HHS awards $169K for blood products to Vitalant in New Mexico
Contract Overview
Contract Amount: $169,143 ($169.1K)
Contractor: Vitalant
Awarding Agency: Department of Health and Human Services
Start Date: 2024-07-29
End Date: 2025-10-21
Contract Duration: 449 days
Daily Burn Rate: $377/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PROVIDE QUALITY BLOOD PRODUCT SUPPLIES FOR ZCCHC.
Place of Performance
Location: ZUNI, MCKINLEY County, NEW MEXICO, 87327
Plain-Language Summary
Department of Health and Human Services obligated $169,142.78 to VITALANT for work described as: PROVIDE QUALITY BLOOD PRODUCT SUPPLIES FOR ZCCHC. Key points: 1. Vitalant, a major blood donation organization, is the sole provider. 2. The contract is for blood product supplies for Zuni Community Health Center. 3. The award is a firm-fixed-price purchase order. 4. The contract duration is 449 days. 5. The contract is not competed.
Value Assessment
Rating: fair
The contract value of $169,142.78 for blood products over 449 days appears reasonable given the specialized nature of blood banking services. Benchmarking against similar contracts for essential medical supplies is difficult without more specific data on product types and quantities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential blood products.
Public Impact
Ensures continued access to critical blood products for the Zuni Community Health Center. Supports public health services in the Zuni Pueblo region of New Mexico. Vitalant's role as a non-profit blood bank is crucial for community health infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 30 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on sole-source justification
Positive Signals
- Ensures critical supply chain continuity
- Supports a vital community health service
Sector Analysis
The healthcare sector, particularly in remote or underserved areas, often relies on specialized providers for essential services like blood banking. Spending benchmarks for such niche services are highly variable and depend on geographic location and specific needs.
Small Business Impact
This award does not appear to involve small businesses. Vitalant is a large, established blood donation organization. Further analysis would be needed to confirm if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The award was made by the Indian Health Service, an agency within HHS. Oversight should focus on the justification for the sole-source award and ensuring the pricing remains fair and reasonable throughout the contract period.
Related Government Programs
- Blood and Organ Banks
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for above-market pricing.
- Lack of transparency regarding justification.
- Limited visibility into small business participation.
Tags
blood-and-organ-banks, department-of-health-and-human-services, nm, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $169,142.78 to VITALANT. PROVIDE QUALITY BLOOD PRODUCT SUPPLIES FOR ZCCHC.
Who is the contractor on this award?
The obligated recipient is VITALANT.
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 $169,142.78.
What is the period of performance?
Start: 2024-07-29. End: 2025-10-21.
What is the specific justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. For blood products, this might relate to specific licensing, distribution networks, or existing infrastructure that only one entity possesses. Without this justification, it's difficult to assess if the government received the best possible value.
How does the per-unit cost of these blood products compare to national averages or similar contracts?
Benchmarking the per-unit cost is essential for evaluating value for money. Without specific details on the types and quantities of blood products procured, a direct comparison is challenging. However, if data were available, it would be compared against established benchmarks for similar medical supplies. A significant deviation from the norm, especially in a sole-source scenario, would raise concerns about pricing efficiency and taxpayer impact.
What is the impact of this sole-source award on the long-term availability and cost of blood products for IHS facilities?
Sole-source awards can create dependency on a single supplier, potentially limiting future negotiation leverage and driving up costs over time if not managed carefully. While ensuring immediate supply continuity, it may hinder the government's ability to solicit competitive bids in the future, potentially impacting the long-term affordability and accessibility of these critical resources for IHS facilities.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: INTENT TO SOLE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9305 E VIA DE VENTURA, SCOTTSDALE, AZ, 85258
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $388,015
Exercised Options: $169,143
Current Obligation: $169,143
Actual Outlays: $133,125
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-07-29
Current End Date: 2025-10-21
Potential End Date: 2025-10-21 00:00:00
Last Modified: 2026-04-03
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