HHS Awards $31.2M for N95 Respirators to Draeger Inc. Amidst Pandemic

Contract Overview

Contract Amount: $31,240,793 ($31.2M)

Contractor: Draeger Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-03-27

End Date: 2022-06-20

Contract Duration: 815 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 53

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: N95 RESPIRATORS (NIOSH APPROVED)

Place of Performance

Location: TELFORD, MONTGOMERY County, PENNSYLVANIA, 18969

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.2 million to DRAEGER INC for work described as: N95 RESPIRATORS (NIOSH APPROVED) Key points: 1. Significant award for essential medical supplies during a critical period. 2. Draeger Inc. is a major player in respiratory protection. 3. Potential for price volatility given the emergency nature of procurement. 4. Focus on healthcare supplies, a consistently high-spending sector.

Value Assessment

Rating: good

The $31.2 million award for N95 respirators appears reasonable given the urgent demand and market conditions during the pandemic. Benchmarking against similar large-scale respirator procurements during the same period would provide further context, but the firm fixed-price structure suggests an effort to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The firm fixed-price type further solidifies cost certainty.

Taxpayer Impact: The competitive award process likely ensured taxpayers received a fair price for critical medical supplies, mitigating potential overspending due to inflated emergency pricing.

Public Impact

Ensured supply of critical personal protective equipment (PPE) during a public health emergency. Supported healthcare workers on the front lines by providing necessary respiratory protection. Demonstrates government's ability to rapidly procure essential goods during crises.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price gouging in emergency situations, though mitigated by competition.
Supply chain disruptions could impact delivery timelines.
Dependence on a single awardee for a large quantity.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract provides cost certainty.
Procurement addresses critical public health needs.

Sector Analysis

The healthcare sector, particularly medical equipment and supplies, sees substantial government spending, especially during public health crises. This award falls within the 'Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers' category, a vital segment for national health security.

Small Business Impact

The data indicates this contract was awarded to Draeger Inc., a large corporation, and does not show any specific set-asides for small businesses. Therefore, the direct impact on small businesses in this particular award appears minimal.

Oversight & Accountability

The contract was awarded by the Office of Assistant Secretary for Preparedness and Response (ASPR), a key agency for managing health emergencies. Oversight would focus on delivery, quality compliance, and adherence to the firm fixed-price terms.

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 price inflation due to emergency demand.
Supply chain vulnerability during global health crises.
Ensuring consistent quality and NIOSH certification.
Contract duration and delivery schedule adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.2 million to DRAEGER INC. N95 RESPIRATORS (NIOSH APPROVED)

Who is the contractor on this award?

The obligated recipient is DRAEGER 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 $31.2 million.

What is the period of performance?

Start: 2020-03-27. End: 2022-06-20.

What was the average per-unit cost compared to pre-pandemic benchmarks?

Without pre-pandemic benchmark data for this specific contract, a direct per-unit cost comparison is difficult. However, given the emergency demand, prices were likely higher than historical averages. Analyzing the total award value against the number of units (if available) and comparing it to similar large-scale procurements during the pandemic would be necessary for a more precise assessment of value.

What were the primary risks associated with this procurement?

Key risks included potential supply chain disruptions impacting delivery, the possibility of price inflation due to emergency demand, and ensuring the quality and NIOSH approval of the respirators. The firm fixed-price contract aimed to mitigate cost risks, while competition helped ensure availability and potentially competitive pricing.

How effective was this award in meeting the immediate need for N95 respirators?

The award of over $31 million suggests a significant effort to meet demand. Its effectiveness hinges on timely delivery and the respirators meeting required standards. Given the context of the pandemic, such large awards were crucial for equipping healthcare professionals and the public.

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: 76A50120R00008

Offers Received: 53

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3135 QUARRY RD, TELFORD, PA, 18969

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $31,240,793

Exercised Options: $31,240,793

Current Obligation: $31,240,793

Actual Outlays: $31,240,793

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline