DoD awards $2.3M contract for paper products to Southeastern Paper Group, LLC

Contract Overview

Contract Amount: $2,298,780 ($2.3M)

Contractor: Southeastern Paper Group, LLC

Awarding Agency: Department of Defense

Start Date: 2025-03-13

End Date: 2026-03-12

Contract Duration: 364 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOSPB PACIFIC OCONUS AREA SUPPLIES PERIOD OF PERFORMANCE MARCH 13, 2025 THROUGH MARCH 12, 2026

Place of Performance

Location: SPARTANBURG, SPARTANBURG County, SOUTH CAROLINA, 29301

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $2.3 million to SOUTHEASTERN PAPER GROUP, LLC for work described as: MOSPB PACIFIC OCONUS AREA SUPPLIES PERIOD OF PERFORMANCE MARCH 13, 2025 THROUGH MARCH 12, 2026 Key points: 1. Contract awarded for essential paper supplies to support overseas operations. 2. The contract value is within a typical range for this type of supply. 3. Limited competition raises questions about potential price optimization. 4. Performance period aligns with standard annual supply needs. 5. This contract supports the Defense Commissary Agency's mission. 6. The award is for a firm-fixed-price contract type.

Value Assessment

Rating: fair

The contract value of approximately $2.3 million for a one-year period for paper supplies appears reasonable for supporting overseas military installations. Benchmarking against similar contracts for bulk paper products is challenging without more specific details on the exact types and quantities of paper. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost fluctuations, which can be beneficial for the government if costs rise. The absence of a competitive bidding process, however, limits the ability to definitively assess value for money against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, indicating that only one vendor was considered capable of meeting the requirement. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be necessary in specific circumstances, they limit the government's ability to leverage competition to drive down prices and ensure the best possible value. The lack of competition means that the pricing is based on negotiation with a single entity rather than market forces.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective pricing available in the market for these paper products. Without competitive bids, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

Service members and their families stationed overseas will benefit from the availability of essential paper products. The contract ensures the supply of paper bags and coated/treated papers for various uses within the Defense Commissary Agency's operations. The geographic impact is focused on overseas military installations supported by the Defense Commissary Agency. Workforce implications are likely minimal, primarily related to the logistics and distribution of the supplied goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competitive award.
Sole-source justification needs to be robust to ensure necessity.
Limited transparency into the pricing structure due to no competitive bids.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract ensures a critical supply chain for overseas operations.
Award supports the mission of the Defense Commissary Agency.

Sector Analysis

The paper manufacturing sector, classified under NAICS code 322220 (Paper Bag and Coated and Treated Paper Manufacturing), is a mature industry. This contract falls within the broader category of supplies for government operations. While specific spending benchmarks for overseas paper supplies are not readily available, the annual value of $2.3 million is a significant but not extraordinary amount for a federal agency's supply needs. The market typically involves established manufacturers and distributors capable of meeting large-volume orders.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no explicit information regarding subcontracting opportunities for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract is likely limited, unless the prime contractor voluntarily engages small businesses for support services or distribution.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and financial management offices. The Defense Commissary Agency would also have oversight responsibilities for ensuring delivery and quality. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Commissary Agency Operations
Overseas Military Support Contracts
Paper and Packaging Supplies
Department of Defense Supply Chain Management

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public data on specific product quantities and types.
Potential for above-market pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.3 million to SOUTHEASTERN PAPER GROUP, LLC. MOSPB PACIFIC OCONUS AREA SUPPLIES PERIOD OF PERFORMANCE MARCH 13, 2025 THROUGH MARCH 12, 2026

Who is the contractor on this award?

The obligated recipient is SOUTHEASTERN PAPER GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2025-03-13. End: 2026-03-12.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE' award. A sole-source justification is typically required when only one responsible source is available or capable of meeting the requirement. For federal contracts, this often stems from unique capabilities, urgent needs where competition is impractical, or specific government property requirements. Without the official justification document (e.g., a Justification and Approval or J&A), the precise reason remains unknown. However, common reasons include proprietary technology, a critical need for compatibility with existing systems, or a lack of other qualified vendors in the required geographic area or for the specific product type. The contracting agency, in this case, the Defense Commissary Agency, would have documented and approved this justification.

How does the $2.3 million contract value compare to historical spending for similar paper supplies by the Defense Commissary Agency?

Comparing the current $2.3 million contract value to historical spending requires access to historical contract databases and specific product categories. The provided data identifies the NAICS code as 322220 (Paper Bag and Coated and Treated Paper Manufacturing), suggesting the contract is for specific types of paper products. Without knowing the exact quantities, specifications, and duration of previous contracts for similar items, a direct comparison is difficult. However, a $2.3 million annual spend for essential supplies to support overseas operations is plausible. To conduct a thorough analysis, one would need to query contract databases for the Defense Commissary Agency and the Department of Defense for contracts within the same or similar NAICS codes over the past several fiscal years, looking for trends in value and volume.

What are the specific types and quantities of paper products included in this $2.3 million contract?

The provided data specifies the NAICS code as 322220, which covers 'Paper Bag and Coated and Treated Paper Manufacturing.' This indicates the contract is for paper bags and various types of coated or treated papers. However, the exact breakdown of specific product types (e.g., grocery bags, trash can liners, specialty coated papers for printing or packaging) and their respective quantities are not detailed in the summary data. The contract value of $2.3 million represents the total estimated cost for the period of performance (March 13, 2025, to March 12, 2026). A more granular understanding would require reviewing the contract's statement of work (SOW) or delivery schedule, which would itemize the required goods and their quantities.

What are the potential risks associated with a sole-source award for essential supplies like paper products?

The primary risk associated with a sole-source award for essential supplies is the potential for inflated pricing due to the lack of competition. When a single vendor is chosen without a competitive bidding process, there is less market pressure to offer the lowest possible price. This can lead to taxpayers potentially overpaying for the goods. Additionally, sole-source awards can reduce transparency and accountability, as there are fewer external benchmarks to validate the fairness of the price. There's also a risk that the chosen vendor may not be the most innovative or efficient provider available in the market. While sole-source awards are sometimes necessary due to unique circumstances, they warrant careful scrutiny to ensure they are justified and that the government is still achieving reasonable value.

What is the geographic scope of this contract, and how does it impact overseas operations?

The contract data mentions 'MOSPB PACIFIC OCONUS AREA SUPPLIES,' indicating that the paper products are intended for use in the Pacific region of Overseas Contingency Operations (OCO) areas. This means the supplies will support military personnel and their families stationed in bases or facilities located outside the continental United States in the Pacific theater. The impact on overseas operations is crucial: ensuring the availability of essential items like paper bags for commissary use, packaging materials, or administrative supplies directly supports the daily functioning and morale of these remote installations. Reliable access to such basic necessities is vital for maintaining operational readiness and quality of life for deployed forces.

Industry Classification

NAICS: Manufacturing › Converted Paper Product Manufacturing › Paper Bag and Coated and Treated Paper Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 50 OLD BLACKSTOCK RD, SPARTANBURG, SC, 29301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,195,119

Exercised Options: $6,195,119

Current Obligation: $2,298,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQC00423D0012

IDV Type: IDC

Timeline