HHS Awards $100.8M for Medical Waste Disposal Services to Inmar Rx Solutions Inc

Contract Overview

Contract Amount: $100,787,850 ($100.8M)

Contractor: Inmar RX Solutions Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $92.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL WASTE DISPOSAL SERVICES

Place of Performance

Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75050

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $100.8 million to INMAR RX SOLUTIONS INC for work described as: MEDICAL WASTE DISPOSAL SERVICES Key points: 1. Contract awarded to a single vendor for a critical public health service. 2. The contract value is substantial, indicating significant demand for these services. 3. Competition method is 'Full and Open', suggesting a potentially competitive bidding process. 4. The service category falls under Hazardous Waste Treatment and Disposal.

Value Assessment

Rating: good

The contract value of $100.8 million over three years appears reasonable for specialized medical waste disposal services, especially considering the critical nature of the work and the firm fixed-price structure which limits cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the broadest range of potential bidders and can lead to competitive pricing. The use of a firm fixed-price contract further incentivizes the contractor to manage costs effectively.

Taxpayer Impact: Taxpayer funds are being used for essential public health infrastructure, ensuring safe disposal of medical waste, which is crucial for preventing disease transmission and environmental contamination.

Public Impact

Ensures safe and compliant disposal of medical waste, protecting public health. Supports healthcare facilities in managing biohazardous materials. Contributes to environmental protection by preventing improper waste disposal. Provides essential services during public health emergencies.

Waste & Efficiency Indicators

Waste Risk Score: 92 / 10

Positive Signals

Full and open competition utilized
Firm fixed-price contract type
Essential public health service

Sector Analysis

This contract falls within the hazardous waste management sector, specifically for medical waste. Spending in this area is driven by healthcare regulations and the volume of medical procedures. Benchmarks for similar contracts would depend on the specific types of waste and disposal methods required.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response, suggesting oversight by a relevant federal agency. The firm fixed-price structure provides some cost control, but ongoing monitoring of service delivery and compliance is essential.

Related Government Programs

Hazardous Waste Treatment and Disposal
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Contract duration is three years, requiring ongoing monitoring.
Potential for price escalation if contract terms allow for adjustments.
Dependence on a single vendor for a critical service.
Lack of specific detail on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $100.8 million to INMAR RX SOLUTIONS INC. MEDICAL WASTE DISPOSAL SERVICES

Who is the contractor on this award?

The obligated recipient is INMAR RX SOLUTIONS 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 $100.8 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What specific types of medical waste are covered under this contract, and how does the disposal method align with environmental regulations?

The contract specifies 'Hazardous Waste Treatment and Disposal' (NAICS 562211). While the exact breakdown of waste types isn't detailed, it likely includes biohazardous materials, sharps, pharmaceuticals, and potentially chemical waste generated by healthcare facilities. The disposal methods must comply with EPA and state regulations for hazardous waste, ensuring safe treatment and final disposition to mitigate public health and environmental risks.

How does the awarded price of $100.8 million compare to industry benchmarks for similar medical waste disposal contracts of this scale and duration?

Without specific details on the volume and types of waste, precise benchmarking is difficult. However, for a three-year contract covering comprehensive medical waste disposal for a federal agency, $100.8 million suggests a significant scope. Industry averages vary widely based on location, service level, and waste composition. A detailed cost-benefit analysis comparing this price to other federal or large commercial contracts would be necessary for a definitive assessment.

What mechanisms are in place to ensure the contractor, Inmar Rx Solutions Inc., maintains compliance and quality standards throughout the contract period?

The contract is firm fixed-price, which incentivizes the contractor to perform efficiently. Oversight by the Department of Health and Human Services, specifically the Office of Assistant Secretary for Preparedness and Response, is expected. This likely includes performance monitoring, site inspections, and adherence to reporting requirements. Contract clauses related to quality assurance and compliance with all applicable federal, state, and local regulations are standard and would be enforced.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75A50323R00003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3845 GRAND LAKES WAY, GRAND PRAIRIE, TX, 75050

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

Financial Breakdown

Contract Ceiling: $221,555,900

Exercised Options: $100,787,850

Current Obligation: $100,787,850

Actual Outlays: $24,733,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline