HHS awards $326.6M contract to Agiliti Health for ventilator maintenance, management, and storage

Contract Overview

Contract Amount: $326,621,056 ($326.6M)

Contractor: Agiliti Health Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-28

End Date: 2026-08-27

Contract Duration: 1,095 days

Daily Burn Rate: $298.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTIVE MAINTENANCE SERVICES (PMS), MANAGEMENT, AND STORAGE FOR VENTILATOR AND POWERED AIR PURIFYING RESPIRATOR (PAPR)SYSTEMS

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55439

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $326.6 million to AGILITI HEALTH INC for work described as: PREVENTIVE MAINTENANCE SERVICES (PMS), MANAGEMENT, AND STORAGE FOR VENTILATOR AND POWERED AIR PURIFYING RESPIRATOR (PAPR)SYSTEMS Key points: 1. The contract focuses on critical respiratory equipment maintenance, highlighting a significant investment in healthcare infrastructure. 2. Agiliti Health Inc. is the sole awardee, raising questions about the breadth of competition. 3. The firm-fixed-price contract structure aims to control costs for these essential services. 4. This spending supports the Office of the Assistant Secretary for Preparedness and Response (ASPR) mission.

Value Assessment

Rating: good

The contract value of $326.6 million over three years appears reasonable given the specialized nature of maintaining complex medical equipment like ventilators and PAPRs. Benchmarking against similar large-scale maintenance contracts for critical medical devices is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing, though the specific price discovery mechanisms within the solicitation are not detailed here.

Taxpayer Impact: Taxpayer funds are being used to ensure the operational readiness of critical healthcare equipment, which is vital for public health emergencies and routine care.

Public Impact

Ensures availability of life-saving respiratory equipment. Supports national preparedness for health crises. Maintains critical infrastructure for healthcare providers. Potentially impacts patient care through equipment reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in with specialized equipment maintenance.

Positive Signals

Supports critical healthcare infrastructure.
Firm-fixed-price contract for cost certainty.
Awarded under full and open competition.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on the maintenance and management of medical equipment. Spending benchmarks for similar large-scale contracts are difficult to ascertain without more specific details on the scope of services and equipment covered.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Agiliti Health Inc. is a large corporation. There is no indication of subcontracting opportunities for small businesses within the provided information.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services, Office of the Assistant Secretary for Preparedness and Response. Oversight would typically involve performance monitoring, quality assurance, and financial accountability measures to ensure contract compliance and value.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Sole awardee raises potential competition concerns.
Lack of detailed performance metrics in public data.
Potential for cost overruns if unforeseen issues arise.
Dependence on a single vendor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $326.6 million to AGILITI HEALTH INC. PREVENTIVE MAINTENANCE SERVICES (PMS), MANAGEMENT, AND STORAGE FOR VENTILATOR AND POWERED AIR PURIFYING RESPIRATOR (PAPR)SYSTEMS

Who is the contractor on this award?

The obligated recipient is AGILITI HEALTH 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 $326.6 million.

What is the period of performance?

Start: 2023-08-28. End: 2026-08-27.

What is the specific breakdown of services included in the $326.6 million, and how does this compare to industry standards for similar maintenance contracts?

The contract covers preventive maintenance, management, and storage for ventilator and PAPR systems. A detailed breakdown of costs per service category is not provided. Industry standards vary widely based on equipment type, age, and service level agreements. A comprehensive comparison would require detailed service level agreements and pricing structures from multiple vendors.

What were the key evaluation criteria used during the full and open competition, and how did Agiliti Health Inc. demonstrate superior capability or value?

The provided data does not specify the evaluation criteria used for this full and open competition. Typically, criteria might include technical approach, past performance, management capability, and price. Agiliti Health Inc.'s selection implies they met or exceeded the government's requirements in these areas, though the specific weighting and scoring are not detailed.

How will the effectiveness of Agiliti Health Inc.'s services be measured to ensure the readiness and reliability of the critical respiratory equipment?

Effectiveness is typically measured through key performance indicators (KPIs) outlined in the contract's performance work statement. These could include response times for service requests, equipment uptime rates, successful completion of preventive maintenance schedules, and adherence to storage protocols. Regular performance reviews and reporting would track these metrics.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75A50122R00018

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11095 VIKING DR, EDEN PRAIRIE, MN, 55344

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $493,686,112

Exercised Options: $326,621,056

Current Obligation: $326,621,056

Actual Outlays: $272,120,241

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline