DHS uniform contract modification misclassified as new action, totaling over $57M

Contract Overview

Contract Amount: $57,139,457 ($57.1M)

Contractor: VF Imagewear, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-10-01

End Date: 2011-09-30

Contract Duration: 729 days

Daily Burn Rate: $78.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DHS NATIONAL UNIFORM PROGRAM. THIS ACTION REPRESENTS AN ACTION THAT WAS CREATED AND REPORTED AS A NEW ACTION WHEN IN FACT IT IS A MODIFICATION TO AN EXISTING UNIFORM CONTRACT. IT WAS CREATED AS A NEW ACTION DUE TO PROBLEMS CONVERTING AN OLD ACTION WHEN CBP IMPLEMENTED A NEW CONTRACT WRITING SYSTEM.

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37214

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57.1 million to VF IMAGEWEAR, INC. for work described as: DHS NATIONAL UNIFORM PROGRAM. THIS ACTION REPRESENTS AN ACTION THAT WAS CREATED AND REPORTED AS A NEW ACTION WHEN IN FACT IT IS A MODIFICATION TO AN EXISTING UNIFORM CONTRACT. IT WAS CREATED AS A NEW ACTION DUE TO PROBLEMS CONVERTING AN OLD ACTION WHEN CBP IMPLEMENTED A NEW CON… Key points: 1. Contract modification miscategorized as a new award due to system conversion issues. 2. Significant value of $57.1M awarded to VF Image wear, Inc. for uniform program. 3. Sole-source award raises questions about competition and potential price impacts. 4. Contract duration of 729 days suggests a substantial, ongoing need for uniforms. 5. Awarded by U.S. Customs and Border Protection, indicating a focus on border security personnel. 6. The 'Other Apparel Accessories' NAICS code suggests a broad range of uniform components.

Value Assessment

Rating: fair

The total award value of $57.1 million for uniforms over approximately two years appears substantial. Benchmarking this against similar large-scale uniform procurements for federal agencies would be necessary to definitively assess value for money. The lack of competitive bidding in this modification suggests that pricing may not have been subjected to market pressures, potentially leading to a less favorable outcome for taxpayers compared to a competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract action was not competed, being a modification to an existing uniform contract. The data indicates it was initially misreported as a new action due to system conversion problems when CBP implemented a new contract writing system. The sole-source nature means there was no opportunity for other vendors to bid, which limits price discovery and potentially reduces the incentive for the incumbent contractor to offer the most competitive pricing.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competition. Without a bidding process, the government lacks assurance that it received the best possible price for these uniforms.

Public Impact

Benefits U.S. Customs and Border Protection personnel by providing necessary uniforms. Ensures operational readiness and professional appearance of border security agents. The contract supports the manufacturing and supply chain for apparel accessories. Impacts the workforce involved in the production and distribution of these uniform items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value.
Potential for inflated pricing due to sole-source modification.
System conversion issues leading to misreporting of contract actions.

Positive Signals

Ensures continuity of uniform supply for a critical agency.
Award to an established contractor (VF Image wear, Inc.) may indicate reliability.
Modification addresses an administrative issue rather than a new requirement.

Sector Analysis

The apparel manufacturing sector is diverse, with significant government procurement activity for uniforms and protective gear. This contract falls under the 'Other Apparel Accessories and Other Apparel Manufacturing' NAICS code. The total value of $57.1 million positions this as a substantial award within this sub-sector. Comparable spending benchmarks would involve looking at other large federal uniform contracts, such as those for the military or other law enforcement agencies, to gauge the scale and pricing efficiency.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting plans for this specific contract action. As a modification to an existing contract, it likely continues the terms of the original award regarding small business participation. Without further information on the original contract's small business provisions, its impact on the small business ecosystem remains unclear, though large sole-source awards typically offer fewer direct opportunities for small businesses compared to competed contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and contract management processes, specifically within U.S. Customs and Border Protection. The misreporting due to system issues suggests potential weaknesses in data integrity controls. Transparency is limited by the sole-source nature and the lack of competitive details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DHS National Uniform Program
CBP Uniform Procurement
Federal Apparel Contracts
Sole-Source Contract Modifications

Risk Flags

Data Integrity Issue: Contract modification misclassified as new action.
Sole-Source Award: Lack of competition for a large contract value.
Potential for Non-Competitive Pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57.1 million to VF IMAGEWEAR, INC.. DHS NATIONAL UNIFORM PROGRAM. THIS ACTION REPRESENTS AN ACTION THAT WAS CREATED AND REPORTED AS A NEW ACTION WHEN IN FACT IT IS A MODIFICATION TO AN EXISTING UNIFORM CONTRACT. IT WAS CREATED AS A NEW ACTION DUE TO PROBLEMS CONVERTING AN OLD ACTION WHEN CBP IMPLEMENTED A NEW CONTRACT WRITING SYSTEM.

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 $57.1 million.

What is the period of performance?

Start: 2009-10-01. End: 2011-09-30.

What is the historical spending pattern for DHS uniforms under VF Image wear, Inc. prior to this modification?

The provided data focuses on a single contract action valued at $57.1 million, identified as a modification to an existing uniform contract. It does not offer historical spending details for VF Image wear, Inc. under the DHS National Uniform Program prior to this specific modification. To understand historical spending, one would need to access contract modification history and potentially prior contract awards to the same vendor for similar uniform items. The 'br' field shows a value of 78381, which might represent a previous award or baseline value, but its context is not fully defined. Without more granular historical data, it's impossible to establish a spending trend.

How does the per-unit cost of these uniforms compare to market rates or similar federal contracts?

The provided data does not contain specific per-unit cost information for the uniforms procured under this contract. The total award value is $57.1 million, and the contract is for the 'DHS NATIONAL UNIFORM PROGRAM'. Without itemized lists of uniform components (e.g., shirts, pants, jackets) and their respective quantities, a per-unit cost calculation is not feasible. Furthermore, the contract was a sole-source modification, meaning there was no competitive bidding process to establish market-based pricing. Therefore, a direct comparison to market rates or similar federal contracts is not possible with the given data.

What are the specific risks associated with a sole-source contract modification of this magnitude?

The primary risk associated with a sole-source contract modification of this magnitude is the potential for inflated pricing. Without competition, the contractor may not be incentivized to offer the lowest possible price, leading to reduced value for taxpayer money. Another risk is a lack of transparency in the procurement process, making it difficult to assess whether the government obtained fair and reasonable pricing. Additionally, reliance on a single source can create supply chain vulnerabilities if the contractor experiences production or delivery issues. Finally, it limits opportunities for other capable businesses to compete for government contracts.

What is the track record of VF Image wear, Inc. in fulfilling federal uniform contracts?

VF Image wear, Inc. is identified as the contractor for this DHS National Uniform Program modification. While this specific data point doesn't detail their entire track record, VF Imagewear is a known entity in the uniform and apparel industry, often holding significant government contracts. Their ability to secure and maintain such a large contract suggests a history of performance. However, a comprehensive assessment would require reviewing their past performance evaluations, any past disputes or contract terminations, and the overall history of their involvement with federal agencies, particularly within the Department of Homeland Security and its components like CBP.

What is the impact of the system conversion issue on the accuracy of federal procurement data?

The system conversion issue described—where a contract modification was incorrectly reported as a new action—highlights a significant risk to the accuracy and reliability of federal procurement data. Such errors can distort spending totals, misrepresent the number of contract awards, and obscure the true nature of contract vehicles (e.g., new procurements vs. modifications). This can impede effective oversight, analysis, and decision-making by policymakers, analysts, and the public. It underscores the importance of robust data validation processes and system integration testing during major IT system upgrades within government agencies.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Other Apparel Accessories and Other Apparel Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

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

Financial Breakdown

Contract Ceiling: $3,588,571,153

Exercised Options: $639,653,040

Current Obligation: $57,139,457

Contract Characteristics

Cost or Pricing Data: NO

Timeline