Treasury's IRS Spends $207,738 on 17" Rolled Paper from Flatwater Solutions Company

Contract Overview

Contract Amount: $2,077,383 ($2.1M)

Contractor: Flatwater Solutions Company

Awarding Agency: Department of the Treasury

Start Date: 2022-06-24

End Date: 2022-11-10

Contract Duration: 139 days

Daily Burn Rate: $14.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 17" ROLLED PAPER

Place of Performance

Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071

State: Nebraska Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.1 million to FLATWATER SOLUTIONS COMPANY for work described as: 17" ROLLED PAPER Key points: 1. High unit cost for paper suggests potential overspending. 2. Lack of competition raises concerns about price discovery. 3. Contract awarded without competition limits taxpayer value. 4. Stationery product manufacturing sector analysis needed for benchmarks.

Value Assessment

Rating: questionable

The contract's total value of $207,738 for 17" rolled paper appears high. Without a per-unit cost or comparison to similar stationery procurements, it's difficult to definitively assess pricing, but the lack of competition suggests it may not be optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP, indicating a sole-source or limited competition award. This lack of competitive bidding likely resulted in a higher price than could have been achieved through a more open process.

Taxpayer Impact: The absence of competition limits the government's ability to secure the best possible price, potentially leading to inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium for essential office supplies due to non-competitive procurement. The IRS's reliance on a single vendor for this item could indicate a lack of market research or strategic sourcing. Future procurements of similar items should prioritize competitive bidding to ensure cost savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potentially high unit cost
Limited transparency

Positive Signals

Contract awarded to a specific company
Clear delivery dates

Sector Analysis

The procurement falls under stationery product manufacturing. Benchmarking against industry standards for paper products is crucial to determine if the price paid is reasonable, especially given the non-competitive nature of the award.

Small Business Impact

The data does not indicate whether Flatwater Solutions Company is a small business. Further analysis would be needed to determine the impact on small business participation in federal contracting.

Oversight & Accountability

The contract's non-competitive nature warrants oversight to ensure the IRS followed appropriate justification procedures and obtained fair value. A review of the procurement file is recommended.

Related Government Programs

Stationery Product Manufacturing
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Sole-source award
Lack of price competition
Potential for overpayment
Limited vendor options

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.1 million to FLATWATER SOLUTIONS COMPANY. 17" ROLLED PAPER

Who is the contractor on this award?

The obligated recipient is FLATWATER SOLUTIONS COMPANY.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2022-06-24. End: 2022-11-10.

What is the average market price for 17" rolled paper, and how does the contract price compare?

Without specific market data for 17" rolled paper, a direct comparison is challenging. However, the total contract value of $207,738 for an unspecified quantity suggests a potentially high per-unit cost. Industry benchmarks for bulk paper orders typically show significant cost efficiencies, which may not have been realized here due to the sole-source award.

What are the risks associated with awarding a contract for essential supplies without competition?

The primary risks include paying inflated prices, receiving substandard quality, and limiting innovation. A lack of competition prevents market forces from driving down costs and encouraging better product offerings. It also raises concerns about potential vendor lock-in and reduced accountability for performance.

How effective was this procurement in achieving value for taxpayer money?

The effectiveness is questionable due to the sole-source award. While the IRS received the paper, the absence of competition strongly suggests that taxpayers did not receive the best possible value. A competitive process would likely have yielded a lower price or better terms.

Industry Classification

NAICS: Manufacturing › Converted Paper Product Manufacturing › Stationery Product Manufacturing

Product/Service Code: OFFICE SUPPLIES AND DEVICES

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

Parent Company: Ho-Chunk, Inc.

Address: 1 MISSION DR, WINNEBAGO, NE, 68071

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,077,383

Exercised Options: $2,077,383

Current Obligation: $2,077,383

Actual Outlays: $2,077,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline