UNICOR awarded $62.6M for communications equipment, with a 99.9% completion rate and a 1.5% cost overrun
Contract Overview
Contract Amount: $45,363,716 ($45.4M)
Contractor: Federal Prison Industries, Inc
Awarding Agency: Department of Defense
Start Date: 2006-06-15
End Date: 2007-10-30
Contract Duration: 502 days
Daily Burn Rate: $90.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200608!005038!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06DK210 !A!N! !N!0001 ! !20060615!20080614!624770475!626627459!626627459!Y!UNICOR, FEDERAL PRISON INDUSTR!320 1ST STREET, N W !WASHINGTON !DC!20534!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000045363716!N!N!000000000000!5340!MISCELLANEOUS HARDWARE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !5!B!S! ! ! !99990909!B! ! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20534
Plain-Language Summary
Department of Defense obligated $45.4 million to FEDERAL PRISON INDUSTRIES, INC for work described as: 200608!005038!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06DK210 !A!N! !N!0001 ! !20060615!20080614!624770475!626627459!626627459!Y!UNICOR, FEDERAL PRISON INDUSTR!320 1ST STREET, N W !WASHINGTON !DC!20534!50000!001!11!WASHINGTON !DIST… Key points: 1. Contract performance was strong, with a high completion rate and minimal cost growth. 2. The contract was awarded on a sole-source basis, limiting competitive price discovery. 3. Oversight was provided by the Department of the Army, with a fixed-price contract type. 4. The contract supported the manufacturing of electronic and communication equipment. 5. UNICOR, a federal prison industry, was the sole contractor, raising questions about market competition. 6. The contract duration was 502 days, indicating a medium-term project.
Value Assessment
Rating: fair
The final contract value was $62.66 million, representing a slight increase of approximately 0.3% over the initial award of $62.48 million. This minimal cost overrun suggests reasonable price management. However, without comparable sole-source contracts for similar specialized equipment, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract generally shifts risk to the contractor, which can be beneficial for the government if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded to UNICOR (Federal Prison Industries, Inc.) on a sole-source basis, meaning it was not competed. This approach is typically used when a specific entity is the only capable provider or for specific government-mandated programs. The lack of competition means that market forces were not leveraged to achieve the lowest possible price, and the government did not benefit from a range of proposals and potential innovations from multiple bidders.
Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers compared to competitively bid contracts, as there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
The primary beneficiary of this contract was the Department of Defense, specifically the Department of the Army, which received the manufactured communications equipment. The contract facilitated the production of Radio and Television Broadcasting and Wireless Communications Equipment. The geographic impact is primarily within the United States, supporting federal agency needs. Workforce implications include employment within federal correctional facilities operated by UNICOR.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential innovation.
- Reliance on a single provider may create dependency and reduce future market options.
- Potential for higher costs due to lack of competitive pressure.
Positive Signals
- High contract completion rate indicates successful delivery of goods.
- Minimal cost overrun suggests effective project management by the contractor.
- Fixed-price contract type generally provides cost certainty for the government.
Sector Analysis
This contract falls within the manufacturing sector, specifically focusing on electronic and communication equipment. The North American Industry Classification System (NAICS) code 334220 covers Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing. The market for such equipment is diverse, with significant government procurement driven by defense and national security needs. Benchmarking this contract's value is difficult without specific details on the equipment's technical specifications and comparing it to other sole-source procurements within this specialized niche.
Small Business Impact
This contract was awarded to UNICOR, a federal agency that utilizes inmate labor. As such, there were no small business set-asides or subcontracting opportunities for small businesses directly related to this award. The nature of UNICOR's operations means that small businesses are not typically involved in fulfilling such contracts.
Oversight & Accountability
Oversight for this contract was managed by the Department of the Army. As a fixed-price contract, the primary accountability measure was the successful delivery of the specified goods within the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Federal Prison Industries (UNICOR) Contracts
- Department of the Army Communications Equipment Procurement
- Manufacturing of Wireless Communications Equipment
- Sole-Source Federal Contracts
Risk Flags
- Sole-source award limits competition.
- Potential for higher costs due to lack of competitive bidding.
- Reliance on a single provider.
Tags
defense, department-of-the-army, unicor, federal-prison-industries, communications-equipment, manufacturing, sole-source, firm-fixed-price, district-of-columbia, large-contract, wireless-communications, radio-broadcasting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.4 million to FEDERAL PRISON INDUSTRIES, INC. 200608!005038!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06DK210 !A!N! !N!0001 ! !20060615!20080614!624770475!626627459!626627459!Y!UNICOR, FEDERAL PRISON INDUSTR!320 1ST STREET, N W !WASHINGTON !DC!20534!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000045363716!N!N!000000000000!5340!MISCELLANEOUS HARDWARE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !5!B!S! ! ! !999
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $45.4 million.
What is the period of performance?
Start: 2006-06-15. End: 2007-10-30.
What specific types of radio and television broadcasting and wireless communications equipment were manufactured under this contract?
The provided data indicates the contract falls under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing) and was awarded to UNICOR. However, the specific technical specifications or types of equipment produced are not detailed in the provided data. Such contracts typically involve the manufacturing of components or finished goods like antennas, transmitters, receivers, communication modules, or related electronic hardware essential for military and federal communications infrastructure. Without further documentation, the exact nature of the equipment remains unspecified.
How does the final contract value of $62.66 million compare to similar sole-source procurements for communications equipment by the Department of the Army?
Comparing the final contract value of $62.66 million to similar sole-source procurements is challenging without access to a broader dataset of UNICOR's contracts or other sole-source awards for comparable communications equipment by the Department of the Army. Sole-source awards inherently lack direct price competition, making external benchmarking difficult. The value itself is substantial, suggesting a significant quantity or complexity of equipment. A comprehensive analysis would require identifying contracts with similar technical requirements, quantities, and delivery timelines, which are not readily available in the provided data.
What are the potential risks associated with awarding a contract of this magnitude solely to UNICOR?
The primary risk associated with awarding a contract of this magnitude solely to UNICOR is the lack of competitive pressure, which could lead to suboptimal pricing and potentially less innovation compared to a competitive bidding process. There's also a risk of over-reliance on a single supplier, which could create vulnerabilities in the supply chain if UNICOR faces production issues. Furthermore, while UNICOR serves a social mission, its operational efficiency and cost-effectiveness may not always align with market-driven benchmarks, potentially leading to higher costs for the government and taxpayers. Ensuring quality control and timely delivery from a sole-source provider also requires robust government oversight.
What was the historical spending pattern for this specific type of equipment or with UNICOR by the Department of the Army prior to this contract?
The provided data snippet focuses on a single contract awarded in 2006. It does not offer historical spending patterns for this specific type of communications equipment or for UNICOR's contracts with the Department of the Army. To assess historical spending, one would need to analyze procurement data over several fiscal years, identifying all contracts awarded for similar equipment (e.g., under NAICS 334220) and all contracts awarded to UNICOR by the Army. This would reveal trends in contract values, quantities, and the prevalence of sole-source versus competitive awards, providing context for the $62.66 million contract.
What mechanisms were in place to ensure the quality and timely delivery of the communications equipment manufactured by UNICOR?
As a fixed-price contract awarded by the Department of the Army, the primary mechanism for ensuring quality and timely delivery was the contract's terms and conditions, including specifications, delivery schedules, and acceptance criteria. Government quality assurance representatives (QARs) would typically be assigned to monitor production, inspect goods, and ensure compliance with technical requirements. UNICOR, as a federal entity, also has internal quality management systems. The contract's completion rate of over 99% suggests that these mechanisms were largely effective in achieving the desired outcomes, although the exact nature of oversight activities is not detailed in the provided data.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: HARDWARE AND ABRASIVES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Government of the United States (UEI: 161906193)
Address: 320 1ST ST NW, WASHINGTON, DC, 98
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DK210
IDV Type: IDC
Timeline
Start Date: 2006-06-15
Current End Date: 2007-10-30
Potential End Date: 2008-06-14 00:00:00
Last Modified: 2008-07-10
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