HHS awards $5.8M for surgical masks, with 4 bidders competing for a 528-day contract
Contract Overview
Contract Amount: $5,799,000 ($5.8M)
Contractor: Avmedical LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2024-09-30
End Date: 2026-03-12
Contract Duration: 528 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: SURGICAL MASKS
Place of Performance
Location: FRANKLIN, WILLIAMSON County, TENNESSEE, 37064
Plain-Language Summary
Department of Health and Human Services obligated $5.8 million to AVMEDICAL LLC for work described as: SURGICAL MASKS Key points: 1. The contract value of $5.8 million for surgical masks appears reasonable given the duration and quantity implied. 2. Full and open competition suggests a healthy market for these supplies, potentially leading to competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is expected over approximately 1.75 years, aligning with typical supply chain needs. 5. This contract falls within the broader healthcare supplies and personal protective equipment sector.
Value Assessment
Rating: good
The contract's value of $5.8 million for surgical masks over 528 days, with 4 bidders, suggests a competitive environment. While specific unit pricing isn't provided, the number of bidders and the firm fixed-price nature indicate a likely fair market value. Benchmarking against similar large-scale PPE procurements would provide further assurance, but the initial indicators point towards a good value proposition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bidders participating, the level of competition appears adequate for this type of supply. This suggests that the agency sought to leverage market forces to secure the best possible pricing and terms.
Taxpayer Impact: The open competition and multiple bidders are beneficial for taxpayers, as it drives down prices through market forces and ensures the government is not overpaying for essential supplies.
Public Impact
The primary beneficiaries are healthcare providers and potentially public health initiatives that require a steady supply of surgical masks. The contract ensures the availability of essential personal protective equipment for various medical and public health scenarios. The geographic impact is likely national, supporting federal stockpiles or distribution to critical areas. Workforce implications are minimal, as this is a supply contract rather than a service requiring direct labor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Quality control of masks to ensure they meet required standards is crucial.
- Price fluctuations in raw materials could impact long-term availability if not managed.
Positive Signals
- Awarded under full and open competition, indicating a robust market.
- Firm fixed-price contract limits cost escalation risks.
- Multiple bidders suggest competitive pricing was likely achieved.
- Contract duration provides a stable supply chain for the specified period.
Sector Analysis
The market for surgical masks and other personal protective equipment (PPE) is a significant segment within the broader healthcare manufacturing and distribution sector. Following the increased demand during recent health crises, the market has seen both consolidation and diversification. This contract fits within the government's ongoing efforts to ensure adequate domestic supply chains for critical medical items, with comparable spending benchmarks varying widely based on quantity, specifications, and urgency.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature of the product (surgical masks) and the contract value, it's possible that larger manufacturers or distributors were the primary bidders. Subcontracting opportunities for small businesses might exist within the supply chain for raw materials or logistics, but this is not explicitly detailed in the award information.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The firm fixed-price structure simplifies financial oversight. Accountability rests with AV MEDICAL LLC to deliver conforming goods by the specified dates. Transparency is provided through federal contract databases. The Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse related to this award.
Related Government Programs
- Strategic National Stockpile
- Personal Protective Equipment Procurement
- Medical Supplies Contracts
- Healthcare Manufacturing
Risk Flags
- Potential for supply chain disruptions.
- Ensuring consistent quality of delivered goods.
- Price volatility in the PPE market.
Tags
healthcare, hhs, aspr, medical-supplies, surgical-masks, personal-protective-equipment, firm-fixed-price, full-and-open-competition, bpa-call, mid-size-contract, tennessee, national
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $5.8 million to AVMEDICAL LLC. SURGICAL MASKS
Who is the contractor on this award?
The obligated recipient is AVMEDICAL LLC.
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 $5.8 million.
What is the period of performance?
Start: 2024-09-30. End: 2026-03-12.
What is the specific quantity of surgical masks being procured under this contract?
The provided data does not explicitly state the total quantity of surgical masks being procured. The contract value is $5,798,999.88, with a duration of 528 days (approximately 1.75 years). Without a specified unit price or quantity, it's impossible to determine the exact number of masks. However, based on typical government procurements for such items, this value could represent millions of individual masks, depending on the specific type (e.g., surgical, N95) and quality standards required.
How does the per-unit cost compare to market rates for similar surgical masks?
The provided data does not include a per-unit cost, making a direct comparison to market rates impossible. The contract is a 'BPA CALL' under a 'BPA' (Blanket Purchase Agreement), and the specific details of the call order, including unit pricing, are not detailed here. To assess the per-unit cost, one would need to know the quantity purchased and the total price paid for that quantity. Benchmarking would require accessing historical pricing data for similar government contracts or commercial price lists for comparable products from AV MEDICAL LLC or other suppliers.
What is the track record of AV MEDICAL LLC in fulfilling government contracts, particularly for medical supplies?
The provided data indicates AV MEDICAL LLC is the contractor for this specific award. To assess their track record, a review of their past performance on federal contracts would be necessary. This would involve searching databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for previous awards, delivery performance, and any documented issues or successes. Without this external data, their specific track record remains unknown based solely on the information given.
What are the specific quality standards or certifications required for the surgical masks under this contract?
The provided data does not specify the exact quality standards or certifications required for the surgical masks. Typically, government contracts for medical supplies, especially those procured by agencies like HHS for preparedness, would mandate compliance with relevant FDA regulations and potentially specific ASTM standards for surgical masks (e.g., ASTM F2100). The contract type (Firm Fixed Price) implies that the contractor is responsible for delivering masks that meet all specified requirements, including quality, as a condition of payment.
How does this contract's value and duration compare to previous HHS procurements of surgical masks?
This contract is valued at approximately $5.8 million over 528 days. To compare it to previous HHS procurements, one would need to analyze historical spending data for surgical masks by HHS and its sub-agencies like ASPR. Factors such as the quantity purchased, specific mask type (e.g., Level 1, 2, 3), and prevailing market prices at the time of previous awards would be crucial for a meaningful comparison. Without access to that historical data, it's difficult to determine if this award represents an increase, decrease, or is in line with past spending patterns.
What is the role of the Office of Assistant Secretary for Preparedness and Response (ASPR) in this procurement?
The Office of Assistant Secretary for Preparedness and Response (ASPR) is the specific office within the Department of Health and Human Services (HHS) that awarded this contract. ASPR's mission includes leading the nation in preventing, preparing for, and responding to the health impacts of all hazards and emergencies. Procuring essential medical supplies like surgical masks falls directly under their purview, ensuring the availability of critical resources for public health emergencies and maintaining national stockpiles.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4037 RURAL PLAINS CIR STE 160, FRANKLIN, TN, 37064
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $5,799,000
Exercised Options: $5,799,000
Current Obligation: $5,799,000
Actual Outlays: $3,878,380
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Parent Contract
Parent Award PIID: 75A50121A00005
IDV Type: BPA
Timeline
Start Date: 2024-09-30
Current End Date: 2026-03-12
Potential End Date: 2026-03-12 00:00:00
Last Modified: 2026-03-30
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