HHS Spends $184M on COVID-19 Ventilators from Hamilton Medical, Inc. via Sole Source Contract
Contract Overview
Contract Amount: $184,293,093 ($184.3M)
Contractor: Hamilton Medical, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2020-03-30
End Date: 2022-01-29
Contract Duration: 670 days
Daily Burn Rate: $275.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COVID-19 VENTILATORS
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $184.3 million to HAMILTON MEDICAL, INC for work described as: COVID-19 VENTILATORS Key points: 1. Significant expenditure on critical medical equipment during a national emergency. 2. Sole-source award to Hamilton Medical, Inc. raises questions about competition and price. 3. Contract duration of 670 days indicates a substantial, long-term need. 4. High spending in the Surgical and Medical Instrument Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $184.3 million for ventilators is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to market rates or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may have resulted in a higher price than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Ensured availability of critical life-saving equipment during the pandemic. Potential for inflated costs due to lack of competitive bidding. Government reliance on a single supplier for essential medical devices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Procured essential medical equipment
- Met urgent pandemic needs
Sector Analysis
This contract falls within the Surgical and Medical Instrument Manufacturing sector. Spending in this sector can fluctuate significantly based on public health crises and technological advancements.
Small Business Impact
The data does not indicate any participation or set-asides for small businesses in this contract award.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response, suggesting oversight within a relevant agency. However, the sole-source nature warrants further scrutiny.
Related Government Programs
- Surgical and Medical Instrument Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for overpayment due to lack of competitive bidding.
- Reliance on a single vendor for critical supplies.
- Contract duration may indicate long-term dependency.
Tags
surgical-and-medical-instrument-manufact, department-of-health-and-human-services, ga, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $184.3 million to HAMILTON MEDICAL, INC. COVID-19 VENTILATORS
Who is the contractor on this award?
The obligated recipient is HAMILTON MEDICAL, 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 $184.3 million.
What is the period of performance?
Start: 2020-03-30. End: 2022-01-29.
What was the justification for the sole-source award, and were alternative suppliers considered?
The justification for a sole-source award is typically based on urgent and compelling needs where only one responsible source can provide the required supplies or services. For this contract, the COVID-19 pandemic likely created such an urgent need for ventilators. However, a thorough review would be needed to confirm if alternative suppliers were indeed considered and why they were deemed unsuitable.
How does the per-unit cost of these ventilators compare to similar contracts or market benchmarks?
Without access to specific unit pricing and comparative market data, it is challenging to benchmark the per-unit cost. Given the sole-source nature and emergency procurement context, the price may be higher than under competitive conditions. Further analysis would require detailed unit cost breakdowns and comparisons with other government or commercial ventilator purchases.
What measures were in place to ensure the quality and effectiveness of the ventilators procured?
Standard government procurement processes typically include quality assurance provisions and acceptance testing requirements. For medical equipment like ventilators, adherence to FDA regulations and specific performance standards would be critical. The contract type (Firm Fixed Price) suggests a defined scope, but specific quality control and inspection clauses would detail the assurance measures.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hamilton Bonaduz AG
Address: 4990 ENERGY WY, RENO, NV, 89502
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $185,293,093
Exercised Options: $184,293,093
Current Obligation: $184,293,093
Actual Outlays: $184,293,100
Contract Characteristics
Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-30
Current End Date: 2022-01-29
Potential End Date: 2022-01-29 00:00:00
Last Modified: 2026-03-30
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