DoD awarded $47.7M for safety syringes and needles to support COVID-19 response

Contract Overview

Contract Amount: $47,702,256 ($47.7M)

Contractor: Duopross Meditech Corporation

Awarding Agency: Department of Defense

Start Date: 2020-08-03

End Date: 2021-10-31

Contract Duration: 454 days

Daily Burn Rate: $105.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SAFETY SYRINGES AND NEEDLES TO SUPPORT COVID-19 RESPONSE.

Place of Performance

Location: FARMINGDALE, SUFFOLK County, NEW YORK, 11735

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $47.7 million to DUOPROSS MEDITECH CORPORATION for work described as: SAFETY SYRINGES AND NEEDLES TO SUPPORT COVID-19 RESPONSE. Key points: 1. Contract awarded to Duopross Meditech Corporation for essential medical supplies. 2. The contract was competitively procured, indicating potential for good value. 3. A single award was made under a definitive contract type. 4. The contract duration was 454 days, aligning with the pandemic response timeline. 5. The North American Industry Classification System (NAICS) code 339112 covers Surgical and Medical Instrument Manufacturing. 6. The contract was not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $47.7 million for safety syringes and needles appears reasonable given the urgent need during the COVID-19 pandemic. Benchmarking against similar large-scale procurements for medical supplies during the pandemic would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the government has a clear understanding of costs, potentially leading to better cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The solicitation resulted in 16 offers, indicating a healthy level of interest and competition for this requirement. A competitive process with multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The robust competition suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to provide the necessary medical supplies at a competitive price.

Public Impact

The primary beneficiaries are healthcare providers and patients requiring safety syringes and needles for COVID-19 response efforts. The contract ensures the supply of critical medical equipment to support public health initiatives. The geographic impact is likely nationwide, supporting federal and potentially state-level pandemic response. The contract supports the manufacturing and supply chain workforce involved in producing these essential items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality control for a large volume of medical devices.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm-fixed-price contract type helps manage cost certainty.
Adequate number of offers received (16) indicates market responsiveness.

Sector Analysis

This contract falls within the broader medical device manufacturing sector, specifically focusing on surgical and medical instruments. The market for such supplies is significant, especially during public health emergencies like the COVID-19 pandemic. Spending on essential medical supplies is a critical component of national health security and emergency preparedness. Comparable spending benchmarks would involve analyzing other large-scale procurements of personal protective equipment (PPE) and medical consumables during the pandemic.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means the primary award went to a large business, and the direct impact on the small business ecosystem for this specific contract is limited unless the prime contractor engages in voluntary subcontracting.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract administration by the contracting officer and potentially program management offices. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

COVID-19 Medical Supplies
Department of Defense Medical Procurement
Surgical and Medical Instrument Manufacturing Contracts

Risk Flags

Potential for supply chain vulnerabilities
Quality assurance for medical devices
Timeliness of delivery during emergency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.7 million to DUOPROSS MEDITECH CORPORATION. SAFETY SYRINGES AND NEEDLES TO SUPPORT COVID-19 RESPONSE.

Who is the contractor on this award?

The obligated recipient is DUOPROSS MEDITECH CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.7 million.

What is the period of performance?

Start: 2020-08-03. End: 2021-10-31.

What is the track record of Duopross Meditech Corporation in fulfilling government contracts, particularly for medical supplies?

Information regarding Duopross Meditech Corporation's specific track record with government contracts, especially for medical supplies, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, and their experience with similar large-scale procurements. Understanding their capacity and reliability in delivering critical medical items during high-demand periods like the COVID-19 pandemic is crucial for evaluating future engagements.

How does the awarded price compare to market rates for safety syringes and needles during the specified contract period?

The provided data does not include specific unit pricing or detailed cost breakdowns, making a direct comparison to market rates challenging. However, the contract was awarded under full and open competition with 16 offers, suggesting that the pricing achieved was likely competitive within the market conditions of August 2020 to October 2021, a period of significant demand for medical supplies. A thorough analysis would involve researching historical pricing data from other government contracts and commercial suppliers for similar products during that timeframe.

What are the primary risks associated with this contract, and how were they mitigated?

Key risks for this contract could include supply chain disruptions, quality control issues with a large volume of manufactured goods, and potential delivery delays given the urgent nature of the COVID-19 response. Mitigation strategies, though not explicitly detailed, would typically involve robust contract clauses addressing delivery schedules, quality assurance requirements, and contingency planning by the contractor. The firm-fixed-price nature of the contract also shifts some of the cost-related risks to the contractor.

How effective was this contract in meeting the Department of Defense's needs for safety syringes and needles during the COVID-19 response?

The effectiveness of this contract is primarily measured by its success in ensuring the availability of critical safety syringes and needles to support the COVID-19 response. Given that it was awarded early in the pandemic (August 2020) and fulfilled its purpose, it likely contributed significantly to the DoD's operational readiness and public health efforts. Quantifying effectiveness further would involve examining usage data, feedback from end-users within the DoD, and whether the supply met demand without critical shortages.

What is the historical spending pattern for safety syringes and needles by the Department of Defense, and how does this contract fit?

Historical spending data for safety syringes and needles prior to this $47.7 million contract is not provided. However, this award represents a substantial, pandemic-driven surge in demand and expenditure for these specific items. Typically, routine procurement of such supplies would be spread across various contracts and potentially at lower volumes and costs. This contract is an outlier, directly tied to the extraordinary circumstances of the COVID-19 pandemic response, reflecting a significant, albeit temporary, increase in federal spending for these essential goods.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SR20R0003

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27 SARAH DR, FARMINGDALE, NY, 11735

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,702,256

Exercised Options: $47,702,256

Current Obligation: $47,702,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline