HHS awards $288.8M contract for essential pharmaceuticals to Chaymaa Faour LLC under full and open competition

Contract Overview

Contract Amount: $288,816 ($288.8K)

Contractor: Chaymaa Faour LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $793/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHARMACEUTICALS BUY - GROUP A ALBUTEROL NEBULIZER SOLUTION, AMOXICILLIN/CLAVULANATE, BACTRIM DS, PENICILLIN, AND VORICONAZOLE

Place of Performance

Location: SHERIDAN, SHERIDAN County, WYOMING, 82801

State: Wyoming Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $288,816 to CHAYMAA FAOUR LLC for work described as: PHARMACEUTICALS BUY - GROUP A ALBUTEROL NEBULIZER SOLUTION, AMOXICILLIN/CLAVULANATE, BACTRIM DS, PENICILLIN, AND VORICONAZOLE Key points: 1. The contract covers critical medications including Albuterol, Amoxicillin/Clavulanate, Bactrim DS, Penicillin, and Voriconazole. 2. Competition was full and open, suggesting a robust price discovery process. 3. The award to Chaymaa Faour LLC, a single entity, warrants scrutiny regarding market concentration. 4. The pharmaceutical sector is vital for public health, with consistent demand for these essential drugs.

Value Assessment

Rating: fair

The contract's firm fixed price structure provides cost certainty. However, without specific unit pricing data or benchmarks for these widely used generics, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a definitive contract with a single awardee suggests a streamlined procurement process.

Taxpayer Impact: The government secured essential pharmaceuticals through a competitive process, aiming for cost-effectiveness to serve public health needs.

Public Impact

Ensures availability of critical antibiotics and respiratory medications for public health emergencies and general use. Supports the Department of Health and Human Services' mission in preparedness and response. Potential impact on drug pricing and supply chain stability within the US.

Waste & Efficiency Indicators

Waste Risk Score: 79 / 10

Warning Flags

Lack of detailed unit cost data for benchmarking.
Reliance on a single awardee for a broad range of essential drugs.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost predictability.
Addresses critical pharmaceutical needs.

Sector Analysis

The pharmaceutical preparation manufacturing sector is characterized by high R&D costs, stringent regulations, and significant market competition for both branded and generic drugs. This contract focuses on essential generic medications, where pricing is often driven by manufacturing efficiency and market volume.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to Chaymaa Faour LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The award falls under the Office of the Assistant Secretary for Preparedness and Response (ASPR), which has a mandate for oversight of critical medical supplies. The definitive contract structure implies a level of established oversight.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Potential for supply chain disruption due to single awardee.
Lack of transparency in per-unit cost breakdown.
Limited insight into subcontractor utilization (if any).
Dependence on contractor's manufacturing capacity and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $288,816 to CHAYMAA FAOUR LLC. PHARMACEUTICALS BUY - GROUP A ALBUTEROL NEBULIZER SOLUTION, AMOXICILLIN/CLAVULANATE, BACTRIM DS, PENICILLIN, AND VORICONAZOLE

Who is the contractor on this award?

The obligated recipient is CHAYMAA FAOUR 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 $288,816.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the historical pricing trend for these specific pharmaceutical preparations, and how does this contract's total value compare to previous procurements?

Analyzing historical pricing trends for Albuterol, Amoxicillin/Clavulanate, Bactrim DS, Penicillin, and Voriconazole is crucial. Comparing this $288.8 million contract value against previous procurements, considering inflation and market dynamics, will reveal if the current pricing is competitive and reflects good value for taxpayer dollars. Without historical data, it's difficult to definitively assess cost-effectiveness.

What are the specific risks associated with relying on a single awardee, Chaymaa Faour LLC, for such a diverse range of essential pharmaceuticals?

The primary risk is supply chain disruption if Chaymaa Faour LLC faces production issues, quality control problems, or financial instability. This could lead to shortages of critical medications. Additionally, a single awardee might have less incentive to offer further cost reductions in future contract renewals, potentially impacting long-term value.

How effectively does this contract contribute to the ASPR's mission of ensuring national preparedness and response capabilities for pharmaceutical needs?

This contract directly supports the ASPR's mission by securing a supply of essential pharmaceuticals. The full and open competition aims to ensure a reliable and potentially cost-effective source. However, the effectiveness hinges on the contractor's ability to consistently meet demand, maintain quality standards, and adapt to evolving public health needs.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75A50325R00002

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 N GOULD ST STE N, SHERIDAN, WY, 82801

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,552,508

Exercised Options: $288,816

Current Obligation: $288,816

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline