DoD's $5.7M medical supply contract awarded to Eagle Global Scientific, LLC, with a 5-year duration

Contract Overview

Contract Amount: $5,719,910 ($5.7M)

Contractor: Eagle Global Scientific, LLC

Awarding Agency: Department of Defense

Start Date: 2021-01-01

End Date: 2026-06-30

Contract Duration: 2,006 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 0001 PHARMACIST

Place of Performance

Location: JOINT BASE LEWIS MCCHORD, PIERCE County, WASHINGTON, 98431

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to EAGLE GLOBAL SCIENTIFIC, LLC for work described as: 0001 PHARMACIST Key points: 1. Value for money appears fair given the 5-year term and firm-fixed-price structure. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators include the sole-source nature and a long contract duration. 4. Performance context is within general medical and surgical hospital services. 5. Sector positioning is within the broader healthcare and pharmaceutical supply chain. 6. The contract's duration of over 5 years warrants close monitoring for sustained value.

Value Assessment

Rating: fair

The contract value of $5.7 million over approximately five years for medical supplies suggests a moderate annual spend. Benchmarking against similar sole-source contracts for medical supplies is challenging due to limited public data. However, the firm-fixed-price structure provides cost certainty for the government. The absence of competitive bidding means a direct comparison of pricing efficiency is not possible, but the overall value will depend on the necessity and criticality of the supplies provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition means that the government did not benefit from multiple bids to drive down prices or encourage innovation. The rationale for the sole-source award would need to be examined to understand why full and open competition was not feasible.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to compete for government contracts.

Public Impact

The Department of the Army benefits from a reliable source for essential medical supplies. Services delivered include the provision of general medical and surgical supplies. The geographic impact is likely focused on military installations or healthcare facilities served by the Department of the Army. Workforce implications are minimal for the government, as the contractor handles supply chain management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Long contract duration (over 5 years) increases risk of price escalation or obsolescence if not managed effectively.
Lack of transparency in the justification for sole-source award.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single, potentially specialized, vendor can ensure consistent supply.
Contract supports critical medical supply needs for the Department of the Army.

Sector Analysis

The healthcare sector, particularly the supply of medical and surgical goods, is a significant area of federal spending. This contract fits within the broader category of healthcare services and supplies procured by the Department of Defense. Comparable spending benchmarks for medical supplies vary widely based on the specific items, quantities, and contract types. The market includes numerous large and small businesses specializing in medical equipment and pharmaceuticals.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely limited, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified goods at the agreed-upon price. Transparency is limited by the sole-source nature of the award; however, contract details should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Medical Materiel
General Medical and Surgical Hospitals (NAICS 622110)
Federal Supply Schedule (FSS) Contracts
Medical Supplies Procurement

Risk Flags

Sole-source award lacks competitive justification.
Long contract duration may not reflect evolving market prices or technology.
Limited transparency on specific justification for non-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to EAGLE GLOBAL SCIENTIFIC, LLC. 0001 PHARMACIST

Who is the contractor on this award?

The obligated recipient is EAGLE GLOBAL SCIENTIFIC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2021-01-01. End: 2026-06-30.

What is the specific justification for this contract being awarded on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not included in the abbreviated data. Typically, sole-source awards are justified under circumstances such as only one responsible source being available, urgent and compelling needs, or specific national security requirements. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons. This lack of transparency in the justification process can be a concern for ensuring fair competition and optimal use of taxpayer funds.

How does the annual value of this contract compare to similar sole-source medical supply contracts awarded by the DoD?

The total contract value is $5.7 million over approximately 5 years, equating to an average annual value of roughly $1.14 million. Comparing this to similar sole-source medical supply contracts is challenging without access to a comprehensive database of sole-source awards and their specific details. Sole-source contracts are, by definition, not competitively bid, making direct value-for-money comparisons difficult. However, if this contract is for specialized or critical medical supplies not readily available from multiple vendors, the annual value might be considered reasonable. Conversely, if the supplies are common, a sole-source award at this value could indicate a lack of aggressive price negotiation.

What are the potential risks associated with a sole-source contract of this duration for medical supplies?

A sole-source contract of over five years for medical supplies carries several potential risks. Firstly, the lack of competition means the government may not be achieving the best possible pricing, as there is no market pressure to drive down costs. Secondly, over a long duration, the risk of price escalation due to inflation or increased supplier costs is higher without competitive re-bidding. Thirdly, medical technology and supply needs can evolve rapidly; a long-term sole-source contract might lock the government into using potentially outdated or less efficient supplies. Finally, there's a risk of vendor lock-in, making it difficult to switch suppliers even if better options become available.

What performance metrics or quality assurance measures are likely in place for this contract?

While specific performance metrics are not detailed in the provided data, standard government contracting practices for medical supplies would typically include quality assurance surveillance plans (QASPs). These plans outline how the government will monitor the contractor's performance to ensure compliance with contract terms, specifications, and delivery schedules. Key metrics could include on-time delivery rates, product quality (e.g., meeting specifications, absence of defects), proper packaging and handling, and responsiveness to inquiries or issues. The firm-fixed-price nature of the contract incentivizes the contractor to meet these requirements to ensure full payment.

How does the $5.7 million total contract value fit within the broader context of DoD's annual spending on medical supplies?

The Department of Defense has a substantial annual budget for healthcare and medical supplies, often in the tens of billions of dollars. A single contract valued at $5.7 million, while significant for the contractor, represents a relatively small fraction of the DoD's overall medical procurement. This contract likely addresses specific needs for certain types of medical supplies or serves a particular facility or region. Its impact on the total DoD medical supply spending is therefore modest, but it is crucial for the operational readiness and healthcare provision at the level it supports.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0221Q0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1826 N LOOP 1604 W STE 336E, SAN ANTONIO, TX, 78248

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,720,160

Exercised Options: $5,719,910

Current Obligation: $5,719,910

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $752,813

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline