Customs and Border Protection's $277M uniform program awarded to VF Image wear, Inc. over 10 years

Contract Overview

Contract Amount: $276,842,773 ($276.8M)

Contractor: VF Imagewear, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2003-10-01

End Date: 2013-06-30

Contract Duration: 3,560 days

Daily Burn Rate: $77.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: U.S. CUSTOMS AND BORDER PROTECTION UNIFORM PROGRAM

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37214

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $276.8 million to VF IMAGEWEAR, INC. for work described as: U.S. CUSTOMS AND BORDER PROTECTION UNIFORM PROGRAM Key points: 1. The contract's long duration suggests a need for consistent uniform supply, but also raises questions about long-term price stability. 2. VF Image wear, Inc. has been the sole provider for this program, indicating a potential lack of market competition over the contract's life. 3. The contract's 'Time and Materials' pricing structure can introduce cost uncertainty if not carefully managed. 4. The program's performance context is tied to the operational needs of U.S. Customs and Border Protection officers. 5. This contract falls within the 'Other Management Consulting Services' NAICS code, though its primary function is uniform procurement and management. 6. The significant dollar value over a decade highlights the importance of uniform provision to border security operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its long duration and the specific nature of uniform provision for a federal agency. The 'Time and Materials' pricing model, while flexible, can lead to cost overruns if not managed tightly. Comparing the per-unit cost of uniforms would require detailed specifications and market data for similar government contracts, which is not readily available here. The total award value of $276.8 million over 10 years averages to approximately $27.7 million annually, a substantial but potentially reasonable figure for equipping a large federal workforce.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the fact that VF Image wear, Inc. has held this contract for its entire duration suggests that either they were consistently the most competitive bidder, or that subsequent procurements may have faced limited re-competition. The number of bidders (6) is a moderate level of competition for a contract of this scale and duration.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially drives down costs through market forces.

Public Impact

Uniformed personnel of U.S. Customs and Border Protection are the direct beneficiaries, ensuring they have necessary attire for their duties. The contract ensures the continuous supply of uniforms, essential for the operational readiness and professional appearance of CBP officers. The geographic impact is nationwide, covering all areas where CBP operates. Workforce implications include ensuring that CBP officers are properly equipped, which can impact morale and operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over the 10-year period due to the 'Time and Materials' pricing structure.
Lack of demonstrated re-competition over the contract's life could indicate missed opportunities for cost savings.
Dependence on a single contractor for a critical supply chain item like uniforms carries inherent risk.
The broad NAICS code 'Other Management Consulting Services' may not fully capture the procurement nature of this contract.

Positive Signals

Awarded through full and open competition, suggesting a fair initial process.
The long duration indicates a stable and reliable supply chain for essential uniforms.
The significant investment suggests a commitment to equipping CBP personnel adequately.
The contract has been managed by the Department of Homeland Security, a major federal agency with established procurement oversight.

Sector Analysis

This contract falls within the broader sector of government procurement and supply chain management, specifically focusing on apparel and uniform services. The market for federal uniform contracts can be competitive, with specialized manufacturers and distributors vying for these awards. The total spending of $276.8 million over a decade represents a significant portion of the federal government's expenditure on uniforms, highlighting the scale of CBP's operational needs. Comparable spending benchmarks would typically be found within other large federal law enforcement or military agencies procuring similar quantities and types of uniforms.

Small Business Impact

The data indicates that small business participation was not a specific set-aside component for this contract (ss: false, sb: false). While VF Image wear, Inc. may engage small businesses as subcontractors, the primary award was not directed towards small business set-asides. This means that opportunities for small businesses to directly contract with the government for this specific requirement were limited. The impact on the small business ecosystem depends on VF Image wear's subcontracting practices, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. Mechanisms likely include contract performance reviews, financial audits, and adherence to Federal Acquisition Regulation (FAR) guidelines. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Law Enforcement Uniforms
Department of Homeland Security Procurement
Apparel and Textiles Procurement
Government Supply Chain Management
Uniform Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of demonstrated re-competition over a long contract duration.
Sole-source provider risk over an extended period.
Incongruous NAICS code classification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $276.8 million to VF IMAGEWEAR, INC.. U.S. CUSTOMS AND BORDER PROTECTION UNIFORM PROGRAM

Who is the contractor on this award?

The obligated recipient is VF IMAGEWEAR, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $276.8 million.

What is the period of performance?

Start: 2003-10-01. End: 2013-06-30.

What is the historical spending trend for the U.S. Customs and Border Protection Uniform Program over the contract's life?

The contract spanned from October 1, 2003, to June 30, 2013, totaling $276,842,772.54. This averages to approximately $27.68 million per year. Without detailed annual obligation data, it's difficult to ascertain specific spending trends year-over-year. However, the consistent award value suggests a relatively stable demand for uniforms throughout the contract period. The 'Time and Materials' (T&M) pricing structure means actual spending could fluctuate based on labor hours and material costs incurred by the contractor, VF Image wear, Inc. The total obligated amount reflects the ceiling value or actual spending over the contract's duration, indicating consistent funding allocation to this program.

How does the 'Time and Materials' pricing structure impact the value proposition for taxpayers in this contract?

The 'Time and Materials' (T&M) pricing structure can present a mixed value proposition for taxpayers. On one hand, it offers flexibility, allowing the government to pay for the actual labor hours and material costs incurred by the contractor, VF Image wear, Inc. This can be advantageous if the scope of work is uncertain or likely to change. However, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts, as there is less incentive for the contractor to control costs. For taxpayers, this means the final cost is less predictable. Effective oversight, including detailed tracking of labor hours, material costs, and robust negotiation of indirect rates, is crucial to ensure that T&M contracts deliver good value and do not lead to excessive spending on the CBP Uniform Program.

What are the risks associated with VF Image wear, Inc. being the sole provider for this program over a decade?

Having VF Image wear, Inc. as the sole provider for the U.S. Customs and Border Protection Uniform Program for over a decade presents several risks. Firstly, it reduces competitive pressure, potentially leading to higher prices than might be achieved in a more dynamic market. Secondly, it creates a dependency on a single supplier, making the agency vulnerable to supply chain disruptions, quality control issues, or the contractor's financial instability. If VF Image wear, Inc. were to face significant operational challenges, the CBP's ability to procure essential uniforms could be severely impacted. Furthermore, the lack of re-competition over such a long period may mean that the government is not benefiting from innovations or cost efficiencies that a more competitive market might offer.

Can the performance of VF Image wear, Inc. be assessed based on available data for this contract?

The available data provides the contract award details (value, duration, contractor, agency) but does not include specific performance metrics or quality ratings for VF Image wear, Inc. Assessing performance would require access to contract administration records, such as past performance evaluations, delivery records, quality assurance reviews, and any contractor performance assessment reporting (CPAR) data. Without these details, it is impossible to definitively evaluate how well VF Image wear, Inc. met the requirements of the CBP Uniform Program. The renewal or continuation of such a long-term contract might imply satisfactory performance, but this is an assumption rather than a confirmed assessment.

How does the NAICS code '541618 - Other Management Consulting Services' align with the nature of the CBP Uniform Program contract?

The classification of the CBP Uniform Program contract under NAICS code 541618 ('Other Management Consulting Services') appears incongruous with the primary function of procuring and managing uniforms. Typically, uniform procurement would fall under manufacturing, wholesale trade, or retail trade sectors, or potentially a specialized government services category. While there might be consulting elements involved in managing the uniform program (e.g., logistics, inventory management, design consultation), the core of the contract is the provision of goods. This misclassification could potentially obscure the true nature of the spending when analyzing federal procurement data, making it harder to compare with similar uniform contracts in other agencies or sectors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: V.F. Corporation (UEI: 002344208)

Address: 545 MARRIOTT DR STE 200, NASHVILLE, TN, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $318,487,935

Exercised Options: $295,276,423

Current Obligation: $276,842,773

Contract Characteristics

Multi-Year Contract: Yes

Timeline