HHS Awards $321.5M Contract for Respiratory Protection to Hanesbrands Inc
Contract Overview
Contract Amount: $321,552,000 ($321.6M)
Contractor: Hanesbrands Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-04-02
End Date: 2020-10-30
Contract Duration: 211 days
Daily Burn Rate: $1.5M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HANES RESPIRATORY AND CONTACT PROTECTION
Place of Performance
Location: WINSTON SALEM, FORSYTH County, NORTH CAROLINA, 27105
Plain-Language Summary
Department of Health and Human Services obligated $321.6 million to HANESBRANDS INC. for work described as: HANES RESPIRATORY AND CONTACT PROTECTION Key points: 1. Significant award to a single, well-known apparel manufacturer. 2. Contract awarded during a period of high demand for respiratory protection. 3. Potential for high taxpayer impact due to the large sum awarded. 4. Focus on apparel manufacturing suggests a specific type of protective gear.
Value Assessment
Rating: good
The contract value of $321.5 million is substantial. Benchmarking against similar large-scale PPE procurements during the pandemic is difficult without more specific product details, but the price appears within a reasonable range for mass production of essential items.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific sources may have been initially excluded or limited. This method can impact price discovery by potentially reducing the number of competitive bids.
Taxpayer Impact: The $321.5 million award represents a significant allocation of taxpayer funds, aimed at securing critical supplies during a public health emergency.
Public Impact
Ensured supply of essential respiratory protection during a critical public health period. Supported a large domestic manufacturer, potentially preserving jobs and production capacity. The large contract value highlights the government's significant investment in pandemic preparedness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to suboptimal pricing.
- Contract duration is relatively short for a large-scale manufacturing effort.
- Lack of specific product details makes detailed cost analysis challenging.
Positive Signals
- Awarded to a known, established manufacturer.
- Addresses a critical need for respiratory protection.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The apparel manufacturing sector is characterized by established supply chains and production capabilities. This contract falls within the 'Other Cut and Sew Apparel Manufacturing' category, suggesting a focus on garments rather than complex medical devices. Spending benchmarks in this sector vary widely based on product complexity and volume.
Small Business Impact
This contract was awarded to Hanesbrands Inc., a large corporation, not a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract was managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, an agency responsible for public health emergencies. Oversight would involve ensuring delivery, quality, and adherence to contract terms.
Related Government Programs
- Other Cut and Sew Apparel Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential for inflated pricing due to limited competition.
- Lack of transparency regarding the 'exclusion of sources'.
- Short contract duration may not reflect long-term supply needs.
- No clear indication of small business participation.
Tags
other-cut-and-sew-apparel-manufacturing, department-of-health-and-human-services, nc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $321.6 million to HANESBRANDS INC.. HANES RESPIRATORY AND CONTACT PROTECTION
Who is the contractor on this award?
The obligated recipient is HANESBRANDS INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $321.6 million.
What is the period of performance?
Start: 2020-04-02. End: 2020-10-30.
What specific types of respiratory protection were procured under this contract, and how did their unit costs compare to market rates at the time?
The data does not specify the exact types of respiratory protection. However, given Hanesbrands' manufacturing capabilities, it likely involved items like masks or gowns. Unit costs would need to be compared against prevailing market prices for similar items during the peak demand of early 2020 to assess value for money.
What were the primary justifications for the 'exclusion of sources' in the competition process, and did this limit the government's ability to secure the best possible price?
The justification for excluding sources is not detailed. It could be due to specific manufacturing capabilities required, existing relationships, or the urgent need for rapid production. This limitation on competition might have restricted price negotiation, potentially leading to a higher overall cost than a fully open bid process.
How effective was the procured respiratory protection in meeting the public health needs during the specified contract period?
The effectiveness is implied by the contract's purpose: to secure critical supplies. Assuming Hanesbrands met the delivery and quality specifications, the protection likely contributed to meeting demand. However, a full assessment would require data on deployment and actual public health outcomes.
Industry Classification
NAICS: Manufacturing › Cut and Sew Apparel Manufacturing › Other Cut and Sew Apparel 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
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1000 E HANES MILL RD, WINSTON SALEM, NC, 27105
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $321,552,000
Exercised Options: $321,552,000
Current Obligation: $321,552,000
Actual Outlays: $311,234,131
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-04-02
Current End Date: 2020-10-30
Potential End Date: 2020-10-30 00:00:00
Last Modified: 2024-06-28
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