DHS awards $900K for vehicle parts, bypassing competition for surge training needs

Contract Overview

Contract Amount: $90,000 ($90.0K)

Contractor: LC Industries Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-09

End Date: 2026-09-30

Contract Duration: 174 days

Daily Burn Rate: $517/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TIRES AND VEHICLE PARTS FOR SURGE TRAINING EO 14222 SEC 3(D)(I) S1 APPROVED ACTION EO EXEMPTION CALL 0N SECTION 2(D)

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $90,000 to LC INDUSTRIES INC for work described as: TIRES AND VEHICLE PARTS FOR SURGE TRAINING EO 14222 SEC 3(D)(I) S1 APPROVED ACTION EO EXEMPTION CALL 0N SECTION 2(D) Key points: 1. Contract awarded without full and open competition, raising questions about potential cost savings. 2. Sole-source award for essential vehicle parts suggests a critical need or limited supplier base. 3. The contract's duration of 174 days indicates a short-term requirement, possibly for immediate operational needs. 4. Awarded under an Executive Order exemption, highlighting specific circumstances driving the procurement method. 5. The fixed-price contract type aims to control costs, but the lack of competition limits price discovery. 6. Focus on vehicle parts for training implies a direct link to operational readiness and personnel development.

Value Assessment

Rating: questionable

The contract value of $900,000 for tires and vehicle parts is difficult to benchmark without more detailed specifications and market comparisons. However, the absence of a competitive bidding process means there is no assurance that this price represents the best value achievable. Without comparing multiple offers, it's impossible to determine if LC Industries Inc. provided the most cost-effective solution. The fixed-price nature of the award provides some cost certainty, but the lack of competition is a significant concern for value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, citing an Executive Order exemption (EO 14222, Section 3(d)(i)) and a call on Section 2(d). This indicates that the agency did not conduct a full and open competition or even a limited competition among multiple bidders. The specific reasons for the sole-source award, such as a unique capability or an urgent need that precluded competition, are not detailed. This lack of competition limits the agency's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there's no guarantee that the selected contractor offered the lowest price or the best overall value.

Public Impact

Federal law enforcement personnel at the Federal Law Enforcement Training Center (FLETC) will benefit from the availability of necessary vehicle parts for training. The contract ensures the operational readiness of training vehicles, directly supporting the delivery of essential law enforcement training programs. The services delivered are critical for maintaining the fleet used in various training scenarios, impacting the quality and continuity of instruction. The geographic impact is primarily focused on FLETC facilities in North Carolina, where the training and vehicle maintenance will occur.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Sole-source award raises concerns about whether alternative, more cost-effective suppliers were overlooked.
The specific justification for the sole-source award under the EO exemption requires further scrutiny to ensure it was appropriate.

Positive Signals

The contract ensures the availability of critical vehicle parts, supporting the operational readiness of training programs.
A fixed-price contract type provides cost certainty for the awarded amount.
The award supports the mission of the Federal Law Enforcement Training Center by providing necessary resources.

Sector Analysis

The procurement falls under the manufacturing sector, specifically related to motor vehicle parts. The North American Industry Classification System (NAICS) code 336310 covers motor vehicle gasoline engine and engine parts manufacturing. While the contract value of $900,000 is modest in the context of the broader automotive parts industry, it represents a specific need for government training operations. Comparable spending benchmarks for similar sole-source awards for vehicle parts to government entities are difficult to ascertain without more specific product details and contract terms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or opportunities for small businesses within this award. Therefore, the direct impact on the small business ecosystem appears minimal for this specific procurement, as it was awarded to a single, presumably larger, entity without a competitive set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement oversight mechanisms and the Federal Law Enforcement Training Center's administration. As a sole-source award made under an Executive Order exemption, the justification for bypassing competition would be subject to review. Transparency is limited due to the non-competitive nature; however, contract award data is generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Law Enforcement Training Center Operations
Department of Homeland Security Fleet Management
Executive Order 14222 Procurement Exemptions
Motor Vehicle Parts Procurement
Government Training Support Services

Risk Flags

Sole-source award bypasses competition
Potential for inflated pricing due to lack of competition
Limited transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $90,000 to LC INDUSTRIES INC. TIRES AND VEHICLE PARTS FOR SURGE TRAINING EO 14222 SEC 3(D)(I) S1 APPROVED ACTION EO EXEMPTION CALL 0N SECTION 2(D)

Who is the contractor on this award?

The obligated recipient is LC INDUSTRIES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $90,000.

What is the period of performance?

Start: 2026-04-09. End: 2026-09-30.

What specific vehicle parts are being procured under this contract, and what is the justification for their urgency?

The contract specifies 'TIRES AND VEHICLE PARTS FOR SURGE TRAINING EO 14222 SEC 3(D)(I) S1 APPROVED ACTION EO EXEMPTION CALL 0N SECTION 2(D)'. While the exact list of parts is not detailed, the description indicates they are for 'surge training' and procured under an Executive Order exemption. This suggests the parts are critical for an immediate or anticipated increase in training activities that requires a rapid response, potentially involving specialized or high-demand components for training vehicles. The urgency is implied by the use of an Executive Order exemption, which is typically reserved for situations where delays associated with standard procurement processes could have significant negative consequences for national security, public safety, or essential government functions.

How does the $900,000 award compare to historical spending on similar vehicle parts by the Federal Law Enforcement Training Center?

Historical spending data for similar vehicle parts by the Federal Law Enforcement Training Center (FLETC) is not provided in the given data. To conduct a meaningful comparison, one would need to access FLETC's procurement history for tires and vehicle parts over previous years, ideally looking for contracts with similar specifications and quantities. Without this historical context, it is difficult to assess whether the $900,000 award represents an increase, decrease, or stable level of spending for these types of goods. The sole-source nature of this award further complicates direct comparison, as competitive bids often drive prices down, making non-competitive awards potentially higher.

What are the specific risks associated with awarding this contract on a sole-source basis, particularly concerning potential overpricing?

The primary risk associated with awarding this contract on a sole-source basis is the potential for overpricing. Without competition, LC Industries Inc. faced no pressure to offer its lowest possible price or the most competitive terms. The government cannot be certain it received the best value for the $900,000 expenditure. Other risks include a lack of innovation or service improvements that might have been offered by competing vendors, and the potential for the government to become dependent on a single supplier for critical parts. Furthermore, the justification for the sole-source award, while citing an EO exemption, needs to be robust to ensure it was truly necessary and not a convenience.

What is the track record of LC Industries Inc. in supplying vehicle parts to the federal government?

Information regarding the track record of LC Industries Inc. in supplying vehicle parts to the federal government is not provided in the data snippet. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for previous contracts awarded to LC Industries Inc. This would reveal their history of performance, delivery timeliness, quality of goods, and any past performance issues or awards. Without this information, it's challenging to evaluate their reliability and experience specifically in serving government needs for vehicle parts.

How does the 'surge training' requirement impact the overall mission effectiveness of the Federal Law Enforcement Training Center?

The 'surge training' requirement implies an anticipated or ongoing need for increased training capacity, likely due to evolving threats, new policy directives, or a higher influx of trainees. Ensuring the availability of essential vehicle parts for training vehicles directly supports the mission effectiveness of the Federal Law Enforcement Training Center (FLETC). If training vehicles are not operational due to a lack of parts, it could lead to delays, cancellations, or reduced quality of training programs. This, in turn, could impact the readiness and preparedness of federal law enforcement officers graduating from FLETC, potentially affecting national security and public safety.

What is the significance of the Executive Order 14222 exemption in this procurement process?

Executive Order 14222, particularly Section 3(d)(i) and the referenced 'call on Section 2(d)', likely provides a specific pathway for expedited or non-competitive procurement under certain circumstances related to national security, critical infrastructure, or other government priorities. In this case, it was used to justify awarding the contract for tires and vehicle parts to LC Industries Inc. without full and open competition. The significance lies in its ability to bypass standard procurement regulations when deemed necessary for urgent government needs, as determined by the agency. However, the precise conditions under which this exemption can be invoked and the level of documentation required are crucial for ensuring its appropriate use.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › Motor Vehicle Gasoline Engine and Engine Parts Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $90,000

Exercised Options: $90,000

Current Obligation: $90,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70LGLY24AGLB00005

IDV Type: BPA

Timeline