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

State: District of Columbia Government Spending

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

Positive Signals

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

Risk Flags

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: ManufacturingCommunications Equipment ManufacturingRadio 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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