DoD Awards $62.6M Contract for Communications Equipment to Federal Prison Industries, Inc
Contract Overview
Contract Amount: $19,577,358 ($19.6M)
Contractor: Federal Prison Industries, Inc
Awarding Agency: Department of Defense
Start Date: 2006-08-21
End Date: 2007-12-07
Contract Duration: 473 days
Daily Burn Rate: $41.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200611!007165!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06F0045 !A!N! !N! ! !20060821!20071231!624770475!626627459!626627459!Y!FEDERAL PRISON INDUSTRIES INC !320 1ST ST NW !WASHINGTON !DC!20534!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000009969333!N!N!000000000000!5935!CONNECTORS, ELECTRICAL !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !8! ! ! ! ! !99990909!B! ! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20534
Plain-Language Summary
Department of Defense obligated $19.6 million to FEDERAL PRISON INDUSTRIES, INC for work described as: 200611!007165!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06F0045 !A!N! !N! ! !20060821!20071231!624770475!626627459!626627459!Y!FEDERAL PRISON INDUSTRIES INC !320 1ST ST NW !WASHINGTON !DC!20534!50000!001!11!WASHINGTON !DIST… Key points: 1. The contract value is $62.6 million, awarded to Federal Prison Industries, Inc. 2. Competition was not available for this contract, raising potential concerns about price discovery. 3. The award is for electrical connectors and related communication equipment. 4. The sector is Electronics and Communication Equipment Manufacturing.
Value Assessment
Rating: questionable
The contract value of $62.6 million for electrical connectors and communication equipment is difficult to benchmark without specific unit pricing and comparison to similar sole-source procurements. The lack of competitive bidding makes a direct value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to ensure the best possible price through market forces and may lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing, potentially leading to a less efficient use of federal funds.
Public Impact
Taxpayers may have paid a premium due to the lack of competition. The use of a sole-source contract for essential communication equipment warrants scrutiny. The effectiveness of this procurement method for ensuring quality and timely delivery is unclear without competitive data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Potential for overpayment
Positive Signals
- Award to a specific entity for a defined need
- Contract duration of approximately 1.5 years
Sector Analysis
This contract falls within the Electronics and Communication Equipment Manufacturing sector. Spending in this area is critical for national defense and communication infrastructure. Benchmarks for similar procurements are often influenced by technological complexity and market competition.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this procurement, either as prime contractors or subcontractors. The award was made directly to Federal Prison Industries, Inc.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight regarding price negotiation. Further review would be needed to assess the adequacy of internal controls and justification for bypassing competitive procedures.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price discovery
- No small business participation evident
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to FEDERAL PRISON INDUSTRIES, INC. 200611!007165!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06F0045 !A!N! !N! ! !20060821!20071231!624770475!626627459!626627459!Y!FEDERAL PRISON INDUSTRIES INC !320 1ST ST NW !WASHINGTON !DC!20534!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000009969333!N!N!000000000000!5935!CONNECTORS, ELECTRICAL !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !8! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is FEDERAL PRISON INDUSTRIES, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.6 million.
What is the period of performance?
Start: 2006-08-21. End: 2007-12-07.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. A detailed review of the contract file would be necessary to understand the specific rationale.
How does the awarded price compare to market rates for similar connectors and equipment?
Without competitive bidding or access to detailed cost breakdowns, it is challenging to definitively compare the awarded price of $62.6 million to market rates. The lack of competition limits the ability to establish a robust benchmark, raising concerns about whether the government secured the most advantageous pricing.
What is the expected impact on the Department of Defense's communication capabilities?
The contract is for electrical connectors and communication equipment, suggesting it is intended to support or maintain existing communication systems. The sole-source award implies that Federal Prison Industries, Inc. was deemed the necessary provider, indicating a potential reliance on their specific products or capabilities for these components.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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
Parent Company: Government of the United States (UEI: 161906193)
Address: 320 1ST ST NW, WASHINGTON, DC, 98
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-08-21
Current End Date: 2007-12-07
Potential End Date: 2007-12-07 00:00:00
Last Modified: 2011-04-27
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