DoD's $30.5M Warehousing Contract with Peckham Vocational Industries Faces Scrutiny for Limited Competition
Contract Overview
Contract Amount: $30,520,601 ($30.5M)
Contractor: Peckham Vocational Industries, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-05-31
End Date: 2021-05-31
Contract Duration: 1,826 days
Daily Burn Rate: $16.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF LOGISTICS SUPPORT
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $30.5 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: IGF::OT::IGF LOGISTICS SUPPORT Key points: 1. The contract awarded to Peckham Vocational Industries for general warehousing and storage represents a significant investment. 2. Limited competition raises questions about potential overspending and the availability of more cost-effective solutions. 3. The firm fixed-price structure provides some cost certainty, but the lack of competitive bidding is a key risk. 4. This spending falls within the broad Defense Logistics Agency's operational scope, impacting readiness and supply chain efficiency.
Value Assessment
Rating: questionable
The contract's value of $30.5 million over five years is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar warehousing services, raising concerns about whether taxpayers received the best possible value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and potentially leads to higher costs than if multiple vendors had competed.
Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these logistics services, as there was no market pressure to drive down prices.
Public Impact
Ensures critical warehousing and storage services for the Department of Defense. Supports the Defense Logistics Agency's mission to provide logistical support to the U.S. Armed Forces. Potential impact on the efficiency and cost-effectiveness of military supply chains. Raises questions about the government's commitment to maximizing competition in contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in cost justification
Positive Signals
- Contract supports a specific mission requirement
- Firm fixed-price contract provides some cost predictability
Sector Analysis
This contract falls under General Warehousing and Storage (NAICS 493110), a critical component of the defense industrial base. Spending benchmarks for similar services can vary widely based on location, security requirements, and specialized handling needs.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the opportunity to compete for this requirement.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the Defense Logistics Agency adequately justified the procurement method and that pricing is reasonable. Transparency in the award process is crucial for accountability.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency in justification
- No small business participation indicated
- Long contract duration (5 years)
Tags
general-warehousing-and-storage, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. IGF::OT::IGF LOGISTICS SUPPORT
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 $30.5 million.
What is the period of performance?
Start: 2016-05-31. End: 2021-05-31.
What specific factors justified the 'not available for competition' status for this significant warehousing contract?
The justification for 'not available for competition' needs detailed examination. Typically, such designations are reserved for unique circumstances, such as a critical need with no other viable sources, proprietary technology, or urgent and compelling reasons. Without this information, it's impossible to assess if the government acted appropriately or missed an opportunity for competitive pricing.
How does the $30.5 million cost compare to industry benchmarks for similar warehousing services, considering the lack of competitive bidding?
Directly comparing the $30.5 million cost without competitive data is challenging. However, the absence of competition inherently suggests a higher risk of the price being above market rates. A thorough review would involve analyzing the contract's specific deliverables, service levels, and geographic location against publicly available data for comparable, competitively procured warehousing contracts.
What measures are in place to ensure the effectiveness and efficiency of Peckham Vocational Industries' services despite the limited competition?
Effectiveness and efficiency are typically monitored through contract performance metrics, quality assurance surveillance plans (QASPs), and regular performance reviews. Even in non-competitive contracts, the agency should have robust mechanisms to track service delivery, identify deficiencies, and ensure the contractor meets all contractual obligations and performance standards.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
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, 48906
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: $30,520,601
Exercised Options: $30,520,601
Current Obligation: $30,520,601
Actual Outlays: $1,486,418
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-31
Current End Date: 2021-05-31
Potential End Date: 2021-05-31 00:00:00
Last Modified: 2025-04-21
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