Department of the Army awards $27.8M for modular scalable vests, with 5 bidders indicating competitive pricing

Contract Overview

Contract Amount: $27,853,464 ($27.9M)

Contractor: Central Lake Armor Express Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2024-12-20

Contract Duration: 456 days

Daily Burn Rate: $61.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FAIR OPPORTUNITY # 0004 DELIVERY ORDER AWARD FOR 59,600 MODULAR SCALABLE VEST GENERATION II (MSV GEN II) SYSTEMS.

Place of Performance

Location: EDEN, ROCKINGHAM County, NORTH CAROLINA, 27288

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to CENTRAL LAKE ARMOR EXPRESS INC for work described as: FAIR OPPORTUNITY # 0004 DELIVERY ORDER AWARD FOR 59,600 MODULAR SCALABLE VEST GENERATION II (MSV GEN II) SYSTEMS. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 3. The delivery order period of performance extends over 15 months, allowing for phased delivery. 4. The North Carolina-based contractor, Central Lake Armor Express Inc., is a specialized apparel manufacturer. 5. The award value of $27.8 million is a significant investment in soldier protective equipment. 6. The North American Industry Classification System (NAICS) code 315990 points to a niche manufacturing sector.

Value Assessment

Rating: good

The award value of $27.8 million for 59,600 modular scalable vest systems appears reasonable given the quantity and specialized nature of the equipment. Benchmarking against similar contracts for advanced body armor is challenging without more specific technical details, but the presence of multiple bidders suggests that pricing was likely competitive. The firm-fixed-price structure provides cost certainty for the Department of the Army.

Cost Per Unit: Approximately $467 per vest system.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The solicitation resulted in five bids, which is a healthy number for this type of specialized defense procurement. A competitive landscape with multiple bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition and multiple bids suggest that taxpayer funds are being used efficiently, as the Army likely secured a competitive price for these critical protective systems.

Public Impact

Soldiers in the Department of the Army will benefit from enhanced personal protective equipment. The contract supports the delivery of 59,600 Modular Scalable Vest Generation II systems. The geographic impact is primarily centered around the contractor's operations in North Carolina and the eventual deployment of the vests to military personnel. The contract has implications for the defense manufacturing workforce, particularly in specialized apparel production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of critical protective gear.
Ensuring the modular scalable vest systems meet all required technical specifications and performance standards.
Long-term durability and effectiveness of the vest systems in various operational environments.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost predictability.
Contractor is based in North Carolina, potentially supporting domestic manufacturing.
Delivery order structure allows for phased acquisition and management.

Sector Analysis

The defense apparel and equipment manufacturing sector is highly specialized, focusing on meeting stringent military specifications for durability, protection, and functionality. This contract for Modular Scalable Vest Generation II systems falls within this niche, requiring advanced materials and manufacturing processes. The market for such equipment is driven by defense budgets and ongoing modernization efforts. Comparable spending benchmarks would typically involve other large-scale procurements of personal protective equipment for military branches.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition. While the prime contractor, Central Lake Armor Express Inc., is not explicitly identified as a small business in the provided data, the contract does not appear to include specific small business subcontracting goals. The focus on a large-scale procurement for advanced body armor may limit direct subcontracting opportunities for smaller firms unless they specialize in specific components or materials required for the vest systems.

Oversight & Accountability

The Department of the Army is responsible for oversight of this delivery order. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of this contract.

Related Government Programs

Department of Defense Body Armor Procurements
Army Combat and Tactical Gear
Personal Protective Equipment Manufacturing
Defense Apparel Contracts

Risk Flags

Delivery timeline adherence
Quality assurance of protective gear
Supply chain resilience for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to CENTRAL LAKE ARMOR EXPRESS INC. FAIR OPPORTUNITY # 0004 DELIVERY ORDER AWARD FOR 59,600 MODULAR SCALABLE VEST GENERATION II (MSV GEN II) SYSTEMS.

Who is the contractor on this award?

The obligated recipient is CENTRAL LAKE ARMOR EXPRESS 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 $27.9 million.

What is the period of performance?

Start: 2023-09-21. End: 2024-12-20.

What is the track record of Central Lake Armor Express Inc. with Department of Defense contracts?

Central Lake Armor Express Inc. has a history of securing contracts with the Department of Defense, primarily focused on the manufacturing of apparel and protective gear. While specific details on past performance metrics are not provided in this data snippet, their ability to win this significant delivery order suggests a demonstrated capability to meet military requirements. Further analysis would involve reviewing their contract history for on-time delivery, quality compliance, and any past performance issues or awards. Their specialization in armor and related apparel indicates a focused expertise relevant to this contract's requirements.

How does the per-unit cost of these vests compare to similar government procurements?

The per-unit cost for these Modular Scalable Vest Generation II systems is approximately $467. Benchmarking this against similar government procurements requires careful consideration of the specific features, materials, and threat levels addressed by the vests. Advanced body armor systems, especially those with modularity and scalability for different mission profiles, can range significantly in price. Generally, costs can vary from a few hundred dollars for basic ballistic protection to well over a thousand dollars for highly advanced, multi-threat systems. Without detailed specifications of the MSV Gen II, a precise comparison is difficult, but $467 appears to be within a reasonable range for a modern, scalable vest system, especially given the competitive bidding process.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential delays in delivery due to manufacturing or supply chain issues, and the risk that the delivered vests may not fully meet the stringent technical and performance specifications required for soldier protection. Mitigation strategies are embedded within the contract structure. The firm-fixed-price (FFP) nature of the contract shifts the cost risk to the contractor, incentivizing them to manage their expenses effectively. The phased delivery order structure allows the Army to monitor progress and address any emerging issues incrementally. Furthermore, the Department of the Army's quality assurance and acceptance testing processes are critical for ensuring the vests meet all required standards before final payment.

How effective is the firm-fixed-price contract type in managing costs for this type of procurement?

The firm-fixed-price (FFP) contract type is generally considered effective for procuring well-defined goods like the modular scalable vest systems, especially when the scope of work is clear and the risks are manageable. It provides the government with cost certainty, as the price is set upfront and is not subject to upward adjustment based on the contractor's actual costs. This incentivizes the contractor to control their own costs and improve efficiency to maximize profit. For the Department of the Army, this means a predictable expenditure for the 59,600 vest systems. The primary risk with FFP is that if unforeseen issues arise that significantly increase the contractor's costs, they may be less motivated to perform or could potentially cut corners if oversight is lax, though the competitive nature and performance requirements aim to prevent this.

What are the historical spending patterns for similar body armor procurements by the Department of the Army?

Historical spending patterns for body armor by the Department of the Army show significant and consistent investment, driven by the need to equip personnel with adequate protection. Annual spending can fluctuate based on modernization cycles, troop levels, and emerging threats, often ranging from tens to hundreds of millions of dollars across various types of body armor and related components. Major procurements often involve competitive bidding processes similar to this award, aiming to secure large quantities at favorable prices. The trend has been towards lighter, more modular, and multi-functional protective systems, reflecting advancements in materials science and design. This $27.8 million award for MSV Gen II systems aligns with the ongoing investment in upgrading soldier protection capabilities.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Apparel Accessories and Other Apparel Manufacturing

Product/Service Code: CLOTHING, INDIVIDUAL EQUIPMENT, INSIGNA, AND JEWELRY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91CRB20R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Praesidium SPA

Address: 750A W FIELDCREST RD, EDEN, NC, 27288

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,853,464

Exercised Options: $27,853,464

Current Obligation: $27,853,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB21D0004

IDV Type: IDC

Timeline