DoD's $16.1M contract with Federal Prison Industries for miscellaneous manufacturing services awarded via full and open competition
Contract Overview
Contract Amount: $16,132,500 ($16.1M)
Contractor: Federal Prison Industries, Inc
Awarding Agency: Department of Defense
Start Date: 2007-12-06
End Date: 2008-07-31
Contract Duration: 238 days
Daily Burn Rate: $67.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE
Sector: Other
Official Description: N/A
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032
Plain-Language Summary
Department of Defense obligated $16.1 million to FEDERAL PRISON INDUSTRIES, INC for work described as: N/A Key points: 1. The contract value of $16.1 million represents a significant investment in miscellaneous manufacturing. 2. Awarded through full and open competition, suggesting a potentially competitive pricing environment. 3. The short performance period of 238 days may indicate a specific, time-sensitive need. 4. The North American Industry Classification System (NAICS) code 339999 covers a broad range of 'All Other Miscellaneous Manufacturing' activities. 5. The contract was awarded to a single entity, Federal Prison Industries, Inc. 6. The contract type is Fixed Price, which shifts performance risk to the contractor.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to the broad NAICS code and the unique nature of the contractor. Federal Prison Industries operates under a specific mandate. Without comparable contracts for 'All Other Miscellaneous Manufacturing' from similar agencies or private sector entities, a direct value-for-money assessment is difficult. The fixed-price nature provides some cost certainty, but the overall efficiency and effectiveness of the delivered goods or services compared to market alternatives remain unclear.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While two bidders suggest some level of competition, it is a relatively low number for a contract of this value, which could potentially limit price discovery and the range of innovative solutions considered.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality through a broad solicitation process. However, with only two bids, the competitive pressure might have been less intense than in scenarios with a larger number of offerors.
Public Impact
The primary beneficiary is the Department of Defense, which receives miscellaneous manufactured goods or services. The services delivered fall under the broad category of 'All Other Miscellaneous Manufacturing,' the specifics of which are not detailed. The geographic impact is limited to the District of Columbia, where the contractor is located. Workforce implications are tied to the operations of Federal Prison Industries, Inc., which utilizes inmate labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition with only two bids received for a $16.1M contract.
- The broad NAICS code makes it difficult to assess the specific value and necessity of the procured items.
- The unique operational model of Federal Prison Industries, Inc. (using inmate labor) may present different cost structures and oversight requirements compared to typical commercial entities.
Positive Signals
- Awarded through full and open competition, adhering to standard procurement practices.
- The fixed-price contract type transfers cost overrun risk to the contractor.
- The contract was awarded to Federal Prison Industries, Inc., which has a specific legislative mandate to provide goods and services to the federal government.
Sector Analysis
The 'All Other Miscellaneous Manufacturing' sector (NAICS 339999) is highly diverse, encompassing a wide array of products not classified elsewhere. This contract's specific nature within this broad category is not detailed. Federal Prison Industries, Inc. (UNICOR) is a unique entity within the manufacturing landscape, operating as a government corporation that utilizes inmate labor. Benchmarking against typical industry spending is difficult due to UNICOR's distinct business model and mission.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor is Federal Prison Industries, Inc., which is a government corporation and not typically a participant in small business subcontracting programs in the same way as private sector firms. The impact on the broader small business ecosystem is likely minimal, as the contract is not designed to foster small business participation.
Oversight & Accountability
Oversight for contracts involving Federal Prison Industries, Inc. is managed through the Federal Prison Industries, Inc. oversight board and the Federal Bureau of Prisons. The Department of Defense, as the procuring agency, would also have oversight responsibilities for contract performance and delivery. Transparency is generally maintained through federal procurement databases, but specific details on the goods or services procured and their exact utilization may be less publicly accessible due to the nature of the contractor.
Related Government Programs
- Federal Prison Industries, Inc. (UNICOR) Contracts
- Department of Defense Miscellaneous Manufacturing Procurements
- Federal Government Manufacturing Contracts
Risk Flags
- Limited Competition
- Broad NAICS Code
- Unique Contractor Model
Tags
defense, department-of-defense, federal-prison-industries, delivery-order, fixed-price, full-and-open-competition, miscellaneous-manufacturing, district-of-columbia, defense-logistics-agency, other-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.1 million to FEDERAL PRISON INDUSTRIES, INC. N/A
Who is the contractor on this award?
