DoD's $3.3M outerwear contract to Peckham Vocational Industries shows limited competition and raises value questions

Contract Overview

Contract Amount: $32,935,454 ($32.9M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-12-03

End Date: 2010-09-30

Contract Duration: 301 days

Daily Burn Rate: $109.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLOTHING, SPECIAL PURPOSE

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48906

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: CLOTHING, SPECIAL PURPOSE Key points: 1. The contract was awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The firm fixed-price contract type suggests cost certainty for the government, but the lack of competition hinders benchmarking. 3. The contract's duration of 301 days indicates a relatively short-term need for these specialized garments. 4. The specific product code (315228) relates to men's and boys' outerwear manufacturing, suggesting a niche requirement. 5. The award to Peckham Vocational Industries, a firm with a history of government contracts, warrants a review of past performance and pricing.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.3 million contract is challenging due to the lack of competitive bidding. Without comparable contract data or market analysis for specialized outerwear, it's difficult to definitively assess if the pricing was optimal. The firm fixed-price nature provides some cost control, but the absence of competition means the government may not have secured the best possible price. Further analysis would require understanding the specific technical requirements and the market for such specialized garments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. This typically occurs when only one responsible source can fulfill the requirement. The lack of competition means that multiple bidders were not considered, which can limit the government's ability to negotiate the most favorable pricing and terms. Price discovery is significantly hampered when there are no competing offers.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from a competitive bidding process. The government may have paid a higher price than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiaries are likely military personnel requiring specialized outerwear, ensuring they have appropriate gear for their duties. The contract delivers specific types of men's and boys' outerwear, contributing to the overall readiness and operational capability of the Department of Defense. The geographic impact is primarily centered around the manufacturing capabilities of Peckham Vocational Industries, potentially in Michigan where they are located. Workforce implications include employment opportunities within Peckham Vocational Industries and its supply chain, potentially supporting specialized manufacturing jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency in pricing due to sole-source award.
Difficulty in benchmarking value without comparable contract data.
Potential for overpayment without competitive pressure.
Need to verify contractor's historical performance and pricing reasonableness.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to an established contractor may indicate reliability.
Specialized nature of the product suggests a specific need being met.
Potential for supporting a firm with a vocational mission (if applicable).

Sector Analysis

The contract falls within the broader apparel and textiles manufacturing sector, specifically focusing on specialized outerwear. This niche within the manufacturing industry often involves specific technical requirements and potentially limited suppliers. The market size for such specialized military-grade outerwear is likely smaller and more specialized than for general apparel. Benchmarking spending would require identifying other contracts for similar specialized military clothing items.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. As the contract was awarded sole-source, it is unlikely to have been specifically set aside for small businesses. The impact on the small business ecosystem would depend on whether Peckham Vocational Industries utilizes small businesses in its supply chain, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the relevant contracting officer within the Defense Logistics Agency. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver goods at an agreed-upon price. Transparency is limited due to the sole-source nature, but contract award data is publicly available.

Related Government Programs

Military Clothing and Uniforms
Specialty Apparel Manufacturing
Department of Defense Procurement
Defense Logistics Agency Contracts

Risk Flags

Sole-source award limits competition.
Lack of public pricing benchmarks.
Potential for non-optimal pricing.
Need for detailed performance specification review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. CLOTHING, SPECIAL PURPOSE

Who is the contractor on this award?

The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2009-12-03. End: 2010-09-30.

What is the historical spending pattern for similar men's and boys' outerwear by the Defense Logistics Agency?

Analyzing historical spending patterns for similar outerwear by the Defense Logistics Agency (DLA) is crucial for understanding value and necessity. Without specific historical data for this exact product code (315228) and contract type, a comprehensive trend analysis is difficult. However, the DLA procures a wide range of clothing and textile items to support military personnel. Past awards for specialized garments, especially those with unique specifications or limited manufacturers, often reveal price fluctuations based on material costs, production complexity, and competition levels. A review of previous sole-source or limited-competition awards for comparable items could indicate whether the $3.3 million figure for this 301-day contract is within a reasonable range or suggests potential overpricing. Understanding the volume and frequency of such procurements would also shed light on the sustained demand and budget allocation for these specialized items.

How does the unit cost of this contract compare to industry benchmarks for specialized outerwear manufacturing?

Determining the precise unit cost and comparing it to industry benchmarks for specialized outerwear manufacturing is challenging without knowing the exact quantity of items procured under this $3.3 million contract. The data provided indicates a total award value and a contract duration, but not the number of units. If, for example, 10,000 units were procured, the average unit cost would be $330. Specialized military outerwear often involves higher costs due to specific material requirements (e.g., waterproofing, insulation, durability), stringent quality control, and potentially complex manufacturing processes. Industry benchmarks for high-performance outdoor gear or specialized workwear can range significantly, from under $100 to several hundred dollars per item, depending on complexity and brand. Given the sole-source nature of this award, a direct comparison to market-driven prices is difficult, but any available data on similar military contracts or high-end commercial equivalents would be necessary for a meaningful assessment.

What are the specific performance requirements and quality standards for the 'Men's and Boys' Cut and Sew Other Outerwear' procured?

The specific performance requirements and quality standards for the 'Men's and Boys' Cut and Sew Other Outerwear' procured under this contract are not detailed in the provided summary data. However, as a Department of Defense contract, it is reasonable to assume that the outerwear must meet rigorous military specifications. These specifications typically encompass factors such as material durability, resistance to environmental conditions (e.g., temperature, moisture), functionality for intended military operations, and compliance with specific sizing and fit standards. Quality control measures would likely include inspections during and after production to ensure adherence to these standards. The 'Other Outerwear' classification suggests it may not be a standard uniform item but rather specialized gear for specific roles or climates. Detailed technical data sheets and performance requirement documents, usually referenced within the contract itself, would provide the precise standards.

What is Peckham Vocational Industries' track record with similar sole-source contracts, and has their pricing been scrutinized previously?

Peckham Vocational Industries, Inc. has a history of receiving government contracts, including those awarded on a sole-source or limited-competition basis. Analyzing their track record with similar contracts is essential for assessing the reasonableness of this $3.3 million award. Information on past performance, including delivery timeliness, product quality, and any past performance issues or disputes, would provide context. Regarding pricing, a review of previous sole-source awards to Peckham Vocational Industries could reveal if their pricing has been subject to scrutiny or if they have consistently been awarded contracts without competitive bidding. Government agencies often conduct price analyses for sole-source procurements to ensure fair and reasonable pricing, even without competing offers. Examining publicly available contract databases and audit reports could offer insights into their pricing practices and any historical concerns.

What is the strategic importance of this specific type of outerwear to the Defense Logistics Agency's mission?

The strategic importance of this specific type of outerwear to the Defense Logistics Agency's (DLA) mission lies in its role in supporting the operational readiness and well-being of military personnel. The DLA's primary function is to provide logistics support, including clothing and equipment, to all branches of the U.S. military. Specialized outerwear, such as that covered by product code 315228, is critical for ensuring service members are adequately protected and equipped for various environmental conditions and operational demands. Whether for extreme cold weather, specific tactical operations, or specialized roles, such garments contribute directly to mission effectiveness and personnel safety. The procurement of these items, even through a sole-source award, underscores their necessity and the DLA's commitment to fulfilling these essential supply chain requirements.

Industry Classification

NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Men's and Boys' Cut and Sew Other Outerwear Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

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

Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 07

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $32,935,454

Exercised Options: $32,935,454

Current Obligation: $32,935,454

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM1C110DN005

IDV Type: IDC

Timeline