Contract for tobacco retailer inspections awarded to Massachusetts Department of Public Health for $2.69 million

Contract Overview

Contract Amount: $2,689,286 ($2.7M)

Contractor: Public Health, Massachusetts Department of

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-18

End Date: 2024-09-29

Contract Duration: 1,472 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA.

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02108

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.7 million to PUBLIC HEALTH, MASSACHUSETTS DEPARTMENT OF for work described as: CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA. Key points: 1. Contract focuses on ensuring compliance with tobacco sales and advertising regulations. 2. The contract duration of 1472 days suggests a long-term commitment to regulatory oversight. 3. Awarded to a state agency, indicating potential for leveraging existing public health infrastructure. 4. The contract type is a definitive contract, suggesting a clear scope of work. 5. The geographic focus is Massachusetts, aligning with state-level public health initiatives.

Value Assessment

Rating: fair

The contract value of $2.69 million over approximately four years for conducting retailer inspections appears reasonable given the scope. Benchmarking against similar state-level contracts for regulatory compliance is difficult without more specific data on the number of retailers, inspection frequency, and reporting requirements. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, which can sometimes lead to less price certainty than fixed-price contracts. However, it may be appropriate for services where costs are difficult to predict precisely.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded sole-source to the Massachusetts Department of Public Health. The rationale for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source is available or capable of providing the required services. Without further information, it is difficult to assess the impact of limited competition on price discovery and overall value.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive bidding, which could potentially lead to higher costs than if multiple vendors had competed for the contract.

Public Impact

The primary beneficiaries are the residents of Massachusetts, who are protected by regulations on tobacco sales and advertising. The services delivered include inspections of retailers to ensure compliance with federal and state tobacco laws. The geographic impact is limited to the state of Massachusetts. This contract supports public health initiatives aimed at reducing tobacco use and its associated harms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competitively bid contract.
The 'COST NO FEE' contract type requires careful monitoring of expenditures to ensure cost control.
Limited transparency into the specific performance metrics and evaluation criteria for this sole-source award.

Positive Signals

Award to a state Department of Public Health leverages existing expertise and infrastructure for regulatory enforcement.
The contract duration suggests a sustained effort towards ensuring tobacco sales compliance.
Focus on inspections directly addresses a key component of tobacco control policy.

Sector Analysis

This contract falls within the broader public health and regulatory services sector. The Food and Drug Administration (FDA) is responsible for regulating tobacco products, and contracts like this support their mission by ensuring compliance at the retail level. Comparable spending in this area can vary significantly based on the size of the jurisdiction and the intensity of enforcement activities. State and local health departments often receive federal grants or contracts to perform such public health functions.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded to a state government agency. There is no information provided regarding subcontracting opportunities for small businesses. The focus on a government agency as the sole awardee suggests that small businesses were likely not considered for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Food and Drug Administration (FDA), the awarding agency. As a 'COST NO FEE' contract, robust financial oversight and auditing would be crucial to ensure that reimbursed costs are allowable, allocable, and reasonable. The contract's performance would likely be monitored through regular reporting of inspection results and compliance data. The specific Inspector General jurisdiction would be that of the Department of Health and Human Services.

Related Government Programs

FDA Tobacco Compliance Inspections
State Public Health Grants
Retailer Compliance Monitoring Programs
Tobacco Prevention and Control Programs

Risk Flags

Sole-source award lacks competitive pricing.
Cost-reimbursement contract requires diligent oversight.
Performance metrics not explicitly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.7 million to PUBLIC HEALTH, MASSACHUSETTS DEPARTMENT OF. CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA.

Who is the contractor on this award?

The obligated recipient is PUBLIC HEALTH, MASSACHUSETTS 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 $2.7 million.

What is the period of performance?

Start: 2020-09-18. End: 2024-09-29.

What is the specific methodology used by the Massachusetts Department of Public Health to conduct these retailer inspections?

The provided data does not detail the specific methodology used by the Massachusetts Department of Public Health for conducting retailer inspections. Typically, such methodologies would include protocols for site visits, documentation review, interviews with store personnel, and assessment of compliance with regulations regarding the sale and advertising of tobacco products. The FDA likely provides guidelines or requires adherence to specific inspection procedures to ensure consistency and effectiveness across all contracted entities. Further details would typically be found in the contract's statement of work or associated performance work statement.

How does the cost of this contract compare to similar contracts awarded by the FDA or other federal agencies for similar services?

Direct comparison of the cost for this contract ($2.69 million over ~4 years) to similar federal contracts is challenging without more granular data on the scope of work, number of retailers inspected, frequency of inspections, and geographic coverage of other contracts. However, awarding to a state agency like the Massachusetts Department of Public Health may offer cost efficiencies by leveraging existing infrastructure and personnel compared to contracting with a private entity. The 'COST NO FEE' structure means the government reimburses actual costs incurred, making direct price comparisons difficult without understanding the cost drivers and overhead associated with the contractor's operations.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on conducting inspections of retailers selling regulated tobacco products, typical KPIs would likely include the number of inspections completed, the percentage of retailers found to be in compliance, the number of violations identified, and the timeliness of submitting inspection results to the FDA. The overall effectiveness would also be gauged by trends in compliance rates over the contract period and their contribution to broader public health goals related to tobacco control.

What is the track record of the Massachusetts Department of Public Health in managing federal contracts for public health services?

The data does not provide specific details on the track record of the Massachusetts Department of Public Health in managing federal contracts. However, as a state-level public health agency, it is presumed to have experience in administering public health programs and regulatory functions. Federal agencies often partner with state and local entities for such services, indicating a level of trust in their capacity. A thorough assessment would require reviewing past performance evaluations, audit reports, and any history of contract disputes or successes related to federal funding.

What is the historical spending pattern for tobacco retailer inspections by the FDA or its predecessors?

The provided data only includes information for this specific contract awarded in 2020. It does not offer historical spending patterns for tobacco retailer inspections by the FDA or its predecessors. To understand historical spending, one would need to access federal procurement databases (like USASpending.gov or FPDS) and query for similar contract actions over multiple fiscal years, potentially filtering by agency, product service code, and keywords related to tobacco compliance and inspections.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75F40120R00008

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 250 WASHINGTON ST, BOSTON, MA, 02108

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

Financial Breakdown

Contract Ceiling: $2,689,286

Exercised Options: $2,689,286

Current Obligation: $2,689,286

Actual Outlays: $2,322,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline