FEMA has canceled a $55.5 million contract with a company to make N95 respirator masks after the company failed to deliver and had no record of previously making such masks, The Wall Street Journal reported Tuesday.
The no-bid contract with Panthera Worldwide LLC was one of the largest the Federal Emergency Management Agency, the Journal reported.
The agreement originally had the company providing FEMA 10 million masks by May 1, but the contract had to be extended to May 11, according to the agency "on the grounds of nondelivery."
No payment was to be made without the masks being delivered, FEMA said.
When Panthera requested a second extension, it was denied.
The Journal has reported the company's two owners have been accused of fraud in lawsuits by business associates and both have had IRS tax liens filed against them for alleged unpaid taxes in 2018. The owners deny the fraud allegations.
The company has had one past contract with FEMA for $50,000, but has no record of making N95 masks, the Journal reported.