HHS Awards $16.4M Other Transaction for Pipette Tips and Centrifuge Tubes Amidst Biological Product Manufacturing Needs

Contract Overview

Contract Amount: $16,379,368 ($16.4M)

Contractor: Advanced Technology International

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-01

End Date: 2033-09-29

Contract Duration: 3,499 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER TRANSACTION: INDUSTRIAL BASE EXPANSION OF INJECTION MOLDED PIPETTE TIPS AND CENTRIFUGE TUBES.

Place of Performance

Location: SUMMERVILLE, BERKELEY County, SOUTH CAROLINA, 29486

State: South Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.4 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: OTHER TRANSACTION: INDUSTRIAL BASE EXPANSION OF INJECTION MOLDED PIPETTE TIPS AND CENTRIFUGE TUBES. Key points: 1. The award focuses on essential laboratory consumables, critical for biological research and diagnostics. 2. Competition was full and open, suggesting a robust market for these supplies. 3. The contract type (Cost Plus Fixed Fee) may introduce cost escalation risks. 4. The sector is Biological Product Manufacturing, highlighting a focus on health security and preparedness.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to higher costs compared to fixed-price contracts if not managed carefully. Benchmarking against similar sole-source or fixed-price contracts for these items would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it drives down prices through market forces.

Public Impact

Ensures supply chain resilience for critical laboratory consumables. Supports domestic manufacturing capabilities in the biological product sector. Facilitates research and development in health and life sciences. Addresses potential shortages of essential medical supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Long contract duration (over 9 years) requires ongoing monitoring.
Lack of specific performance metrics in the provided data.

Positive Signals

Full and open competition ensures market access and potential cost savings.
Focus on essential biological product manufacturing supports national health security.
Award to Advanced Technology International suggests a capable partner.

Sector Analysis

This award falls within the Biological Product Manufacturing sector, which is crucial for national health security and pandemic preparedness. Spending in this area often increases during public health crises to ensure adequate supply chains for diagnostics and therapeutics.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved in the competition or subcontracting opportunities.

Oversight & Accountability

The 'Other Transaction' authority allows for more flexible contracting, which can expedite acquisition but may require enhanced oversight to ensure accountability and prevent cost inefficiencies. Monitoring of the Cost Plus Fixed Fee structure is essential.

Related Government Programs

Biological Product (except Diagnostic) Manufacturing
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Potential for cost overruns.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.4 million to ADVANCED TECHNOLOGY INTERNATIONAL. OTHER TRANSACTION: INDUSTRIAL BASE EXPANSION OF INJECTION MOLDED PIPETTE TIPS AND CENTRIFUGE TUBES.

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY INTERNATIONAL.

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 $16.4 million.

What is the period of performance?

Start: 2024-03-01. End: 2033-09-29.

What is the projected unit cost for pipette tips and centrifuge tubes under this agreement, and how does it compare to market rates?

The provided data does not specify the projected unit cost for pipette tips and centrifuge tubes. As this is a Cost Plus Fixed Fee agreement, the final unit costs will depend on actual expenses incurred by the contractor, plus a fixed fee. A thorough analysis would require access to the contractor's cost proposals and a comparison with benchmark pricing for similar consumables obtained through fixed-price contracts or other competitive vehicles.

What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this acquisition, and how are they being mitigated?

The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee, which can incentivize cost overruns as the contractor's profit remains constant regardless of the final cost. Mitigation strategies could include robust cost monitoring, clear definition of allowable costs, strong performance metrics, and regular audits by the government to ensure efficiency and prevent unnecessary expenses.

How does this 'Other Transaction' award contribute to the long-term strategic goals of the Office of the Assistant Secretary for Preparedness and Response (ASPR) beyond immediate supply needs?

This 'Other Transaction' award likely aims to strengthen the domestic industrial base for critical medical supplies, enhancing ASPR's ability to respond to future public health emergencies. By fostering domestic production of items like pipette tips and centrifuge tubes, it reduces reliance on foreign supply chains and builds surge capacity, contributing to national health security and preparedness.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 315 SIGMA DR, SUMMERVILLE, SC, 29486

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

Financial Breakdown

Contract Ceiling: $16,379,368

Exercised Options: $16,379,368

Current Obligation: $16,379,368

Actual Outlays: $4,749,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75A50123D00003

IDV Type: IDC

Timeline