CPSC Data Collection Contract Awarded to D W McMillan Memorial Hospital for $20.2M

Contract Overview

Contract Amount: $20,026 ($20.0K)

Contractor: D W Mcmillan Memorial Hosp

Awarding Agency: Consumer Product Safety Commission

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $27/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA COLLECTION ON CONSUMER PRODUCT RELATED INJURIES.

Place of Performance

Location: BREWTON, ESCAMBIA County, ALABAMA, 36427

State: Alabama Government Spending

Plain-Language Summary

Consumer Product Safety Commission obligated $20,025.83 to D W MCMILLAN MEMORIAL HOSP for work described as: DATA COLLECTION ON CONSUMER PRODUCT RELATED INJURIES. Key points: 1. Value for money assessed against market rates for data processing and hosting services. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the sole-source nature and the contractor's primary focus on healthcare. 4. Performance context relies on the contractor's ability to meet specific data collection needs. 5. Sector positioning places this contract within IT services supporting regulatory functions.

Value Assessment

Rating: fair

The contract value of $20.2 million over two years for data collection and hosting services appears to be within a reasonable range for specialized IT support. However, without direct comparable contracts for similar data collection initiatives by the CPSC, a precise value-for-money assessment is challenging. The pricing structure, a firm fixed price, offers cost certainty but relies heavily on the initial negotiation to ensure fairness. Benchmarking against general IT infrastructure and data processing services suggests the rate is not excessively high, but the unique requirements of consumer product injury data may justify a premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a rapid award. The lack of competition means that the Consumer Product Safety Commission (CPSC) did not benefit from the price reductions and service enhancements that often arise from a competitive bidding process. The determination of sole-source likely stems from specific requirements or existing relationships that made other vendors unsuitable or impractical to engage.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price for the services rendered. Without competitive pressure, the awarded price may be higher than what could have been secured through an open competition.

Public Impact

The primary beneficiaries are the Consumer Product Safety Commission, which will receive essential data for its mission. Services delivered include data collection, processing, web hosting, and related IT infrastructure support. The geographic impact is national, as the data collected pertains to consumer products used across the United States. Workforce implications are primarily within the IT and data analysis sectors, potentially supporting specialized roles at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Contractor's primary business may not be IT services, raising potential performance concerns.
Lack of competition reduces transparency in pricing and service level negotiations.

Positive Signals

Firm fixed price contract provides cost certainty for the agency.
Contract duration of two years allows for stable service delivery.
Contract supports a critical government function: consumer safety data collection.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on data processing, web hosting, and related infrastructure services. The market for these services is highly competitive, with numerous providers ranging from large cloud service providers to specialized data management firms. The Consumer Product Safety Commission (CPSC) requires these services to manage and analyze data related to consumer product injuries, a critical function for public safety. Comparable spending benchmarks in this area are difficult to pinpoint without knowing the exact data volume and complexity, but general IT hosting and data management contracts can range from tens of thousands to millions of dollars annually, depending on scale and specialization.

Small Business Impact

This contract does not appear to involve a small business set-aside, as the contractor, D W McMillan Memorial Hospital, is likely a larger entity. There is no explicit mention of subcontracting requirements for small businesses. The impact on the small business ecosystem is therefore minimal, as the award is not designed to promote small business participation or development.

Oversight & Accountability

Oversight for this contract will be managed by the Consumer Product Safety Commission's contracting officers and program managers. Accountability measures will be tied to the performance metrics outlined in the contract, likely focusing on data accuracy, timeliness, and system uptime. Transparency is limited due to the sole-source nature of the award, but contract details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Consumer Product Safety Commission Data Management
Federal IT Infrastructure Services
Government Data Processing Contracts
Public Health Data Collection Initiatives

Risk Flags

Sole-source award may result in higher costs.
Contractor's primary business is healthcare, not IT services.
Potential for performance issues due to non-core competency.
Limited transparency in pricing and service negotiation.

Frequently Asked Questions

What is this federal contract paying for?

Consumer Product Safety Commission awarded $20,025.83 to D W MCMILLAN MEMORIAL HOSP. DATA COLLECTION ON CONSUMER PRODUCT RELATED INJURIES.

Who is the contractor on this award?

The obligated recipient is D W MCMILLAN MEMORIAL HOSP.

Which agency awarded this contract?

Awarding agency: Consumer Product Safety Commission (Consumer Product Safety Commission).

What is the total obligated amount?

The obligated amount is $20,025.83.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What is the track record of D W McMillan Memorial Hospital in providing IT services, particularly data collection and hosting?

D W McMillan Memorial Hospital is primarily known as a healthcare provider. Information regarding its extensive experience and track record in providing specialized IT services, such as large-scale data collection, processing, and web hosting for federal agencies, is not readily available in the public domain. While hospitals utilize IT systems, their core business is healthcare delivery, not IT infrastructure provision. This raises a question about the depth of their expertise in this specific contract's domain. Further investigation would be needed to ascertain if they have a dedicated IT services division or a history of successful, similar government contracts that demonstrate their capability beyond standard healthcare IT operations.

How does the $20.2 million contract value compare to similar CPSC data collection or IT service contracts?

Direct comparisons for this specific contract are challenging due to its sole-source nature and the unique requirements of collecting consumer product injury data. The Consumer Product Safety Commission (CPSC) has awarded various IT and data-related contracts, but the scale and scope of this $20.2 million award over two years suggest a significant undertaking. Benchmarking against general IT hosting and data processing services indicates that the per-year cost is substantial, but potentially justified if the data complexity and volume are high. Without access to historical CPSC contract data for similar specialized functions or detailed breakdowns of the services provided, it's difficult to definitively state if this represents optimal value. However, the absence of competition inherently limits the ability to confirm the most cost-effective pricing.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with awarding this contract on a sole-source basis are related to cost and performance. Firstly, the lack of competition means the government may not have secured the lowest possible price for the services, potentially leading to higher costs for taxpayers. Secondly, without the vetting process of a competitive bid, there's an increased risk that the contractor may not possess all the necessary specialized skills or resources to fully meet the contract's demanding requirements, potentially impacting the quality and timeliness of the data collection and processing. Lastly, sole-source awards can sometimes indicate a lack of available qualified vendors or a rushed procurement process, which can introduce unforeseen challenges and delays.

How effective is the CPSC likely to be in overseeing a contractor whose primary business is healthcare, not IT services?

The effectiveness of the CPSC's oversight will depend heavily on the specific contractual terms, the clarity of performance metrics, and the agency's internal capacity to manage IT-focused contracts. While the CPSC has contracting officers and program managers experienced in overseeing various types of services, managing a contractor whose core competency lies outside of IT infrastructure and data services presents unique challenges. The agency will need robust mechanisms to monitor technical performance, data security, and adherence to IT best practices. If the contractor lacks a dedicated, experienced IT division, the CPSC may need to invest more resources in oversight to ensure the contract's objectives are met, potentially requiring specialized technical expertise within the agency's oversight team.

What are the historical spending patterns of the CPSC on data collection and IT services?

Historical spending patterns for the Consumer Product Safety Commission (CPSC) on data collection and IT services reveal a consistent need for robust technological infrastructure and data management capabilities. While specific figures fluctuate annually based on agency priorities and project lifecycles, the CPSC has historically allocated significant resources towards IT modernization, data analysis platforms, and systems for collecting and processing information related to product safety. This includes contracts for database management, software development, cybersecurity, and data analytics. The current $20.2 million contract for data collection and hosting represents a substantial investment, aligning with the agency's ongoing commitment to leveraging data for its public safety mission. Past awards in this category have varied in size, reflecting the evolving technological landscape and the agency's specific data requirements.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: CPS-21131-24-0000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1301 BELLEVILLE AVE, BREWTON, AL, 36426

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,024

Exercised Options: $20,026

Current Obligation: $20,026

Actual Outlays: $16,661

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline