DoD's $119M OCIE Support Contract Awarded to Peckham Vocational Industries Faces Competition Concerns

Contract Overview

Contract Amount: $119,097,516 ($119.1M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-06-25

End Date: 2025-09-30

Contract Duration: 1,558 days

Daily Burn Rate: $76.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT W56HZV-21-C-0118 PROVIDES SERVICES TO SUPPORT THE ORGANIZATIONAL CLOTHING & INDIVIDUAL EQUIPMENT (OCIE) PROGRAM TO CLEAN, REPAIR, WAREHOUSE, AND DISTRIBUTE OCIE.

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48906

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $119.1 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: CONTRACT W56HZV-21-C-0118 PROVIDES SERVICES TO SUPPORT THE ORGANIZATIONAL CLOTHING & INDIVIDUAL EQUIPMENT (OCIE) PROGRAM TO CLEAN, REPAIR, WAREHOUSE, AND DISTRIBUTE OCIE. Key points: 1. The contract focuses on essential services for the Organizational Clothing & Individual Equipment (OCIE) program, including cleaning, repair, warehousing, and distribution. 2. Peckham Vocational Industries, Inc. is the sole awardee, raising questions about the extent of competition. 3. The contract's duration and significant value present potential risks if performance or pricing is suboptimal. 4. The Industrial Launderers sector (NAICS 812332) is characterized by specialized services, but competition within this specific niche for large-scale government contracts may be limited.

Value Assessment

Rating: fair

The contract value of $119M over approximately 4 years suggests a substantial investment. Without comparable contract data, it's difficult to definitively assess if this pricing is competitive for the scope of 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 full and open competition may have impacted price discovery and potentially led to a higher cost for the government.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for the $119M allocated to OCIE support services.

Public Impact

Ensures readiness by maintaining essential gear for service members. Supports a specific vocational industry, potentially creating jobs. The long-term nature of the contract impacts budget predictability for the DoD. Lack of competition could set a precedent for future sole-source awards in similar service areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of transparency in pricing
Potential for cost overruns due to fixed-price structure over a long duration

Positive Signals

Provides essential services for military readiness
Supports a specific industry with a social mission

Sector Analysis

The contract falls within the Industrial Launderers sector, which provides specialized cleaning and maintenance services. Government spending in this sector is often driven by the needs of large organizations like the military, where consistent and reliable service is paramount.

Small Business Impact

The data indicates that Peckham Vocational Industries, Inc. is not a small business (sb: false). Therefore, this contract does not appear to directly benefit small businesses through subcontracting opportunities based on the provided information.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification for limited competition was robust and that the government is receiving fair value. Regular performance reviews will be crucial for accountability.

Related Government Programs

Industrial Launderers
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency regarding the justification for non-competition.
Potential for performance issues over the contract's long duration.
Fixed-price contract may not incentivize cost efficiencies.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $119.1 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. CONTRACT W56HZV-21-C-0118 PROVIDES SERVICES TO SUPPORT THE ORGANIZATIONAL CLOTHING & INDIVIDUAL EQUIPMENT (OCIE) PROGRAM TO CLEAN, REPAIR, WAREHOUSE, AND DISTRIBUTE OCIE.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $119.1 million.

What is the period of performance?

Start: 2021-06-25. End: 2025-09-30.

What was the specific justification for awarding this contract on a limited/non-competitive basis, and were alternative solutions explored?

The justification for awarding this contract on a limited basis is not detailed in the provided data. Typically, such justifications might include unique capabilities, urgent needs, or the unavailability of other sources. Further investigation into the contract's award documentation would be necessary to understand the specific rationale and confirm if alternative solutions were adequately explored to ensure the government's best interests were met.

How does the per-unit cost of cleaning, repairing, and distributing OCIE under this contract compare to industry benchmarks or previous contracts?

Without specific per-unit cost breakdowns or access to historical contract data for similar services, a direct comparison is not possible. The total contract value of $119M spread over its duration provides a high-level figure, but detailed cost analysis is required to assess efficiency and identify potential areas for cost savings or optimization.

What mechanisms are in place to ensure the quality and timeliness of OCIE services, given the fixed-price nature and long duration of the contract?

While the contract is firm fixed-price, ensuring quality and timeliness relies heavily on robust performance metrics, regular inspections, and clear communication channels between the Department of the Army and Peckham Vocational Industries. The government should have established procedures for monitoring service delivery, addressing deficiencies promptly, and potentially withholding payment or applying penalties if contractual obligations are not met.

Industry Classification

NAICS: Other Services (except Public Administration) › Drycleaning and Laundry Services › Industrial Launderers

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV21R0029

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: $122,208,006

Exercised Options: $119,097,516

Current Obligation: $119,097,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline