Department of the Army awards $23.16M for MSV Gen II Systems to Bethel Industries Inc

Contract Overview

Contract Amount: $23,158,240 ($23.2M)

Contractor: Bethel Industries Inc

Awarding Agency: Department of Defense

Start Date: 2024-07-02

End Date: 2025-03-31

Contract Duration: 272 days

Daily Burn Rate: $85.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MSV FAIR OPPORTUNITY # 0005 AWARD A DELIVERY ORDER FOR $23,158,240.00 WORTH OF MSV GEN II SYSTEMS.

Place of Performance

Location: JERSEY CITY, HUDSON County, NEW JERSEY, 07307

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to BETHEL INDUSTRIES INC for work described as: MSV FAIR OPPORTUNITY # 0005 AWARD A DELIVERY ORDER FOR $23,158,240.00 WORTH OF MSV GEN II SYSTEMS. Key points: 1. The contract value represents a significant investment in specialized apparel systems. 2. Bethel Industries Inc. secured this award through full and open competition. 3. The delivery order has a duration of 272 days, indicating a focused, short-term requirement. 4. The firm-fixed-price contract type suggests predictable costs for the government. 5. The award falls under the Apparel Accessories and Other Apparel Manufacturing NAICS code. 6. This procurement is for MSV Gen II Systems, implying an upgrade or specific generation of equipment.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without detailed cost breakdowns or comparisons to similar MSV Gen II System procurements. However, the firm-fixed-price structure provides cost certainty. The value of $23.16 million for a 272-day delivery period suggests a substantial per-day cost, which warrants scrutiny to ensure efficiency and avoid overpayment for the systems provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 5 offers suggests a reasonably competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific number of bidders (5) is a positive indicator of market interest.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are likely military personnel requiring the MSV Gen II Systems. The services delivered involve the provision of specialized apparel systems. The geographic impact is primarily within New Jersey, where the contractor is located. Workforce implications may include manufacturing and logistics roles at Bethel Industries Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price does not adequately account for all production complexities.
Dependence on a single contractor for a critical system upgrade could pose supply chain risks.
Limited visibility into the specific technological advancements or features of the 'Gen II' systems without further detail.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract provides cost certainty for the government.
Contractor, Bethel Industries Inc., has a history of government contracts, implying some level of established capability.
The award is for a specific system generation (Gen II), indicating a planned upgrade or modernization effort.

Sector Analysis

The procurement falls within the broader defense manufacturing sector, specifically focusing on apparel and accessories. The market for specialized military apparel is driven by defense spending and the need for advanced, durable, and functional gear. While specific market size data for 'MSV Gen II Systems' is not publicly available, the Department of Defense is a significant consumer of such goods, with spending often benchmarked against similar system procurements and overall defense appropriations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The primary impact on the small business ecosystem would be indirect, through potential competition if small businesses were among the 5 bidders, or if they are suppliers to Bethel Industries Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army program office. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated by public contract award databases, though detailed performance metrics and cost breakdowns may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Clothing and Personal Equipment
Tactical Apparel Systems
Defense Logistics Agency (DLA) Procurements
Army Combat Uniforms
Special Operations Forces Gear

Risk Flags

Potential for supply chain disruption
Quality control during manufacturing
Technological obsolescence risk
Dependence on single awardee for specific system

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to BETHEL INDUSTRIES INC. MSV FAIR OPPORTUNITY # 0005 AWARD A DELIVERY ORDER FOR $23,158,240.00 WORTH OF MSV GEN II SYSTEMS.

Who is the contractor on this award?

The obligated recipient is BETHEL INDUSTRIES 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 $23.2 million.

What is the period of performance?

Start: 2024-07-02. End: 2025-03-31.

What is the track record of Bethel Industries Inc. with Department of Defense contracts, particularly for similar apparel systems?

Bethel Industries Inc. has a history of receiving contracts from the Department of Defense, as indicated by its presence in federal procurement databases. While specific details on past performance for 'MSV Gen II Systems' are not provided in this data snippet, their ability to secure this $23.16 million delivery order suggests they possess the necessary qualifications and manufacturing capabilities. A deeper analysis would involve reviewing their contract history for similar items, past performance evaluations (if publicly available), and any history of contract disputes or awards.

How does the per-unit cost of the MSV Gen II Systems compare to market rates or similar government procurements?

Determining the precise per-unit cost requires knowing the quantity of MSV Gen II Systems being procured under this $23.16 million delivery order. Without the quantity, a direct per-unit cost calculation is impossible. Furthermore, 'MSV Gen II Systems' is a specific product designation that may not have readily available public market benchmarks. To assess value, one would need to compare the total contract value against the number of units delivered and benchmark this against historical awards for similar systems or against commercial off-the-shelf (COTS) equivalents if applicable, considering any specialized military requirements.

What are the key performance indicators (KPIs) for the MSV Gen II Systems, and how will their successful delivery be measured?

The provided data does not specify the key performance indicators (KPIs) for the MSV Gen II Systems or the exact metrics for measuring successful delivery. Typically, for apparel systems, KPIs would relate to durability, material performance (e.g., thermal regulation, water resistance), fit, comfort, and compliance with military specifications. Successful delivery would be confirmed through inspection and acceptance testing by the Department of the Army, verifying that the systems meet all contractual requirements and specifications outlined in the statement of work.

What is the historical spending pattern for MSV systems or similar apparel by the Department of the Army?

Historical spending on MSV systems or similar military apparel by the Department of the Army can be substantial, driven by the constant need to equip and modernize forces. While specific figures for 'MSV Gen II Systems' are not detailed here, the Army procures a wide range of clothing, individual equipment, and tactical gear annually. Analyzing past contract awards for similar items, such as combat uniforms, protective gear, or specialized load-bearing equipment, would reveal trends in spending levels, average contract values, and the primary contractors involved over fiscal years.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include supply chain disruptions affecting Bethel Industries Inc., potential quality control issues during manufacturing, or the possibility that the 'Gen II' systems may become obsolete quickly due to rapid technological advancements. Mitigation strategies often involve robust quality assurance clauses in the contract, clear delivery schedules with penalties for delays, and maintaining open communication channels between the contractor and the contracting officer. The firm-fixed-price nature also shifts some cost risk to the contractor.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91CRB20R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3423 JOHN F KENNEDY BLVD, JERSEY CITY, NJ, 07307

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,158,240

Exercised Options: $23,158,240

Current Obligation: $23,158,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D0005

IDV Type: IDC

Timeline