Lion Apparel is a clothing company. Vallen is a distribution firm. Both companies formed the joint venture, Lion-Vallen, to provide uniform items to new recruits at Lackland Air Force Base in Texas. None of the uniform items DLA purchases are manufactured in any Lion Apparel factory. All government contracts mandate contractor adherence to applicable federal and state laws, requiring firms to pay minimum wage, adhere to clean air and water requirements, and maintain a safe workplace.
Subcontractors are subject to the same laws and regulations.
The agency makes every effort to enforce contractor compliance with the provisions of DLA contracts and all applicable laws. Our contracts also provide for termination of the contract if the contractor does not comply with its terms. As the article mentions, DLA is precluded from making a profit on any of its logistics support to America's armed forces. However, the agency must recover all costs to purchase, store, and distribute products to its service members. The 9.3 percent overhead you mention relates only to the costs of managing uniform items at our Supply Center in Philadelphia.