Missouri tobacco inspections contract awarded for over $2.4 million, with no competition

Contract Overview

Contract Amount: $2,437,792 ($2.4M)

Contractor: Mental Health, Missouri Department of

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-16

End Date: 2024-09-29

Contract Duration: 1,474 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: MISSOURI STATE TOBACCO INSPECTIONS

Place of Performance

Location: JEFFERSON CITY, COLE County, MISSOURI, 65101

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to MENTAL HEALTH, MISSOURI DEPARTMENT OF for work described as: MISSOURI STATE TOBACCO INSPECTIONS Key points: 1. Contract awarded without competition raises concerns about potential overpayment and lack of market testing. 2. The contract duration of nearly four years suggests a long-term need for these services. 3. The awarding agency, Department of Health and Human Services, oversees public health programs. 4. The specific service relates to tobacco inspections, a critical component of public health regulation. 5. The contract's value is significant for the specific task of state-level tobacco inspections.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The contract's cost-plus-no-fee structure, while common for certain services, does not inherently incentivize cost savings. A comparison to similar state-level tobacco inspection contracts would be necessary to assess if the $2.4 million price tag is reasonable. The lack of competition suggests that the government may not have secured the most advantageous pricing.

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. This indicates that the agency likely identified a single source believed to be capable of performing the required services. The absence of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as there was no pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the residents of Missouri, who are protected by the enforcement of tobacco regulations. The services delivered involve inspections to ensure compliance with tobacco laws and prevent illicit sales. The geographic impact is limited to the state of Missouri. The contract supports public health initiatives by ensuring adherence to tobacco control policies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award requires strong justification to ensure fair pricing.
Contract duration could lock in potentially suboptimal pricing if not managed effectively.

Positive Signals

Contract supports a critical public health function.
The awarding agency is responsible for public health programs.
The contract is for a defined period, allowing for future reassessment.

Sector Analysis

This contract falls within the broader public health and regulatory services sector. While specific market data for state-level tobacco inspection contracts is not readily available, the Food and Drug Administration (FDA) oversees similar regulatory functions at the federal level. The total federal spending on public health administration and regulatory services is substantial, indicating a significant market for such expertise. This contract represents a localized application of these broader regulatory efforts.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or explored through a competitive process. The impact on the small business ecosystem is therefore likely minimal unless the awarded contractor voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight of this contract would typically fall under the Department of Health and Human Services, specifically the Food and Drug Administration, given their role in public health regulation. Accountability measures would be defined in the contract terms, focusing on the successful completion of inspection services. Transparency is limited due to the sole-source award; however, contract details should be publicly accessible through federal procurement databases.

Related Government Programs

Public Health Program Administration
Food and Drug Administration Contracts
State-Level Regulatory Services
Tobacco Control Initiatives

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns without competitive pressure.
Limited transparency on contractor selection justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to MENTAL HEALTH, MISSOURI DEPARTMENT OF. MISSOURI STATE TOBACCO INSPECTIONS

Who is the contractor on this award?

The obligated recipient is MENTAL HEALTH, MISSOURI DEPARTMENT OF.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2020-09-16. End: 2024-09-29.

What is the track record of the contractor in performing similar tobacco inspection services?

Information regarding the specific contractor's track record for performing tobacco inspection services is not provided in the data. To assess this, a review of past performance evaluations, any prior contracts with government entities for similar work, and client references would be necessary. Without this information, it is difficult to gauge the contractor's experience and capability to effectively deliver on the contract's objectives. The sole-source nature of the award implies the agency had a basis for believing this contractor could perform, but the specifics of that basis are not detailed.

How does the cost of this contract compare to similar state-level tobacco inspection contracts?

Direct comparison to similar state-level tobacco inspection contracts is challenging without access to a broader dataset of such agreements. The contract's total value of over $2.4 million for a duration of nearly four years suggests an average annual cost of approximately $600,000. This figure needs to be contextualized by the scope of work, the number of inspections required, the geographic area covered within Missouri, and the specific regulatory requirements. Benchmarking against contracts in states with similar populations and tobacco usage rates would provide a more accurate assessment of value for money.

What are the specific risks associated with a sole-source award for public health services?

The primary risk associated with a sole-source award for public health services is the potential for inflated costs due to the absence of competitive pressure. This can lead to taxpayers not receiving the best possible value. Another risk is the lack of innovation that might arise from a competitive environment. Furthermore, if the sole-source contractor underperforms or faces unforeseen issues, the agency has limited recourse without re-initiating a potentially lengthy procurement process. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

What is the expected effectiveness of these tobacco inspections in achieving public health goals?

The effectiveness of these tobacco inspections in achieving public health goals hinges on several factors, including the thoroughness of the inspection process, the rigor of enforcement actions for non-compliance, and the specific regulations being enforced. Tobacco inspections typically aim to reduce youth access to tobacco products, prevent sales to minors, and ensure compliance with advertising and packaging laws, all of which contribute to reducing tobacco-related diseases and healthcare costs. The contract's success will be measured by its contribution to these broader public health objectives within Missouri.

What has been the historical spending pattern for tobacco inspections in Missouri by the federal government?

The provided data pertains to a single definitive contract awarded in September 2020. It does not offer historical spending patterns for tobacco inspections in Missouri by the federal government. This contract appears to be a specific award to the state or a state entity for carrying out these functions. To understand historical patterns, one would need to examine procurement data over multiple fiscal years, looking for similar contracts awarded to Missouri or other entities responsible for tobacco inspections within the state, and analyze trends in spending, contract types, and competition levels.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75F40120R00008

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1706 E ELM ST, JEFFERSON CITY, MO, 65101

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

Financial Breakdown

Contract Ceiling: $2,437,792

Exercised Options: $2,437,792

Current Obligation: $2,437,792

Actual Outlays: $2,159,297

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline