HHS awards $61.8M contract for allograft skin for thermal burns to Community Blood Center
Contract Overview
Contract Amount: $61,860,020 ($61.9M)
Contractor: Community Blood Center
Awarding Agency: Department of Health and Human Services
Start Date: 2022-09-30
End Date: 2029-08-13
Contract Duration: 2,509 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: CTS: ALLOGRAFT SKIN THERMAL BURN
Place of Performance
Location: DAYTON, MONTGOMERY County, OHIO, 45402
State: Ohio Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $61.9 million to COMMUNITY BLOOD CENTER for work described as: CTS: ALLOGRAFT SKIN THERMAL BURN Key points: 1. Contract awarded to Community Blood Center for thermal burn allograft skin. 2. Full and open competition was utilized for this procurement. 3. The contract has a duration of 2509 days. 4. The award value is $61,860,020. 5. The contract is firm fixed price.
Value Assessment
Rating: good
The firm fixed price contract of $61.8M over approximately 7 years appears reasonable given the specialized nature of allograft skin for thermal burns. Benchmarking against similar specialized biological products would provide further insight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures availability of critical medical supplies for burn victims. Supports advanced wound care treatments. Potential for improved patient outcomes in burn treatment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may require periodic price reviews.
- Dependence on a single supplier for a critical item.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the healthcare sector, specifically related to medical supplies and biological products. Spending in this area is driven by patient needs and advancements in medical technology.
Small Business Impact
No indication of small business participation in this award. Further analysis would be needed to determine if small businesses were solicited or could have participated.
Oversight & Accountability
The contract is managed by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response, indicating oversight for public health preparedness.
Related Government Programs
- Blood and Organ Banks
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Long contract duration (approx. 7 years)
- Potential for price increases over time
- Dependence on a single supplier for a critical item
- Lack of specific unit cost data for benchmarking
Tags
blood-and-organ-banks, department-of-health-and-human-services, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $61.9 million to COMMUNITY BLOOD CENTER. CTS: ALLOGRAFT SKIN THERMAL BURN
Who is the contractor on this award?
The obligated recipient is COMMUNITY BLOOD CENTER.
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 $61.9 million.
What is the period of performance?
Start: 2022-09-30. End: 2029-08-13.
What is the typical cost per unit for allograft skin for thermal burns, and how does this contract's implied unit cost compare?
The provided data does not include unit quantities, making a direct per-unit cost calculation impossible. However, the total award of $61.8M over approximately 2509 days suggests a significant investment in this specialized medical supply. Benchmarking against industry standards for similar biological grafts would be necessary to assess cost-effectiveness.
What are the primary risks associated with a long-term contract for a critical medical supply like allograft skin?
Key risks include potential price escalation over the contract's long duration, the possibility of technological obsolescence if newer treatments emerge, and supply chain disruptions affecting the sole awardee. Ensuring robust contract clauses for quality control and performance monitoring is crucial to mitigate these risks.
How effective is the full and open competition process in ensuring the best value for specialized medical supplies?
Full and open competition is generally effective in fostering price competition and encouraging innovation. For specialized supplies like allograft skin, it allows agencies to solicit bids from qualified vendors, compare technical capabilities and pricing, and select the offer that best meets requirements, thereby maximizing value for taxpayer dollars.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 75A50121R00018
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 349 S MAIN ST, DAYTON, OH, 45402
Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $92,019,281
Exercised Options: $61,860,020
Current Obligation: $61,860,020
Actual Outlays: $47,724,970
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-09-30
Current End Date: 2029-08-13
Potential End Date: 2029-08-13 00:00:00
Last Modified: 2024-08-13
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