HHS awards $10.7M for Blood and Organ Banks to STEMCYTE INC under full and open competition
Contract Overview
Contract Amount: $10,687,480 ($10.7M)
Contractor: Stemcyte Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2006-11-02
End Date: 2023-09-23
Contract Duration: 6,169 days
Daily Burn Rate: $1.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TAS::75 0350::TAS MGT SVCS/CONTRACT&PROCUREMENT SUP
Place of Performance
Location: ARCADIA, LOS ANGELES County, CALIFORNIA, 91007
Plain-Language Summary
Department of Health and Human Services obligated $10.7 million to STEMCYTE INC for work described as: TAS::75 0350::TAS MGT SVCS/CONTRACT&PROCUREMENT SUP Key points: 1. Contract awarded to STEMCYTE INC for Blood and Organ Bank services. 2. The contract spans over 16 years, indicating a long-term need. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The total award value is $10.7 million. 5. The contract is for Health Resources and Services Administration (HRSA).
Value Assessment
Rating: fair
The contract's duration of over 16 years makes direct pricing comparisons difficult. Without specific deliverables and market benchmarks for similar long-term blood and organ bank services, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the extended duration and specific nature of the services may limit the number of truly comparable bids.
Taxpayer Impact: Taxpayer funds are utilized for essential health services, with the competitive nature of the award aiming for cost-effectiveness over the long term.
Public Impact
Ensures continued availability of critical blood and organ banking services. Supports public health initiatives managed by HRSA. Long-term contract provides stability for service provision. Potential for innovation and service improvement over the contract's lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may obscure current market value.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for vendor lock-in due to long-term commitment.
Positive Signals
- Awarded through full and open competition.
- Supports critical public health services.
- Long-term contract ensures service continuity.
Sector Analysis
This contract falls within the healthcare sector, specifically related to blood and organ banking services. Spending in this area is crucial for public health infrastructure, and benchmarks can vary significantly based on service scope and duration.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract's long duration necessitates ongoing oversight to ensure STEMCYTE INC is meeting performance expectations and that the pricing remains competitive relative to evolving market conditions. Regular reviews are essential for accountability.
Related Government Programs
- Blood and Organ Banks
- Department of Health and Human Services Contracting
- Health Resources and Services Administration Programs
Risk Flags
- Long contract duration (over 16 years).
- Lack of detailed performance metrics in provided data.
- Potential for price escalation or obsolescence over time.
- No indication of small business participation.
Tags
blood-and-organ-banks, department-of-health-and-human-services, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $10.7 million to STEMCYTE INC. TAS::75 0350::TAS MGT SVCS/CONTRACT&PROCUREMENT SUP
Who is the contractor on this award?
The obligated recipient is STEMCYTE INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $10.7 million.
What is the period of performance?
Start: 2006-11-02. End: 2023-09-23.
What specific services are included in the 'Blood and Organ Banks' category, and how do they align with current healthcare needs?
The 'Blood and Organ Banks' category (NAICS 621991) typically encompasses establishments primarily engaged in collecting, preserving, and distributing blood and blood products, as well as human organs for transplantation. This includes services like blood donation processing, testing, and storage, and organ procurement and preservation. These services are fundamental to emergency care, surgical procedures, and treatment of various medical conditions, aligning directly with critical public health needs.
Given the 16-year duration, what mechanisms are in place to ensure the contract remains cost-effective and responsive to technological advancements?
While the contract is long-term, the firm fixed-price structure provides cost certainty. However, mechanisms for periodic review of pricing against market benchmarks, inclusion of clauses for incorporating new technologies or service improvements, and clear performance standards are crucial. The agency should actively manage the contract to ensure continued value and adaptation.
How does the 'full and open competition' process for this long-term contract ensure fair pricing and prevent potential monopolies in specialized healthcare services?
Full and open competition aims to solicit bids from all interested and qualified sources, fostering a competitive environment that should drive down prices and encourage innovation. For a long-term contract in a specialized area, the agency must ensure the solicitation is detailed enough to attract multiple capable bidders and that evaluation criteria prioritize both technical capability and cost-effectiveness over the contract's lifespan.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Stemcyte, Inc.
Address: 400 ROLYN PL, ARCADIA, CA, 91007
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,687,480
Exercised Options: $10,687,480
Current Obligation: $10,687,480
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-11-02
Current End Date: 2023-09-23
Potential End Date: 2023-09-23 00:00:00
Last Modified: 2023-08-29
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