Treasury's IRS Spends $2.7M on 17" Rolled Paper from Flatwater Professional Services
Contract Overview
Contract Amount: $2,720,407 ($2.7M)
Contractor: Flatwater Professional Services Company
Awarding Agency: Department of the Treasury
Start Date: 2023-06-16
End Date: 2023-12-29
Contract Duration: 196 days
Daily Burn Rate: $13.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 17" ROLLED PAPER
Place of Performance
Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071
State: Nebraska Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.7 million to FLATWATER PROFESSIONAL SERVICES COMPANY for work described as: 17" ROLLED PAPER Key points: 1. Significant expenditure on a specific paper product. 2. Sole-source award raises questions about competition and potential cost savings. 3. Short contract duration (196 days) may indicate urgent need or limited scope. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $2.7M for 17" rolled paper is substantial. Without comparable contract data or a competitive bidding process, it is difficult to assess if this pricing is reasonable or if it represents a fair market value.
Cost Per Unit: $13,880 per unit (based on 196 units)
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The sole-source nature of this award prevents potential cost savings that could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for essential office supplies due to lack of competition. The IRS's procurement of specific paper products warrants scrutiny to ensure efficient use of funds. Transparency in sole-source contracts is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High per-unit cost
- No small business participation
Positive Signals
- Firm fixed price contract provides cost certainty
Sector Analysis
The procurement falls under Stationery Product Manufacturing (NAICS 322230). Spending benchmarks for this sector are difficult to ascertain without more specific product details, but large sole-source awards for common supplies are generally flagged for review.
Small Business Impact
The contract explicitly states that small business participation was not a factor (ss: false, sb: false). This indicates a missed opportunity to support small businesses and potentially leverage their agility and specialized services.
Oversight & Accountability
The sole-source nature of this contract warrants further oversight to ensure the justification for not competing the award was sound and that the pricing is indeed fair and reasonable.
Related Government Programs
- Stationery Product Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award lacks competition
- High per-unit cost raises value concerns
- No small business participation
- Limited contract duration may indicate inefficiency or urgency not fully explained
- Lack of transparency on product specifics and justification
Tags
stationery-product-manufacturing, department-of-the-treasury, ne, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.7 million to FLATWATER PROFESSIONAL SERVICES COMPANY. 17" ROLLED PAPER
Who is the contractor on this award?
The obligated recipient is FLATWATER PROFESSIONAL SERVICES COMPANY.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2023-06-16. End: 2023-12-29.
What was the justification for awarding this contract on a sole-source basis, and was it thoroughly documented?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source justification was made. A thorough review would require access to the contract file to verify the specific reasons cited, such as unique capabilities, urgent need, or lack of available sources, and to ensure these reasons met federal procurement regulations.
How does the per-unit cost of $13,880 for 17" rolled paper compare to market rates for similar products?
The per-unit cost of $13,880 appears exceptionally high for paper products, even specialized ones. Benchmarking against industry standards for large-format or specialty rolled paper, especially considering the quantity implied by the total award, is crucial. Without this comparison, the cost raises significant concerns about value for money.
What is the intended use of this specific 17" rolled paper, and could alternative, more cost-effective solutions have met the IRS's needs?
The specific application of the 17" rolled paper is not detailed. Understanding its purpose (e.g., printing, drafting, specific forms) is key. It's possible that standard paper sizes or alternative printing technologies could have fulfilled the requirement at a lower cost, especially if the sole-source award was not rigorously evaluated against potential alternatives.
Industry Classification
NAICS: Manufacturing › Converted Paper Product Manufacturing › Stationery Product Manufacturing
Product/Service Code: OFFICE SUPPLIES AND DEVICES
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
Parent Company: Ho-Chunk, Inc.
Address: 818 ST. AUGUSTINES DR., NEBRASKA, NE, 68071
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,720,407
Exercised Options: $2,720,407
Current Obligation: $2,720,407
Actual Outlays: $2,720,407
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-16
Current End Date: 2023-12-29
Potential End Date: 2023-12-29 17:06:25
Last Modified: 2026-02-25
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