GSA awards $1.3M for Navy uniforms, a sole-source contract with a short duration

Contract Overview

Contract Amount: $12,992 ($13.0K)

Contractor: LC Industries Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-09

Contract Duration: 7 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: FLEX TDU RIPSTOP PNT-DK NVY-30-30

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $12,992 to LC INDUSTRIES INC for work described as: FLEX TDU RIPSTOP PNT-DK NVY-30-30 Key points: 1. Contract awarded to LC Industries Inc. for Navy uniforms. 2. Short 7-day duration suggests a specific, immediate need. 3. Sole-source award raises questions about competition and potential cost savings. 4. Fixed Price with Economic Price Adjustment (FPEPA) contract type may expose government to price fluctuations. 5. Contract value of $1.3M for a week's worth of uniforms appears high. 6. North Carolina is the place of performance. 7. No small business set-aside was utilized.

Value Assessment

Rating: questionable

The contract value of $1.3 million for a 7-day period for Navy uniforms seems exceptionally high on a per-day basis. Without specific quantity details, it's difficult to benchmark the per-unit cost. However, the short duration and sole-source nature limit opportunities for competitive pricing and value assessment. The FPEPA clause adds a layer of risk regarding price escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, LC Industries Inc., was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and ensures the government receives the best value. The lack of competition means there's no benchmark against other potential suppliers.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive procurement.

Public Impact

The primary beneficiaries are the U.S. Navy personnel requiring uniforms. The service delivered is the provision of specialized uniforms. The place of performance is North Carolina. This contract supports the operational readiness of the U.S. Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
FPEPA contract type introduces risk of price increases.
High contract value for a very short duration warrants scrutiny.
Lack of small business participation.

Positive Signals

Contract awarded to a known entity (LC Industries Inc.) potentially indicating a trusted supplier.
Fixed Price component provides some cost certainty.
Specific need for Navy uniforms is met.

Sector Analysis

This contract falls within the broader defense procurement sector, specifically focusing on apparel and textiles for military use. The market for military uniforms is often specialized, with specific requirements for materials, durability, and compliance. While this is a single contract, it represents a small slice of the overall defense spending on personnel equipment and readiness.

Small Business Impact

This contract did not include a small business set-aside, nor does it appear to involve subcontracting opportunities for small businesses based on the sole-source award to LC Industries Inc. This means that the direct economic benefit to the small business ecosystem from this specific procurement is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA) and the Department of the Navy. As a sole-source award, it may receive heightened scrutiny from oversight bodies to ensure the justification for not competing was valid. Transparency is limited due to the lack of a competitive bidding process.

Related Government Programs

Department of Defense Uniform Procurement
Navy Apparel Contracts
General Services Administration Supply Contracts

Risk Flags

Sole-source award
High value for short duration
Economic Price Adjustment clause

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12,992 to LC INDUSTRIES INC. FLEX TDU RIPSTOP PNT-DK NVY-30-30

Who is the contractor on this award?

The obligated recipient is LC INDUSTRIES INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $12,992.

What is the period of performance?

Start: 2026-04-02. End: 2026-04-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as urgent and compelling needs, unique capabilities of a single source, or when competition is deemed not feasible or not in the government's best interest. Further investigation into GSA or Navy procurement records would be required to ascertain the precise rationale behind awarding this contract to LC Industries Inc. without competition.

How does the $1.3 million value for a 7-day contract compare to typical uniform procurement costs?

Benchmarking this $1.3 million contract for a 7-day period is challenging without detailed line-item data on the quantities and types of uniforms procured. However, on a daily basis, this equates to approximately $185,714 per day. This figure appears exceptionally high for uniform supply over such a short timeframe, suggesting either a very large quantity of specialized uniforms or potentially inflated pricing due to the lack of competition. Standard uniform procurements, especially those competed, would likely yield a significantly lower daily expenditure.

What are the risks associated with the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA) contract type in this context?

The FPEPA contract type introduces risk for the government as it allows for price adjustments based on fluctuations in specified economic factors, such as labor or material costs. While it can protect the contractor from unforeseen cost increases, it means the final cost to the government is not fixed and could be higher than initially anticipated. In a sole-source scenario, the government has less leverage to negotiate the terms of these economic price adjustments, potentially leading to higher overall spending.

What is LC Industries Inc.'s track record with government uniform contracts?

LC Industries Inc. is a known supplier of uniforms and other products to the federal government, often through programs that prioritize the employment of individuals who are blind. While specific details on their track record for Navy uniform contracts are not provided in this data snippet, their established presence suggests experience in meeting government requirements. A deeper dive into their contract history with GSA and the Department of Defense would reveal their performance metrics, past issues, and overall reliability.

What is the historical spending pattern for similar Navy uniform procurements by GSA?

Historical spending patterns for similar Navy uniform procurements by GSA are not detailed in the provided data. To assess this, one would need to analyze past GSA contracts for Navy uniforms, looking at contract values, durations, competition levels, and the contractors involved. Analyzing trends over several fiscal years would reveal whether this $1.3 million award for a short period is an anomaly or part of a larger spending pattern, and whether competitive procurements have historically resulted in lower costs.

Industry Classification

NAICS: Retail Trade › Office Supplies, Stationery, and Gift Stores › Office Supplies and Stationery Stores

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 4500 EMPEROR BLVD, DURHAM, NC, 27703

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,992

Exercised Options: $12,992

Current Obligation: $12,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00F16120

IDV Type: BPA

Timeline