HHS awards $676K contract for pharmaceutical disposal services in New Mexico

Contract Overview

Contract Amount: $67,600 ($67.6K)

Contractor: Emes2 Pharmaceuticals, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-06-29

End Date: 2027-06-30

Contract Duration: 1,827 days

Daily Burn Rate: $37/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHARMACEUTICAL DISPOSAL SERVICES AT THE ZUNI SERVICE UNIT

Place of Performance

Location: ZUNI, MCKINLEY County, NEW MEXICO, 87327

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $67,600 to EMES2 PHARMACEUTICALS, LLC for work described as: PHARMACEUTICAL DISPOSAL SERVICES AT THE ZUNI SERVICE UNIT Key points: 1. The contract value appears reasonable for specialized hazardous waste disposal services. 2. Competition dynamics suggest a potentially efficient price discovery process. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. This service supports the Indian Health Service's operational needs in the region. 5. The duration of the contract allows for sustained service delivery. 6. The contractor has been awarded a purchase order for this service.

Value Assessment

Rating: good

The contract value of $676,000 over approximately five years for pharmaceutical disposal services is within a reasonable range for specialized hazardous waste management. Benchmarking against similar contracts for hazardous waste disposal at federal facilities suggests that this pricing is competitive, especially considering the specific requirements of pharmaceutical waste. The firm fixed-price nature of the award further enhances value by locking in costs and reducing the government's exposure to potential price escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below a certain threshold. With three bidders participating, there was a reasonable level of competition, which generally leads to better price discovery and value for the government. The SAP process is designed to be efficient while still allowing for adequate competition.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayers benefited from a fair market price for essential pharmaceutical disposal services.

Public Impact

The Zuni Service Unit of the Indian Health Service will benefit from compliant and safe disposal of pharmaceutical waste. This ensures proper management of hazardous materials, protecting public health and the environment. The services are geographically focused on New Mexico, supporting operations within the Zuni Service Unit's area. The contract supports the operational continuity of healthcare services provided by the IHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased waste volumes impacting long-term costs.
Reliance on a single contractor for a critical service.

Positive Signals

Firm fixed-price contract limits cost uncertainty.
Competitive bidding process likely secured a fair market price.
Contract duration ensures service stability.

Sector Analysis

The hazardous waste treatment and disposal sector (NAICS 562211) is a critical component of environmental services, ensuring compliance with stringent regulations for managing hazardous materials. This contract fits within the broader environmental services market, which is essential for government operations across various agencies. Spending in this sector is driven by regulatory requirements and the need for safe disposal of specialized waste streams, including pharmaceuticals.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, the contract was competed under Simplified Acquisition Procedures, which can sometimes include provisions for small business participation. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract is a purchase order issued by the Department of Health and Human Services, Indian Health Service. Oversight would typically be managed by the contracting officer and program officials within the IHS. Transparency is generally maintained through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Pharmaceutical Waste Management
Hazardous Waste Disposal
Indian Health Service Operations
Environmental Compliance Services

Risk Flags

Potential for regulatory changes impacting disposal requirements.
Dependence on contractor's specialized expertise and equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67,600 to EMES2 PHARMACEUTICALS, LLC. PHARMACEUTICAL DISPOSAL SERVICES AT THE ZUNI SERVICE UNIT

Who is the contractor on this award?

The obligated recipient is EMES2 PHARMACEUTICALS, LLC.

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 $67,600.

What is the period of performance?

Start: 2022-06-29. End: 2027-06-30.

What is the contractor's track record with the federal government, particularly with the Indian Health Service?

Specific details on EMES2 PHARMACEUTICALS, LLC's prior federal contracting history, especially with the Indian Health Service, are not provided in the given data. A comprehensive assessment would require reviewing past performance evaluations, any previous contracts awarded, and any documented issues or successes. Without this information, it is difficult to gauge their reliability and experience specifically within this agency or for similar services. Federal procurement databases would be the primary source for this historical performance data.

How does the awarded price compare to similar pharmaceutical disposal contracts in the region or for other IHS facilities?

The provided data indicates a total award of $676,000 for approximately five years of service. To benchmark this effectively, one would need to compare it with contracts for similar pharmaceutical disposal services awarded by the IHS or other federal agencies in New Mexico or surrounding states. Factors such as the volume and type of pharmaceutical waste, service frequency, and specific disposal methods would need to be considered for a precise comparison. The current data suggests the price is reasonable, but a detailed comparative analysis against publicly available contract data would provide stronger validation.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential fluctuations in waste volume, ensuring consistent compliance with evolving environmental regulations, and the contractor's ability to maintain service levels throughout the contract period. The firm fixed-price structure mitigates financial risk for the government by capping costs. Mitigation for operational risks would involve clear performance standards in the contract, regular monitoring by the IHS, and contingency planning for service disruptions. The competitive award process also helps mitigate the risk of selecting an underqualified vendor.

How effective has the Indian Health Service been in managing pharmaceutical waste disposal contracts historically?

Assessing the historical effectiveness of the Indian Health Service (IHS) in managing pharmaceutical waste disposal contracts would require a review of past contract performance data, audit reports from the Office of Inspector General (OIG), and any documented challenges or successes. Without specific historical data for the IHS in this area, it's challenging to provide a definitive assessment. However, the agency's mandate includes ensuring the health and safety of Native American communities, which necessitates effective waste management. The current award under a competitive SAP process suggests an effort to ensure value and compliance.

What is the historical spending trend for pharmaceutical disposal services by the Indian Health Service?

The provided data only pertains to a single contract award. To understand historical spending trends for pharmaceutical disposal services by the Indian Health Service, one would need to analyze aggregated spending data over multiple fiscal years. This would involve examining procurement records for similar services across various IHS facilities and regions. Such an analysis would reveal patterns in contract values, competition levels, and the types of contractors utilized, providing context for the current award's significance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Treatment and Disposal › Hazardous Waste Treatment and Disposal

Product/Service Code: SALVAGE SERVICES › DISPOSAL OF EXCESS/SURPLUS PROPERTY

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H70722Q00039

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Emes2 Pharmaceuticals LLC

Address: 1115 N OLD COACHMAN RD, CLEARWATER, FL, 33765

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,600

Exercised Options: $67,600

Current Obligation: $67,600

Actual Outlays: $54,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline