Texas receives $2.27M for human food inspection, highlighting state-level public health program administration

Contract Overview

Contract Amount: $2,272,936 ($2.3M)

Contractor: Department of State Health Services

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-11

End Date: 2026-09-29

Contract Duration: 1,114 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HUMAN FOOD INSPECTION PROGRAM - TEXAS

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78756

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.3 million to DEPARTMENT OF STATE HEALTH SERVICES for work described as: HUMAN FOOD INSPECTION PROGRAM - TEXAS Key points: 1. Contract value appears reasonable for a multi-year public health program. 2. Limited competition dynamics may impact price discovery. 3. Performance risk is moderate given the nature of inspection services. 4. This contract supports essential food safety functions within Texas. 5. The program aligns with federal food safety oversight goals. 6. Funding is allocated for program administration and execution.

Value Assessment

Rating: good

The contract value of $2.27 million over approximately three years for food inspection services in Texas appears to be a fair allocation of resources. Benchmarking against similar state-level public health contracts is challenging without more specific service details, but the per-year cost is within a typical range for such programs. The firm fixed-price structure suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of State Health Services was identified as the only responsible source capable of fulfilling the requirement. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down costs or spurred innovation from multiple vendors.

Taxpayer Impact: Sole-source awards limit opportunities for other qualified entities to compete for federal funds, potentially reducing overall value for taxpayers.

Public Impact

Texans benefit from enhanced food safety oversight and protection. Services include the inspection of food establishments to ensure compliance with health regulations. The geographic impact is statewide across Texas. This contract supports public health workforce within the state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits.
Lack of detailed performance metrics makes outcome assessment difficult.
Potential for scope creep if not managed tightly.

Positive Signals

Supports critical public health function.
Long-term contract provides stability for service delivery.
Firm fixed-price contract offers budget predictability.

Sector Analysis

This contract falls within the Public Health sector, specifically focusing on food safety and inspection. The market for such services is often characterized by government agencies contracting with state or local health departments, or specialized private firms. The value is consistent with the scale of public health program administration required for a state as large as Texas.

Small Business Impact

There is no indication of small business set-aside or subcontracting requirements in the provided data. As a sole-source award to a state agency, the focus is likely on direct service delivery rather than engaging the broader small business contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the Food and Drug Administration, given their roles in public health and food safety. Accountability is managed through the terms of the firm fixed-price contract and the state agency's adherence to public health standards. Transparency is facilitated by federal contract award databases, though specific performance reporting details are not provided.

Related Government Programs

Federal Food Safety Programs
State Public Health Initiatives
Food and Drug Administration Grants
Public Health Infrastructure Support

Risk Flags

Sole-source award may limit cost savings.
Lack of detailed performance metrics.
Potential for vendor complacency due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.3 million to DEPARTMENT OF STATE HEALTH SERVICES. HUMAN FOOD INSPECTION PROGRAM - TEXAS

Who is the contractor on this award?

The obligated recipient is DEPARTMENT OF STATE HEALTH SERVICES.

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 $2.3 million.

What is the period of performance?

Start: 2023-09-11. End: 2026-09-29.

What is the specific track record of the Department of State Health Services in administering federal public health programs?

The Department of State Health Services (DSHS) in Texas has a long-standing history of administering public health programs, often in partnership with federal agencies like HHS and FDA. They are responsible for a wide range of services including disease surveillance, environmental health, and food safety. Their experience in managing complex health initiatives and ensuring regulatory compliance is generally well-established. However, specific performance metrics and outcomes related to federal funding, particularly for this food inspection program, would require a deeper dive into their reporting and evaluation data. The sole-source nature of this award suggests a level of trust and established working relationship, implying a satisfactory track record in prior engagements.

How does the $2.27 million contract value compare to similar food inspection programs in other states?

Directly comparing the $2.27 million contract value for Texas's human food inspection program to similar programs in other states is challenging without standardized data. Factors such as state population, number of food establishments, scope of inspection (e.g., frequency, types of facilities), and specific regulatory requirements significantly influence program costs. However, for a state the size of Texas, this funding level over approximately three years suggests a comprehensive program. It's plausible that larger states with more extensive food industries might have higher overall contract values, while smaller states might have lower amounts. A detailed benchmark would require analyzing contracts with similar scope and duration across multiple states, considering the specific services rendered.

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

The primary risks associated with a sole-source award for public health services like food inspection include a lack of competitive pressure, which can lead to higher prices than might be achieved through open competition. There's also a potential for reduced innovation, as the awarded entity may have less incentive to develop more efficient or effective methods. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other qualified providers. In this specific case, the risk is mitigated if the Department of State Health Services is demonstrably the only entity capable of performing these critical functions due to unique expertise, existing infrastructure, or regulatory authority. However, the absence of competition means less assurance of best value for taxpayer dollars.

What is the expected effectiveness of this program in improving food safety in Texas?

The expected effectiveness of this program in improving food safety in Texas hinges on the diligent execution of inspection protocols and the subsequent enforcement of corrective actions. Regular inspections are designed to identify and mitigate potential hazards in food production, processing, and retail environments, thereby reducing the risk of foodborne illnesses. The program's success will be measured by its ability to maintain compliance rates among food establishments and potentially decrease reported incidents of foodborne outbreaks. The funding level suggests a commitment to maintaining a robust inspection regime across the state. However, the ultimate effectiveness will depend on the DSHS's operational efficiency, the responsiveness of regulated businesses, and the clarity of performance metrics used for evaluation.

How has federal spending on state-administered food safety programs evolved over the past five years?

Analyzing the evolution of federal spending on state-administered food safety programs over the past five years requires access to historical federal budget data and specific program allocations. Generally, federal support for public health initiatives, including food safety, tends to fluctuate based on congressional appropriations, public health priorities, and emerging threats. There may have been increases driven by heightened awareness of foodborne illnesses or specific legislative actions. Conversely, budget constraints or shifts in federal priorities could lead to stagnation or decreases. Without specific data points for this particular program or broader category, it's difficult to provide a precise trend. However, it is reasonable to assume that federal funding for essential public health functions like food safety remains a priority, albeit subject to budgetary cycles.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 W 49TH ST, AUSTIN, TX, 78756

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

Financial Breakdown

Contract Ceiling: $2,751,099

Exercised Options: $2,272,936

Current Obligation: $2,272,936

Actual Outlays: $511,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline