Treasury's Bureau of Engraving and Printing awards $5.5M intangible asset lease to Solstice Advanced Materials

Contract Overview

Contract Amount: $5,534,797 ($5.5M)

Contractor: Solstice Advanced Materials US, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-09-29

End Date: 2026-09-30

Contract Duration: 1,097 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LICENSE AGREEMENT

Place of Performance

Location: MORRIS PLAINS, MORRIS County, NEW JERSEY, 07950

State: New Jersey Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.5 million to SOLSTICE ADVANCED MATERIALS US, INC. for work described as: LICENSE AGREEMENT Key points: 1. Contract value of $5.5M over 3 years. 2. Sole-source award indicates limited competition. 3. Potential risk in reliance on a single vendor for critical assets. 4. Sector is Lessors of Nonfinancial Intangible Assets.

Value Assessment

Rating: fair

The contract value of $5.5M for a 3-year lease of intangible assets appears reasonable given the lack of competitive bidding. Benchmarking is difficult without comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source, meaning there was no competition. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award may result in a higher price than if it were competitively bid, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the lack of competition. Dependence on a single supplier could create future supply chain risks. Transparency in government contracting is reduced with sole-source awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Clear contract duration
Firm fixed price contract

Sector Analysis

This contract falls under the Lessors of Nonfinancial Intangible Assets sector. Spending in this area can vary widely depending on the specific assets leased and the agency's needs.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price is fair and reasonable and that future procurements are competed where possible.

Related Government Programs

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
Department of the Treasury Contracting
Bureau of Engraving and Printing Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in vendor selection.
Missed opportunities for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.5 million to SOLSTICE ADVANCED MATERIALS US, INC.. LICENSE AGREEMENT

Who is the contractor on this award?

The obligated recipient is SOLSTICE ADVANCED MATERIALS US, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-30.

What specific intangible assets are being leased, and why is Solstice Advanced Materials the only viable provider?

The specific intangible assets are not detailed in the provided data. However, a sole-source justification would typically outline unique capabilities, proprietary technology, or essential integration requirements that make only one vendor capable of meeting the agency's needs. Without this information, it's difficult to assess the necessity of the sole-source award.

What is the potential financial risk to taxpayers due to the lack of competitive bidding on this contract?

The primary financial risk to taxpayers stems from the absence of competitive pressure. Without competing bids, the Bureau of Engraving and Printing may have paid a premium compared to what a competitive process would yield. This could represent a loss of potential savings that could be allocated to other government priorities.

How effective is this contract in meeting the Bureau of Engraving and Printing's needs, given its sole-source nature?

The effectiveness of the contract in meeting needs can only be partially assessed. While the contract is in place and has a defined duration, the sole-source award raises questions about whether alternative, potentially more cost-effective solutions were overlooked. The long-term effectiveness will depend on the performance of Solstice Advanced Materials and the continued relevance of the leased intangible assets.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) › Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 TABOR ROAD, MORRIS PLAINS, NJ, 07950

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

Financial Breakdown

Contract Ceiling: $7,579,801

Exercised Options: $5,534,797

Current Obligation: $5,534,797

Actual Outlays: $5,534,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline