HHS awards $110M for MAXAIR CAPR Systems to Bio-Medical Devices International, Inc
Contract Overview
Contract Amount: $110,045,033 ($110.0M)
Contractor: Bio-Medical Devices International, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-08-21
End Date: 2021-08-20
Contract Duration: 364 days
Daily Burn Rate: $302.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MAXAIR CAPR SYSTEMS
Place of Performance
Location: IRVINE, ORANGE County, CALIFORNIA, 92614
Plain-Language Summary
Department of Health and Human Services obligated $110.0 million to BIO-MEDICAL DEVICES INTERNATIONAL, INC. for work described as: MAXAIR CAPR SYSTEMS Key points: 1. Significant award for respiratory protection systems. 2. Sole-source award raises questions about competition. 3. Contract duration of one year with potential for extensions. 4. Focus on preparedness and response within the healthcare sector.
Value Assessment
Rating: questionable
The contract value of $110M for a one-year duration for respiratory protection systems appears high without competitive benchmarking. Further analysis is needed to determine if the pricing is justified against similar systems or previous contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source procurement needs thorough review.
Taxpayer Impact: The lack of competition may result in inflated prices, leading to a less efficient use of taxpayer funds for essential medical equipment.
Public Impact
Ensures availability of critical respiratory protection equipment. Supports public health emergency preparedness efforts. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value for single year
Positive Signals
- Addresses critical need for respiratory protection
- Supports HHS preparedness mission
Sector Analysis
This contract falls within the biomedical devices sector, specifically electromedical and electrotherapeutic apparatus manufacturing. Spending in this area is critical for public health and emergency response, often seeing significant investment during health crises.
Small Business Impact
The contract was awarded to Bio-Medical Devices International, Inc., a firm that is not identified as a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The Department of Health and Human Services, specifically the Office of Assistant Secretary for Preparedness and Response, is responsible for managing this award and ensuring accountability.
Related Government Programs
- Electromedical and Electrotherapeutic Apparatus Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment due to limited competition.
- Need for strong oversight to ensure value.
- Contract duration could be extended without re-competition.
Tags
electromedical-and-electrotherapeutic-ap, department-of-health-and-human-services, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $110.0 million to BIO-MEDICAL DEVICES INTERNATIONAL, INC.. MAXAIR CAPR SYSTEMS
Who is the contractor on this award?
The obligated recipient is BIO-MEDICAL DEVICES INTERNATIONAL, 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 $110.0 million.
What is the period of performance?
Start: 2020-08-21. End: 2021-08-20.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without access to the specific justification documentation, it's impossible to confirm the rationale. However, for a contract of this magnitude, a thorough review of market research and a clear demonstration that no other vendor could meet the requirements are essential to ensure taxpayer value.
How does the per-unit cost of the MAXAIR CAPR Systems compare to similar products available on the market or previously procured by the government?
Benchmarking the per-unit cost is critical for assessing value, especially in sole-source procurements. Without specific cost data for the MAXAIR CAPR Systems and comparable products, a definitive assessment is not possible. However, the absence of competition suggests a higher likelihood of non-competitive pricing. A detailed cost analysis comparing this contract's unit price to market rates and historical data for similar respiratory protection equipment is necessary.
What measures are in place to ensure the effectiveness and timely delivery of the MAXAIR CAPR Systems to meet the Department of Health and Human Services' preparedness goals?
Given the critical nature of respiratory protection, especially during health emergencies, the effectiveness and delivery timelines are paramount. The contract's firm fixed-price structure incentivizes the contractor to meet delivery schedules. However, robust government oversight, including quality assurance inspections and performance monitoring, is essential to ensure the systems meet specifications and are delivered on time to support preparedness objectives.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing
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: 17171 DAIMLER AVE, IRVINE, CA, 92614
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $110,045,033
Exercised Options: $110,045,033
Current Obligation: $110,045,033
Actual Outlays: $109,987,698
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-21
Current End Date: 2021-08-20
Potential End Date: 2021-08-20 00:00:00
Last Modified: 2022-12-15
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