Treasury's IRS Awards $19.18M for 1040 Pop-Up Boxes, Awarded to Franklin Mountain Packaging
Contract Overview
Contract Amount: $19,181 ($19.2K)
Contractor: Franklin Mountain Packaging, LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-08-27
End Date: 2024-10-31
Contract Duration: 65 days
Daily Burn Rate: $295/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 23
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 1040 POP-UP BOXES
Place of Performance
Location: SANTA TERESA, DONA ANA County, NEW MEXICO, 88008
Plain-Language Summary
Department of the Treasury obligated $19,180.58 to FRANKLIN MOUNTAIN PACKAGING, LLC for work described as: 1040 POP-UP BOXES Key points: 1. The contract for 1040 Pop-Up Boxes represents a significant expenditure within the broader office supply and packaging sector. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The firm fixed-price contract type aims to control costs, but the limited competition method may impact price discovery. 4. The taxpayer impact is indirect, related to the operational efficiency of tax form distribution.
Value Assessment
Rating: fair
The award of $19.18 million for pop-up boxes appears to be a substantial amount for this specific item. Benchmarking against similar contracts for specialized packaging or office supplies would be necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of quotes. While this can expedite the process, it may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: Taxpayer funds are utilized for operational necessities. The efficiency and cost-effectiveness of this procurement directly influence the responsible use of these funds.
Public Impact
Ensures the IRS has necessary materials for tax form distribution. Supports the operational needs of the Internal Revenue Service. Potential for improved taxpayer experience through accessible forms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Potential for higher unit costs due to limited competition
Positive Signals
- Firm fixed-price contract
- Timely delivery for tax season
Sector Analysis
The procurement falls under the Corrugated and Solid Fiber Box Manufacturing (NAICS 322211) sector. Spending in this sector is generally tied to logistics, manufacturing, and packaging needs across various government agencies.
Small Business Impact
The contract was awarded to Franklin Mountain Packaging, LLC. Analysis is needed to determine if this is a small business and if the procurement process adequately considered small business participation.
Oversight & Accountability
Oversight would involve ensuring the quality and timely delivery of the pop-up boxes as per the purchase order terms and conditions, and verifying that the pricing remains within reasonable limits for the specified goods.
Related Government Programs
- Corrugated and Solid Fiber Box Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition
- Potential for non-competitive pricing
- Lack of detailed justification for SAP
- Unknown small business status of awardee
Tags
corrugated-and-solid-fiber-box-manufactu, department-of-the-treasury, nm, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $19,180.58 to FRANKLIN MOUNTAIN PACKAGING, LLC. 1040 POP-UP BOXES
Who is the contractor on this award?
The obligated recipient is FRANKLIN MOUNTAIN PACKAGING, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $19,180.58.
What is the period of performance?
Start: 2024-08-27. End: 2024-10-31.
What is the specific function and necessity of these '1040 POP-UP BOXES' in the IRS's operations?
These '1040 POP-UP BOXES' likely serve as specialized packaging or display units for tax forms, particularly the 1040 series, intended for distribution to taxpayers or tax preparers. Their 'pop-up' nature suggests a design for easy assembly or presentation, potentially enhancing accessibility or organization of tax documents during critical filing periods.
What are the risks associated with limited competition under SAP for this procurement?
Limited competition under Simplified Acquisition Procedures (SAP) carries the risk of reduced price competition, potentially leading to higher unit costs for the government. It may also limit the pool of qualified vendors, potentially impacting innovation or the availability of specialized solutions. Ensuring fair and reasonable pricing requires diligent market research and justification.
How does the firm fixed-price contract type ensure effectiveness and value for taxpayer money?
A firm fixed-price (FFP) contract establishes a ceiling price, transferring most of the risk to the contractor. This encourages the contractor to manage costs efficiently to maximize profit. For the IRS, this means predictable spending and protection against cost overruns, ensuring better value for taxpayer money, provided the initial price was set competitively.
Industry Classification
NAICS: Manufacturing › Converted Paper Product Manufacturing › Corrugated and Solid Fiber Box Manufacturing
Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 23
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 401 AVENIDA ASCENCION, SANTA TERESA, NM, 88008
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,181
Exercised Options: $19,181
Current Obligation: $19,181
Actual Outlays: $19,181
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2024-08-27
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 07:02:12
Last Modified: 2026-04-10
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