DoD's $32.3M Warehousing Contract with Peckham Vocational Industries Raises Questions on Competition and Value
Contract Overview
Contract Amount: $32,306,814 ($32.3M)
Contractor: Peckham Vocational Industries, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-25
End Date: 2018-09-30
Contract Duration: 1,831 days
Daily Burn Rate: $17.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF LOGISTICS SUPPORT
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $32.3 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: IGF::CL::IGF LOGISTICS SUPPORT Key points: 1. The contract awarded to Peckham Vocational Industries for general warehousing and storage represents a significant expenditure. 2. Lack of competition is a major concern, potentially impacting price discovery and taxpayer value. 3. The firm fixed-price contract type offers some cost certainty, but the absence of competition limits benchmarking. 4. The sector is General Warehousing and Storage, a critical but often overlooked area of logistics support.
Value Assessment
Rating: questionable
The contract's value is substantial at $32.3 million. However, without available competition data, it's difficult to assess if this price is competitive or represents fair market value for the warehousing and storage services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection process. This lack of competitive bidding can lead to higher prices and reduced innovation as the contractor faces less pressure to offer the most cost-effective solution.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if multiple bids were solicited and evaluated.
Public Impact
Taxpayers may be overpaying for essential logistics support due to a lack of competitive bidding. The long contract duration (2013-2018) suggests a reliance on a single provider for critical warehousing functions. The specific nature of the services and the limited competition raise questions about the government's ability to secure optimal terms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited price discovery
Positive Signals
- Firm fixed-price contract type
- Long-term support for critical function
Sector Analysis
The General Warehousing and Storage sector is vital for maintaining operational readiness across government agencies. Spending benchmarks in this area can vary widely based on the scope and complexity of services, but competitive procurement is key to achieving efficiency.
Small Business Impact
The data indicates this contract was not awarded to a small business. Analysis of small business participation in government warehousing contracts is important for ensuring equitable distribution of opportunities.
Oversight & Accountability
Further investigation into the justification for limiting competition is warranted. Robust oversight is needed to ensure that contracts awarded under limited competition still deliver value and meet performance requirements.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in source selection
- Difficulty in benchmarking value
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 $32.3 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. IGF::CL::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 $32.3 million.
What is the period of performance?
Start: 2013-09-25. End: 2018-09-30.
What was the specific justification for limiting competition on this significant warehousing contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require accessing the contract file to understand the specific circumstances, such as unique capabilities, urgent needs, or prior investments that precluded a competitive solicitation. Without this documentation, the rationale remains unclear.
How does the $32.3M cost compare to industry benchmarks for similar warehousing services, considering the lack of competitive bids?
Direct comparison to industry benchmarks is challenging without knowing the precise services rendered and their scale. However, the absence of competition inherently inflates costs. A competitive process would likely have yielded a lower price point, suggesting this $32.3M figure may exceed what could have been achieved through open bidding.
What measures were in place to ensure performance and value despite the limited competition?
While the contract type is firm fixed-price, which shifts cost risk to the contractor, oversight is still crucial. Performance metrics, quality assurance surveillance plans (QASPs), and regular reviews would be essential to ensure the government received the contracted services effectively and at a reasonable cost, even without competitive pressure.
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
Financial Breakdown
Contract Ceiling: $32,306,814
Exercised Options: $32,306,814
Current Obligation: $32,306,814
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-25
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2019-02-27
More Contracts from Peckham Vocational Industries, Inc.
- TO Provide Personnel, Facilities, Technical Infrastructure, Supplies, and Support Services Required to Plan and Operate the National Passport Information Center (npic). Contract Performance IS in the United States of America Under the Abilityone Program Using Source America — $463.5M (Department of State)
- Call Center for National Passport Office Igf::ot::igf — $208.8M (Department of State)
- Provide Staff, Facilities, Technical Infrastructure, Supplies, and Support Services to Plan and Operate the National Passport Information Center (npic). Performance IS in the United States of America Under the Abilityone Program Using Source America — $161.6M (Department of State)
- Provide Staff, Facilities, Technical Infrastructure, Supplies, and Support Services to Plan and Operate the National Passport Information Center (npic). Performance IS in the United States of America Under the Abilityone Program Using Source America — $158.5M (Department of State)
- Operation of National Passport Information Center — $137.7M (Department of State)
View all Peckham Vocational Industries, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)