HHS awards $69.6M contract for isolation gowns to Airboss Defense Group, LLC

Contract Overview

Contract Amount: $69,621,049 ($69.6M)

Contractor: Airboss Defense Group, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-06

End Date: 2027-09-05

Contract Duration: 1,094 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ISOLATION GOWNS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $69.6 million to AIRBOSS DEFENSE GROUP, LLC for work described as: ISOLATION GOWNS Key points: 1. The contract value represents a significant investment in essential medical supplies. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Performance risk is mitigated by the firm-fixed-price contract type. 4. The duration of the contract suggests a sustained need for these supplies. 5. This award falls within the broader category of medical supplies manufacturing. 6. The geographic location of the awardee may influence logistical considerations.

Value Assessment

Rating: good

The contract value of $69.6 million for isolation gowns appears reasonable given the quantity and duration. Benchmarking against similar large-scale procurements for personal protective equipment (PPE) during public health events suggests that pricing is likely competitive. The firm-fixed-price structure provides cost certainty for the government, indicating good value for money if the gowns meet quality standards. Further analysis would involve comparing the per-unit cost to historical averages and current market rates for similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 23 bidders, the level of competition was robust, which typically drives down prices and encourages innovation. This broad competition suggests that the government received a range of proposals and was able to select the best value offering. The significant number of bidders is a positive sign for price discovery and efficient use of taxpayer funds.

Taxpayer Impact: A high level of competition ensures that taxpayers benefit from the most cost-effective pricing available in the market for these essential supplies.

Public Impact

Beneficiaries include healthcare facilities and frontline workers requiring protection. Services delivered encompass the provision of critical isolation gowns. Geographic impact is national, ensuring supply chain resilience across the US. Workforce implications may include manufacturing and logistics jobs related to gown production and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces production issues.
Ensuring consistent quality and compliance with medical standards over the contract term.
Logistical challenges in distributing a large volume of gowns nationwide.

Positive Signals

Award to a single entity streamlines procurement and management.
Firm-fixed-price contract provides cost predictability.
Robust competition indicates a healthy market for these supplies.

Sector Analysis

The procurement of isolation gowns falls under the broader healthcare and medical supplies manufacturing sector. This sector is characterized by significant government spending, particularly during health emergencies, to ensure the availability of critical personal protective equipment (PPE). The market size for medical textiles and disposable medical supplies is substantial, with numerous domestic and international manufacturers. This contract represents a significant portion of spending within the surgical appliance and supplies manufacturing sub-sector (NAICS 339113).

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary awardee is likely a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless the prime contractor actively engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver goods at an agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Strategic National Stockpile
COVID-19 PPE Procurement
Medical Supplies Contracts
Department of Defense Medical Readiness

Risk Flags

Potential for supply chain disruption
Quality control and compliance risks
Logistical challenges for nationwide distribution

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $69.6 million to AIRBOSS DEFENSE GROUP, LLC. ISOLATION GOWNS

Who is the contractor on this award?

The obligated recipient is AIRBOSS DEFENSE GROUP, LLC.

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 $69.6 million.

What is the period of performance?

Start: 2024-09-06. End: 2027-09-05.

What is the historical spending pattern for isolation gowns by HHS?

Historical spending data for isolation gowns by HHS would reveal trends in procurement volume, pricing, and awardees over time. Analyzing past contracts, especially those predating or during major health events like the COVID-19 pandemic, can provide context for the current $69.6 million award. For instance, if spending significantly increased during the pandemic, it suggests a surge in demand and potentially higher unit prices. Conversely, a consistent spending level might indicate a stable, ongoing need. Understanding these patterns helps assess whether the current award is an anomaly or part of a sustained procurement strategy. Without specific historical data points, it's difficult to definitively benchmark the current award against past expenditures, but the scale suggests a significant, potentially pandemic-related, requirement.

How does the per-unit cost of these isolation gowns compare to market rates or similar government contracts?

Determining the exact per-unit cost requires dividing the total contract value ($69,621,048.98) by the number of units procured, which is not explicitly provided in the summary data. However, if we assume a typical quantity for such a contract (e.g., millions of gowns), the per-unit cost could be estimated. Benchmarking this estimated cost against publicly available market rates for isolation gowns (e.g., from medical supply distributors) and against per-unit costs from other government contracts for similar items (e.g., from GSA schedules or other agency procurements) is crucial. A higher-than-market or higher-than-comparable-contract per-unit cost could indicate potential overpricing or a less competitive award, while a lower cost suggests good value. The 'cpu' field in the schema is marked 'N/A', indicating this specific benchmark was not readily available or calculated.

What is Airboss Defense Group, LLC's track record with government contracts, particularly for medical supplies?

Airboss Defense Group, LLC's track record with government contracts is a key indicator of their reliability and performance capabilities. Researching their past awards, particularly from HHS or other defense and health agencies, would reveal their experience in supplying similar items. A history of successful, on-time deliveries and compliance with contract terms suggests a lower performance risk for this new $69.6 million award. Conversely, any past issues with quality, delivery delays, or contract disputes would raise concerns. Information on their financial stability and manufacturing capacity is also relevant. While the award itself signifies they met the criteria, a deeper dive into their performance history provides a more comprehensive risk assessment.

What are the specific quality standards and specifications required for these isolation gowns?

The quality standards and specifications for the isolation gowns are critical to ensuring they meet the intended use, likely for infection control in healthcare settings. These specifications would typically include material type, fluid resistance (e.g., AAMI levels), breathability, seam integrity, cuff design, and closure methods. The contract documents would detail these requirements, and the awardee must demonstrate compliance through testing and certification. The government's quality assurance personnel would likely conduct inspections and verify that the delivered gowns meet all stipulated standards. Failure to meet these specifications could lead to rejection of goods, contract penalties, or termination, impacting both patient safety and the government's investment.

How does the duration of this contract (approx. 3 years) align with typical government needs for such supplies?

The contract duration of approximately three years (from September 6, 2024, to September 5, 2027) suggests a sustained, long-term requirement for isolation gowns. This duration is not uncommon for essential supplies that are consumed regularly by healthcare facilities. It allows for predictable supply chain management and potentially better pricing through longer-term commitments compared to short-term, ad-hoc purchases. Aligning the duration with projected needs helps avoid stockouts while also preventing over-procurement. The three-year term indicates that HHS anticipates a consistent demand for these gowns, possibly for routine use or as part of ongoing preparedness efforts, rather than a short-term emergency surge.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75A50322R00008

Offers Received: 23

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8261 PRESTON CT, JESSUP, MD, 20794

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $83,948,266

Exercised Options: $74,072,000

Current Obligation: $69,621,049

Actual Outlays: $23,851,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline