The Trump administration has awarded bulk contracts to third-party vendors in recent weeks in a scramble to obtain N95 respirator masks, and the government has paid the companies more than $5 per unit, nearly eight times what it would have spent in January and February when U.S. intelligence agencies warned of a looming global pandemic, procurement records show.
Large U.S. companies such as Honeywell and 3M have received the biggest orders, but the Trump administration also has signed high-dollar deals with third-party vendors selling masks for many times the standard price.
The Federal Emergency Management Agency awarded a $55 million contract for N95s this month to Panthera Worldwide LLC, which is in the business of tactical training. One of its owners said last year that Panthera’s parent company had not had any employees since May 2018, according to sworn testimony.
It also has no history of manufacturing or procuring medical equipment, according to a review of records produced as a result of legal disputes involving the company and its affiliates.
Panthera Worldwide’s parent company filed for bankruptcy last fall, and the LLC is no longer recognized in Virginia — where it has its main office — following nonpayment of fees, which according to Virginia code results in “the existence of a limited liability company” being “automatically canceled.”
The price that FEMA is paying Panthera per mask, about $5.50, is significantly higher than what the government pays companies such as 3M, which charges as little as 63 cents per N95 mask, with an average cost of about $1.50 for more advanced models, according to a price index. Prestige Ameritech, the largest domestic mask manufacturer, is charging FEMA about 80 cents per mask for the government’s order of 12 million N95 respirators, part of a $9.5 million contract that started April 7.