A company that have no experience in providing medical products has been awarded a contract to make masks for the government.
Experienced manufacturers charge 63 cents for a mask. This inexperienced startup is getting over $5 a piece.
It will be ineresting to see if they deliver the goods on or before May 1.
Yes, it does!
From your cited article.
“We’ve done [Department of Defense] medical training over the years and through those contacts with that community were brought sources of supply in order to assist in the COVID-19 response,” Punelli said in a text message to The Post. “We made the connection with FEMA and offered these supplies to them.”
“We will provide these masks before May 1 for certain, in full and with a very high-quality product,” Punelli said, adding that the company is registered as an LLC in Delaware.
If they fail to deliver the fed’s have endless ways to claw back the money and deal with them from civil forfeitures to criminal prosecution.
How long do you expect the demand to be what it currently is? Now…what will a company have to invest to accomplish this? That number must be divided into a much smaller number of masks, thus…these masks are much more expensive.
Do you want them at this price…ye or ne?
As time goes on, the cost goes down but so will the demand and now…you’re just stuck with a bunch of machines that make masks and no one to buy them.
The swamp is cool now.
Newsflash, demand always drives price and it cost’s a ■■■■load of money to convert an existing factory or to open a new one to produce a new product.
There is nothing in that article to indicate a problem with that contract, other than the price. There is no sign that regular procurement personnel were used or any suspicious connection with any government personnel were involved.
The only problem is that the price from a little start up was higher than the price of a huge manufacturer.
I can just hear the House committee now, in their investigation of October 2020 to the head of FEMA: “You mean you refused to use a new source of masks for our dedicated healthcare workers because they cost too much? The Trump administration saved pennies and people died!”
