HHS awards $23.9M for Pathology Services to Toxicologic Pathology Associates Inc

Contract Overview

Contract Amount: $23,901,717 ($23.9M)

Contractor: Toxicologic Pathology Associates Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-07-14

End Date: 2025-09-15

Contract Duration: 1,889 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ON-SITE PATHOLOGY SERVICES

Place of Performance

Location: JEFFERSON, JEFFERSON County, ARKANSAS, 72079

State: Arkansas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.9 million to TOXICOLOGIC PATHOLOGY ASSOCIATES INC for work described as: ON-SITE PATHOLOGY SERVICES Key points: 1. Contract awarded to a single vendor for on-site pathology services. 2. The contract duration is over 5 years, indicating a long-term need. 3. The NAICS code 541990 suggests a broad category of professional services. 4. The contract was awarded under full and open competition after exclusion of sources.

Value Assessment

Rating: fair

The total award amount is $23.9 million over approximately 5 years. Without specific labor hour rates or detailed task breakdowns, a precise value assessment is difficult. However, the duration suggests a significant ongoing need for these specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The $23.9 million expenditure represents taxpayer funds allocated for essential pathology services. The effectiveness of competition in securing the best value will determine the ultimate taxpayer impact.

Public Impact

Ensures continued access to critical pathology services for regulatory functions. Supports the Food and Drug Administration's scientific and technical capabilities. Potential for specialized expertise in toxicology impacting public health assessments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Long contract duration without clear performance metrics.
Lack of detailed cost breakdown for labor hours.

Positive Signals

Awarded under full and open competition principles.
Addresses a critical need for specialized scientific services.
Supports a key agency within the Department of Health and Human Services.

Sector Analysis

The contract falls under Professional, Scientific, and Technical Services. Benchmarks for this sector vary widely, but long-term contracts for specialized scientific services often represent significant investments. The specific nature of pathology services suggests a niche market.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded to Toxicologic Pathology Associates Inc., and further analysis would be needed to determine if this entity is a small business or if subcontracting opportunities exist.

Oversight & Accountability

The contract was awarded by the Food and Drug Administration, a sub-agency of HHS, suggesting established oversight processes. However, the 'exclusion of sources' clause warrants scrutiny to ensure fairness and prevent undue restrictions on competition.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for limited competition due to source exclusion.
Lack of transparency regarding specific service costs.
Long contract duration may reduce flexibility.
Need for clear performance metrics to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.9 million to TOXICOLOGIC PATHOLOGY ASSOCIATES INC. ON-SITE PATHOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is TOXICOLOGIC PATHOLOGY ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2020-07-14. End: 2025-09-15.

What specific criteria led to the exclusion of certain sources during the competition phase, and how did this impact the final pricing?

The exclusion of sources during the competition phase requires detailed examination of the solicitation documents and award justification. Understanding the rationale behind these exclusions is crucial to assessing whether they were justified and if they potentially limited competitive offers, thereby impacting the final price achieved for the government.

Are there established benchmarks for on-site pathology services, and how does the awarded contract's pricing compare to these benchmarks?

Assessing the pricing against established benchmarks for on-site pathology services is challenging without more granular data on the specific services rendered, labor categories, and geographic location. A comprehensive comparison would necessitate access to industry cost data and potentially other government contracts for similar specialized services.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness and value for taxpayer money?

The effectiveness of this contract hinges on clearly defined and measurable Key Performance Indicators (KPIs). Without explicit details on these KPIs and the government's monitoring mechanisms, it's difficult to ascertain how the agency will ensure the contractor is delivering high-quality services and achieving the intended outcomes efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FDA-SOL-128123

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 220 N MARKET ST LL1, FREDERICK, MD, 21701

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

Financial Breakdown

Contract Ceiling: $24,579,600

Exercised Options: $24,579,600

Current Obligation: $23,901,717

Actual Outlays: $19,120,164

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline