DOJ's $61.4M blood products contract with American Red Cross awarded for 6 months

Contract Overview

Contract Amount: $61,426 ($61.4K)

Contractor: American National RED Cross, the

Awarding Agency: Department of Justice

Start Date: 2026-03-01

End Date: 2026-09-30

Contract Duration: 213 days

Daily Burn Rate: $288/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AMERICAN RED CROSS: BLOOD PRODUCTS DOS: MARCH 1- SEPTEMBER 30, 2026

Place of Performance

Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28273

State: North Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $61,425.85 to AMERICAN NATIONAL RED CROSS, THE for work described as: AMERICAN RED CROSS: BLOOD PRODUCTS DOS: MARCH 1- SEPTEMBER 30, 2026 Key points: 1. Contract awarded to a single, well-established provider, raising questions about price competitiveness. 2. Limited competition suggests potential for higher costs compared to a more open bidding process. 3. Fixed-price contract type offers cost certainty but may limit flexibility for unforeseen needs. 4. Short contract duration (6 months) may indicate a need for frequent re-evaluation or a pilot program. 5. The contract supports essential services for the Federal Prison System, highlighting its critical nature. 6. Geographic focus on North Carolina for delivery, though the provider is national.

Value Assessment

Rating: fair

The contract value of $61.4 million for a six-month period for blood products appears substantial. Benchmarking against similar contracts is difficult without more specific details on the volume and types of blood products. However, given the sole-source nature of the award (implied by the single provider and lack of competition details), it is possible that the pricing is not as competitive as it could be in a fully open market. The fixed-price structure provides predictability, but the value proposition hinges on the negotiated rates being aligned with market standards for such essential, time-sensitive medical supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves less formal competition than full and open procedures. While the data indicates the awardee is 'THE AMERICAN NATIONAL RED CROSS', it does not explicitly state if other bids were solicited or received. Given the nature of blood products and the established role of the Red Cross, it's possible that the competition was limited due to specialized requirements or existing partnerships. The limited competition may have resulted in less aggressive pricing than a broader solicitation.

Taxpayer Impact: Limited competition can mean taxpayers may not be getting the lowest possible price for these essential blood products, as a wider range of suppliers were likely not considered or able to bid.

Public Impact

Inmates within the Federal Prison System will receive necessary blood products for medical treatment. The contract ensures the continuity of critical healthcare services within federal correctional facilities. The primary beneficiaries are patients requiring transfusions or other blood-related medical interventions. The geographic impact is focused on facilities served by the North Carolina distribution point. This contract supports the operational capacity of the Bureau of Prisons to provide healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition.
Reliance on a single provider for critical medical supplies.
Lack of detailed competition data makes value assessment challenging.

Positive Signals

Awarded to a reputable and established national organization (American Red Cross).
Fixed-price contract provides budget certainty for the agency.
Supports essential healthcare services for a vulnerable population.

Sector Analysis

The market for blood products is highly specialized, with a few dominant national organizations, like the American Red Cross, playing a crucial role in collection, processing, and distribution. Government agencies, particularly those with large incarcerated populations like the Federal Prison System, are significant consumers of these products. Spending in this sector is driven by healthcare needs and regulatory requirements. While the overall market size for blood products is substantial, government contracts often focus on specific regions or institutional needs, making direct comparisons to broader market spending complex.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded to a large national organization. There is no indication of subcontracting opportunities for small businesses within this specific award. The focus is on a direct service provision by the primary awardee, limiting the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and medical administration departments. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is moderate, as the award is publicly listed, but detailed justifications for the limited competition or specific pricing benchmarks are not readily available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Healthcare Contracts
Department of Justice Medical Supplies
National Blood Supply Chain Contracts

Risk Flags

Limited Competition
Potential for Non-Competitive Pricing
Reliance on Single Source

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $61,425.85 to AMERICAN NATIONAL RED CROSS, THE. AMERICAN RED CROSS: BLOOD PRODUCTS DOS: MARCH 1- SEPTEMBER 30, 2026

Who is the contractor on this award?

The obligated recipient is AMERICAN NATIONAL RED CROSS, THE.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $61,425.85.

What is the period of performance?

Start: 2026-03-01. End: 2026-09-30.

What is the historical spending pattern for blood products by the Federal Prison System?

Historical spending data for blood products by the Federal Prison System (FPS) indicates a consistent need for these critical supplies. While specific figures for prior years are not detailed in this data snippet, the recurring nature of such contracts suggests a sustained budget allocation. The FPS, managing a large inmate population, requires a reliable supply chain for transfusions and other medical treatments. Past contracts likely involved similar providers, potentially including the American Red Cross, given its national infrastructure. Analyzing trends over multiple biennia or fiscal years would reveal fluctuations based on inmate population health needs, changes in medical protocols, and evolving procurement strategies. Without access to historical contract databases, it's challenging to quantify precise year-over-year spending, but the necessity of these products implies a stable, albeit potentially variable, expenditure.

How does the price per unit for these blood products compare to commercial market rates?

Determining the precise price per unit for these blood products and comparing it to commercial market rates is challenging with the provided data. The contract is a fixed-price purchase order for a total amount of $61.4 million over six months, but it does not specify the quantities or types of blood products included. Commercial market rates for blood products vary significantly based on the type (e.g., whole blood, packed red blood cells, plasma, platelets), processing, testing, and delivery services. Furthermore, the American Red Cross often operates under unique agreements with government entities, which may differ from standard commercial pricing. To conduct a thorough comparison, one would need itemized pricing for specific blood products and volumes, alongside current commercial pricing from other suppliers or industry benchmarks. Given the limited competition, it is plausible that the negotiated price might be higher than what could be achieved through a more competitive bidding process.

What are the specific risks associated with relying on a single provider for blood products?

Relying on a single provider, such as the American Red Cross, for critical blood products presents several risks. Firstly, there's a risk of supply disruption due to unforeseen events affecting the provider, such as natural disasters impacting collection centers, labor shortages, or internal operational issues. Secondly, the lack of competition can lead to price escalation over time, as the provider may face less pressure to offer competitive rates. Thirdly, it can reduce the incentive for the provider to innovate or improve service delivery if they are guaranteed a contract without significant market pressure. Lastly, if the provider's quality control or safety protocols falter, the impact on the Federal Prison System could be severe, as alternative sources may not be readily available on short notice. Mitigation strategies often involve robust contract management, clear performance standards, and contingency planning.

What is the American Red Cross's track record with federal government contracts, particularly for medical supplies?

The American Red Cross has a long-standing and extensive track record of working with various U.S. federal government agencies, including the Department of Defense, Department of Veterans Affairs, and agencies within the Department of Health and Human Services, for the provision of blood products and related services. Their role as a primary national blood supplier means they are frequently engaged in government contracts. These contracts typically involve ensuring a stable and safe supply of blood and blood components for military personnel, veterans, and federal inmates. While specific contract values and performance metrics vary, the Red Cross is generally recognized for its capacity to meet large-scale demands. However, like any large organization managing complex supply chains, there can be instances of performance issues or contract disputes, though their overall history suggests a reliable, albeit sometimes costly, partner for the government.

How does the contract's fixed-price structure impact potential cost savings or overruns for the government?

The fixed-price contract structure offers the Department of Justice (DOJ) significant advantages in terms of budget predictability. By agreeing on a set price for the blood products over the contract period, the DOJ avoids the risk of cost overruns if the provider's expenses increase due to factors like inflation, increased collection costs, or logistical challenges. This certainty allows for more accurate financial planning. However, this structure also means that if the provider can deliver the products at a lower cost than anticipated, the government does not directly benefit from those savings; the profit margin accrues to the contractor. Conversely, if the provider incurs higher costs, they absorb the loss, which could potentially incentivize them to cut corners if not adequately monitored. The effectiveness of a fixed-price contract in achieving cost savings hinges on the initial negotiation and the realism of the fixed price relative to anticipated market conditions and service levels.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13500 S POINT BLVD STE L, CHARLOTTE, NC, 28273

Business Categories: Category Business, Community Development Corporation, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,426

Exercised Options: $61,426

Current Obligation: $61,426

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline