DoD's $14.6M Paper Products Contract Awarded to Fort James Operating Company Lacks Competition

Contract Overview

Contract Amount: $14,662,887 ($14.7M)

Contractor: Fort James Operating Company

Awarding Agency: Department of Defense

Start Date: 2009-01-01

End Date: 2009-03-31

Contract Duration: 89 days

Daily Burn Rate: $164.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - PAPER PRODUCTS

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to FORT JAMES OPERATING COMPANY for work described as: RESALE - PAPER PRODUCTS Key points: 1. The contract for paper products was awarded to Fort James Operating Company for $14.6 million. 2. The Defense Commissary Agency awarded this contract. 3. The contract was not available for competition, raising concerns about price discovery. 4. The sector is 'Other' as paper mills are not a primary defense spending category.

Value Assessment

Rating: questionable

The contract type is fixed price, which offers some cost control. However, without competition, it's difficult to assess if the $14.6 million price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited approach. This lack of competition likely hindered effective price discovery and potentially led to a higher price than could have been achieved through a competitive process.

Taxpayer Impact: Without competitive bidding, taxpayers may have paid a premium for these paper products, as the government did not leverage market forces to secure the best possible price.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The Defense Commissary Agency's procurement process for essential paper products lacked transparency. The contract duration of 89 days is relatively short, suggesting a need for ongoing procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited price discovery

Positive Signals

Fixed-price contract type

Sector Analysis

This contract falls under general supplies, not a core defense sector. Spending on paper products by the DoD is typically for administrative or support functions, and benchmarks are difficult to establish without more specific product details.

Small Business Impact

There is no indication in the data whether small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The lack of competition suggests potential weaknesses in oversight regarding procurement strategies. Further review would be needed to ensure the Defense Commissary Agency is maximizing value for taxpayer dollars.

Related Government Programs

Paper (except Newsprint) Mills
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in award process
No clear justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to FORT JAMES OPERATING COMPANY. RESALE - PAPER PRODUCTS

Who is the contractor on this award?

The obligated recipient is FORT JAMES OPERATING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2009-01-01. End: 2009-03-31.

What was the specific justification for not competing this contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' However, the specific reason or justification for this limitation is not detailed. Typically, such limitations are due to factors like urgent and compelling needs, sole-source capabilities, or existing contract vehicles. Without this information, it's impossible to fully assess the validity of the non-competitive award.

How does the $14.6 million price compare to market rates for similar paper products?

Without specific product details (e.g., type of paper, quantity, quality specifications) and a competitive bidding process, a direct price comparison is challenging. The 'NOT AVAILABLE FOR COMPETITION' status implies that a market-based price discovery mechanism was bypassed, making it difficult to ascertain if $14.6 million represents a fair market value or a potential overpayment.

What is the potential risk to mission effectiveness if paper product supply is disrupted?

Paper products, while not directly related to combat operations, are essential for administrative functions, record-keeping, and communication within military and commissary operations. A disruption could impede daily operations, impact morale, and affect the efficiency of support services. The reliance on a single, non-competitively awarded contract could increase this risk if the supplier faces issues.

Industry Classification

NAICS: Manufacturing › Pulp, Paper, and Paperboard Mills › Paper (except Newsprint) Mills

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 133 PEACHTREE STREET NE, ATLANTA, GA, 30303

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,662,887

Exercised Options: $14,662,887

Current Obligation: $14,662,887

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0106G3497

IDV Type: IDC

Timeline