Department of the Army awards $14.6M contract for wiring devices, with a 11% discount on one line item
Contract Overview
Contract Amount: $14,648,918 ($14.6M)
Contractor: Federal Prison Industries, Inc
Awarding Agency: Department of Defense
Start Date: 2007-11-16
End Date: 2009-08-21
Contract Duration: 644 days
Daily Burn Rate: $22.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER FOR MOUNTS - 100% TO UNICOR. SLIN 0001AA HAS 11% DISCOUNT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20534
Plain-Language Summary
Department of Defense obligated $14.6 million to FEDERAL PRISON INDUSTRIES, INC for work described as: DELIVERY ORDER FOR MOUNTS - 100% TO UNICOR. SLIN 0001AA HAS 11% DISCOUNT. Key points: 1. The contract leverages a 100% set-aside to UNICOR (Federal Prison Industries, Inc.), potentially limiting broader market competition. 2. A notable 11% discount was achieved on SLIN 0001AA, indicating potential for cost savings through specific item negotiation. 3. The contract's duration of 644 days suggests a moderate-term need for these specialized wiring devices. 4. The award was made under a firm-fixed-price contract type, which shifts cost risk to the contractor. 5. The primary product classification is 'Current-Carrying Wiring Device Manufacturing', a niche but essential component for various military systems. 6. The contract's total value of $14.6 million places it in the mid-tier range for federal procurements of this nature.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to the 100% set-aside to UNICOR, which operates under a different economic model than typical commercial firms. While an 11% discount on a specific line item is positive, it's difficult to assess overall value-for-money without comparable bids from the open market. The firm-fixed-price structure provides cost certainty for the government, but the absence of competitive pricing makes a direct comparison to market rates difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for market engagement. However, the data indicates that the award was 100% to UNICOR (Federal Prison Industries, Inc.). This suggests that while the solicitation was open, the award mechanism or specific requirements may have favored UNICOR, or that UNICOR was the only responsive bidder meeting all criteria. Further details on the bidding process would clarify the extent of actual competition.
Taxpayer Impact: While the contract was competed openly, the award to a single entity, UNICOR, means taxpayers did not benefit from the price discovery that typically occurs with multiple competitive bids from diverse suppliers.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Department of the Army, which receives essential current-carrying wiring devices. These devices are critical components for maintaining and operating military equipment and infrastructure. The contract supports the manufacturing workforce within UNICOR's facilities. The geographic impact is primarily within the District of Columbia, where the contract was awarded, and potentially at UNICOR facilities nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited visibility into true market pricing due to the 100% UNICOR award.
- Potential for higher costs compared to a fully competitive market for similar goods.
- Reliance on a single source (UNICOR) for a critical component could pose supply chain risks if not managed effectively.
Positive Signals
- Achieved an 11% discount on a specific line item (SLIN 0001AA), demonstrating some negotiation success.
- Firm-fixed-price contract type provides budget certainty for the government.
- Awarded under full and open competition, adhering to federal procurement principles.
Sector Analysis
The manufacturing of current-carrying wiring devices falls under the broader electrical equipment manufacturing sector. This sector is characterized by specialized production processes and adherence to strict quality and safety standards, particularly for defense applications. Federal Prison Industries (UNICOR) is a unique entity within this sector, mandated to provide employment for federal inmates and supply products to government agencies. Its pricing and operational models may differ significantly from commercial manufacturers, making direct sector-wide spending benchmarks less applicable.
Small Business Impact
This contract was awarded 100% to UNICOR, which is a government-owned entity and not typically subject to small business set-aside requirements or subcontracting plans in the same way as private sector contractors. Therefore, this specific award does not directly impact the small business ecosystem or provide opportunities for small business subcontractors. The focus is on UNICOR's mandate to employ federal inmates.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As UNICOR is involved, the Federal Bureau of Prisons also has an oversight role concerning inmate labor and production. Transparency is generally maintained through contract award databases, but detailed performance metrics and cost breakdowns may be less publicly accessible compared to contracts with private firms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- UNICOR Manufacturing Contracts
- Department of Defense Electrical Equipment Procurement
- Federal Prison Industries
- Current-Carrying Wiring Device Manufacturing
Risk Flags
- Sole-source award to UNICOR limits competitive pricing.
- Potential for higher costs compared to open market alternatives.
- Reliance on a single supplier for critical components.
Tags
defense, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, unicor, federal-prison-industries, wiring-devices, manufacturing, district-of-columbia, mid-tier-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to FEDERAL PRISON INDUSTRIES, INC. DELIVERY ORDER FOR MOUNTS - 100% TO UNICOR. SLIN 0001AA HAS 11% DISCOUNT.
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 $14.6 million.
What is the period of performance?
Start: 2007-11-16. End: 2009-08-21.
What is the track record of UNICOR in delivering current-carrying wiring devices to the Department of the Army?
Federal Prison Industries, Inc. (UNICOR) has a long-standing mandate to supply products and services to federal agencies, including the Department of Defense. While specific performance data for this particular contract (awarded in 2007) is not detailed here, UNICOR's overall track record involves fulfilling numerous government orders across various product categories. Historically, challenges have sometimes arisen regarding product quality, delivery timelines, and pricing competitiveness compared to the open market. However, UNICOR's unique mission of employing federal inmates means that agencies often procure from them as a matter of policy and legislative directive, even if alternative commercial options might offer different advantages. The 11% discount on SLIN 0001AA suggests a willingness to negotiate on specific items within their product catalog.
How does the pricing of these wiring devices compare to similar products in the commercial market?
Direct comparison of pricing for these wiring devices to the commercial market is difficult due to the 100% award to UNICOR. UNICOR operates under a statutory mandate to provide employment for federal inmates and is not driven by the same profit motives or competitive pressures as commercial manufacturers. While an 11% discount was noted on one line item, this does not provide a comprehensive view of the overall value. Historically, UNICOR's pricing has sometimes been higher than comparable commercial items, reflecting its unique operational costs and mission. Conversely, for certain standardized items, UNICOR may offer competitive pricing. Without multiple bids from commercial vendors for this specific requirement, a definitive value-for-money assessment against market rates remains elusive.
What are the primary risks associated with this contract, given the sole-source nature of the award to UNICOR?
The primary risk associated with this contract stems from the 100% award to UNICOR, which, while technically under 'full and open competition,' effectively functions as a sole-source award in practice for this specific requirement. This limits the government's ability to leverage competitive market forces to drive down prices and ensure the best possible value. Risks include potential overpayment compared to commercial alternatives, limited flexibility in product specifications or delivery schedules if UNICOR's production capabilities are constrained, and potential supply chain vulnerabilities if UNICOR faces internal operational disruptions. Furthermore, the lack of direct competition may reduce the incentive for UNICOR to innovate or offer superior quality beyond baseline requirements.
How effective is the firm-fixed-price contract type in managing costs for this specific procurement?
The firm-fixed-price (FFP) contract type is generally effective in managing costs by shifting the risk of cost overruns to the contractor (UNICOR, in this case). This provides the Department of the Army with budget certainty, as the price is set and unlikely to change unless there are contract modifications. For a procurement of manufactured goods like wiring devices, where the scope of work is well-defined, FFP is a suitable choice. The effectiveness in this specific instance is somewhat tempered by the lack of competitive bidding, which means the 'fixed price' might not represent the lowest achievable price in a truly competitive scenario. However, within the constraints of procuring from UNICOR, the FFP structure does provide a predictable cost outcome for the government.
What is the historical spending pattern for current-carrying wiring devices by the Department of the Army?
Historical spending patterns for current-carrying wiring devices by the Department of the Army, and the broader Department of Defense, are varied. Procurement often involves a mix of competitive bids from commercial manufacturers and set-asides for specific entities like UNICOR. Spending can fluctuate based on modernization programs, infrastructure upgrades, and operational tempo. Contracts can range from small, individual purchases to large, multi-year agreements. The Army procures these devices for a wide array of applications, including tactical equipment, base facilities, and vehicle systems. Analyzing past spending would require aggregating data across multiple contract vehicles and vendors, considering factors like quantity, specifications, and contract type to establish trends and identify significant shifts in procurement strategies or market dynamics.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Current-Carrying Wiring Device Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN 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, Manufacturer of Goods, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,648,918
Exercised Options: $14,648,918
Current Obligation: $14,648,918
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T07DL412
IDV Type: IDC
Timeline
Start Date: 2007-11-16
Current End Date: 2009-08-21
Potential End Date: 2012-03-25 00:00:00
Last Modified: 2010-09-14
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