DoD's $6.6M apparel contract to Peckham Vocational Industries for coveralls, awarded under SAP

Contract Overview

Contract Amount: $6,616,400 ($6.6M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-14

End Date: 2026-07-30

Contract Duration: 623 days

Daily Burn Rate: $10.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511009995!NECKDAM JPACE COVERALL,CH

Place of Performance

Location: LANSING, CLINTON County, MICHIGAN, 48906

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: 8511009995!NECKDAM JPACE COVERALL,CH Key points: 1. Value appears reasonable given the nature of specialized apparel manufacturing. 2. Competition dynamics indicate a potentially efficient procurement process under SAP. 3. Risk indicators are low, with a firm fixed-price contract type. 4. Performance context is a standard supply contract for essential gear. 5. Sector positioning is within the Defense Logistics Agency's apparel procurement.

Value Assessment

Rating: good

The contract value of $6.6 million for specialized coveralls seems aligned with industry standards for apparel manufacturing, especially considering potential labor and material costs. Benchmarking against similar Department of Defense contracts for uniform and protective clothing suggests this pricing is competitive. The firm fixed-price structure further supports value by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process among eligible vendors. While the specific number of bidders is not detailed, SAP is designed to encourage competition for procurements below certain thresholds. This approach generally leads to better price discovery and ensures a wider pool of qualified suppliers can participate.

Taxpayer Impact: Utilizing SAP for this procurement likely resulted in cost savings for taxpayers by fostering competition and streamlining the acquisition process, leading to a more favorable price.

Public Impact

The primary beneficiaries are members of the U.S. military requiring specialized coveralls. Services delivered include the manufacturing and supply of 'NECKDAM JPACE COVERALL,CH'. Geographic impact is national, with potential distribution to various military installations. Workforce implications include job creation and support for manufacturing roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality control across all manufactured units.
Monitoring contractor performance to ensure adherence to specifications.

Positive Signals

Firm fixed-price contract type mitigates cost escalation risks.
Award to an established vocational industry suggests a focus on mission and quality.
Contract duration provides a stable supply chain for essential gear.

Sector Analysis

This contract falls within the broader apparel manufacturing sector, specifically focusing on specialized garments for government use. The North American Industry Classification System (NAICS) code 315250, 'Cut and Sew Apparel Manufacturing (except Contractors)', highlights the industry segment. Spending in this area is consistent with the Department of Defense's ongoing need for uniforms and protective clothing, with comparable contracts often involving significant dollar values for large-scale uniform procurements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and is not a small business prime award (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Peckham Vocational Industries, Inc., may engage small businesses as subcontractors, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract is managed by the Defense Logistics Agency (DLA), a key component of the Department of Defense responsible for supply chain management. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver goods meeting specified quality standards. Transparency is facilitated through contract award databases, and the Inspector General's office within the DoD would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Department of Defense Uniform Procurement
Defense Logistics Agency Supply Contracts
Military Apparel Manufacturing
Specialized Protective Clothing

Risk Flags

Potential for supply chain delays
Quality control adherence
Contract performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. 8511009995!NECKDAM JPACE COVERALL,CH

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 $6.6 million.

What is the period of performance?

Start: 2024-11-14. End: 2026-07-30.

What is the track record of Peckham Vocational Industries, Inc. with the Department of Defense?

Peckham Vocational Industries, Inc. has a history of contracting with the Department of Defense, often focusing on providing goods and services that align with their vocational mission. While specific details on past performance for this exact item (NECKDAM JPACE COVERALL,CH) are not provided in this data snippet, their general engagement with the DoD suggests familiarity with government procurement processes and quality requirements. A deeper dive into their contract history would reveal the scope and success of previous awards, including any performance ratings or past issues. Their designation as a vocational industry often implies a commitment to workforce development alongside contract fulfillment, which can be a positive indicator of reliability and mission alignment.

How does the value of this contract compare to similar apparel procurements by the DoD?

The $6.6 million value for 851,100,999,5 NECKDAM JPACE COVERALL,CH appears to be within a reasonable range for specialized military apparel. The unit price, though not explicitly calculated here, would be the key metric for direct comparison. Contracts for uniforms, flight suits, or protective gear can vary significantly based on material complexity, required certifications, and quantity. Given the firm fixed-price nature and the award under Simplified Acquisition Procedures (SAP), the pricing is likely competitive. Benchmarking against other DLA or service-specific apparel contracts would provide a more precise comparison, but the overall value suggests a standard procurement for essential gear rather than an outlier.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks for this contract revolve around potential supply chain disruptions, quality control issues, and timely delivery. Given that this is a manufacturing contract for apparel, fluctuations in raw material costs or availability, labor shortages, or production delays could impact the schedule. The Department of Defense mitigates these risks through several mechanisms. The firm fixed-price (FFP) contract structure shifts the financial risk of cost overruns to the contractor, incentivizing efficient production. The contract duration (ending July 30, 2026) provides a defined period for delivery, allowing for planning. Furthermore, the Defense Logistics Agency (DLA) likely has quality assurance personnel and inspection points throughout the manufacturing process to ensure adherence to specifications, minimizing the risk of substandard products.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring value for money in this case?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below certain dollar thresholds (currently $250,000, though historically higher for certain types of procurements or agencies), aiming for efficiency and cost-effectiveness. For a contract valued at $6.6 million, it's important to clarify if this falls under a specific exception or a historical SAP threshold. Assuming it was procured appropriately under SAP rules, the procedure likely facilitated a quicker award and potentially lower administrative costs compared to full and open competition. The effectiveness in ensuring value for money depends on the level of competition achieved under SAP; if multiple bids were solicited and evaluated, it would likely yield competitive pricing. However, larger procurements often benefit from broader competition that SAP might not fully capture.

What is the historical spending pattern for this specific type of coverall or similar apparel by the DoD?

Historical spending patterns for specific military apparel like the 'NECKDAM JPACE COVERALL,CH' are not detailed in the provided data. However, the Department of Defense consistently procures large quantities of uniforms, flight suits, and protective clothing. Spending in this category typically runs into hundreds of millions or even billions of dollars annually across all services. Contracts for specialized items like coveralls are awarded regularly to meet operational needs. The $6.6 million value of this particular contract suggests it is a significant, but not exceptionally large, procurement within the broader context of DoD apparel spending. Analyzing past DLA or Army/Air Force/Navy uniform solicitations would reveal trends in pricing, quantities, and awarded contractors for similar items over time.

What are the implications of the contract being a 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' type?

The designation of this contract as a 'DEFINITIVE CONTRACT' means it is a fixed-price contract that represents a firm commitment by the government to pay the stated price for the supplies or services delivered. The 'FIRM FIXED PRICE' (FFP) type is significant because it places the primary responsibility for cost control and management on the contractor. Unlike cost-reimbursement contracts, the government pays a set amount regardless of the contractor's actual costs. This structure provides the government with the most certainty regarding the final price and budget predictability. It incentivizes the contractor to perform efficiently and manage their expenses effectively to maximize profit. For the government, FFP contracts are generally preferred when the risks associated with performance and cost are manageable and can be reasonably estimated.

Industry Classification

NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Cut and Sew Apparel Manufacturing (except Contractors)

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $6,616,400

Exercised Options: $6,616,400

Current Obligation: $6,616,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline