HHS awards $49.9M firm-fixed-price contract for 38.2M respirators via full and open competition
Contract Overview
Contract Amount: $49,937,075 ($49.9M)
Contractor: Moldex-Metric, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-03-21
End Date: 2021-12-31
Contract Duration: 650 days
Daily Burn Rate: $76.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 52
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THIS IS A FIRM FIXED PRICE CONTRACT BETWEEN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS)/THE ASSISTANT SECRETARY FOR PREPAREDNESS AND RESPONSE (ASPR) AND MOLDEX-METRIC INC FOR THE IMMEDIATE PURCHASE OF 38,238,080 NATIONAL INSTITUTE FOR OCCUPATIO
Place of Performance
Location: CULVER CITY, LOS ANGELES County, CALIFORNIA, 90232
Plain-Language Summary
Department of Health and Human Services obligated $49.9 million to MOLDEX-METRIC, INC. for work described as: THIS IS A FIRM FIXED PRICE CONTRACT BETWEEN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS)/THE ASSISTANT SECRETARY FOR PREPAREDNESS AND RESPONSE (ASPR) AND MOLDEX-METRIC INC FOR THE IMMEDIATE PURCHASE OF 38,238,080 NATIONAL INSTITUTE FOR OCCUPATIO Key points: 1. Significant volume of respirators procured to address public health needs. 2. Contract awarded through full and open competition, suggesting market availability. 3. Potential risk of overstocking or obsolescence given the large quantity. 4. Spending falls within the Medical Equipment and Supplies sector.
Value Assessment
Rating: good
The contract's price of $49.9M for 38.2M units equates to approximately $1.31 per unit. This appears reasonable for N95-equivalent respirators, especially during a public health emergency.
Cost Per Unit: $1.31
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple vendors could have bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The contract's firm fixed-price nature protects taxpayers from cost overruns, while the competitive award process aims for efficient use of funds.
Public Impact
Ensures availability of critical personal protective equipment (PPE) for healthcare workers and the public. Supports national preparedness efforts for health emergencies. Large quantity may lead to significant stockpiling for future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for excess inventory if demand fluctuates.
- Shelf-life limitations of respirators.
Positive Signals
- Addresses critical need for PPE.
- Utilizes competitive bidding process.
Sector Analysis
This contract falls under the Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers sector. Spending in this category can fluctuate significantly based on public health needs and emergency declarations.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business participation in this particular award. Further analysis would be needed to determine if small businesses were subcontractors.
Oversight & Accountability
The contract was awarded by HHS/ASPR, an agency responsible for public health preparedness. Oversight would involve ensuring timely delivery, quality control, and proper distribution of the respirators.
Related Government Programs
- Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential for excess inventory.
- Shelf-life expiration.
- Supply chain disruptions impacting delivery.
- Quality control of a large volume of goods.
Tags
medical-dental-and-hospital-equipment-an, department-of-health-and-human-services, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $49.9 million to MOLDEX-METRIC, INC.. THIS IS A FIRM FIXED PRICE CONTRACT BETWEEN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS)/THE ASSISTANT SECRETARY FOR PREPAREDNESS AND RESPONSE (ASPR) AND MOLDEX-METRIC INC FOR THE IMMEDIATE PURCHASE OF 38,238,080 NATIONAL INSTITUTE FOR OCCUPATIO
Who is the contractor on this award?
The obligated recipient is MOLDEX-METRIC, INC..
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 $49.9 million.
What is the period of performance?
Start: 2020-03-21. End: 2021-12-31.
What is the projected demand for these respirators beyond the contract period?
The projected demand for these respirators beyond the contract period is a critical factor in assessing the long-term value. If demand remains high due to ongoing public health concerns or future pandemic preparedness, the large quantity procured could be highly beneficial. Conversely, if demand significantly decreases, the government might face challenges with excess inventory and potential obsolescence, impacting the overall cost-effectiveness.
How does the unit price compare to similar contracts awarded during the same period?
Comparing the unit price of $1.31 to similar contracts awarded by other federal agencies or state governments for N95-equivalent respirators during the 2020-2021 period is essential. Given the widespread demand and supply chain disruptions at the time, prices could have been inflated. Benchmarking against contracts with similar specifications and competition levels will reveal if this price was competitive or potentially elevated due to market conditions.
What are the specific quality standards and certifications for these respirators?
The specific quality standards and certifications for these respirators are paramount for ensuring their effectiveness in protecting users. Respirators, particularly N95s, must meet stringent criteria set by bodies like NIOSH. Verifying that Moldex-Metric Inc.'s products adhere to these standards (e.g., NIOSH approval numbers) ensures they provide the intended level of protection, mitigating risks associated with substandard equipment during critical health situations.
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
Solicitation ID: 75A50120R0008
Offers Received: 52
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10111 JEFFERSON BLVD, CULVER CITY, CA, 90232
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,937,075
Exercised Options: $49,937,075
Current Obligation: $49,937,075
Actual Outlays: $49,937,075
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-21
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2022-11-01
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