DoD's Air Force Awards $31.9M for Packaging Paper to SEA BOX, INC
Contract Overview
Contract Amount: $31,897,175 ($31.9M)
Contractor: SEA BOX, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-08-30
End Date: 2017-06-30
Contract Duration: 304 days
Daily Burn Rate: $104.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BEAR HYGIENE IPT
Place of Performance
Location: CINNAMINSON, BURLINGTON County, NEW JERSEY, 08077
Plain-Language Summary
Department of Defense obligated $31.9 million to SEA BOX, INC. for work described as: BEAR HYGIENE IPT Key points: 1. The contract value of $31.9 million is significant for coated and laminated packaging paper manufacturing. 2. SEA BOX, INC. secured this award through full and open competition. 3. The firm fixed price contract type suggests price certainty but limits flexibility. 4. The sector is manufacturing, specifically packaging materials for defense applications.
Value Assessment
Rating: fair
The contract value of $31.9 million for a 304-day duration appears reasonable for specialized defense packaging. Benchmarking against similar large-scale packaging contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which is a positive indicator for achieving competitive pricing. The award to SEA BOX, INC. suggests they offered the best value under these terms.
Taxpayer Impact: Taxpayers benefit from competitive bidding, ensuring funds are used efficiently for necessary defense supplies.
Public Impact
Ensures the Department of the Air Force receives critical packaging materials for operations. Supports a manufacturing company, contributing to the defense industrial base. The use of firm fixed price protects the government from cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation if raw material costs increase significantly, despite FFP.
- Dependence on a single supplier for this specific order could pose a risk if supply chain issues arise.
Positive Signals
- Awarded through full and open competition, maximizing potential for best value.
- Firm fixed price contract provides cost certainty for the government.
- Clear delivery period (304 days) indicates defined project scope.
Sector Analysis
The coated and laminated packaging paper manufacturing sector is crucial for logistics and supply chain operations, particularly within the defense industry. Spending benchmarks for similar defense packaging contracts are not readily available but are likely substantial given the specialized nature and volume.
Small Business Impact
The data indicates this contract was awarded to SEA BOX, INC. and does not specify any subcontracting to small businesses. Further analysis would be needed to determine if small business participation was a requirement or opportunity.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, implying oversight from this agency. The firm fixed price nature and defined delivery period suggest clear accountability for performance.
Related Government Programs
- Coated and Laminated Packaging Paper Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for raw material price volatility impacting contractor profitability under FFP.
- Limited information on small business participation.
- Dependence on a single awardee for this specific order.
- Lack of detailed technical specifications makes precise value assessment difficult.
Tags
coated-and-laminated-packaging-paper-man, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.9 million to SEA BOX, INC.. BEAR HYGIENE IPT
Who is the contractor on this award?
The obligated recipient is SEA BOX, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $31.9 million.
What is the period of performance?
Start: 2016-08-30. End: 2017-06-30.
What is the specific type of coated and laminated packaging paper required, and how does its technical specification impact cost and competition?
The specific technical requirements for coated and laminated packaging paper, such as material strength, environmental resistance, and adherence to military standards, significantly influence production costs. Highly specialized or stringent specifications can limit the number of capable manufacturers, potentially impacting the competitiveness of the bidding process. Understanding these specifications is key to assessing if the $31.9 million award represents fair value.
What are the potential risks associated with a firm fixed price contract for specialized packaging materials, especially concerning raw material volatility?
A firm fixed price (FFP) contract offers cost certainty to the buyer but shifts the risk of cost overruns to the contractor. For specialized packaging materials, raw material price volatility (e.g., resins, specialty papers) can be a significant risk for the contractor. If material costs rise unexpectedly during the contract period, the contractor may face reduced profit margins or even losses, potentially impacting their ability to deliver quality products or their willingness to bid on future contracts.
How effectively does this contract support the Air Force's logistical needs, and are there alternative solutions that could offer better value or resilience?
This contract directly supports the Air Force's logistical needs by ensuring the supply of essential packaging materials. Its effectiveness hinges on the timely delivery of high-quality products that meet stringent military requirements. Evaluating alternative solutions, such as different material types, advanced packaging technologies, or diversified supplier bases, could reveal opportunities for improved cost-efficiency, enhanced durability, or greater supply chain resilience against disruptions.
Industry Classification
NAICS: Manufacturing › Converted Paper Product Manufacturing › Coated and Laminated Packaging Paper Manufacturing
Product/Service Code: PLUMBING, HEATING, WASTE DISPOSAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 SEA BOX DR, CINNAMINSON, NJ, 08077
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,897,175
Exercised Options: $31,897,175
Current Obligation: $31,897,175
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS02F0024P
IDV Type: FSS
Timeline
Start Date: 2016-08-30
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2022-06-14
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