HHS awards $12M contract to Argentum Medical for surgical supplies under full and open competition

Contract Overview

Contract Amount: $12,011,076 ($12.0M)

Contractor: Argentum Medical, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-30

End Date: 2024-12-31

Contract Duration: 2,284 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: ARGENTUM MEDICAL LLC

Place of Performance

Location: GENEVA, KANE County, ILLINOIS, 60134

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.0 million to ARGENTUM MEDICAL, LLC for work described as: ARGENTUM MEDICAL LLC Key points: 1. Contract awarded to Argentum Medical, LLC for surgical appliance and supplies manufacturing. 2. The contract has a duration of 2284 days, ending in December 2024. 3. Full and open competition was utilized for this award. 4. The contract type is Cost Plus Fixed Fee. 5. The award value is $12,011,075.75.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for surgical supplies is difficult without more specific details on the items procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure fair pricing.

Taxpayer Impact: Taxpayer funds are being used for essential medical supplies, with competition aiming for value. Oversight is crucial to prevent excessive costs.

Public Impact

Ensures availability of critical surgical appliances and supplies for federal health initiatives. Supports the medical supply chain through a competitive contracting process. The long duration of the contract provides stability for supply but requires ongoing monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost efficiency.
Lack of specific product details makes direct cost comparison challenging.
Long contract duration may not reflect current market pricing.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Contract supports essential healthcare needs.
Clear end date for the contract.

Sector Analysis

This contract falls within the Surgical Appliance and Supplies Manufacturing sector. Spending in this sector is driven by healthcare demand and government procurement for public health programs. Benchmarks vary widely based on specific product types.

Small Business Impact

The data indicates that Argentum Medical, LLC is the awardee. There is no specific information provided regarding small business participation or subcontracting in this award notice.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates strong oversight from the Department of Health and Human Services to ensure costs are reasonable and fixed fees are justified. Monitoring performance and expenditures is critical.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Lack of detailed product/pricing information.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.0 million to ARGENTUM MEDICAL, LLC. ARGENTUM MEDICAL LLC

Who is the contractor on this award?

The obligated recipient is ARGENTUM MEDICAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2018-09-30. End: 2024-12-31.

What specific types of surgical appliances and supplies are covered under this contract, and how do their unit costs compare to market rates?

The provided data lacks specificity regarding the exact surgical appliances and supplies procured. A detailed breakdown of items and their quantities is needed to compare unit costs against market benchmarks. Without this, assessing the value for money is difficult, though the full and open competition suggests an attempt at fair pricing.

What are the primary risks associated with a Cost Plus Fixed Fee contract for medical supplies, and how are they being mitigated?

The primary risk is potential cost overruns if the 'cost' component is not tightly controlled, even with a fixed fee. Mitigation relies on robust oversight, detailed reporting requirements, and clear definitions of allowable costs. The agency must actively manage the contractor's spending to ensure efficiency and prevent unnecessary expenses.

How does the long contract duration (2284 days) impact the government's ability to secure the best possible pricing over time?

A long contract duration can lock in pricing, which may be advantageous if prices rise, but disadvantageous if market prices fall. It also reduces flexibility to adapt to new technologies or changing needs. Regular price reviews and potential for contract modifications would be key to ensuring continued value.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: BARDABAA18100SOL0000

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2571 KANEVILLE CT, GENEVA, IL, 60134

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,650,838

Exercised Options: $12,011,076

Current Obligation: $12,011,076

Actual Outlays: $6,373,092

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline