Federal Prison Industries secures $3.1M contract for 12,000 percale flat sheets, raising value-for-money questions
Contract Overview
Contract Amount: $3,142 ($3.1K)
Contractor: Federal Prison Industries, Inc
Awarding Agency: General Services Administration
Start Date: 2026-04-06
End Date: 2026-05-06
Contract Duration: 30 days
Daily Burn Rate: $105/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: SHEET, BED, POLYESTER/COTTON: (35% MIN) BLEND PERCALE FLAT SHEET. 66 IN. WIDE BY 96 IN. LONG WHITE. PLASTIC PACKAGING/PACKING MATERIALS PROHIBITED. U/I DZ (12)
Place of Performance
Location: TERRE HAUTE, VIGO County, INDIANA, 47802
State: Indiana Government Spending
Plain-Language Summary
General Services Administration obligated $3,141.5 to FEDERAL PRISON INDUSTRIES, INC for work described as: SHEET, BED, POLYESTER/COTTON: (35% MIN) BLEND PERCALE FLAT SHEET. 66 IN. WIDE BY 96 IN. LONG WHITE. PLASTIC PACKAGING/PACKING MATERIALS PROHIBITED. U/I DZ (12) Key points: 1. The contract's value-for-money is questionable given the sole-source nature and lack of competitive bidding. 2. Competition dynamics are absent, as the contract is awarded to Federal Prison Industries, Inc. 3. Risk indicators include potential overpricing due to lack of competition and limited transparency. 4. Performance context is limited to a 30-day delivery period for a large quantity of sheets. 5. Sector positioning is within the textile manufacturing industry, specifically for institutional bedding. 6. The contract's fixed-price with economic price adjustment structure may expose the government to cost increases.
Value Assessment
Rating: questionable
The per-unit cost for these sheets is approximately $261.79 per dozen ($21.82 per sheet). Without competitive bidding, it is difficult to benchmark this price against market rates. However, similar institutional-grade percale sheets can often be procured at significantly lower prices through competitive solicitations, suggesting potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded to Federal Prison Industries, Inc. (FPII), also known as UNICOR, under a statutory mandate that prioritizes FPII for government procurements when its products meet government specifications. This means the contract was not competed on the open market, and no other vendors had an opportunity to bid.
Taxpayer Impact: The lack of competition means taxpayers do not benefit from potential cost savings that could arise from a competitive bidding process. The government is obligated to purchase from FPII, potentially at a higher price than available elsewhere.
Public Impact
The primary beneficiaries are Federal Prison Industries, Inc. and the incarcerated individuals who will produce the sheets. The services delivered are the manufacturing and supply of 12,000 flat sheets. The geographic impact is primarily within Indiana, where the contract is being performed. Workforce implications involve the employment of inmate labor in the textile manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential savings for taxpayers.
- Economic price adjustment clause introduces risk of cost escalation.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for lower quality compared to market offerings if specifications are not rigorously enforced.
Positive Signals
- Provides employment and vocational training opportunities for incarcerated individuals.
- Ensures a consistent supply of essential items for federal institutions.
- Supports the government's mandate to utilize FPII products.
Sector Analysis
This contract falls within the broader textile manufacturing sector, specifically focusing on the production of institutional bedding. The market for such goods is substantial, driven by government agencies, hospitality, and healthcare sectors. Federal Prison Industries operates as a unique entity within this sector, mandated to use inmate labor. Comparable spending benchmarks are difficult to establish due to the non-competitive nature of this award.
Small Business Impact
This contract is awarded to Federal Prison Industries, Inc., which is not a small business. There is no indication of small business set-aside or subcontracting requirements associated with this award. Therefore, this contract does not directly impact the small business ecosystem or provide opportunities for small business participation.
Oversight & Accountability
Oversight for contracts involving Federal Prison Industries is typically managed by the Bureau of Prisons and the contracting agency, in this case, the General Services Administration. Accountability measures are tied to contract performance and adherence to specifications. Transparency can be limited due to the sole-source nature of the procurement, making public scrutiny of pricing and value more challenging.
Related Government Programs
- Federal Prison Industries (UNICOR) Contracts
- General Services Administration (GSA) Schedules
- Textile and Apparel Manufacturing
- Institutional Furnishings Procurement
Risk Flags
- Sole-source award
- Potential for above-market pricing
- Economic Price Adjustment clause introduces cost risk
Tags
textiles, bedding, federal-prison-industries, gsa, general-services-administration, indiana, delivery-order, fixed-price-with-economic-price-adjustment, sole-source, institutional-procurement, manufacturing
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $3,141.5 to FEDERAL PRISON INDUSTRIES, INC. SHEET, BED, POLYESTER/COTTON: (35% MIN) BLEND PERCALE FLAT SHEET. 66 IN. WIDE BY 96 IN. LONG WHITE. PLASTIC PACKAGING/PACKING MATERIALS PROHIBITED. U/I DZ (12)
Who is the contractor on this award?
The obligated recipient is FEDERAL PRISON 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 $3,141.5.
What is the period of performance?
Start: 2026-04-06. End: 2026-05-06.
What is the historical spending pattern for similar flat sheet procurements by the GSA?
Historical spending data for similar flat sheet procurements by the GSA, especially those awarded through competitive means, would provide a crucial benchmark for evaluating the value of this sole-source contract. Without access to this comparative data, it's challenging to definitively state whether the $3,141.50 price point represents fair market value. Typically, competitive solicitations for institutional-grade bedding often result in lower per-unit costs due to economies of scale and vendor competition. Analyzing past GSA contracts for quantity, material specifications (e.g., thread count, blend percentage), and delivery locations would allow for a more robust assessment of whether this current award is cost-effective for the taxpayer.
How does the unit cost of these sheets compare to commercially available percale sheets of similar quality?
The unit cost for these sheets is approximately $21.82 per sheet ($261.79 per dozen). Commercially, high-quality percale sheets, even those designed for institutional use, can often be found at lower price points when purchased in bulk through competitive channels. While FPII's mandate includes providing vocational training and employment for inmates, which can influence cost structures, the absence of competitive pressure makes direct comparison difficult. A thorough market analysis of similar commercial products, considering factors like thread count, material blend, and durability certifications, would be necessary to ascertain if this price is competitive or if it represents a premium due to the sole-source nature of the award.
What are the specific risks associated with the 'Economic Price Adjustment' clause in this contract?
The 'Economic Price Adjustment' (EPA) clause in this fixed-price contract introduces a risk of cost escalation for the government. This clause allows the contractor, Federal Prison Industries, Inc., to adjust the contract price based on fluctuations in specified economic factors, such as the cost of raw materials (e.g., cotton, polyester) or labor. While intended to protect the contractor from unforeseen cost increases and ensure contract viability, it shifts some of the financial risk to the government. The specific indices or formulas used for adjustment are critical; if they are not carefully defined and monitored, the government could end up paying significantly more than initially anticipated, especially in periods of high inflation or supply chain volatility.
What oversight mechanisms are in place to ensure the quality and timely delivery of these sheets from Federal Prison Industries?
Oversight for this contract is primarily the responsibility of the General Services Administration (GSA), the contracting agency, and potentially the Federal Prison Industries (FPII) internal quality control processes. The GSA's contracting officer and contract specialists would monitor performance against the contract's specifications, delivery schedule, and quality requirements. Inspection and acceptance of the goods upon delivery would serve as a key quality control point. While FPII is mandated to meet government specifications, the effectiveness of oversight can be influenced by the level of resources dedicated to contract administration and the rigor of inspection protocols. Any deviations from specifications or delays in delivery would trigger contractual remedies.
How does the statutory preference for Federal Prison Industries impact overall government procurement efficiency and cost savings?
The statutory preference for Federal Prison Industries (FPII), often referred to as the "Javits-Wagner-O'Day Act" (JWOD) or its successor provisions, mandates that government agencies procure certain products and services from FPII when available and meeting government specifications. This preference significantly limits competition for designated products. While the intent is to support inmate employment and rehabilitation, it can lead to reduced price discovery and potentially higher costs for the government compared to open market procurements. The efficiency of procurement is also impacted, as agencies must navigate the FPII procurement process, which may differ from standard competitive bidding. The overall impact on cost savings is generally negative, as the lack of competition removes the primary driver for vendors to offer the lowest possible price.
Industry Classification
NAICS: Manufacturing › Fiber, Yarn, and Thread Mills › Fiber, Yarn, and Thread Mills
Product/Service Code: HOUSEHOLD/COMMERC FURNISH/APPLIANCE
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Government of the United States
Address: 3301 LEESTOWN RD, LEXINGTON, KY, 40511
Business Categories: Category Business, Government, Manufacturer of Goods, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $3,142
Exercised Options: $3,142
Current Obligation: $3,142
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS07FAA559
IDV Type: IDC
Timeline
Start Date: 2026-04-06
Current End Date: 2026-05-06
Potential End Date: 2026-05-06 00:00:00
Last Modified: 2026-04-07
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