DoD's $15.16M Paper Products Contract Awarded to Fort James Operating Company Lacks Competition

Contract Overview

Contract Amount: $15,159,190 ($15.2M)

Contractor: Fort James Operating Company

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2009-06-30

Contract Duration: 90 days

Daily Burn Rate: $168.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM 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 $15.2 million to FORT JAMES OPERATING COMPANY for work described as: RESALE - PAPER PRODUCTS Key points: 1. Significant spending on paper products by the Defense Commissary Agency. 2. Lack of competition raises concerns about potential overpayment. 3. Contract awarded during a period of economic uncertainty. 4. Limited transparency on pricing benchmarks for this commodity.

Value Assessment

Rating: questionable

The contract value of $15.16 million for paper products is substantial. Without available benchmarks or competitive pricing, it's difficult to assess if this represents a fair market price. The firm fixed price contract type offers some cost certainty, but the lack of competition is a major red flag.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source award. This significantly restricts price discovery and may lead to inflated costs for taxpayers. The specific reason for the limited competition is not detailed.

Taxpayer Impact: The lack of competitive bidding on a $15.16 million contract likely results in higher costs for taxpayers than if multiple vendors had competed.

Public Impact

Commissary shoppers may face higher prices due to potentially inflated costs. Taxpayer funds are potentially being used inefficiently due to lack of competition. The Defense Commissary Agency's procurement practices warrant closer scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
No pricing benchmarks available
Limited transparency on award justification

Positive Signals

Firm fixed price contract type

Sector Analysis

The paper products sector, while seemingly straightforward, can involve significant supply chain costs. Defense Commissary Agency spending on such goods is substantial, and competitive procurement is crucial for fiscal responsibility. Benchmarks for paper product mills (NAICS 322121) are not readily available for this specific contract.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a single, larger entity without apparent small business participation.

Oversight & Accountability

The limited competition and lack of readily available pricing benchmarks suggest potential weaknesses in oversight. Further investigation into the justification for the limited competition and the pricing negotiation process is warranted.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
No clear justification for limited competition
Absence of pricing benchmarks
Potential for taxpayer overpayment
Limited transparency in award process

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 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 $15.2 million.

What is the period of performance?

Start: 2009-04-01. End: 2009-06-30.

What was the specific justification for awarding this contract without competition?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' However, it does not detail the specific reasons. Typically, this could be due to urgent needs, lack of available sources, or specific technical requirements. Without further documentation, it's impossible to verify the validity of this justification and ensure it was not a missed opportunity for competitive bidding.

How can the agency ensure fair pricing without competitive bids?

When competition is not feasible, agencies can mitigate pricing risks by conducting thorough market research, obtaining independent government cost estimates, and negotiating aggressively with the sole or limited source. They should also leverage historical pricing data for similar items, if available, and ensure the contractor's proposed price is reasonable and reflects fair market value, even without direct bids.

What is the long-term impact of awarding contracts without competition on market dynamics?

Consistently awarding contracts without competition can stifle innovation and reduce market competitiveness over time. It may discourage potential new entrants from developing capabilities if they perceive opportunities are consistently awarded to incumbents or through non-competitive means. This can lead to higher prices and reduced quality for the government in the long run.

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: FIRM 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: $15,159,190

Exercised Options: $15,159,190

Current Obligation: $15,159,190

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0106G3497

IDV Type: IDC

Timeline