HHS awarded $23.3M for respirators to GVS Filtration Inc. to support COVID-19 response

Contract Overview

Contract Amount: $23,307,780 ($23.3M)

Contractor: GVS Filtration Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-06-12

End Date: 2021-01-11

Contract Duration: 213 days

Daily Burn Rate: $109.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROCURE N99 RESPIRATORS IN SUPPORT OF THE CORONAVIRUS RESPONSE EFFORTS.

Place of Performance

Location: FINDLAY, HANCOCK County, OHIO, 45840

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.3 million to GVS FILTRATION INC. for work described as: PROCURE N99 RESPIRATORS IN SUPPORT OF THE CORONAVIRUS RESPONSE EFFORTS. Key points: 1. The contract was awarded on a sole-source basis, limiting price competition. 2. The duration of the contract was 213 days, indicating a short-term need. 3. The award was made to a single vendor, raising questions about market price discovery. 4. The respirators were procured for the Coronavirus Response Efforts, highlighting a critical public health need. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The geographic location of the contractor is Ohio.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the emergency nature of the procurement and the lack of competitive bids. The firm fixed price contract structure suggests that the government agreed to a set price, potentially at a premium given the urgent demand for N99 respirators during the pandemic. Without comparable sole-source awards for similar quantities and specifications during the same period, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used in emergency situations where only one vendor can meet the urgent requirement. The lack of competition means that the government did not benefit from the price discovery mechanisms that open competition provides, potentially leading to a higher price than might have been achieved in a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for these respirators due to the absence of competitive bidding. The sole-source award bypasses the opportunity for multiple vendors to offer their best prices, which could have resulted in cost savings.

Public Impact

Frontline healthcare workers and first responders received essential N99 respirators. The procurement directly supported the national response to the COVID-19 pandemic. The respirators were distributed to support healthcare facilities and public health efforts. The contract ensured the availability of critical personal protective equipment (PPE) during a public health crisis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Emergency procurement context may have led to inflated pricing.
Lack of competition hinders assessment of contractor's pricing strategy.

Positive Signals

Contract fulfilled an urgent need for critical PPE during a pandemic.
Firm fixed price contract shifts cost overrun risk to the contractor.
Procurement ensured the availability of essential respiratory protection.

Sector Analysis

The procurement of N99 respirators falls within the broader healthcare and medical supplies sector. During the COVID-19 pandemic, demand for personal protective equipment (PPE) surged dramatically, leading to significant government spending in this area. This contract represents a portion of the federal government's efforts to secure vital medical supplies to combat the public health emergency. Comparable spending benchmarks are difficult to establish due to the unique market conditions and emergency nature of the pandemic.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the available data. The award to GVS Filtration Inc., a known manufacturer, suggests a direct procurement from a primary supplier rather than through a small business intermediary. The focus was on rapid acquisition of essential goods during an emergency.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and potentially the Office of Inspector General (OIG) for any audits or investigations into the procurement process and expenditure. Transparency is limited due to the sole-source nature of the award. Accountability rests with HHS to ensure the funds were used appropriately and the respirators met the required specifications.

Related Government Programs

COVID-19 Response
Personal Protective Equipment (PPE) Procurement
Medical Supplies
Emergency Acquisitions

Risk Flags

Sole-source award lacks competitive pricing.
Emergency procurement may indicate premium pricing.
Limited data on specific respirator type and quantity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.3 million to GVS FILTRATION INC.. PROCURE N99 RESPIRATORS IN SUPPORT OF THE CORONAVIRUS RESPONSE EFFORTS.

Who is the contractor on this award?

The obligated recipient is GVS FILTRATION 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 $23.3 million.

What is the period of performance?

Start: 2020-06-12. End: 2021-01-11.

What was the specific type and quantity of N99 respirators procured?

The provided data does not specify the exact model or quantity of N99 respirators procured under this contract. The description states 'PROCURE N99 RESPIRATORS IN SUPPORT OF THE CORONAVIRUS RESPONSE EFFORTS.' Without further details, it is impossible to determine the precise specifications or the number of units acquired. This information would be crucial for a more detailed analysis of the unit cost and overall value.

How does the awarded price compare to market rates for N99 respirators during the pandemic?

Directly comparing the awarded price to market rates is challenging without knowing the exact quantity and specific model of respirators. Furthermore, the COVID-19 pandemic created unprecedented market volatility, with prices for PPE often inflated due to extreme demand and supply chain disruptions. As this was a sole-source award, there is no competitive benchmark to assess if the price was reasonable relative to what other government agencies or private entities paid for similar items during the same period.

What is GVS Filtration Inc.'s track record with federal contracts, particularly for emergency supplies?

GVS Filtration Inc. has a history of receiving federal contracts, though the provided data snippet focuses on this specific award. A comprehensive review of their contract history would be needed to assess their performance, delivery reliability, and pricing patterns on previous government orders, especially those related to emergency response or medical supplies. This would help in evaluating their suitability and past performance as a contractor for critical needs.

Were there any alternative suppliers considered, even if ultimately not awarded the contract?

Given that this contract was awarded on a sole-source basis ('CT': 'NOT COMPETED'), it implies that alternative suppliers were likely not formally considered through a competitive bidding process. Sole-source procurements are generally justified when only one responsible source is available or capable of meeting the requirement. However, the specific justification for deeming GVS Filtration Inc. the only viable option would be detailed in the contract's justification and approval (J&A) document, which is not provided here.

What were the key performance indicators (KPIs) for this contract, and were they met?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, contracts for essential supplies during emergencies would include metrics related to delivery timelines, quality standards, and quantity fulfillment. Without these defined KPIs, it is difficult to assess whether GVS Filtration Inc. fully met the performance expectations beyond the basic delivery of respirators within the contract period.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2150 INDUSTRIAL DR, FINDLAY, OH, 45840

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $23,307,780

Exercised Options: $23,307,780

Current Obligation: $23,307,780

Actual Outlays: $23,307,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline