DHS awards $96.4M for FlexAir PAPRs to Airboss Defense amid COVID-19 emergency

Contract Overview

Contract Amount: $96,434,000 ($96.4M)

Contractor: Airboss Defense Group, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-04-03

End Date: 2020-07-31

Contract Duration: 119 days

Daily Burn Rate: $810.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PROCUREMENT OF FLEXAIR POWERED AIR-PURIFYING RESPIRATOR (PAPR) W/ HIGH EFFICIENCY (HE) FILTERS AND LOOSE FITTING HOOD ORDERED TO DISTRIBUTE TO MEDICAL PERSONNEL FROM POTENTIAL BIOLOGICAL HARM FROM COVID-19 DURING EMERGENCY RESPONSE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20500

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $96.4 million to AIRBOSS DEFENSE GROUP, LLC for work described as: THE PROCUREMENT OF FLEXAIR POWERED AIR-PURIFYING RESPIRATOR (PAPR) W/ HIGH EFFICIENCY (HE) FILTERS AND LOOSE FITTING HOOD ORDERED TO DISTRIBUTE TO MEDICAL PERSONNEL FROM POTENTIAL BIOLOGICAL HARM FROM COVID-19 DURING EMERGENCY RESPONSE Key points: 1. Significant award for critical PPE during a national emergency. 2. Sole-source award to Airboss Defense Group, LLC. 3. High-risk procurement due to urgent need and limited competition. 4. Focus on medical personnel protection against biological harm.

Value Assessment

Rating: questionable

The award of $96.4M for PAPRs is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for emergency respiratory protection.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the urgent need during the COVID-19 emergency. The lack of competition means potential for higher pricing and limited price discovery.

Taxpayer Impact: Taxpayers funded a large emergency procurement without competitive bidding, potentially leading to a higher cost than if multiple vendors had competed.

Public Impact

Ensures critical medical personnel have necessary respiratory protection. Addresses immediate needs during a public health crisis. Highlights reliance on specific vendors during emergencies. Potential for future sole-source awards in similar situations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Urgent need procurement
Lack of price competition

Positive Signals

Addresses critical PPE need
Supports medical personnel safety

Sector Analysis

The award falls under the Surgical and Medical Instrument Manufacturing sector. Spending in this sector surged during the pandemic for essential equipment like respirators.

Small Business Impact

The data indicates this award was not made to small businesses, as Airboss Defense Group, LLC is the sole awardee. There is no indication of subcontracting opportunities for small businesses in this data.

Oversight & Accountability

Given the sole-source nature and emergency context, oversight would focus on delivery timelines, product quality, and justification for the lack of competition. FEMA's role is critical in ensuring accountability.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing due to lack of competition.
Urgent need may have bypassed standard vetting processes.
Reliance on a single vendor for critical supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $96.4 million to AIRBOSS DEFENSE GROUP, LLC. THE PROCUREMENT OF FLEXAIR POWERED AIR-PURIFYING RESPIRATOR (PAPR) W/ HIGH EFFICIENCY (HE) FILTERS AND LOOSE FITTING HOOD ORDERED TO DISTRIBUTE TO MEDICAL PERSONNEL FROM POTENTIAL BIOLOGICAL HARM FROM COVID-19 DURING EMERGENCY RESPONSE

Who is the contractor on this award?

The obligated recipient is AIRBOSS DEFENSE GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $96.4 million.

What is the period of performance?

Start: 2020-04-03. End: 2020-07-31.

What was the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically stems from urgent and compelling circumstances, such as a national emergency like COVID-19, where a specific vendor possesses unique capabilities or immediate availability. Agencies must document why competition is not feasible. Alternative strategies might include limited competition among pre-qualified vendors or expedited competitive processes, but these may not always be viable under extreme time pressure.

How was the price determined without a competitive bidding process?

Without competition, pricing is often determined through negotiation based on historical pricing, catalog prices, or cost-plus-fee arrangements. The agency would likely have reviewed the vendor's proposed costs, potentially negotiating profit margins and overhead. Benchmarking against similar, albeit potentially different, emergency procurements could also inform price reasonableness, though direct comparisons are challenging.

What measures were in place to ensure the quality and effectiveness of the respirators provided under this emergency contract?

Quality assurance for emergency procurements often involves expedited inspection and acceptance processes. This could include verifying manufacturer certifications (e.g., NIOSH approval), conducting pre-shipment or receiving inspections, and potentially requiring third-party testing. The contract terms would specify acceptance criteria and remedies for non-conforming products to ensure effectiveness.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Airboss of America Corp (UEI: 247865264)

Address: 3341 75TH AVE, HYATTSVILLE, MD, 20785

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $96,434,000

Exercised Options: $96,434,000

Current Obligation: $96,434,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline