HHS Awards $815K BPA for Sterile Pharmaceuticals to Fagron Compounding Services
Contract Overview
Contract Amount: $81,563 ($81.6K)
Contractor: Fagron Compounding Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2026-04-07
End Date: 2027-04-06
Contract Duration: 364 days
Daily Burn Rate: $224/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: BLANKET PURCHASE AGREEMENT FOR STERILELY COMPOUNDED PHARMACEUTICALS FOR GALLUP INDIAN MEDICAL CENTER
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67226
State: Kansas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $81,562.5 to FAGRON COMPOUNDING SERVICES, LLC for work described as: BLANKET PURCHASE AGREEMENT FOR STERILELY COMPOUNDED PHARMACEUTICALS FOR GALLUP INDIAN MEDICAL CENTER Key points: 1. The contract is a Blanket Purchase Agreement (BPA) for sterile compounded pharmaceuticals. 2. Fagron Compounding Services, LLC is the awardee, with a contract value of $815,625. 3. The contract was competed under the Simplified Acquisition Procedures (SAP). 4. The duration of the agreement is one year, with an end date of April 6, 2027.
Value Assessment
Rating: good
The contract value of $815,625 for a one-year BPA appears reasonable for specialized compounded pharmaceuticals. Benchmarking against similar contracts for sterile compounding services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. This method generally promotes price discovery and fair market value.
Taxpayer Impact: The BPA aims to ensure a consistent supply of necessary pharmaceuticals, supporting patient care at the Gallup Indian Medical Center and representing efficient use of taxpayer funds for essential medical supplies.
Public Impact
Ensures access to essential sterile compounded pharmaceuticals for Native American patients at the Gallup Indian Medical Center. Supports the Indian Health Service's mission to provide healthcare services. The BPA structure allows for flexibility in ordering as needs arise. The firm fixed price contract provides cost certainty for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in subsequent years if not re-competed.
- Reliance on a single vendor for critical pharmaceutical needs.
Positive Signals
- Competitive award process under SAP.
- Firm fixed price contract type.
- Supports a critical healthcare facility.
Sector Analysis
The pharmaceutical preparation manufacturing sector is vital for healthcare. Spending in this area is driven by patient needs and the complexity of drug compounding. This BPA falls within typical spending for specialized pharmaceutical services.
Small Business Impact
While the awardee is Fagron Compounding Services, LLC, the data does not indicate if this is a small business. Further analysis would be needed to determine small business participation or impact.
Oversight & Accountability
The use of a Blanket Purchase Agreement (BPA) under the Department of Health and Human Services, Indian Health Service, suggests established procurement procedures. Oversight would involve monitoring contract performance and adherence to terms.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential for price escalation in future years.
- Vendor lock-in for critical supplies.
- Dependence on a single source for specialized pharmaceuticals.
- Limited visibility into specific unit costs without further data.
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, ks, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $81,562.5 to FAGRON COMPOUNDING SERVICES, LLC. BLANKET PURCHASE AGREEMENT FOR STERILELY COMPOUNDED PHARMACEUTICALS FOR GALLUP INDIAN MEDICAL CENTER
Who is the contractor on this award?
The obligated recipient is FAGRON COMPOUNDING SERVICES, 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 $81,562.5.
What is the period of performance?
Start: 2026-04-07. End: 2027-04-06.
What is the typical cost range for similar sterile compounded pharmaceutical BPAs?
The typical cost range for similar sterile compounded pharmaceutical BPAs can vary significantly based on the specific drugs, quantities, and compounding complexity. However, for a one-year agreement supporting a medical center, a value in the high hundreds of thousands to low millions of dollars is not uncommon, depending on the specialized nature of the preparations.
What are the risks associated with relying on a single vendor for compounded pharmaceuticals?
Relying on a single vendor for compounded pharmaceuticals carries risks such as potential supply chain disruptions, limited negotiation leverage for future pricing, and a lack of alternative sources if quality issues arise. This could impact patient care continuity and potentially lead to higher costs over time.
How effectively does this BPA ensure the availability of critical medications?
This BPA is designed to ensure the availability of critical medications by establishing a pre-negotiated agreement with a qualified vendor. The firm fixed price and one-year duration provide a framework for consistent supply, but ongoing monitoring of vendor performance and market conditions is crucial for sustained effectiveness.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8710 E 34TH ST N, WICHITA, KS, 67226
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $163,125
Exercised Options: $81,563
Current Obligation: $81,563
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-07
Current End Date: 2027-04-06
Potential End Date: 2028-04-06 00:00:00
Last Modified: 2026-04-07
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