FDA Spends $2.97M on Tobacco Retailer Inspections in Pennsylvania
Contract Overview
Contract Amount: $2,972,587 ($3.0M)
Contractor: Pennsylvania Department of Health
Awarding Agency: Department of Health and Human Services
Start Date: 2021-03-29
End Date: 2025-09-29
Contract Duration: 1,645 days
Daily Burn Rate: $1.8K/day
Competition Type: NOT COMPETED
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: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17120
Plain-Language Summary
Department of Health and Human Services obligated $3.0 million to PENNSYLVANIA DEPARTMENT OF HEALTH 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 regulations. 2. Sole-source award raises questions about competition and price discovery. 3. Long contract duration (4 years) may not align with evolving regulations. 4. Limited public impact, primarily focused on regulatory enforcement.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure for inspections is common in regulatory enforcement. However, without a competitive bidding process, it's difficult to assess if this price is optimal compared to similar contracts for public health program administration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs than if multiple vendors had competed. The rationale for sole-source is not provided.
Taxpayer Impact: Taxpayer funds are used for regulatory enforcement. The lack of competition could lead to inefficient use of these funds.
Public Impact
Ensures compliance with federal tobacco sales and advertising regulations. Aims to reduce youth access to regulated tobacco products. Supports public health goals by enforcing tobacco control policies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns due to sole-source award
- Long contract duration
Positive Signals
- Supports critical public health mission
- Clear performance period
Sector Analysis
This contract falls under public health administration, specifically focused on regulatory compliance within the tobacco sector. Benchmarks for similar inspection services are difficult to establish due to the specialized nature and sole-source award.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.
Oversight & Accountability
Oversight is provided by the Food and Drug Administration (FDA). The contract's long duration necessitates consistent monitoring to ensure performance and cost control.
Related Government Programs
- Administration of Public Health Programs
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs due to sole-source award
- Long contract duration may not be cost-effective
- Limited transparency on performance metrics and justification
Tags
administration-of-public-health-programs, department-of-health-and-human-services, pa, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $3.0 million to PENNSYLVANIA DEPARTMENT OF HEALTH. 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 PENNSYLVANIA DEPARTMENT OF HEALTH.
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 $3.0 million.
What is the period of performance?
Start: 2021-03-29. End: 2025-09-29.
What is the justification for the sole-source award, and could competitive bidding have yielded better value?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are used when only one vendor possesses the unique capability or when urgency prevents a competitive process. Without this information, it's impossible to definitively say if competitive bidding could have yielded better value, though it generally increases price discovery and potential cost savings.
What are the specific performance metrics and how is compliance with tobacco regulations being measured?
The contract description indicates the purpose is to 'CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA.' Specific performance metrics and detailed compliance measurement criteria would be outlined in the contract's statement of work, which is not provided here. These would likely include the number of inspections conducted, accuracy of reporting, and adherence to inspection protocols.
How does the $2.97M expenditure align with the FDA's overall budget for tobacco regulation enforcement in Pennsylvania?
This contract represents a significant investment in tobacco retailer inspections within Pennsylvania. To assess its alignment with the FDA's overall budget, one would need to compare this amount against the agency's allocated funds for state-level enforcement activities and its total budget for tobacco control programs. Without that broader budgetary context, it's difficult to determine if this spending is proportionate or excessive.
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
Parent Company: Commonwealth of Pennsylvania
Address: 625 FORSTER ST, HARRISBURG, PA, 17120
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $2,972,587
Exercised Options: $2,972,587
Current Obligation: $2,972,587
Actual Outlays: $2,882,609
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-29
Current End Date: 2025-09-29
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-31
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