FEMA awards $10.7M for Polyethylene Sheeting, highlighting potential overspending in plastics packaging
Contract Overview
Contract Amount: $10,705,000 ($10.7M)
Contractor: Manufactured Plastics and Distribution, Inc
Awarding Agency: Department of Homeland Security
Start Date: 2006-07-20
End Date: 2006-10-21
Contract Duration: 93 days
Daily Burn Rate: $115.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: POLYETHYLENE STRING REINFORCED PLASTIC SHEETING
Place of Performance
Location: MONUMENT, EL PASO County, COLORADO, 80132
State: Colorado Government Spending
Plain-Language Summary
Department of Homeland Security obligated $10.7 million to MANUFACTURED PLASTICS AND DISTRIBUTION, INC for work described as: POLYETHYLENE STRING REINFORCED PLASTIC SHEETING Key points: 1. Spending on polyethylene sheeting reached $10.7M, with a significant portion potentially exceeding market value. 2. Competition was full and open, but pricing may not reflect true market value due to contract specifics. 3. Risk of overpayment exists, as the benchmark price suggests potential for savings. 4. The sector, Plastics Packaging Film and Sheet Manufacturing, shows moderate spending.
Value Assessment
Rating: questionable
The awarded price of $10.7M for polyethylene sheeting appears high compared to industry benchmarks. The benchmark price of $1.15M suggests a significant potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the high benchmark price indicates that the price discovery mechanism may not have been fully effective in securing the best value for taxpayers.
Taxpayer Impact: Taxpayers may have overpaid due to the discrepancy between the awarded price and the benchmark price for this essential material.
Public Impact
FEMA's procurement of $10.7M in plastic sheeting raises questions about cost-effectiveness for disaster relief supplies. The benchmark price suggests potential savings of over $9.5M, impacting the efficient use of federal funds. This contract highlights the need for robust price validation in federal procurement, especially for common materials.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High awarded price vs. benchmark
- Potential for significant cost savings
- Lack of clear justification for price variance
Positive Signals
- Full and open competition utilized
- Contract awarded to a single entity
Sector Analysis
The Plastics Packaging Film and Sheet Manufacturing sector (NAICS 326112) supplies essential materials for various government needs. Federal spending in this sector can fluctuate based on demand for packaging and protective materials, particularly during emergencies.
Small Business Impact
Information on small business participation is not available for this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded in 2006, and oversight details are limited. Post-award reviews and audits would be necessary to assess accountability and performance.
Related Government Programs
- Plastics Packaging Film and Sheet (including Laminated) Manufacturing
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- High awarded price compared to benchmark
- Potential for significant cost savings not realized
- Lack of detailed justification for price variance
- Questionable effectiveness of price discovery despite full competition
Tags
plastics-packaging-film-and-sheet-includ, department-of-homeland-security, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $10.7 million to MANUFACTURED PLASTICS AND DISTRIBUTION, INC. POLYETHYLENE STRING REINFORCED PLASTIC SHEETING
Who is the contractor on this award?
The obligated recipient is MANUFACTURED PLASTICS AND DISTRIBUTION, INC.
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 $10.7 million.
What is the period of performance?
Start: 2006-07-20. End: 2006-10-21.
What factors contributed to the significant price difference between the awarded contract and the benchmark price for polyethylene sheeting?
The substantial difference between the $10.7M awarded price and the $1.15M benchmark price for polyethylene sheeting warrants further investigation. Potential factors could include specific material requirements, urgency of need, or a failure in the initial price negotiation and validation process. Without detailed contract justifications, it's difficult to pinpoint the exact cause, but it strongly suggests a missed opportunity for cost savings.
What are the risks associated with procuring common materials like polyethylene sheeting at prices significantly above market benchmarks?
Procuring common materials significantly above market benchmarks poses several risks. It leads to inefficient use of taxpayer funds, potentially diverting resources from other critical needs. It can also set unfavorable precedents for future procurements, encouraging inflated pricing. Furthermore, it may signal weaknesses in the agency's procurement processes, potentially impacting overall program effectiveness and public trust.
How effective was the full and open competition in ensuring value for money in this polyethylene sheeting contract?
While full and open competition was employed, its effectiveness in ensuring value for money appears questionable given the large disparity between the awarded price and the benchmark. This suggests that either the bidding process did not attract sufficiently competitive offers at a fair price, or the evaluation criteria did not adequately prioritize cost-effectiveness. The outcome indicates a potential gap in price validation or negotiation strategies.
Industry Classification
NAICS: Manufacturing › Plastics Product Manufacturing › Plastics Packaging Film and Sheet (including Laminated) Manufacturing
Product/Service Code: NONMETALLIC FABRICATED MATERIALS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 13
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 20340 BEACON LITE ROAD, MONUMENT, CO, 05
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $21,410,000
Exercised Options: $21,410,000
Current Obligation: $10,705,000
Timeline
Start Date: 2006-07-20
Current End Date: 2006-10-21
Potential End Date: 2006-10-21 00:00:00
Last Modified: 2009-08-18
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