Justice Department awards $4.18B for chemical products, bypassing competitive bidding

Contract Overview

Contract Amount: $4,181 ($4.2K)

Contractor: Anchortex Corp

Awarding Agency: Department of Justice

Start Date: 2026-05-29

End Date: 2026-05-29

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY2026 ARMORY MK21 OC- CSM MATRIX REQUIRED

Place of Performance

Location: WEST BERLIN, CAMDEN County, NEW JERSEY, 08091

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $4,181.1 to ANCHORTEX CORP for work described as: FY2026 ARMORY MK21 OC- CSM MATRIX REQUIRED Key points: 1. Significant contract value raises questions about cost-effectiveness due to lack of competition. 2. Sole-source nature limits opportunities for market-driven price discovery and innovation. 3. Potential risks include overpayment and reduced vendor accountability without competitive pressure. 4. Contract performance context is limited by the absence of comparative bids. 5. This spending falls within the 'Other Miscellaneous Chemical Product' manufacturing sector. 6. The contract's duration is a single day, suggesting a specific, short-term need or a placeholder.

Value Assessment

Rating: questionable

The contract's value of $4.18 billion is substantial, especially for a single day's duration. Without competitive bidding, it is impossible to benchmark this against market rates or similar contracts. The lack of transparency in pricing mechanisms makes a value-for-money assessment difficult. It is unclear if this price reflects a fair market value or if taxpayers are potentially overpaying due to the absence of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The data indicates a sole-source award, meaning only one vendor, ANCHORTEX CORP, was considered. This approach bypasses the standard competitive processes designed to ensure the government receives the best value. The lack of multiple bidders means there was no opportunity for price negotiation or comparison.

Taxpayer Impact: Sole-source awards limit taxpayer benefit by preventing the government from leveraging market competition to secure lower prices. This can lead to higher costs for essential goods and services.

Public Impact

The primary beneficiary is ANCHORTEX CORP, the sole contractor awarded this significant purchase order. The services delivered are related to 'All Other Miscellaneous Chemical Product and Preparation Manufacturing'. The geographic impact is localized to New Jersey (NJ), where the contractor is based. Workforce implications are not detailed but would likely involve ANCHORTEX CORP's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The sole-source nature limits transparency and accountability in the procurement process.
The extremely short duration (one day) for such a large value is unusual and warrants further investigation into the contract's true purpose and scope.
Absence of performance metrics or context makes it difficult to assess the necessity and effectiveness of this purchase.

Positive Signals

The contract is awarded to a specific entity, ANCHORTEX CORP, indicating a known supplier.
The purchase order is for chemical products, suggesting a potentially critical need within the Federal Prison System.
The contract is Firm Fixed Price, which can provide cost certainty if the scope is well-defined.

Sector Analysis

This contract falls under the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' sector. This broad category encompasses a wide range of chemical products not elsewhere classified. The market size for such specialized chemical products can vary significantly depending on specific applications. Without further details on the exact nature of the 'ARMORY MK21 OC- CSM MATRIX REQUIRED', it's difficult to benchmark against comparable spending. However, a $4.18 billion award, even for a short duration, is exceptionally large within this sector, especially when awarded sole-source.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false) and does not appear to involve small business set-asides (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a large prime contractor, ANCHORTEX CORP.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement regulations and potentially the Federal Prison System's oversight bodies. Given the sole-source nature and significant value, enhanced scrutiny from the DOJ Office of the Inspector General would be expected. Transparency is limited due to the lack of competitive bidding, making public accountability challenging without further disclosure on the justification for the sole-source award.

Related Government Programs

Department of Justice Procurement
Federal Prison System Supplies
Chemical Product Manufacturing Contracts
Sole-Source Procurements
Large Value Federal Contracts

Risk Flags

Sole-source award without apparent competition.
Extremely high value for a single-day contract duration.
Lack of detailed product description or justification for sole-sourcing.
Potential for inflated pricing due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4,181.1 to ANCHORTEX CORP. FY2026 ARMORY MK21 OC- CSM MATRIX REQUIRED

Who is the contractor on this award?

The obligated recipient is ANCHORTEX CORP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $4,181.1.

What is the period of performance?

Start: 2026-05-29. End: 2026-05-29.

What is the specific nature of the 'ARMORY MK21 OC- CSM MATRIX REQUIRED' and why is it needed by the Federal Prison System?

The specific nature of 'ARMORY MK21 OC- CSM MATRIX REQUIRED' is not detailed in the provided data. It is listed under 'All Other Miscellaneous Chemical Product and Preparation Manufacturing'. Given the awarding agency is the Department of Justice and the sub-agency is the Federal Prison System, it is plausible that these are chemical agents or materials related to security, maintenance, or operational needs within correctional facilities. The 'ARMORY' designation might suggest a security or defense-related application. Without further classification or product description, its exact purpose remains speculative. The 'CSM MATRIX REQUIRED' could refer to a specific formulation, testing matrix, or a component within a larger system. The large dollar amount suggests a significant quantity or high-value specialized product.

What is the justification for awarding this $4.18 billion contract as sole-source to ANCHORTEX CORP?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and implies a sole-source award. Standard federal procurement regulations require justification for sole-source awards, typically citing reasons such as unique capabilities of the contractor, urgent and compelling needs where competition is not feasible, or specific national security requirements. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the specific rationale. However, for a contract of this magnitude, a sole-source award would necessitate a rigorous review and approval process, likely involving higher levels within the Department of Justice to ensure it aligns with procurement laws and serves the best interests of the government.

How does the $4.18 billion value compare to historical spending on similar chemical products by the Federal Prison System?

Comparing this $4.18 billion contract to historical spending is challenging without knowing the precise nature of the 'ARMORY MK21 OC- CSM MATRIX REQUIRED'. If this represents a one-time procurement of a specific, high-value item, historical comparisons might not be directly relevant. However, if it's for recurring supplies, $4.18 billion for a single day's duration is exceptionally high and would likely dwarf typical annual or even multi-year spending on routine chemical supplies. Historical data for the Federal Prison System's spending on chemical products would need to be analyzed, segmenting by product type and contract duration, to establish a meaningful benchmark. The sole-source nature further complicates comparisons, as competitive contracts often yield different price points.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude include potential overpricing, lack of innovation, and reduced contractor accountability. Without competition, ANCHORTEX CORP may not have the same incentive to offer the most competitive price. The government loses the opportunity to explore alternative solutions or technologies that other vendors might offer. Furthermore, accountability can be weaker as the contractor knows they are the only option, potentially leading to complacency in performance or quality. There's also a risk of vendor lock-in, making future procurements difficult or expensive if the product or service is highly specialized.

What is the significance of the contract duration being only one day?

A contract duration of only one day for a $4.18 billion award is highly unusual and suggests several possibilities. It could represent a very specific, immediate need for a large quantity of a product delivered on a particular date. Alternatively, it might be a placeholder or an initial delivery order under a larger, unstated contract vehicle. It could also indicate a contract structured for rapid deployment or a specific event. The short duration makes it difficult to assess long-term performance or value. Further clarification would be needed to understand the operational context behind such a short timeframe for a substantial financial commitment.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 COMMERCE LN, WEST BERLIN, NJ, 08091

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,181

Exercised Options: $4,181

Current Obligation: $4,181

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline