DHS FEMA awards $43.7M for PPE to MEDEA INC amidst pandemic

Contract Overview

Contract Amount: $43,681,249 ($43.7M)

Contractor: Medea Inc

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-02

End Date: 2020-09-07

Contract Duration: 128 days

Daily Burn Rate: $341.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDEA PPE

Place of Performance

Location: PLEASANTON, ALAMEDA County, CALIFORNIA, 94588

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.7 million to MEDEA INC for work described as: MEDEA PPE Key points: 1. Significant award for essential medical supplies during a critical period. 2. MEDEA INC secured a substantial contract, indicating potential market strength. 3. Risk of price gouging or quality issues in emergency procurement. 4. Healthcare sector spending surge driven by pandemic response.

Value Assessment

Rating: fair

The award amount of $43.7M for PPE is substantial. Benchmarking against similar emergency procurements during the pandemic is difficult due to market volatility and urgency. The contract value suggests a large quantity of supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the urgency of the pandemic may have influenced price discovery and negotiation.

Taxpayer Impact: Taxpayer funds were used to procure critical supplies during a national emergency. The effectiveness of the competition in securing the best value is a key consideration.

Public Impact

Ensured availability of vital Personal Protective Equipment for frontline workers. Supported national response efforts during the COVID-19 pandemic. Demonstrates government's ability to rapidly procure essential goods in crisis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to emergency demand.
Supply chain disruptions could impact delivery timelines.
Quality control of PPE is paramount.

Positive Signals

Fulfilled critical need for PPE.
Awarded through full and open competition.
Supported national health security.

Sector Analysis

This contract falls within the Medical, Dental, and Hospital Equipment and Supplies sector. Spending in this area surged dramatically in 2020 due to the COVID-19 pandemic, with significant government investment in PPE.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific award or as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight is crucial to ensure the quality and fair pricing of PPE procured during emergencies. FEMA's procurement processes are subject to standard government oversight mechanisms.

Related Government Programs

Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Emergency procurement context
Potential for price inflation
Supply chain vulnerability
Quality assurance of medical supplies

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.7 million to MEDEA INC. MEDEA PPE

Who is the contractor on this award?

The obligated recipient is MEDEA INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $43.7 million.

What is the period of performance?

Start: 2020-05-02. End: 2020-09-07.

Was the $43.7M award for PPE a good value given the pandemic's market conditions?

Determining 'good value' is challenging due to the unprecedented market conditions of the pandemic. Urgency often leads to higher prices. A detailed post-award analysis comparing unit costs to pre-pandemic benchmarks and other emergency contracts would be necessary to assess value comprehensively.

What were the primary risks associated with this emergency PPE procurement?

Key risks included potential price gouging due to extreme demand, counterfeit or substandard product quality, and significant supply chain disruptions impacting timely delivery. Ensuring compliance with quality standards and competitive pricing under duress were critical challenges.

How effective was the full and open competition in securing necessary PPE?

While 'full and open competition' suggests a broad solicitation, the effectiveness in securing optimal value is debatable given the emergency context. The process likely prioritized rapid acquisition to meet immediate needs, potentially at a premium. The ultimate effectiveness lies in the PPE reaching its intended users without compromising quality.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5653 STONERIDGE DR STE 119, PLEASANTON, CA, 94588

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,681,249

Exercised Options: $43,681,249

Current Obligation: $43,681,249

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FA2020D00000003

IDV Type: IDC

Timeline