GAO-13-57R Army Combat Shirt Procurement 

United States Government Accountability Office

Washington, DC 20548 

February 14, 2013 

The Honorable Jeff Sessions 

Ranking Member 

Committee on the Budget 

United States Senate 

Subject: Warfighter Support: Army’s and Defense Logistics Agency’s Approach for 

Awarding Contracts for the Army Combat Shirt 

Dear Senator Sessions: 

Flame-resistant clothing has been typically used by warfighters to protect them in 

situations where they face serious exposure to fire or incendiary devices. Prior to 

Operation Iraqi Freedom and Operation Enduring Freedom, Department of Defense 

(DOD) personnel wearing flame-resistant clothing were mainly aviators, fuel handlers, 

and combat-vehicle crewmembers. However, with the growing prevalence of improvised 

explosive devices in Iraq and Afghanistan, warfighters serving there have been exposed 

more frequently to the risk of fire-related injuries. To provide warfighters deploying into 

combat areas (including Iraq and Afghanistan) with a garment that can mitigate the risk 

of sustaining fire-related injuries, the Army procured the Army Combat Shirt, which is a 

flame-resistant, moisture-wicking shirt designed specifically to protect warfighters 

against burns and provide maximum comfort as well. Through the Army Program 

Executive Office Soldier— the program manager responsible for the initial procurement 

of the Army Combat Shirt—the Army began procuring this shirt in fiscal year 2007 and 

through fiscal year 2012 has awarded over $310 million in contracts for the combat shirt. 

These contracts have been awarded to 8(a) firms1 and to the National Industries for the 

Blind (NIB) and NISH2

 nonprofit agencies. Beginning in fiscal year 2011, the Defense 

Logistics Agency (DLA) assumed responsibility for sustainment contracting of the Army 

Combat Shirt and began the process of soliciting proposals and awarding contracts for 

the combat shirts.3

 Transferring clothing and textile program functions from a military 

service to DLA is part of DOD’s process for managing the life cycle of the procurement of 

supplies.4

 This report addresses your request that we examine the approach that the 

Army used to award contracts for the Army Combat Shirt and that DLA is using to 

prepare to award future ones. 

 

1

The 8(a) program is one of the federal government’s primary means for developing small businesses owned by socially and 

economically disadvantaged individuals. 2

NISH was previously known as the National Industries for the Severely Handicapped, but is now only known as NISH. NISH is a 

nonprofit agency dedicated to creating employment opportunities for people with significant disabilities other than blindness. 3

As described in Joint Publication 3-0 (Aug. 11, 2011), “sustainment” is the provision of logistics and personnel services, such as 

clothing items, necessary to maintain and prolong operations through mission accomplishment. 4

A supply life cycle includes acquisition (design, development, testing, production and deployment), sustainment (operations and

support), and disposal. 
Page 2 GAO-13-57R Army Combat Shirt Procurement 

To examine the approach that the Army used to award contracts for the combat shirt 

during the fiscal year 2007-12 timeframe and that DLA is using to prepare to award future 

ones, we reviewed the statutory and regulatory requirements related to the procurement 

of supplies—i.e., the Federal Acquisition Regulation and Small Business Regulations 

implementing certain provisions of the Small Business Act. We also reviewed the Army's 

and DLA's documentation regarding the procurement of the Army Combat Shirts, 

including the Army’s contracts, DLA’s solicitation, and market research reports. To 

corroborate evidence in the documents we reviewed and to determine the factors 

considered during the award determination process, we interviewed program and 

contracting officials from Army Program Executive Office Soldier, DLA Troop Support, 

the Army Contracting Command, and the Office of Federal Procurement Policy. Finally, 

we interviewed officials from firms to which the Army awarded Army Combat Shirts 

between fiscal year 2007 and fiscal year 2012 to discuss the process for manufacturing 

the combat shirt. Specifically, these firms included an Alaska Native Corporation 

(ANC)5

-owned, 8(a) firm; an Indian tribe-owned, 8(a) firm; NIB nonprofit agencies; and 

NISH nonprofit agencies.6

 We conducted this performance audit from March 2012 to 

February 2013, in accordance with generally accepted government auditing standards. 

Those standards require that we plan and perform the audit to obtain sufficient, 

appropriate evidence to provide a reasonable basis for our findings and conclusions 

based on our audit objectives. We believe that the evidence obtained provides a 

reasonable basis for our findings and conclusions based on our audit objectives. See 

enclosure I for a detailed discussion of our scope and methodology and enclosure II for a 

glossary of statutory and regulatory requirements for awarding contracts for supplies. 

Results in Brief

During the fiscal year 2007-12 timeframe, the Army applied statutory and regulatory 

requirements related to procurement for supplies to award contracts for the Army 

Combat Shirt. The Army applied these requirements, including those in the Federal 

Acquisition Regulation and Small Business Regulations, to award the following groups of 

contracts and to respond to demand for the combat shirt and the supply of 

manufacturers that could produce it: 

 contracts awarded on a sole-source basis to 8(a) firms owned by an ANC or an 

Indian tribe in fiscal years 2007 and 2008 to respond to the urgent need for 

combat shirts because of an increase in warfighters being burned by improvised 

explosive devices in theater 

 contracts awarded to NIB and NISH nonprofit agencies representing industries 

for the blind and severely disabled, respectively, in fiscal years 2009 through 2012 

 

5

ANCs, created in 1971 through the Alaska Native Claims Settlement Act (ANCSA), were established to distribute land and monetary

benefits to Alaska Native shareholders in lieu of a reservation system. The goal of the act was, in part, to resolve long-standing 

aboriginal land claims and to foster economic development for Alaska Natives. ANCs are eligible to participate in federal 

procurement programs, such as the 8(a) program, pursuant to ANCSA. See 43 U.S.C. §§ 1602, 1626(a) and (e). 6

The AbilityOne Commission represents nonprofit agencies serving people who are blind (NIB) and people with severe disabilities 

(NISH). 

 
Page 3 GAO-13-57R Army Combat Shirt Procurement 

to respond to the increasing demand for the combat shirts and the limited 

capacity of the 8(a) firms that were manufacturing the combat shirts under the 

existing sole-source contracts 

 a contract awarded on a competitive basis to an 8(a), ANC-owned firm in fiscal 

year 2011 to respond to the need for an additional source of supply to 

manufacture the combat shirts and to introduce competition as a means of 

reducing cost of the combat shirt. 

Since fiscal year 2011, DLA has been responsible for sustainment contracts for the Army 

Combat Shirt. According to DLA contracting officials, DLA plans to award contracts by 

March 2013 by applying statutory and regulatory procurement requirements, including 

the Federal Acquisition Regulation and Small Business Regulations. 

Background 

The Army Combat Shirt is a flame-resistant, moisture-wicking shirt for deployed 

warfighters to wear to protect against burns and to maximize comfort in extremely hot 

environments like Iraq and Afghanistan. The combat shirt was designed to be a standalone garment that can be worn underneath body armor providing flame and thermal 

protection and moisture-wicking properties, while at the same time allowing for comfort 

and agility. The combat shirt comprises proprietary, flame-resistant fabric supplied and 

manufactured by Massif Mountain Gear Company, LLC (see fig. 1). 

Figure 1: Photograph of Army Combat Shirt 
Page 4 GAO-13-57R Army Combat Shirt Procurement 

In fiscal year 2007, the Army Program Executive Office Soldier—the program manager 

responsible for, among other things, developing, procuring, and fielding the Army 

Combat Shirt—began soliciting proposals and awarding contracts for the combat shirt. 

As part of the DOD life-cycle management of clothing and textile supplies like the Army 

Combat Shirt, the Army Program Executive Office Soldier conducts the testing, 

evaluation, and initial procurement of the items, and then DLA Troop Support is to take 

over the sustainment contracting, including the procurement and delivery of the items to 

the warfighter. Both the Army and DLA program managers oversee the procurement of 

the Army Combat Shirt with the assistance of contracting officers from their respective 

contracting offices. As part of this process, the contracting officer certified and 

documented in a memorandum that the price for the Army Combat Shirt is fair and 

reasonable. 

The President is statutorily required to establish an annual government-wide goal of 

awarding not less than 23 percent of federal prime contracts to small businesses,7

including to small businesses owned by socially and economically disadvantaged 

individuals.8

 To meet this government-wide goal, the Small Business Administration 

negotiates annual goals with each agency. In addition, in 2008, the Director of Defense 

Procurement and Acquisition Policy and Strategic Sourcing and the U.S. Army 

Commanding General of the Army Materiel Command both issued correspondence 

encouraging contracting officials to look for more opportunities to contract with the 

nonprofit agencies representing industries for the blind or significantly disabled. Also, in 

2009, following the President’s Plan to Empower People with Disabilities, the Deputy 

Secretary of Defense issued a correspondence to encourage contracting officials to look 

for more opportunities to employ these nonprofit agencies. 

Army Applied Relevant Provisions in Federal Regulations to Award Army 

Combat Shirt Contracts and DLA Is Applying Federal Regulations to Award 

Future Contracts 

When awarding 18 Army Combat Shirt contracts between fiscal years 2007 and 2012,9

 the 

Army applied federal regulatory provisions, including the Federal Acquisition Regulation 

and Small Business Regulations. A number of regulatory requirements apply to the 

procurement of the Army Combat Shirt, but Army and DLA officials stated that Federal 

Acquisition Regulation § 8.002, Priorities for Use of Government Supply Sources; Part 

10, Market Research; and § 19.805, 8(a) Program—were the key provisions used to 

award these contracts.10 The 18 awarded contracts fall into three groups—(1) solesource, 8(a) contracts, which the Army awarded to ANC-owned and Indian tribe-owned 

firms in fiscal years 2007 and 2008; (2) NIB and NISH contracts, which the Army awarded 

 

7

A prime contract is defined in FAR § 3.502-1 as a contract or contractual action entered into by the United States for the purpose of 

obtaining supplies, materials, equipment, or services of any kind.

8

15 U.S. Code § 644(g).

9

This excludes 1 contract the Army awarded in fiscal year 2007 for testing and evaluation purposes.

10A description of these and other relevant procurement statutes and regulations are included in enclosure II. 
Page 5 GAO-13-57R Army Combat Shirt Procurement 

in fiscal years 2009 through 2012; and (3) a competitive, ANC-owned 8(a) contract, which 

the Army awarded in fiscal year 2011. All contracts have expired, except for 2 NIB and 

NISH contracts awarded in fiscal year 2012 and the competitive, ANC-owned 8(a) 

contract awarded in fiscal year 2011. See figure 2 for a timeline by fiscal year of the 18 

contracts the Army awarded. 

Figure 2: Contracts the Army Awarded for the Army Combat Shirt by Date 

Awarded (Fiscal Years 2007-12) 

Army Awarded Sole-Source Contracts to Respond to Urgent Need for Army Combat Shirt

Applying the provisions in the Federal Acquisition Regulation and Small Business 

Regulations, beginning in fiscal year 2007, the Army awarded 4 sole-source contracts for 

the Army Combat Shirt to 8(a) firms to respond to the urgent need for flame protection 

for warfighters. Specifically, the Army awarded these contracts from fiscal year 2007 

through fiscal year 2008 to 8(a) firms owned by an ANC and an Indian tribe, which are 

both commercial/for-profit firms. The Army documented the urgent need for the Army 

Combat Shirt in Operational Needs Statements,11 identifying the growing prevalence of 

improvised explosive devices coupled with the added fire threat of propane as a fire 

catalyst, which exposed warfighters serving in Iraq and Afghanistan to the risk of firerelated burns. Having no ready supply of shirts to meet the urgent need, Army officials 

stated that they needed an approach for awarding contracts quickly so that they could 

meet demanding delivery schedules. 

Under the Federal Acquisition Regulation,12 the contracting officer is generally provided 

wide latitude to exercise business judgment in making award decisions, including the 

determination of whether to award a contract on a competitive basis, or on a sole source 

basis if permitted by law. Army contracting officials stated that they pursued 8(a) solesource awards to firms owned by an ANC and an Indian tribe, because they were an 

expeditious contracting option in meeting urgent warfighter needs. For example, 

according to Army officials, it took fewer than 4 weeks to award the first 8(a), solesource contract in 2007, whereas it would have taken 6 months to have awarded 

contracts on a competitive basis. Some of the reasons it would have taken longer to 

award a competitive contract include the additional time needed to publicize the Army’s 

 

11Operational commanders use an Operational Needs Statement to document the urgent need for equipment or resources required to 

protect life and enhance the success of the mission. 

12FAR §§1.602-2, 6.101, 6.301. 
Page 6 GAO-13-57R Army Combat Shirt Procurement 

requirements, issue formal solicitations, and evaluate proposals in accordance with the 

criteria outlined in the solicitation. 

Starting in fiscal year 2007, the Army conducted market research to identify potential 

vendors or manufacturers for the Army Combat Shirt by holding biannual advanced 

planning briefings to industry, participating in industry trade shows, conducting requests 

for information, and querying government-wide databases of contracts. The Federal 

Acquisition Regulation Part 10 states that agencies are to conduct market research to 

arrive at the most suitable approach for acquiring and distributing supplies and services, 

including for finding vendors capable of producing the required supplies. 

After performing the market research, in fiscal years 2007 and 2008, the Army applied the

Priorities for Use of Government Supply Sources—Federal Acquisition Regulation § 

8.002—which sets forth the priority order government agencies must follow to acquire 

required supplies and services from government supply sources. Specifically, to choose a 

source for the combat shirt, the Army considered, in descending order of priority, 

whether Army Combat Shirts existed in its own inventory, other agencies had excess 

supplies of the combat shirt, the Federal Prison Industries had the production capability 

to manufacture the combat shirt, the combat shirt was on the Federal Procurement List,13

the combat shirt was available on the General Service Administration’s mandatory or 

optional Federal Supply Schedules, and commercial sources could manufacture the 

combat shirt. In figure 3, we show the questions that contracting officials answered when 

applying the Priorities for Use of Government Supply Sources—Federal Acquisition 

Regulation § 8.002—and before ultimately awarding the 4 sole-source contracts to the 

8(a) firms. 

 

13The Federal Procurement List is a list of products and services that the Committee for Purchase for the Blind or Severely Disabled 

(which operates as the AbilityOne Commission) has determined suitable for purchase by the government under the Javits-WagnerO’Day Act. For purposes of this report, we use the term “AbilityOne Commission” to refer to the Committee. The AbilityOne 

Commission represents nonprofit agencies serving people who are blind and people with severe disabilities.
Page 7 GAO-13-57R Army Combat Shirt Procurement 

Figure 3: Army’s Application of Priorities for Use of Government Supply 

Sources (Federal Acquisition Regulation § 8.002) for Fiscal Years 2007 and 2008 

Army Combat Shirt Contracts 

On the basis of its analysis, the Army determined that the combat shirt was a new 

requirement and did not exist in any of the DOD inventories or supplies, the Federal 

Prison Industries could not produce the combat shirt, it did not yet exist on the Federal 

Procurement List, and the combat shirt was not listed on the General Service 

Administration’s mandatory or optional Federal Supply Schedules. Because the Army 

could not obtain the combat shirt from these sources, the Army decided to award the 

combat shirt to commercial/for-profit, 8(a), ANC-owned and Indian tribe-owned firms. 

Following the Priorities for Use of Government Supply Sources and the results of 

market research, the Army made sole-source awards to ANC-owned and Indian tribeowned, 8(a) firms, which are commercial/for-profit firms. In making these awards, the 

Army applied the Federal Acquisition Regulation and the Small Business Regulations 

following the acceptance of the requirement by the Small Business Administration,14

which oversees the 8(a) program.15 

 

14The Small Business Administration oversees the 8(a) program. The Small Business Administration admits firms to participate in the 

8(a) program based on specified eligibility criteria. Agencies, such as the Army, can independently, or through the self-marketing 

efforts of an 8(a) firm (e.g., ANC-owned firm), identify an agency requirement (e.g., the Army’s requirement) for the 8(a) program. 
Page 8 GAO-13-57R Army Combat Shirt Procurement 

The Army determined that the prices for the Army Combat Shirt under the 8(a) contracts 

were fair and reasonable by completing both a cost and price analysis.16 The Army 

contracting officers made this determination by performing a cost analysis, in which they 

reviewed the separate cost elements making up the total price— including materials 

(fabric), labor, shipping/freight, and profit and the 8(a) firms’ certified cost or pricing 

data for the Army Combat Shirt. The contracting officers determined that the cost or 

pricing data were accurate, complete, current, and acceptable based on industry 

standards. We found that the proprietary fabric required by the Army to be used in the 

shirts is the highest priced component, accounting for about 70 percent of the average 

total contract price for the shirt from all sources. The Army also conducted a price 

analysis of the firms’ proposals by comparing the firms’ proposed prices with 

 prices under previously awarded contracts for a prior version of the Army Combat 

Shirt that did not meet current requirements and 

 commercial market prices for similar combat shirts from several commercial 

sources that, while lower in price, the contracting officer determined did not meet 

the Army’s requirements and specifications for flame resistance. 

Army Awarded Contracts to NIB and NISH Agencies to Respond to Increasing Demand 

for Army Combat Shirts and the Limited Capacity of Firms Awarded Sole-Source 

Contracts 

In fiscal year 2009 through fiscal year 2012, the Army awarded 13 contracts to NIB and 

NISH nonprofit agencies, representing industries for the blind and severely disabled, to 

respond to an increasing demand for the combat shirt and the limited capacity of the 

firms under the previously awarded sole-source contracts. By fiscal year 2009, according 

to Army officials, the ANC-owned and Indian tribe-owned 8(a) firms were reaching 

maximum production capacity because of an increase in the Army’s demand for the 

combat shirts. This increase was driven in part by the June 2008 change in the combat 

shirt fielding requirement for warfighters deploying to a combat theater—i.e., from two 

to four shirts per warfighter. 

Army officials told us that in late 2008 and early 2009, applying Federal Acquisition 

Regulation § 8.002 (Priorities for Use of Government Supply Sources), they began 

coordinating with NIB and NISH to have the Army Combat Shirt added to the Federal 

Procurement List. Army officials told us that these agencies had expertise in 

manufacturing textiles but that in fiscal years 2007 and 2008, during the initial 

procurement of the combat shirt, Army officials did not have time to coordinate with NIB 

and NISH to have the shirt added to the Federal Procurement List, which is a list of 

products and services that the AbilityOne Commission has determined suitable for 

 The agency can then offer the requirement on behalf of a specific firm, for the 8(a) program in general, or for 8(a) competition per 

Federal Acquisition Regulation § 19.803(c). 

