Justice Department awards $8.4M contract for eyeglasses to Federal Prison Industries, bypassing competition
Contract Overview
Contract Amount: $8,455 ($8.5K)
Contractor: Federal Prison Industries, Inc
Awarding Agency: Department of Justice
Start Date: 2025-01-16
End Date: 2025-09-30
Contract Duration: 257 days
Daily Burn Rate: $33/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EYEGLASS ORDER OCT 2025
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40511
State: Kentucky Government Spending
Plain-Language Summary
Department of Justice obligated $8,455 to FEDERAL PRISON INDUSTRIES, INC for work described as: EYEGLASS ORDER OCT 2025 Key points: 1. The contract leverages a sole-source award to Federal Prison Industries, Inc. (FPI), a government-owned entity. 2. This award avoids competitive bidding, potentially limiting price discovery and value for money. 3. The contract duration is approximately 8 months, covering the period leading up to October 2025. 4. The specific product is ophthalmic goods manufacturing, categorized under NAICS code 339115. 5. The contract is a firm-fixed-price purchase order, indicating a set price for the goods. 6. The award is made to a single entity, raising questions about market responsiveness and alternative sourcing.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the sole-source nature and lack of publicly available pricing details for comparable ophthalmic goods from FPI. Without competitive bids, it's difficult to assess if the firm-fixed price represents a fair market value or if alternative suppliers could offer better pricing or terms. The absence of competition inherently limits the government's ability to negotiate the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to Federal Prison Industries, Inc. (FPI), also known as UNICOR. FPI is a government corporation that utilizes inmate labor to manufacture products and provide services to federal agencies. The Federal Acquisition Regulation (FAR) allows for sole-source procurements under specific circumstances, such as when only one responsible source is available. In this case, the justification for not competing the award likely stems from FPI's unique position and mandate.
Taxpayer Impact: Awarding contracts without competition can lead to higher costs for taxpayers if the sole-source provider does not face market pressures to offer competitive pricing. It also limits opportunities for other businesses, including small businesses, to compete for government contracts.
Public Impact
Inmates employed by Federal Prison Industries will benefit from work opportunities and potential skill development. Federal correctional facilities will receive necessary ophthalmic goods, ensuring the vision care needs of inmates are met. The contract supports the operational requirements of the Bureau of Prisons within the Department of Justice. The geographic impact is primarily within Kentucky, where the supplier is located, but the beneficiaries are federal inmates nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing for taxpayers.
- Reliance on a single source limits flexibility and potential for innovation from the broader market.
- The use of inmate labor, while providing employment, may have associated quality control or production capacity considerations that are not publicly transparent.
Positive Signals
- Provides meaningful work opportunities for federal inmates, contributing to rehabilitation efforts.
- Ensures a consistent supply of essential ophthalmic goods to federal correctional facilities.
- Supports the government's mandate to utilize FPI for certain product and service needs.
Sector Analysis
The ophthalmic goods manufacturing sector is diverse, encompassing the production of eyeglasses, contact lenses, and related optical equipment. While many private companies operate in this space, Federal Prison Industries (FPI) holds a unique position as a government-owned entity that leverages inmate labor. This contract falls within the broader manufacturing and industrial products category for government procurement. Comparable spending benchmarks are difficult to establish due to the sole-source nature of this award and the specific mandate of FPI.
Small Business Impact
This contract is awarded to Federal Prison Industries, Inc., which is not a small business and does not typically participate in small business set-aside programs. As a sole-source award, there are no subcontracting opportunities generated for small businesses through this specific procurement. The focus is on fulfilling the government's mandate with FPI, rather than fostering small business participation.
Oversight & Accountability
Oversight of Federal Prison Industries is managed by the Department of Justice and its Bureau of Prisons. The Federal Acquisition Regulation (FAR) provides a framework for government contracting, but the unique nature of FPI as a government corporation means oversight may differ from typical agency procurements. Transparency regarding production costs, pricing methodologies, and quality assurance processes for FPI contracts is often limited compared to competitively awarded contracts.
Related Government Programs
- Federal Prison Industries (UNICOR) Contracts
- Bureau of Prisons Medical Supplies
- Department of Justice Procurement
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Limited price transparency
Tags
department-of-justice, bureau-of-prisons, ophthalmic-goods, manufacturing, sole-source, purchase-order, firm-fixed-price, federal-prison-industries, inmate-labor, ky, medical-supplies
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $8,455 to FEDERAL PRISON INDUSTRIES, INC. EYEGLASS ORDER OCT 2025
Who is the contractor on this award?
The obligated recipient is FEDERAL PRISON INDUSTRIES, INC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $8,455.
What is the period of performance?
Start: 2025-01-16. End: 2025-09-30.
What is the historical spending pattern for ophthalmic goods by the Department of Justice?
Historical spending data for ophthalmic goods by the Department of Justice (DOJ) is not readily available in a consolidated public format. However, the DOJ, through its Bureau of Prisons (BOP), consistently procures a wide range of goods and services to support its facilities and inmate population. Contracts for medical supplies, including vision care items, are a recurring necessity. The specific volume and value of ophthalmic goods procured can fluctuate based on inmate population needs, facility upgrades, and the availability of specific suppliers. The current award to Federal Prison Industries, Inc. (FPI) for $8.46 million suggests a significant requirement for these goods over the contract period. Without access to detailed historical BOP procurement databases, a precise year-over-year spending trend for ophthalmic goods is difficult to ascertain, but it is understood to be an ongoing operational expense.
How does the pricing of this contract compare to market rates for similar ophthalmic goods?
Direct comparison of this contract's pricing to market rates is challenging due to its sole-source nature and the unique operational model of Federal Prison Industries (FPI). FPI utilizes inmate labor, which may influence its cost structure differently than private sector manufacturers. The contract is a firm-fixed-price purchase order, meaning the price is set. However, without access to FPI's internal cost breakdowns or competitive bids from other ophthalmic goods manufacturers for equivalent products, it's impossible to definitively state whether the price is higher or lower than market rates. Typically, sole-source contracts, especially those not subject to robust price analysis, carry a risk of being less cost-effective than competitively bid awards. Further analysis would require detailed cost data from FPI or comparable quotes from commercial vendors.
What are the potential risks associated with awarding this contract to Federal Prison Industries on a sole-source basis?
The primary risk associated with awarding this contract to Federal Prison Industries (FPI) on a sole-source basis is the potential for reduced value for money. Without competition, there is less incentive for FPI to offer the lowest possible price, and the government foregoes the opportunity to negotiate based on multiple bids. Another risk is the potential for limited innovation or product variety, as FPI's offerings may be standardized. Furthermore, reliance on a single source can create supply chain vulnerabilities if FPI experiences production issues. Transparency regarding quality control and production capacity can also be a concern, as FPI operates under a different framework than commercial entities. Finally, the use of inmate labor, while having rehabilitative benefits, may also present unique management and oversight challenges.
What is the track record of Federal Prison Industries in delivering ophthalmic goods?
Federal Prison Industries (FPI), also known as UNICOR, has a long-standing history of manufacturing various products and providing services to federal agencies, including ophthalmic goods. While specific performance metrics for their ophthalmic goods division are not publicly detailed in contract award notices, FPI's overall mission is to provide work opportunities for federal inmates and supply products to government entities. Their track record involves fulfilling numerous contracts across different sectors. For ophthalmic goods, the Bureau of Prisons has historically relied on FPI to meet inmate vision care needs. The success of past deliveries would be reflected in the ongoing nature of these awards, suggesting a level of satisfaction with their ability to meet basic requirements, though detailed quality and timeliness data is not readily available for public scrutiny.
How does this contract align with the government's objectives for inmate rehabilitation and employment?
This contract directly aligns with the government's objectives for inmate rehabilitation and employment by providing work opportunities within Federal Prison Industries (FPI). FPI's mandate is to employ federal inmates, offering them skills training, work experience, and a wage, which are considered crucial components of rehabilitation. By manufacturing ophthalmic goods, inmates gain experience in a production environment. This employment can contribute to reduced recidivism rates by equipping individuals with marketable skills and fostering a sense of responsibility. The contract, therefore, serves a dual purpose: fulfilling a government procurement need while simultaneously supporting the correctional system's rehabilitative mission.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Ophthalmic Goods Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
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
Address: 3301 LEESTOWN RD, LEXINGTON, KY, 40511
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $8,455
Exercised Options: $8,455
Current Obligation: $8,455
Actual Outlays: $8,455
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-01-16
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-04-08
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