may influence operational costs.

Value Assessment

Rating: questionable

The per-unit cost for the IHPS Retention System appears to be approximately $47.35 ($3,238,718.28 / 68,748 systems). Without specific benchmarks for this type of system, it is difficult to definitively assess value. However, given the limited competition and the nature of the product, a thorough cost analysis and comparison to similar defense-related apparel or equipment would be necessary to determine if this represents a fair and reasonable price. The fixed-price nature of the contract means the government bears the risk of cost overruns if the contractor's estimates are inaccurate.

Cost Per Unit: Approximately $47.35 per unit (based on total award and quantity).

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means only one contractor was solicited or considered. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less competitive pricing and reduced opportunities for price discovery. The lack of multiple bidders means the government did not benefit from a competitive bidding process to drive down costs.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for this system, as there was no market pressure to ensure the lowest possible price.

Public Impact

The primary beneficiaries are the Department of the Army personnel who will utilize the IHPS Retention System. The contract delivers essential retention systems for Integrated Head Protection Systems, crucial for soldier safety. The geographic impact is primarily within the Department of Defense supply chain and deployment locations. Workforce implications include jobs at the San Antonio Lighthouse for the Blind and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and taxpayer value.
Lack of transparency in the justification for sole-source procurement.
Potential for higher per-unit costs due to absence of competition.
Fixed-price contract shifts cost overrun risk to the government if not managed closely.
Limited public information on the specific technical requirements and performance metrics of the system.

Positive Signals

Contract awarded to an organization with a social mission (San Antonio Lighthouse for the Blind).
Procurement of essential safety equipment for military personnel.
Clear delivery timeline with defined start and end dates.
Fixed-price contract provides cost certainty for the government, assuming performance is met.

Sector Analysis

The procurement falls within the broader defense manufacturing and apparel sector, specifically related to protective equipment. The market for specialized military gear is often characterized by limited competition due to stringent technical requirements, security clearances, and established relationships. Benchmarking spending in this niche requires comparison to other contracts for similar protective systems or components, which are not readily available in the public domain. The 'Cut and Sew Apparel Contractors' PSC code suggests a focus on manufacturing and assembly.

Small Business Impact

This contract does not appear to include a small business set-aside, nor is the primary contractor a small business. The San Antonio Lighthouse for the Blind is a non-profit organization. There is no explicit information provided regarding subcontracting plans with small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are tied to the delivery of the specified quantity of IHPS Retention Systems by the contract end date. Transparency is limited due to the sole-source nature and the lack of detailed public documentation beyond the award notice. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Integrated Head Protection System (IHPS) components
Military protective gear procurement
Department of Defense apparel contracts
Defense logistics and supply chain management

Risk Flags

Sole-source award
Potential for uncompetitive pricing
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.2 million to SAN ANTONIO LIGHTHOUSE FOR THE BLIND. IHPS RETENTION SYSTEM - DELIVERY ORDER 0005 FOR 68,748 SYSTEMS

Who is the contractor on this award?

The obligated recipient is SAN ANTONIO LIGHTHOUSE FOR THE BLIND.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2023-11-30. End: 2025-04-30.

What is the historical spending pattern for the IHPS Retention System or similar components by the Department of Defense?

Historical spending data for the specific 'IHPS Retention System' is not readily available in public databases. However, the Department of Defense consistently spends billions annually on personal protective equipment and related components. Analyzing past procurements for helmet systems, ballistic protection, and associated accessories could provide context. Without specific historical data for this exact item, it's challenging to establish a trend. The current award of $3.29 million for approximately 68,748 systems suggests a significant investment in this particular component, indicating its importance within the broader IHPS program. Future analysis should aim to identify prior awards for this system or its direct predecessors to understand cost evolution and volume.

How does the per-unit cost of $47.35 compare to industry benchmarks for similar tactical gear or helmet components?

Benchmarking the per-unit cost of $47.35 for the IHPS Retention System is challenging without precise specifications and comparisons. However, for context, components of tactical helmets, such as suspension systems, retention straps, and internal padding, can range significantly in price. High-end aftermarket helmet accessories for civilian use can sometimes exceed $50-$100 per component, while military-grade components, especially when procured in bulk, are expected to be more cost-effective. Given this is a sole-source award for a specific military system, the $47.35 figure might be reasonable if it includes specialized materials, rigorous testing, and specific integration requirements. However, a lack of competitive bidding prevents definitive validation against market rates. Further investigation into the system's technical requirements and comparable military procurements is needed.

What are the specific risks associated with this sole-source contract for the Department of the Army?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the absence of competition. The Department of the Army may be paying more than necessary without the pressure of multiple bidders vying for the contract. Another risk is contractor performance; while the contract is fixed-price, the government relies on the contractor to deliver the systems on time and to specification. If the contractor faces production issues or quality control problems, it could lead to delays or subpar equipment, impacting soldier readiness. Furthermore, the lack of transparency inherent in sole-source awards can obscure potential inefficiencies or risks within the contractor's operations. The government must maintain robust oversight to mitigate these risks.

What is the track record of San Antonio Lighthouse for the Blind in fulfilling government contracts, particularly for defense-related items?

The San Antonio Lighthouse for the Blind (SALHB) has a history of fulfilling government contracts, often leveraging its mission to employ individuals with blindness and visual impairments. While specific details on their track record for 'IHPS Retention Systems' are not publicly detailed, they have previously been awarded contracts for items such as apparel, textiles, and other manufactured goods for various government agencies, including the Department of Defense. Their ability to secure contracts often stems from provisions that prioritize or set aside work for such organizations. Performance history on these contracts would typically be available through government contract databases (like SAM.gov) or agency performance assessment systems, but detailed public analysis of their defense-specific contract fulfillment quality and timeliness is limited.

What are the performance metrics and quality assurance measures in place for this IHPS Retention System delivery order?

Specific performance metrics and detailed quality assurance (QA) measures for this particular delivery order are not explicitly detailed in the publicly available award notice. However, standard government contracting practices dictate that the delivered systems must meet the technical specifications outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). The 'FIRM FIXED PRICE' contract type implies that the contractor is responsible for ensuring the quality of the delivered goods. The Department of the Army would typically have contracting officers' representatives (CORs) or quality assurance specialists responsible for inspecting the delivered systems to ensure they conform to specifications before acceptance and payment. Details on acceptance criteria, testing protocols, and defect reporting would be found within the full contract documentation.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2305 ROOSEVELT AVE, SAN ANTONIO, TX, 78210

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: $3,238,718

Exercised Options: $3,238,718

Current Obligation: $3,238,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB19D0019

IDV Type: IDC

Timeline