The obligated recipient is FEDERAL PRISON INDUSTRIES, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $16.1 million.
What is the period of performance?
Start: 2007-12-06. End: 2008-07-31.
What specific types of 'All Other Miscellaneous Manufacturing' goods or services were procured under this contract?
The provided data indicates the North American Industry Classification System (NAICS) code as 339999, which broadly covers 'All Other Miscellaneous Manufacturing.' This category is a catch-all for manufacturing establishments that cannot be classified into other specific manufacturing sectors. Examples could range from ammunition manufacturing (if not elsewhere classified) to sporting goods, toys, or even specialized industrial components. However, without further details specific to this contract award, the exact nature of the goods or services procured remains unspecified in the provided data. This lack of specificity makes it challenging to assess the contract's direct impact or compare its value to similar, more defined procurements.
How does the pricing of this contract compare to market rates for similar miscellaneous manufacturing goods or services?
Directly comparing the pricing of this contract to market rates is difficult due to several factors. Firstly, the contractor is Federal Prison Industries, Inc. (UNICOR), a government corporation that utilizes inmate labor, which may result in a different cost structure compared to private sector manufacturers. Secondly, the NAICS code 339999 is extremely broad, encompassing a vast array of potential products. Without knowing the specific items manufactured, a precise market comparison is not feasible. While the contract was awarded under full and open competition, the limited number of bids (two) might suggest less aggressive price negotiation than might occur in a more crowded market. Therefore, a definitive assessment of whether this contract represents good value compared to market rates cannot be made with the available information.
What is the track record of Federal Prison Industries, Inc. in fulfilling Department of Defense contracts?
Federal Prison Industries, Inc. (UNICOR) has a long-standing history of providing goods and services to various federal agencies, including the Department of Defense. Its mandate is to provide work opportunities for inmates and to supply products and services to the federal government at competitive prices. While specific performance metrics for individual DoD contracts are not detailed in the provided data, UNICOR's overall performance is subject to oversight by the Federal Prison Industries, Inc. oversight board and the Federal Bureau of Prisons. Historically, UNICOR has faced scrutiny regarding pricing, product quality, and the extent to which its operations truly compete with private industry. However, it remains a significant supplier to the government, fulfilling a dual mission of inmate rehabilitation and government procurement.
What are the potential risks associated with a contract awarded to Federal Prison Industries, Inc. for miscellaneous manufacturing?
Several potential risks are associated with contracts awarded to Federal Prison Industries, Inc. (UNICOR). One primary risk is the variability in inmate labor availability and skill levels, which could impact production timelines and quality control. Another concern can be the pricing structure; while intended to be competitive, it may not always reflect true market costs due to subsidized labor and overhead. Furthermore, the broad nature of the 'miscellaneous manufacturing' category means that the specific items procured might be subject to obsolescence or may not meet the most current technological standards if not carefully specified and managed. Finally, oversight and accountability can be complex, involving both the procuring agency (DoD) and the Bureau of Prisons, potentially leading to coordination challenges.
How does the duration of this contract (238 days) influence the assessment of its overall effectiveness?
The relatively short duration of this contract, approximately eight months, suggests that it was likely intended to fulfill a specific, time-bound requirement rather than a long-term, ongoing need. This short timeframe can be advantageous in that it allows for quicker adaptation to changing requirements and reduces the risk of procuring outdated goods or services. However, it also means that the contract may not be suitable for complex projects requiring extensive development or ramp-up time. For the Department of Defense, a short duration can be effective for addressing immediate demands or for pilot programs. The effectiveness assessment would need to focus on whether the required goods or services were delivered on time, within budget, and met the specified quality standards for that limited period.
Industry Classification
NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing
Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Government of the United States (UEI: 161906193)
Address: 320 1ST ST NW, WASHINGTON, DC, 20534
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,132,500
Exercised Options: $16,132,500
Current Obligation: $16,132,500
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM1C108D1019
IDV Type: IDC
Timeline
Start Date: 2007-12-06
Current End Date: 2008-07-31
Potential End Date: 2008-07-31 00:00:00
Last Modified: 2019-09-10
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