HHS awards $169M for Ventilator & PAPR Support to Agiliti Health Inc
Contract Overview
Contract Amount: $169,349,891 ($169.3M)
Contractor: Agiliti Health Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2022-02-28
End Date: 2023-08-27
Contract Duration: 545 days
Daily Burn Rate: $310.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COMPREHENSIVE VENTILATOR AND POWERED AIR PURIFYING RESPIRATOR (PAPR) MANAGEMENT, MAINTENANCE, AND STORAGE SUPPORT SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $169.3 million to AGILITI HEALTH INC for work described as: COMPREHENSIVE VENTILATOR AND POWERED AIR PURIFYING RESPIRATOR (PAPR) MANAGEMENT, MAINTENANCE, AND STORAGE SUPPORT SERVICES Key points: 1. Contract focuses on critical respiratory equipment management, maintenance, and storage. 2. Agiliti Health Inc. is the sole awardee, raising questions about competition. 3. The contract value is substantial, requiring careful oversight of service delivery. 4. This service supports preparedness and response capabilities within the health sector.
Value Assessment
Rating: fair
The contract value of $169M over 545 days suggests a high per-diem cost. Benchmarking against similar maintenance and storage contracts for specialized medical equipment is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential services.
Public Impact
Ensures readiness of critical medical equipment for public health emergencies. Supports the operational capacity of the Strategic National Stockpile. Potential for increased costs due to sole-source nature impacts public funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High contract value requires diligent performance monitoring.
- Lack of detailed service requirements in provided data.
Positive Signals
- Addresses critical need for equipment readiness.
- Supports national health security preparedness.
Sector Analysis
This contract falls within the healthcare support services sector, specifically focusing on the maintenance and management of critical medical equipment. Spending benchmarks for similar specialized equipment maintenance contracts are often high due to technical requirements and inventory management.
Small Business Impact
The provided data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract.
Oversight & Accountability
Given the sole-source nature and significant value, robust oversight is crucial to ensure Agiliti Health Inc. delivers services effectively and at a reasonable cost. Audits and performance reviews should be prioritized.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Sole-source award
- High contract value
- Potential for cost overruns
- Limited transparency on pricing justification
Tags
other-electronic-and-precision-equipment, department-of-health-and-human-services, ga, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $169.3 million to AGILITI HEALTH INC. COMPREHENSIVE VENTILATOR AND POWERED AIR PURIFYING RESPIRATOR (PAPR) MANAGEMENT, MAINTENANCE, AND STORAGE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is AGILITI HEALTH 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 $169.3 million.
What is the period of performance?
Start: 2022-02-28. End: 2023-08-27.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or lack of available sources. Without competition, the government must conduct thorough market research and cost analysis to ensure the negotiated price is fair and reasonable. This often involves comparing proposed costs to historical data, commercial pricing, or independent cost estimates.
What are the specific performance metrics and service level agreements (SLAs) in place to ensure the quality and timeliness of maintenance and storage?
Detailed performance metrics and SLAs are critical for managing a contract of this nature. They should outline response times for maintenance requests, inventory accuracy standards, environmental controls for storage, and reporting requirements. Adherence to these SLAs directly impacts the readiness of the equipment and the overall value derived from the contract.
How does this contract contribute to the overall cost-effectiveness of the Strategic National Stockpile's equipment readiness?
This contract aims to ensure ventilators and PAPRs are maintained, functional, and readily available, which is crucial for emergency response. While the direct cost is high, the cost-effectiveness is measured against the potential cost of equipment failure during a crisis or the expense of rapid, unmanaged procurement. Effective management by Agiliti Health Inc. should prevent degradation and ensure immediate deployability.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
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: 6625 W 78TH ST STE 300, MINNEAPOLIS, MN, 55439
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $169,349,891
Exercised Options: $169,349,891
Current Obligation: $169,349,891
Actual Outlays: $169,349,891
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Timeline
Start Date: 2022-02-28
Current End Date: 2023-08-27
Potential End Date: 2023-08-27 00:00:00
Last Modified: 2023-10-30
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