DoD's $37M Men's Apparel Contract with Peckham Vocational Industries Raises Questions on Value and Competition
Contract Overview
Contract Amount: $37,188,392 ($37.2M)
Contractor: Peckham Vocational Industries, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-05-26
End Date: 2016-05-31
Contract Duration: 1,832 days
Daily Burn Rate: $20.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BOA
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $37.2 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: BOA Key points: 1. Contract awarded to Peckham Vocational Industries, Inc. for Men's and Boys' Apparel. 2. Significant spending of $37.19M over 5 years. 3. Awarded under Full and Open Competition, but details on price discovery are limited. 4. Sector: Defense Logistics Agency procurement of apparel. 5. Potential concerns regarding value for money given the fixed-price structure.
Value Assessment
Rating: fair
The contract's firm fixed price structure over five years makes it difficult to assess value for money without detailed cost breakdowns. Benchmarking against similar apparel contracts is challenging due to the specific nature of the items and the contractor's mission.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad solicitation. However, the limited data provided does not detail the number of bids received or the negotiation process, impacting the assessment of price discovery effectiveness.
Taxpayer Impact: Taxpayer funds were used for this procurement. The effectiveness of competition in securing the best price is unclear, potentially leading to suboptimal value.
Public Impact
Military personnel benefit from the apparel procured under this contract. The contract supports a specific industry sector within defense logistics. Potential impact on the broader apparel manufacturing market due to government contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost analysis for a large fixed-price contract.
- Limited insight into the competitive landscape and price negotiation.
- Contract duration of 5 years may not reflect current market pricing.
Positive Signals
- Awarded through full and open competition.
- Contractor has a defined role in defense logistics.
- Firm fixed price provides cost certainty for the government.
Sector Analysis
This contract falls within the Defense sector, specifically for the procurement of men's and boys' apparel by the Defense Logistics Agency. Spending benchmarks for apparel procurement can vary widely based on material, quantity, and specific requirements, making direct comparison difficult without more detail.
Small Business Impact
The data indicates this contract was awarded to Peckham Vocational Industries, Inc. There is no explicit information provided regarding small business participation or subcontracting opportunities within this specific contract award.
Oversight & Accountability
Oversight of this contract would typically involve the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA). Ensuring compliance with contract terms and verifying cost reasonableness, especially for fixed-price contracts, are key oversight functions.
Related Government Programs
- Men's and Boys' Cut and Sew Apparel Contractors
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of detailed cost breakdown for a large fixed-price contract.
- Limited transparency on the competitive bidding process and price negotiation.
- Potential for suboptimal value due to the long contract duration and fixed pricing.
- Absence of specific data on small business participation.
Tags
men-s-and-boys-cut-and-sew-apparel-contr, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.2 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. BOA
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 $37.2 million.
What is the period of performance?
Start: 2011-05-26. End: 2016-05-31.
What was the basis for the firm fixed price, and how does it compare to market rates for similar apparel?
The basis for the firm fixed price is not detailed in the provided data. Without access to the solicitation, bid analysis, and negotiation records, it's impossible to determine how the price was established or benchmark it against current market rates for comparable men's and boys' apparel. This lack of transparency hinders a thorough value assessment.
How effectively did the 'full and open competition' process ensure competitive pricing for this $37M contract?
While 'full and open competition' suggests a broad solicitation, its effectiveness in ensuring competitive pricing cannot be determined from the data alone. The number of bids received, the range of proposed prices, and the negotiation outcomes are critical factors. A lack of detailed bid information raises concerns about whether the government secured the best possible price.
What is the specific impact of this contract on the government's ability to procure essential apparel efficiently and cost-effectively?
This contract represents a significant investment in apparel for the Department of Defense. The firm fixed price offers cost certainty, but the long duration and limited insight into price discovery raise questions about long-term cost-effectiveness. Efficient procurement relies on robust competition and adaptable pricing mechanisms, which are not fully evident here.
Industry Classification
NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Men's and Boys' Cut and Sew Apparel Contractors
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
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, Educational Institution, Higher Education, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $37,188,392
Exercised Options: $37,188,392
Current Obligation: $37,188,392
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-05-26
Current End Date: 2016-05-31
Potential End Date: 2016-05-31 00:00:00
Last Modified: 2017-08-04
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