1513 C.F.R. Part 124 – 8(a) Business Development/Small Disadvantaged Business Status Determinations sets forth requirements, 

including the purpose, definitions, and basic requirements a concern must meet to participate in the 8(a) program. 16FAR § 19.806. 
Page 9 GAO-13-57R Army Combat Shirt Procurement 

purchase by the government, and still meet the warfighters’ urgent needs as quickly as 

possible. In addressing the increase in demand as fiscal year 2009 approached, however, 

Army officials said that they had time to consider this option. In making their decision to 

award Army Combat Shirt contracts, Army officials stated that they also considered 

memorandums from the Office of Secretary of Defense and the Army encouraging the 

use of the NIB and NISH agencies. 

According to Army contracting officials, the process for adding the Army Combat Shirt 

to the Federal Procurement List and ultimately awarding contracts to NIB and NISH 

agencies and delivering the product took over 6 months. The process for adding the 

combat shirt to the list included the following: (1) NIB and NISH submitted price 

proposals to the AbilityOne Commission, the organization that carries out the function of 

providing employment opportunities to employees of NIB and NISH nonprofit agencies; 

(2) the AbilityOne Commission conducted a “severe adverse impact” analysis to 

determine what percentage of the Army’s total demand for the combat shirt might be 

produced by the industries for the blind and severely disabled without any severe 

adverse impact on the business base of the current contractors of the combat shirt;17 

(3) the AbilityOne Commission published the proposed addition of the item on the 

Federal Register for a 30-day comment period; (4) the Army approved the price 

proposals; and (5) the AbilityOne Commission made the final decision to add a portion of 

the Army’s requirement, ranging from 25 percent to 63 percent between fiscal year 2009 

and fiscal year 2010, for the Army Combat Shirt to the Federal Procurement List. 

Once the process for adding a portion of its requirement for the Army Combat Shirt to 

the Federal Procurement List was completed, the Army applied the Priorities for Use of 

Government Supply Sources—Federal Acquisition Regulation § 8.002—and awarded 

contracts to NIB and NISH agencies to manufacture the combat shirts. In figure 4, we 

show the questions that contracting officials answered in descending order of priority 

when applying Priorities for Use of Government Supply Sources—Federal Acquisition 

Regulation § 8.002—and before awarding the 13 contracts to the NIB and NISH agencies. 

 

17In considering whether to add the Army Combat Shirt to the AbilityOne Program, the AbilityOne Commission conducted a “severe 

adverse impact” analysis per 41 C.F.R. § 51-2.4(a)(4) and (5) to determine whether to add all or a portion of the Army’s requirement 

for the Army Combat Shirt to the Federal Procurement List for NIB and NISH agencies. On the basis of this analysis, the Commission 

added only a portion of the Army’s requirement for NIB and NISH agencies to produce to mitigate a severe adverse impact on the 

business base of the current contractors of the combat shirt; the remaining percentage was later awarded to an 8(a), ANC-owned firm 

on a competitive basis in fiscal year 2011.
Page 10 GAO-13-57R Army Combat Shirt Procurement 

Figure 4: Army’s Application of Priorities for Use of Government Supply 

Sources (Federal Acquisition Regulation § 8.002) for Fiscal Years 2009–12 Army 

Combat Shirt Contracts 

Using the standards set forth in the federal regulation,18 the AbilityOne Commission 

proposed a price for the combat shirts. The Army determined that the price, submitted 

by the AbilityOne Commission for the Army Combat Shirt under the NIB and NISH 

nonprofit agency contracts, was fair and reasonable. Specifically, before awarding the 

contracts to these agencies, the Army contracting officer concurred that the price was 

fair and reasonable in accordance with the AbilityOne Commission’s pricing 

memorandum19 and using the standards set forth in the Federal Acquisition Regulation.20

As with the previous contracts awarded to 8(a) firms in fiscal years 2007 and 2008, we 

found that the proprietary fabric is the highest priced component of the Army Combat 

Shirt, accounting for about 70 percent of the average total contract price for the combat 

shirt from all sources. 

 

1841 C.F.R. § 51-2.7. 

19The AbilityOne Commission pricing memorandum is a consolidated pricing agreement from NIB and NISH nonprofit agencies for 

the Army Combat Shirt.

20FAR § 15.404-1, Proposal Analysis Techniques.
Page 11 GAO-13-57R Army Combat Shirt Procurement 

Army Awarded a Competitive Contract to an 8(a) Firm to Respond to the Need for an 

Additional Source of Supply and to Introduce Competition

In fiscal year 2011, the Army awarded 1 contract on a competitive basis to an 8(a) firm to 

respond to the need for an additional source of supply to manufacture the combat shirts 

and to introduce competition as a means of reducing cost of the combat shirt. The 8(a), 

sole-source contracts had expired by fiscal year 2010, and the Army required additional 

quantities beyond those available through the Federal Procurement List to meet fielding 

requirements. Under the Federal Acquisition Regulation,21 the contracting officer is 

generally provided wide latitude to exercise business judgment in making award 

decisions, including the determination of whether to award a contract on a competitive 

basis, or on a sole source basis if permitted by law. In contrast with the earlier 8(a), solesource contracts awarded to meet urgent warfighter needs, Army officials stated that 

with an existing inventory of shirts and current source of supply they had adequate time 

to award the contract competitively and still meet the demanding delivery schedules. 

According to contracting officials, the Army wanted to develop a competitive mix of 8(a) 

firms and NIB and NISH nonprofit agencies—commercial and non-commercial sources—

to lower the cost and improve the schedule of the delivery of the combat shirt. 

By applying requirements in federal regulations, the Army awarded a competitive 

contract to an 8(a), ANC-owned firm, which is a commercial/for-profit firm. Specifically, 

the Army applied the provisions in (1) Federal Acquisition Regulation § 8.002, Priorities 

for Use of Government Supply Sources, to determine that the source of supply was a 

commercial/for-profit firm; (2) Federal Acquisition Regulation Part 10, Market Research, 

to determine that there was more than one 8(a) firm eligible and responsible to 

manufacture the combat shirt; and (3) Federal Acquisition Regulation §19.805-1(a), 

Competitive 8(a), and Small Business Regulations in 13 Code of Federal Regulations 

(C.F.R.) § 124.506(a). In figure 5, we show the questions that contracting officials 

answered in descending order of priority when applying the Priorities for Use of 

Government Supply Sources—Federal Acquisition Regulation § 8.002—and before 

awarding the competitive contract to the ANC-owned, 8(a) firm. 

 

21 FAR §§1.602-2, 6.101, 6.301. 
Page 12 GAO-13-57R Army Combat Shirt Procurement 

Figure 5: Army’s Application of Priorities for Use of Government Supply 

Sources (Federal Acquisition Regulation § 8.002) for Fiscal Year 2011 Army 

Combat Shirt Contract 

Following the same process as with the prior 8(a) contracts, the Army determined that 

the price for the Army Combat Shirt under the 8(a) contract was fair and reasonable by 

completing both a cost and price analysis.22

 

DLA Plans to Award Future Contracts for the Army Combat Shirt under Federal 

Regulations

In fiscal year 2011, as part of the life-cycle management process for textiles and clothing, 

DLA began assuming responsibility for sustainment contracts of the Army Combat Shirt. 

DLA contracting officials stated that they expect to make future contract awards by 

March 2013. Contracting officials stated that to begin the process of soliciting proposals 

and awarding contracts for the combat shirt, DLA is applying statutory and regulatory 

procurement requirements, including the Federal Acquisition Regulation and Small 

Business Regulations. In July 2012, DLA issued a Request for Proposals (solicitation) to 

award future contracts for the Army Combat Shirt. 

 

22

FAR §§ 19.806 and 15.404-1 (b)(2)(i) and (ii). 
Page 13 GAO-13-57R Army Combat Shirt Procurement 

Agency Comments 

We provided a draft of this report to DOD, and DOD responded that it would not be 

providing comments. 

_____________________ 

We are sending copies of this report to the appropriate congressional committees. We 

are also sending copies to the Secretary of Defense; the Secretary of the Army; and to the 

Director, Defense Logistics Agency. This report will also be available at no charge on the 

GAO website at http://www.gao.gov. 

If you or your staff have any questions concerning this report, please contact me at (202) 

512-5431 or on russellc@gao.gov. Contact points for our Offices of Congressional 

Relations and Public Affairs may be found on the last page of this report. GAO staff who 

made major contributions to this report are listed in enclosure III. 

Sincerely yours, 

Cary B. Russell 

Director 

Defense Capabilities and Management 

Enclosures 
Page 14 GAO-13-57R Army Combat Shirt Procurement 

Enclosure I: Scope and Methodology 

To examine the approach that the Army used to award contracts for the Army Combat 

Shirt during the fiscal year 2007-12 timeframe and that the Defense Logistics Agency 

(DLA) is using to prepare to award future ones, we reviewed the relevant provisions of 

statutes and regulations related to the procurement of supplies—i.e., the U.S. Code; the 

Code of Federal Regulations, including the Federal Acquisition Regulation; and Small 

Business Regulations. We examined the Army's and DLA's documentation regarding the 

procurement of the Army Combat Shirt—e.g., contracts, acquisition plans, solicitations, 

Small Business Administration acceptance letters, award determination memorandums, 

market research reports, award and price analyses memorandums, the Army’s purchase 

description for the combat shirt, and memorandums from the Office of the Secretary of 

Defense and the Army regarding the use of the National Industries for the Blind (NIB) 

nonprofit agencies and the NISH nonprofit agencies. 

We interviewed program and contracting officials from Army Program Executive Office 

Soldier, DLA Troop Support, the Army Contracting Command, and the Office of Federal 

Procurement Policy to corroborate evidence from the documents reviewed on the 

Army’s and DLA’s approach and to determine the factors considered during the award 

determination process. 

We interviewed the following firms that the Army awarded Army Combat Shirt contracts 

to between fiscal years 2007 and 2012 to discuss the process for manufacturing the Army 

Combat Shirts: 

 Two Small Business Administration, 8 (a) firms —API, LLC, and Source for Native 

American Products, LLC, firms owned by an Alaska Native Corporation and an Indian 

tribe, respectively, were afforded special advantages for certain contract awards;23

 A NIB nonprofit agency—i.e., San Antonio Lighthouse for the Blind; and 

 Two NISH nonprofit agencies—Mount Rogers Individual and Developmental Center 

and Goodwill Industries of South Florida, Inc. 

We also interviewed officials from the AbilityOne Commission, which is the organization 

that oversees NIB and NISH agencies, and Massif Mountain Gear Company, LLC, which 

is the company that produces the flame-resistant, moisture-wicking fabrics used in the 

manufacture of the Army Combat Shirt. 

 

23For example, Alaska Native Corporation-owned and Indian tribe-owned, 8(a) firms could receive sole-source 8(a) contracts for any 

amount without a justification and approval when the fiscal years 2007 and 2008 contracts were awarded, but sole-source awards to 

other 8(a) firms generally must be made under certain competitive dollar amount thresholds ($6.5 million for manufacturing 

contracts or $4 million for all other types of acquisitions).
Page 15 GAO-13-57R Army Combat Shirt Procurement 

We conducted this performance audit from March 2012 to February 2013, in accordance 

with generally accepted government auditing standards. Those standards require that we 

plan and perform the audit to obtain sufficient, appropriate evidence to provide a 

reasonable basis for our findings and conclusions based on our audit objectives. We 

believe that the evidence obtained provides a reasonable basis for our findings and 

conclusions based on our audit objectives. 
Page 16 GAO-13-57R Army Combat Shirt Procurement 

Enclosure II: Glossary of Relevant Regulations for Awarding Supply Contracts 

The regulations for awarding contracts for supplies like the Army Combat Shirt for the 

Army and Defense Logistics Agency include the Federal Acquisition Regulation (FAR) 

and Small Business Regulations below.

Federal Acquisition Regulation— 

 FAR § 8.002 – Priorities for Use of Government Supply Sources – sets forth the 

priority order government agencies must follow to acquire required supplies and 

services from government supply sources. 

 FAR Part 10 – Market Research – sets forth, among other things, the policies for 

conducting market research to arrive at the most suitable approach to acquiring and 

distributing supplies and services, including how to find vendors capable of 

producing required supplies. 

 FAR § 19.805 – the 8(a) Program – sets forth the requirements for determining 

whether acquisitions offered to the Small Business Administration under the 8(a) 

program are awarded on a (1) competitive basis limited to eligible 8(a) firms, or (2) 

sole-source basis, including requirements accepted on behalf of firms owned by 

Indian tribes or Alaska Native Corporations: 

o Competitive 8(a): Except for when an acquisition is made under 

FAR § 19.805-1(b), an acquisition offered to the Small Business Administration 

under the 8(a) program must be awarded on the basis of competition limited 

to eligible 8(a) firms if—(1) There is a reasonable expectation that at least two 

eligible and responsible 8(a) firms will submit offers and that award can be 

made at a fair market price; and (2) The anticipated total value of the contract, 

including options, will exceed $6.5 million for acquisitions assigned 

manufacturing North American Industry Classification System codes and 

$4 million for all other acquisitions. FAR § 19.805-1(a). 

o Sole-Source 8(a): Where an acquisition exceeds the competitive threshold (will 

exceed $6.5 million for acquisitions assigned manufacturing North American 

Industry Classification System codes and $4 million for all other acquisitions), 

the Small Business Administration may accept the requirement for a solesource 8(a) award if—(1) There is not a reasonable expectation that at least 

two eligible and responsible 8(a) firms will submit offers at a fair market price 

or (2) the Small Business Administration accepts the requirement on behalf of 

a concern owned by an Indian tribe or an Alaska Native Corporation. 

