HHS awards $272M for CIADM manufacturing capacity expansion to Texas A&M University System
Contract Overview
Contract Amount: $272,440,877 ($272.4M)
Contractor: THE Texas A&M University System
Awarding Agency: Department of Health and Human Services
Start Date: 2020-07-23
End Date: 2021-12-31
Contract Duration: 526 days
Daily Burn Rate: $517.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CIADM MANUFACTURING CAPACITY RESERVATION AND EXPANSION
Place of Performance
Location: COLLEGE STATION, BRAZOS County, TEXAS, 77840
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $272.4 million to THE TEXAS A&M UNIVERSITY SYSTEM for work described as: CIADM MANUFACTURING CAPACITY RESERVATION AND EXPANSION Key points: 1. Significant investment in domestic manufacturing capacity for critical medical supplies. 2. Competition method was full and open, suggesting a potentially competitive bidding process. 3. Contract duration is over a year, indicating a substantial project timeline. 4. The award is for industrial building construction, a key sector for infrastructure development.
Value Assessment
Rating: fair
The contract value of $272.4 million for industrial building construction is substantial. Benchmarking against similar large-scale construction projects is difficult without more specific cost breakdowns, but the price appears within a reasonable range for a project of this scope and urgency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. The use of a delivery order suggests a specific need within a broader framework.
Taxpayer Impact: Taxpayer funds are being used to bolster domestic manufacturing capabilities for essential medical supplies, which could lead to long-term cost savings and improved national security.
Public Impact
Enhances national preparedness for health emergencies by increasing domestic production of critical medical items. Supports the expansion of manufacturing infrastructure, potentially creating jobs and stimulating economic activity. Aims to reduce reliance on foreign supply chains for essential goods.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Dependency on a single entity for manufacturing capacity expansion.
- Long-term sustainability of increased manufacturing capacity post-emergency.
Positive Signals
- Addresses critical need for domestic medical manufacturing.
- Utilizes competitive bidding process.
- Invests in essential infrastructure.
Sector Analysis
This contract falls under industrial building construction, a sector vital for national infrastructure and manufacturing capabilities. The spending benchmark for such projects can vary widely based on scale and complexity, but this award represents a significant investment in specialized capacity.
Small Business Impact
The data indicates the prime contractor is The Texas A&M University System, which is not typically considered a small business. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The award is managed by the Office of Assistant Secretary for Preparedness and Response (ASPR), a key agency for public health emergency preparedness. Oversight would focus on project milestones, budget adherence, and the successful expansion of manufacturing capacity.
Related Government Programs
- Industrial Building Construction
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential for cost escalation in fixed-price contracts over extended durations.
- Risk of project delays impacting critical supply chain readiness.
- Dependency on a single entity for significant capacity expansion.
- Uncertainty regarding long-term utilization of expanded facilities post-contract.
Tags
industrial-building-construction, department-of-health-and-human-services, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $272.4 million to THE TEXAS A&M UNIVERSITY SYSTEM. CIADM MANUFACTURING CAPACITY RESERVATION AND EXPANSION
Who is the contractor on this award?
The obligated recipient is THE TEXAS A&M UNIVERSITY SYSTEM.
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 $272.4 million.
What is the period of performance?
Start: 2020-07-23. End: 2021-12-31.
What specific CIADM manufacturing capabilities are being reserved and expanded under this contract?
The contract aims to reserve and expand manufacturing capacity for Critical Infrastructure and Advanced Manufacturing (CIADM) related to health emergencies. While the specific items are not detailed, it likely pertains to the production of essential medical supplies, equipment, or components necessary for national health security, ensuring domestic availability during crises.
What are the primary risks associated with the long duration and fixed-price nature of this construction contract?
The primary risks with a long-duration, fixed-price construction contract include potential cost overruns if unforeseen issues arise (e.g., material price volatility, labor shortages) that exceed the fixed price, and potential delays impacting the timely availability of the expanded manufacturing capacity. The government bears the risk of cost increases beyond the agreed price.
How effectively will this investment translate into sustained domestic manufacturing capacity beyond the contract period?
The effectiveness in sustaining capacity post-contract depends on the long-term strategy for the expanded facilities. If the Texas A&M University System has plans for ongoing utilization, maintenance, and potential future government needs, the investment could yield sustained benefits. Without such plans, the capacity might diminish once the contract concludes.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 301 TARROW ST # 6, COLLEGE STATION, TX, 77840
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $272,440,877
Exercised Options: $272,440,877
Current Obligation: $272,440,877
Actual Outlays: $272,440,877
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $259,726,493
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSO100201200002I
IDV Type: IDC
Timeline
Start Date: 2020-07-23
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2022-11-15
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