DHHS awards $294K sole-source contract for water quality testing to Dellavalle Laboratory in California

Contract Overview

Contract Amount: $29,442 ($29.4K)

Contractor: Dellavalle Laboratory, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-24

End Date: 2027-12-31

Contract Duration: 1,682 days

Daily Burn Rate: $18/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATER QUALITY TESTING SERVICES, SACRED OAKS HEALING CENTER, DAVIS, CALIFORNIA

Place of Performance

Location: DAVIS, YOLO County, CALIFORNIA, 95616

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29,442 to DELLAVALLE LABORATORY, INC. for work described as: WATER QUALITY TESTING SERVICES, SACRED OAKS HEALING CENTER, DAVIS, CALIFORNIA Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities and potentially impacting price. 2. The contract duration of over 4 years suggests a long-term need for these services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The specific services are critical for ensuring public health and safety at the Sacred Oaks Healing Center. 5. Geographic concentration in California for this specific service delivery. 6. The award value is relatively small, indicating a niche service requirement.

Value Assessment

Rating: fair

The contract value of $294,420 over approximately 4.5 years for water quality testing services appears reasonable for a specialized laboratory. However, without direct benchmarks for similar sole-source contracts or detailed service scope, a precise value-for-money assessment is challenging. The fixed-price nature provides cost certainty. The absence of competition, however, means there's no market validation of the 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 openly. This typically occurs when only one vendor is capable of providing the required service, or for specific reasons outlined by the agency. The lack of competition means that taxpayers did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing and value for taxpayer dollars.

Public Impact

Beneficiaries include residents and staff of the Sacred Oaks Healing Center, who rely on safe drinking water. Services delivered include essential water quality testing to identify potential contaminants. Geographic impact is localized to Davis, California, where the healing center is located. The contract supports specialized laboratory services, contributing to the local economy through employment at Dellavalle Laboratory.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Lack of detailed performance metrics in the provided data makes it difficult to assess effectiveness.
Contract duration without clear performance milestones could pose a risk if needs change.

Positive Signals

Fixed-price contract provides cost certainty.
Award to an established laboratory suggests a level of expertise.
Services directly support public health and safety.

Sector Analysis

The North American Industry Classification System (NAICS) code 541380 covers 'Testing Laboratories and Services.' This sector includes a wide range of analytical testing for various industries, including environmental, health, and manufacturing. Federal spending in this area supports regulatory compliance, research, and public health initiatives. Comparable spending benchmarks are difficult to establish without knowing the specific types and volume of tests required.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information provided regarding subcontracting opportunities for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services (HHS), specifically the Indian Health Service (IHS). Oversight would typically involve program managers ensuring service delivery aligns with the contract's statement of work. Transparency is facilitated by public contract databases, but detailed performance reviews and Inspector General involvement would depend on specific agency protocols and any identified issues.

Related Government Programs

Environmental Protection Agency (EPA) Water Quality Standards
Indian Health Service (IHS) Public Health Programs
Department of Health and Human Services (HHS) Grants and Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics.
Contract duration without clear performance milestones.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29,442 to DELLAVALLE LABORATORY, INC.. WATER QUALITY TESTING SERVICES, SACRED OAKS HEALING CENTER, DAVIS, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is DELLAVALLE LABORATORY, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $29,442.

What is the period of performance?

Start: 2023-05-24. End: 2027-12-31.

What is the specific scope of water quality testing required under this contract, and how does it align with the needs of the Sacred Oaks Healing Center?

The provided data does not detail the specific water quality tests required. However, given the context of a healing center, these tests likely include analyses for microbiological contaminants (e.g., bacteria), chemical contaminants (e.g., heavy metals, pesticides), and physical parameters (e.g., pH, turbidity) to ensure the safety and potability of drinking water. The scope would be dictated by regulatory requirements and the specific health risks associated with the water source and the population served by the healing center. Further details would be found in the contract's Statement of Work (SOW).

How does the pricing of this contract compare to similar water quality testing services provided by other laboratories, particularly those not awarded on a sole-source basis?

A direct price comparison is challenging due to the sole-source nature of this award and the lack of specific service details. Typically, competitive bidding allows for price discovery and ensures that the government receives market-based pricing. Without competitive bids, it's difficult to ascertain if Dellavalle Laboratory's pricing is optimal. Benchmarking would require access to pricing data for similar testing scopes from multiple laboratories, ideally through publicly available contract awards or industry surveys. The fixed-price nature, however, caps the government's exposure to cost increases.

What are the potential risks associated with awarding this contract on a sole-source basis, and what mitigation strategies are in place?

The primary risk of a sole-source award is the lack of competition, which can lead to higher prices and potentially less innovation or service quality than might be achieved through a competitive process. Mitigation strategies often involve rigorous justification for the sole-source award, ensuring the chosen contractor possesses unique capabilities. Additionally, the government may negotiate specific performance standards and service level agreements within the contract to ensure quality and value, and conduct periodic reviews to monitor contractor performance and pricing.

What is Dellavalle Laboratory, Inc.'s track record and experience in providing water quality testing services to federal agencies or similar organizations?

The provided data indicates Dellavalle Laboratory, Inc. is the contractor. While their specific track record with federal agencies isn't detailed here, their selection suggests they possess the necessary certifications, expertise, and capacity to perform the required water quality testing. A deeper dive into federal contract databases (like SAM.gov or FPDS) or the company's own website would likely reveal past performance information, client testimonials, and specific accreditations relevant to environmental and public health testing.

How does this contract fit into the broader spending patterns of the Indian Health Service for water quality monitoring and related public health services?

This contract represents a specific, localized expenditure for water quality testing at a particular facility. The Indian Health Service (IHS) has a broader mandate to provide healthcare services to American Indians and Alaska Natives, which inherently includes ensuring safe water supplies at IHS facilities and in tribal communities. Spending on water quality testing is a component of their public health infrastructure investment. Without historical data on IHS water quality testing contracts or overall budgets for environmental health, it's difficult to place this $294K award within a larger spending context, but it appears to be a targeted investment for a specific need.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1910 W MCKINLEY AVE, FRESNO, CA, 93728

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,365

Exercised Options: $29,442

Current Obligation: $29,442

Actual Outlays: $21,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline