DoD's $85M contract for flocked NP swabs awarded to Thomas Scientific, LLC, with a 125-day duration

Contract Overview

Contract Amount: $51,845,880 ($51.8M)

Contractor: Thomas Scientific, LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-19

End Date: 2021-04-23

Contract Duration: 125 days

Daily Burn Rate: $414.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 8507878304!FLOCKED NP SWABS

Place of Performance

Location: SWEDESBORO, GLOUCESTER County, NEW JERSEY, 08085

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $51.8 million to THOMAS SCIENTIFIC, LLC for work described as: 8507878304!FLOCKED NP SWABS Key points: 1. Value for money appears fair given the short performance period and fixed-price nature. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are low due to the short duration and established product type. 4. Performance context is within the Defense Logistics Agency's supply chain for medical equipment. 5. Sector positioning is within medical supplies, a critical area for defense readiness.

Value Assessment

Rating: fair

The contract value of $85,078,783 for a 125-day delivery order for flocked NP swabs suggests a significant per-unit cost. Benchmarking against similar contracts for large-volume swab procurement would be necessary to definitively assess value. However, the fixed-price contract type provides cost certainty for the government. The urgency implied by the short performance period may have influenced pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. The number of bidders is not specified, but the 'full and open' nature suggests multiple entities had the opportunity to bid, which generally supports price discovery.

Taxpayer Impact: A full and open competition, even with prior exclusions, is generally favorable for taxpayers as it allows for a broader range of potential suppliers to offer competitive pricing, potentially leading to cost savings.

Public Impact

The primary beneficiaries are Department of Defense personnel requiring diagnostic testing capabilities. The services delivered are the provision of flocked NP swabs, essential for sample collection in medical testing. The geographic impact is likely nationwide, supporting military health facilities across various locations. Workforce implications are minimal, primarily related to the manufacturing and distribution of the swabs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price inflation due to exclusion of sources prior to full and open competition.
Short performance period may indicate an urgent need, potentially leading to premium pricing.
Lack of specific per-unit cost data makes detailed value assessment challenging.

Positive Signals

Awarded through a full and open competition, suggesting a competitive bidding process.
Fixed-price contract type provides cost certainty for the government.
Short duration limits long-term financial commitment and associated risks.

Sector Analysis

The procurement of flocked NP swabs falls within the broader medical supplies and equipment sector. This sector is characterized by a mix of large manufacturers and specialized suppliers. The market size for diagnostic consumables, especially in the context of public health and defense readiness, is substantial and has seen increased demand. This contract represents a specific, time-bound procurement within this larger market.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as 'sb' is false. There is no explicit mention of small business set-asides or subcontracting requirements. Therefore, the direct impact on the small business ecosystem for this particular award appears limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Logistics Agency (DLA) and the Department of Defense's internal audit and contracting oversight mechanisms. Transparency is facilitated by contract award databases, but detailed performance monitoring and inspector general jurisdiction would depend on specific DLA policies and any identified issues during contract execution.

Related Government Programs

Medical Supplies Procurement
Diagnostic Consumables
Defense Health Agency Contracts
DLA Supply Chain Management

Risk Flags

Potential supply chain disruption risk
Urgent need may lead to premium pricing
Limited transparency on specific quantity procured

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.8 million to THOMAS SCIENTIFIC, LLC. 8507878304!FLOCKED NP SWABS

Who is the contractor on this award?

The obligated recipient is THOMAS SCIENTIFIC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $51.8 million.

What is the period of performance?

Start: 2020-12-19. End: 2021-04-23.

What is the historical spending pattern for flocked NP swabs by the Department of Defense?

Analyzing historical spending for flocked NP swabs by the Department of Defense requires access to comprehensive contract databases. While this specific contract represents an $85 million award over a short period, understanding the broader trend involves examining prior awards for similar items, especially during periods of heightened demand (e.g., pandemics). Factors such as contract volume, average price per unit over time, and the number of unique awardees would indicate whether spending has been consistent, increasing, or fluctuating. A significant increase in spending could signal a response to a specific health crisis or a strategic shift in preparedness. Conversely, stable or decreasing spending might suggest routine procurement or a market shift towards alternative testing methods.

How does the per-unit cost of these flocked NP swabs compare to market rates or similar government contracts?

Determining the precise per-unit cost requires dividing the total contract value ($85,078,783) by the quantity of swabs procured. This quantity is not provided in the data. Without the quantity, a direct per-unit cost comparison is impossible. However, if we assume a hypothetical quantity, we could benchmark it. For instance, if 10 million swabs were procured, the cost would be approximately $8.51 per swab. This would likely be considered high compared to pre-pandemic market rates for bulk swabs, but potentially competitive if the procurement occurred during a period of high demand or if specialized features are included. Comparing this hypothetical rate to other DLA or HHS contracts awarded during similar timeframes for comparable items would be crucial for a thorough value assessment.

What are the specific risks associated with Thomas Scientific, LLC as a contractor for this type of product?

Thomas Scientific, LLC is a well-established distributor of scientific and laboratory equipment. Risks associated with them as a contractor for flocked NP swabs would primarily relate to their supply chain reliability, quality control processes, and ability to meet delivery schedules, especially given the short performance period of this contract. While they are a reputable company, any contractor can face risks such as supplier disruptions, manufacturing defects, or logistical challenges. The 'exclusion of sources' clause in the competition type might suggest that certain potential competitors were deemed unsuitable or unavailable, which could indirectly point to risks associated with market capacity or specific supplier capabilities. However, without specific past performance issues or negative audit findings for Thomas Scientific related to similar procurements, the inherent risk is considered standard for a large-scale supply contract.

How effective is the Defense Logistics Agency in managing contracts for essential medical supplies like these swabs?

The Defense Logistics Agency (DLA) is responsible for providing the "big 10" combat support agencies of the military services and specified DoD activities with logistics information, services, and systems. Their effectiveness in managing contracts for essential medical supplies is generally considered robust, given their extensive experience and established processes. DLA plays a critical role in ensuring the readiness of medical forces by maintaining a steady supply of necessary equipment and consumables. Their ability to procure large volumes of items like flocked NP swabs, often under tight deadlines, demonstrates a degree of operational effectiveness. However, like any large organization, DLA faces challenges, particularly during surges in demand or supply chain disruptions, where contract performance can be tested. Oversight mechanisms and performance metrics are in place to monitor their effectiveness.

What is the typical duration for contracts of this nature (medical consumables procurement)?

The typical duration for contracts procuring essential medical consumables like flocked NP swabs can vary significantly based on several factors. For routine, ongoing needs, contracts might be structured as indefinite-delivery/indefinite-quantity (IDIQ) with a base period and option years, potentially spanning several years. However, for specific, urgent requirements or during periods of high demand (like a pandemic), contracts are often awarded as delivery orders against existing IDIQs or as standalone firm-fixed-price contracts with much shorter performance periods, such as the 125 days seen here. These shorter durations are common when the need is immediate and the quantity is defined for a specific timeframe, allowing for quicker acquisition and flexibility in re-evaluating market conditions or requirements.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carlyle Group Management L.L.C. (UEI: 117730694)

Address: 1654 HIGH HILL RD, SWEDESBORO, NJ, 08085

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

Financial Breakdown

Contract Ceiling: $51,845,880

Exercised Options: $51,845,880

Current Obligation: $51,845,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE2DP21D0004

IDV Type: IDC

Timeline