Maryland Health Department contract for public health programs awarded $406.6M, with no competition

Contract Overview

Contract Amount: $406,608 ($406.6K)

Contractor: Maryland Department of Health

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-14

End Date: 2027-05-01

Contract Duration: 382 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VSCP MARYLAND

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21215

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $406,608 to MARYLAND DEPARTMENT OF HEALTH for work described as: VSCP MARYLAND Key points: 1. The contract's value of $406.6 million over its period of performance suggests a significant investment in public health infrastructure. 2. The absence of competition raises questions about potential overpricing and the exploration of alternative solutions. 3. The firm-fixed-price contract type offers cost certainty for the government, but may limit flexibility. 4. The contract duration of 382 days (approximately 1.05 years) is relatively short for a program of this magnitude. 5. The contract is managed by the Centers for Disease Control and Prevention (CDC) within HHS, indicating a federal interest in state-level public health operations. 6. The geographic focus on Maryland suggests a targeted approach to public health service delivery.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the services provided. However, a $406.6 million award for a single state's public health programs, especially when not competed, warrants scrutiny. The lack of competitive bidding means there's no market-driven validation of the pricing. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess value for money. The government may not be receiving the most cost-effective solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when there is an urgent need that precludes a competitive process. The lack of competition limits the government's ability to explore a wider range of solutions and potentially secure better pricing through market forces.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a bidding process, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

Residents of Maryland will benefit from the administration of public health programs funded by this contract. The contract supports the delivery of essential public health services within the state of Maryland. The geographic impact is concentrated within Maryland, addressing state-specific health needs. The contract likely supports a workforce involved in public health administration and service delivery within Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by not exploring diverse vendor solutions.
The specific services and performance metrics are not detailed, making it hard to assess effectiveness.
The contract's short duration for a large award might indicate a stop-gap measure or phased approach, requiring future competitive actions.

Positive Signals

The contract supports critical public health programs, indicating a commitment to population health.
The firm-fixed-price structure provides budget certainty for the awarding agency.
The award is made to a state entity (Maryland Department of Health), potentially indicating a strong existing relationship and understanding of local needs.

Sector Analysis

This contract falls within the broader Health and Human Services sector, specifically focusing on public health program administration. The market for public health services is diverse, encompassing government agencies, non-profits, and private contractors. Federal spending in this area often supports state and local initiatives to address public health challenges. Without competition, it's difficult to benchmark against similar contracts, but large sole-source awards for program administration are not uncommon, though they often attract scrutiny.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a sole-source award to a state entity, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the award process. Further investigation would be needed to determine if any subcontracting plans are in place.

Oversight & Accountability

The Centers for Disease Control and Prevention (CDC) within HHS is responsible for overseeing this contract. Standard federal procurement regulations and oversight mechanisms would apply. Transparency regarding the specific justification for the sole-source award and the performance metrics would be crucial for accountability. The Inspector General for HHS would have jurisdiction for audits and investigations if concerns arise.

Related Government Programs

State Public Health Modernization Grants
CDC Cooperative Agreements
HHS Public Health Initiatives
Maryland Department of Health Programs

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing.
Lack of transparency on specific program details and performance metrics.
Significant award value without clear competitive benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $406,608 to MARYLAND DEPARTMENT OF HEALTH. VSCP MARYLAND

Who is the contractor on this award?

The obligated recipient is MARYLAND DEPARTMENT OF HEALTH.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $406,608.

What is the period of performance?

Start: 2026-04-14. End: 2027-05-01.

What specific public health programs are covered under this $406.6 million contract?

The provided data indicates the contract is for 'Administration of Public Health Programs' (ND: 923120) awarded to the 'MARYLAND DEPARTMENT OF HEALTH' (CO: MARYLAND). However, the specific sub-programs, initiatives, or services funded by this substantial award are not detailed in the abbreviated data. These could range from disease surveillance and prevention, health education, maternal and child health services, chronic disease management, to emergency preparedness and response efforts within Maryland. A deeper dive into the contract's statement of work (SOW) or associated documentation would be necessary to identify the precise scope of public health programs being administered.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract type is 'NOT COMPETED' (CT: NOT COMPETED), which typically signifies a sole-source or limited-source award. Federal regulations (e.g., FAR Part 6) allow for sole-source procurements under specific circumstances, such as when only one responsible source can satisfy the requirement, or in cases of urgent and compelling need. Without further information, the exact justification remains unknown. It is possible that the Maryland Department of Health possesses unique capabilities, existing infrastructure, or a specific mandate that the CDC deemed essential and irreplaceable by other potential vendors, or that a critical public health need arose that necessitated an immediate, non-competitive award.

How does the $406.6 million award compare to historical federal spending on public health administration in Maryland?

To assess this, one would need to analyze historical federal spending data for public health administration in Maryland over previous years and compare it to the $406.6 million awarded here. This contract's value represents a significant single award. If historical spending was substantially lower, this could indicate an expansion of services, a new initiative, or potentially an inflation-adjusted increase. Conversely, if historical spending was consistently in this range or higher, it might suggest a continuation of established program funding levels. The sole-source nature also means this figure isn't necessarily a reflection of competitive market pricing but rather the negotiated cost for the specified services.

What are the key performance indicators (KPIs) and expected outcomes for this contract?

The provided data does not include details on the Key Performance Indicators (KPIs) or expected outcomes for this contract. Typically, contracts of this nature would have a detailed Statement of Work (SOW) outlining specific deliverables, performance standards, and metrics for success. These might include targets for disease reduction, vaccination rates, public health emergency response times, or improvements in specific health disparities within Maryland. Without access to the SOW or performance work statement (PWS), it is impossible to evaluate the contractor's performance or the effectiveness of the public health programs being administered.

What is the track record of the Maryland Department of Health in administering federal public health programs?

The Maryland Department of Health (MDH) is the official state agency responsible for public health within Maryland. As such, it has a long-standing track record of administering a wide array of public health programs, often in partnership with federal agencies like the CDC and HHS. Its experience would encompass managing budgets, implementing health initiatives, data collection and analysis, and coordinating services across the state. The fact that the CDC is awarding a significant contract to MDH suggests confidence in their capacity and established role. However, the specific performance on federally funded programs would ideally be assessed through past federal audits, performance reports, or evaluations.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 W PRESTON ST FL 5, BALTIMORE, MD, 21201

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $406,608

Exercised Options: $406,608

Current Obligation: $406,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75D30122D13176

IDV Type: IDC

Timeline