A firm set up by a former telemarketer who once settled federal fraud charges for $2.7 million. A vodka distributor accused in a pending lawsuit of overstating its projected sales. An aspiring weapons dealer operating out of a single-family home.
These three privately held companies are part of the new medical supply chain, offered a total of almost $74 million by the federal government to find and rapidly deliver vital protective equipment and COVID-19 testing supplies across the U.S. While there’s no evidence that they obtained their deals through political connections, none of the three had to bid against competing firms. One has already lost its contract for lack of performance; it’s unclear if the other two can fulfill their orders on time, or at all.
They are among about 345 first-time federal contractors promised at least $1.8 billion in deals by the Trump administration since March, representing about 13 percent of total government spending on pandemic-related contracts of $13.8 billion, a ProPublica analysis of federal procurement data found. Like the three companies, many of the new contractors have no experience acquiring medical products. Continue reading.