PACLOCK Files Bid Protest Against the Defense Logistics Agency Over $2.6 Million in Wasteful Spending

FORT BELVOIR, VA, December 10, 2024 (Newswire.com) - Pacific Lock Company (PACLOCK) filed a bid protest Monday, December 2, with the Government Accountability Office (GAO). The bid protest alleges that the Defense Logistics Agency (DLA) improperly awarded a $4.2 million contract to Sargent & Greenleaf, Inc. (S&G) instead of accepting PACLOCK's lower bid of $1.5 million. The decision, PACLOCK claims, results in $2.6 million in unnecessary government spending.

Background on the Protest

PACLOCK claims the DLA awarded the contract to S&G based on the company's ability to deliver 1,600 High-Security Padlocks (HSPs) within 30 days. However, PACLOCK asserts that this expedited delivery became necessary due to S&G's failure to fulfill prior contracts with the DLA, leaving the agency in a critical inventory shortfall.

"The DLA informed us that S&G hasn't delivered any units against its HSP long-term contracts since 2021," said Gregory Waugh, President and CEO of PACLOCK. "This failure created a situation where the DLA had no choice but to pay an inflated price for immediate delivery-triple our offered cost and triple S&G's original contract pricing."

Allegations of Waste and Potential Misconduct

PACLOCK's protest also raises concerns about potential violations of the Federal Acquisition Regulation (FAR). Specifically, the company questions how S&G accumulated inventory for this award despite failing to deliver under its existing contract.

"If this isn't a textbook example of waste and abuse, I don't know what is," added Waugh. "It's a $3 million windfall for a company that hasn't fulfilled its obligations, at the direct expense of taxpayers."

The DLA's May 2022 long-term contract with S&G initially set the unit price at $965. However, PACLOCK notes that this price has since risen by over 20%, while S&G remains unable to meet delivery requirements.

PACLOCK's Commitment to Accountability

PACLOCK became the second approved manufacturer of the HSP in July 2024, challenging S&G's sole-source status. Despite this milestone, PACLOCK's competitive bid for the September solicitation was rejected in favor of S&G's more costly offer.

"We believe that the GAO and the Department of Justice should investigate not only the decision to award this contract but also the broader pattern of procurement practices that allowed this situation to arise," Waugh concluded. "And if the rumored Department of Government Efficiency (DOGE) led by Elon Musk ever becomes a reality, we're confident this would be high on their list of wasteful spending to address."

About Pacific Lock Company

Pacific Lock Company (PACLOCK) is a leader in the security products industry, specializing in the manufacturing of solid-body and laminated padlocks, truck locks, hidden-shackle locks, military locks, hasps, and Bluetooth access control solutions. The company also offers a diverse range of unique and OEM solutions tailored to meet specific customer needs.

PACLOCK products are engineered for extreme durability and dependability, featuring innovative designs that set industry standards. Proudly, most of PACLOCK's wide range of products are manufactured in the United States using globally sourced components.

Founded in 1997, PACLOCK is a small, family-owned, woman-operated American business committed to delivering high-quality, innovative security solutions.

Contact Information

Gregory Waugh
President & CEO
[email protected]
661-294-3707

Source: Pacific Lock Company (PACLOCK)