VA awards $33M for COVID-19 PPE Masks to 3M Company under sole-source contract
Contract Overview
Contract Amount: $33,001,056 ($33.0M)
Contractor: 3M Company
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-06-11
End Date: 2021-06-10
Contract Duration: 364 days
Daily Burn Rate: $90.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COVID-19 PPE MASKS
Place of Performance
Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55144
Plain-Language Summary
Department of Veterans Affairs obligated $33.0 million to 3M COMPANY for work described as: COVID-19 PPE MASKS Key points: 1. Significant award value of $33 million for essential PPE. 2. Sole-source award to 3M Company raises questions about competition. 3. Contract duration of one year aligns with pandemic needs. 4. Focus on surgical appliance manufacturing highlights critical supply chain.
Value Assessment
Rating: questionable
Pricing is difficult to assess without competitive benchmarks. The firm fixed-price structure provides some cost certainty, but the lack of competition may have led to a higher price than a competed contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces the government's ability to secure the best value.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, especially given the high demand for PPE during the pandemic.
Public Impact
Ensured supply of critical PPE for veterans during the COVID-19 pandemic. Potential for higher costs to taxpayers due to lack of competition. Highlights reliance on a single large manufacturer for essential medical supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award justification
- Reliance on single vendor
Positive Signals
- Timely delivery of essential goods
- Secured supply chain for critical items
Sector Analysis
The award falls within the Surgical Appliance and Supplies Manufacturing sector. Spending in this sector, particularly for PPE, surged during the pandemic. Benchmarks for similar sole-source PPE contracts during this period are scarce, making direct comparison difficult.
Small Business Impact
This contract was awarded to a large business (3M Company) and did not include provisions for small business participation. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the justification was sound and that the price was fair and reasonable. Further review of the procurement process is recommended.
Related Government Programs
- Surgical Appliance and Supplies Manufacturing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for inflated pricing
- Limited small business participation
- No clear benchmark for value
Tags
surgical-appliance-and-supplies-manufact, department-of-veterans-affairs, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $33.0 million to 3M COMPANY. COVID-19 PPE MASKS
Who is the contractor on this award?
The obligated recipient is 3M COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2020-06-11. End: 2021-06-10.
Was the sole-source justification for this PPE contract adequately documented and reviewed?
The provided data indicates a sole-source award, which typically requires a strong justification, such as a critical need or lack of alternatives. Without access to the full contract file, it's impossible to definitively assess the adequacy of the justification. However, the urgency of pandemic-related procurements sometimes led to expedited sole-source awards, which may warrant post-award review for compliance and best value.
What was the price per unit compared to market rates for similar masks at the time of award?
The data does not provide a per-unit cost, only the total award amount. Without knowing the quantity of masks purchased, a direct comparison to market rates is impossible. Given the sole-source nature and high demand, it is plausible that the price per unit was higher than in a competitive environment, though the firm fixed-price contract offers some cost predictability.
Could alternative suppliers have met the VA's needs, even with a limited competition approach?
The data states the contract was 'NOT COMPETED,' implying no competition was sought. While 3M is a major supplier, exploring even limited competition among qualified manufacturers could have potentially yielded better pricing or terms. The urgency of the pandemic might have influenced the decision, but a review of potential alternatives would be necessary to confirm if limited competition was feasible.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
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: 3M CENTER, SAINT PAUL, MN, 55144
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,001,056
Exercised Options: $33,001,056
Current Obligation: $33,001,056
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2020-06-11
Current End Date: 2021-06-10
Potential End Date: 2021-06-10 00:00:00
Last Modified: 2021-03-23
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