DoD's $41.8M Contract with Leading Technology Composites Inc. for Apparel Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $41,888,000 ($41.9M)
Contractor: Leading Technology Composites Inc
Awarding Agency: Department of Defense
Start Date: 2019-07-18
End Date: 2023-02-01
Contract Duration: 1,294 days
Daily Burn Rate: $32.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8506582756!ESAPI
Place of Performance
Location: POMPANO BEACH, BROWARD County, FLORIDA, 33069
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $41.9 million to LEADING TECHNOLOGY COMPOSITES INC for work described as: 8506582756!ESAPI Key points: 1. The contract awarded to Leading Technology Composites Inc. for apparel totals $41.8 million. 2. Competition method was 'FULL AND OPEN COMPETITION', suggesting potential for price discovery. 3. The contract duration is 1294 days, ending in February 2023. 4. The awarding agency is the Department of Defense, specifically the Defense Logistics Agency. 5. The PSC code is missing, hindering detailed sector analysis.
Value Assessment
Rating: fair
The contract value of $41.8 million for apparel over nearly four years requires careful benchmarking against similar DoD contracts. Without specific product details or unit costs, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best pricing through market forces. However, the absence of a PSC code makes it difficult to confirm if the competition was truly robust for this specific product category.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, as it aims to secure competitive pricing. The total value suggests a significant expenditure, making efficient pricing crucial.
Public Impact
Taxpayers may be impacted by the $41.8 million expenditure on apparel, necessitating efficient procurement. The duration of the contract (over 3.5 years) means that pricing and quality must remain consistent throughout. The lack of a specific PSC code raises questions about the transparency and traceability of this spending within the broader defense budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Missing PSC code hinders detailed analysis.
- No specific product details provided for value assessment.
- Contract duration is lengthy, increasing risk of price drift.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a named company, implying a specific supplier was identified.
Sector Analysis
The contract falls under the 'Cut and Sew Apparel Contractors' category, likely within the broader defense logistics and supply chain sector. Benchmarking requires detailed information on the specific types of apparel procured.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The Defense Logistics Agency is responsible for this contract. Oversight would involve monitoring contract performance, adherence to terms, and ensuring fair pricing throughout the contract's lifecycle.
Related Government Programs
- Cut and Sew Apparel Contractors
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Missing PSC code.
- Lack of specific product details.
- Long contract duration.
- Potential for price drift despite fixed price.
- Unclear small business participation.
Tags
cut-and-sew-apparel-contractors, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.9 million to LEADING TECHNOLOGY COMPOSITES INC. 8506582756!ESAPI
Who is the contractor on this award?
The obligated recipient is LEADING TECHNOLOGY COMPOSITES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $41.9 million.
What is the period of performance?
Start: 2019-07-18. End: 2023-02-01.
What specific types of apparel were procured under this contract, and how does the unit cost compare to market rates for similar items?
The provided data lacks specifics on the apparel types. Without this information, a precise unit cost comparison is impossible. Benchmarking would require details on the quantity, material, and specifications of the garments to assess if the $41.8 million represents fair value for the goods received by the Department of Defense.
Given the 'full and open competition' award, what factors might have limited the number or quality of bids received?
While awarded under full and open competition, potential limiting factors could include stringent technical requirements, specific material needs, or the sheer scale of the contract, which might deter smaller or less specialized firms. The absence of a PSC code also makes it difficult to ascertain if the competition was truly broad for this niche.
How effectively does the 'firm fixed price' contract structure mitigate risks associated with potential cost overruns or changes in material costs over the 1294-day period?
A firm fixed price contract generally shifts cost overrun risk to the contractor, which is beneficial for the government. However, over a long duration like 1294 days, significant unforeseen market fluctuations in raw materials or labor could still strain the contractor, potentially impacting quality or leading to claims if not managed carefully.
Industry Classification
NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Cut and Sew Apparel Contractors
Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SPE1C119R0022
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2626 W MAY ST, WICHITA, KS, 67213
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,888,000
Exercised Options: $41,888,000
Current Obligation: $41,888,000
Actual Outlays: $30,464,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-07-18
Current End Date: 2023-02-01
Potential End Date: 2023-02-01 00:00:00
Last Modified: 2022-02-08
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