FAR § 19.805-1(b). 
Page 17 GAO-13-57R Army Combat Shirt Procurement 

 FAR § 19.803(c) – Selecting Acquisitions for the 8(a) Program – sets forth how 

agencies identify requirements which may be offered to SBA’s 8(a) program. 

 FAR § 19.806 – Pricing the 8(a) contract—sets forth how a contracting officer must 

price an 8(a) contract. 

 FAR § 15.404-1 – Proposal analysis techniques—sets forth the various proposal 

analysis techniques an agency uses to ensure that the final agreed-to price is fair and 

reasonable. 

Small Business Regulations implementing provisions of the Small Business Act— 

 13 C.F.R. § 124.506(a) – sets forth the dollar thresholds at which an 8(a) procurement 

must be competed among eligible participants; and 124.506(b)—sets forth an 

exemption from competitive thresholds for participants owned by Alaska Native 

Corporations, Indian tribes, and (for Department of Defense contracts) Native 

Hawaiian Organizations. 

 41 C.F.R. § 51-3.2 – sets forth the responsibilities of each central nonprofit agency 

under the AbilityOne Program. Specifically, each central nonprofit agency is required, 

among other things, to (1) represent its participating nonprofit agencies in dealing 

with the AbilityOne Commission24 under the Javits-Wagner-O’Day Act (41 C.F.R. § 51-

3.2(a)) ; and (2) as market conditions change, recommend price changes with 

appropriate justification for assigned commodities or services on the Federal 

Procurement List. (41 C.F.R. § 51-3.2(i)). 

 41C.F.R. § 51-2.4 – Determination of Suitability – sets forth the required criteria for 

a commodity or service to be suitable for addition to the Federal Procurement List. 

The required criteria, among others, include the following: 

o Level of impact on the current contractor for the commodity or service. In 

deciding whether or not a proposed addition to the Federal Procurement List 

is likely to have a severe adverse impact on the current contractor for the 

specific commodity or service, the AbilityOne Commission gives particular 

attention to: (1) the possible impact on the contractor's total sales, including 

the sales of affiliated companies and parent corporations; the AbilityOne 

Commission also considers the effects of previous AbilityOne Commission 

actions; and (2) whether that contractor has been a continuous supplier to the 

government of the specific commodity or service proposed for addition and is, 

therefore, more dependent on the income from such sales to the government. 

If there is not a current contract for the commodity or service being proposed 

for addition to the Federal Procurement List, the AbilityOne Commission may 

consider the most recent contractor to furnish the item to the government as 

the current contractor for the purpose of determining the level of impact. 

41 C.F.R. § 51-2.4(a) (4). 

 

24The Committee for Purchase for the Blind or Severely Disabled operates as the AbilityOne Commission. For purposes of this report, 

we use the term “AbilityOne Commission” to refer to the Committee. 
Page 18 GAO-13-57R Army Combat Shirt Procurement 

 41 C.F.R. § 51-2.5 – Committee Decision – sets forth the particular facts and 

circumstances the AbilityOne Commission considers in each case when determining 

whether a commodity or service is suitable for addition to the Federal Procurement 

List. If the AbilityOne Commission determines that a proposed addition is likely to 

have a severe adverse impact on a current contractor, it takes this fact into 

consideration in deciding not to add the commodity or service to the Federal 

Procurement List, or to add only a portion of the government requirement for the 

item. If the AbilityOne Commission decides to add a commodity or service in whole 

or in part to the Federal Procurement List, that decision is announced in 

the Federal Register with a notice that includes information on the effective date of 

the addition. 

 15 U.S. Code § 644(g) – Annual Preference Program Goals – The President must 

annually establish government-wide goals of providing not less than 23 percent of 

federal prime contract dollars to various categories of small businesses. The Small 

Business Administration negotiates agency-specific goals to ensure that the federal 

government meets the statutory goal of awarding at least 23 percent of prime 

contract dollars to small businesses. 
Page 19 GAO-13-57R Army Combat Shirt Procurement 

Enclosure III: GAO Contact and Staff Acknowledgments 

GAO Contact: 

Cary B. Russell, (202) 512-5431 or russellc@gao.gov

Staff Acknowledgments: 

In addition to the contact named above, key contributors to this report were Larry Junek, 

Assistant Director; Alfonso Garcia; Mae Jones; Carol Petersen; Sylvia Schatz; and Angela 

Watson. 

(351715) 
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