DoD awards $125M contract to 3M Company for respiratory protection amid COVID-19
Contract Overview
Contract Amount: $125,361,885 ($125.4M)
Contractor: 3M Company
Awarding Agency: Department of Defense
Start Date: 2020-05-01
End Date: 2021-09-10
Contract Duration: 497 days
Daily Burn Rate: $252.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COVID-19 DHHS - CAPACITY EXPANSION FOR US RESPIRATORY PROTECTION
Place of Performance
Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55144
Plain-Language Summary
Department of Defense obligated $125.4 million to 3M COMPANY for work described as: COVID-19 DHHS - CAPACITY EXPANSION FOR US RESPIRATORY PROTECTION Key points: 1. Significant investment in critical respiratory protection capacity. 2. Sole-source award to established manufacturer 3M Company. 3. Contract duration spans over a year, indicating sustained need. 4. Focus on surgical appliance manufacturing sector.
Value Assessment
Rating: fair
The contract value of $125M is substantial for respiratory protection. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar large-scale procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning 3M Company was the sole provider selected. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Ensures availability of essential respiratory protection during a public health crisis. Supports domestic manufacturing capabilities for critical medical supplies. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Addresses critical need
- Supports domestic production
Sector Analysis
This contract falls within the Surgical Appliance and Supplies Manufacturing sector, which saw increased demand due to the COVID-19 pandemic. Benchmarks for similar large-scale, sole-source procurements in this sector are difficult to establish without competitive data.
Small Business Impact
The contract was awarded to 3M Company, a large corporation, and there is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price paid was reasonable and that future needs are competitively sourced where possible.
Related Government Programs
- Surgical Appliance and Supplies Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for inflated costs
- Limited oversight due to non-competitive nature
Tags
surgical-appliance-and-supplies-manufact, department-of-defense, mn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $125.4 million to 3M COMPANY. COVID-19 DHHS - CAPACITY EXPANSION FOR US RESPIRATORY PROTECTION
Who is the contractor on this award?
The obligated recipient is 3M COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $125.4 million.
What is the period of performance?
Start: 2020-05-01. End: 2021-09-10.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of adequate competition. For this COVID-19 related contract, the urgency and specific manufacturing capabilities of 3M Company likely played a role in the decision to bypass competitive bidding.
How does the unit cost compare to historical or market benchmarks for similar respiratory protection?
Without competitive bids or publicly available unit cost data for comparable contracts, it is challenging to establish a precise benchmark. The $125M award for an unspecified quantity over 497 days makes direct unit cost comparison difficult and highlights the need for better transparency in sole-source procurements.
What measures were in place to ensure the quality and effectiveness of the respiratory protection supplied?
Standard government contract clauses for quality assurance and performance would apply. However, the sole-source nature means the government relied on 3M's established reputation and internal quality controls, rather than competitive validation of product effectiveness.
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: $125,361,885
Exercised Options: $125,361,885
Current Obligation: $125,361,885
Actual Outlays: $18,000,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2020-05-01
Current End Date: 2021-09-10
Potential End Date: 2021-09-10 00:00:00
Last Modified: 2021-08-18
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