HHS Awards $248.5M for Medical Gown Fabric Production Capacity Expansion
Contract Overview
Contract Amount: $248,500,001 ($248.5M)
Contractor: Advanced Technology International
Awarding Agency: Department of Health and Human Services
Start Date: 2024-09-27
End Date: 2027-09-29
Contract Duration: 1,097 days
Daily Burn Rate: $226.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: EXPANSION OF PRODUCTION CAPACITY OF MAN-MADE FABRIC FOR MANUFACTURING DISPOSABLE MEDICAL GOWNS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201
Plain-Language Summary
Department of Health and Human Services obligated $248.5 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: EXPANSION OF PRODUCTION CAPACITY OF MAN-MADE FABRIC FOR MANUFACTURING DISPOSABLE MEDICAL GOWNS Key points: 1. Significant investment to bolster domestic medical supply chain resilience. 2. Focus on critical PPE manufacturing addresses pandemic preparedness needs. 3. Contract awarded via full and open competition suggests market availability. 4. Long-term contract (3 years) ensures sustained production capacity.
Value Assessment
Rating: good
The award amount of $248.5M for expanding fabric production capacity appears reasonable given the scale and duration. Benchmarking against similar large-scale manufacturing capacity investments would provide further context, but the firm fixed-price structure offers cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is expected to drive competitive pricing and ensure the government receives the best value.
Taxpayer Impact: This investment aims to secure a critical domestic supply chain, potentially reducing reliance on foreign sources and mitigating future price volatility during health emergencies.
Public Impact
Enhances national capacity for producing essential medical supplies. Supports domestic manufacturing jobs and economic activity. Reduces vulnerability to global supply chain disruptions for PPE. Contributes to readiness for future public health crises.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns if raw material prices fluctuate significantly.
- Dependence on a single manufacturer for a critical component.
Positive Signals
- Strengthens domestic industrial base for medical supplies.
- Addresses a clear national security and public health need.
- Long-term contract provides stability for production.
Sector Analysis
This contract falls within the broader healthcare manufacturing sector, specifically focusing on the production of materials for personal protective equipment (PPE). Spending in this area has increased significantly due to pandemic preparedness efforts.
Small Business Impact
While the primary awardee is Advanced Technology International, the expansion of production capacity could create opportunities for smaller businesses involved in the supply chain for raw materials or specialized manufacturing processes.
Oversight & Accountability
The Department of Health and Human Services, through the Office of Assistant Secretary for Preparedness and Response, is responsible for overseeing this contract. Regular performance reviews and milestone tracking will be crucial for ensuring accountability and timely delivery.
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
- Supply chain disruption risk for raw materials.
- Potential for increased demand exceeding expanded capacity.
- Quality control challenges in large-scale fabric manufacturing.
- Long-term contract dependency on a single supplier.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $248.5 million to ADVANCED TECHNOLOGY INTERNATIONAL. EXPANSION OF PRODUCTION CAPACITY OF MAN-MADE FABRIC FOR MANUFACTURING DISPOSABLE MEDICAL GOWNS
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 $248.5 million.
What is the period of performance?
Start: 2024-09-27. End: 2027-09-29.
What is the projected increase in disposable medical gown fabric production capacity as a result of this investment?
The specific projected increase in production volume is not detailed in the provided data. However, the substantial award amount suggests a significant expansion aimed at meeting national demand and ensuring a robust supply chain for disposable medical gowns, likely to withstand future public health emergencies.
What are the key performance indicators (KPIs) for assessing the success of this contract?
Key performance indicators would likely include the volume of fabric produced, adherence to quality standards for medical use, on-time delivery schedules, and cost-effectiveness compared to initial projections. The contractor's ability to scale production rapidly in response to demand surges would also be a critical measure.
How does this contract align with broader federal strategies for supply chain resilience and domestic manufacturing?
This contract directly aligns with federal strategies to enhance supply chain resilience and promote domestic manufacturing, particularly for critical goods like personal protective equipment. By investing in domestic production capacity, the government aims to reduce reliance on foreign sources and mitigate risks associated with global disruptions.
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: FIRM FIXED PRICE (J)
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: $248,500,001
Exercised Options: $248,500,001
Current Obligation: $248,500,001
Actual Outlays: $1,656,071
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
Start Date: 2024-09-27
Current End Date: 2027-09-29
Potential End Date: 2027-09-29 00:00:00
Last Modified: 2025-10-29
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