FDA Spends $2.97M on Tobacco Retailer Inspections in Pennsylvania

Contract Overview

Contract Amount: $2,972,587 ($3.0M)

Contractor: Pennsylvania Department of Health

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-29

End Date: 2025-09-29

Contract Duration: 1,645 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA.

Place of Performance

Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17120

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.0 million to PENNSYLVANIA DEPARTMENT OF HEALTH for work described as: CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA. Key points: 1. Contract focuses on ensuring compliance with tobacco regulations. 2. Sole-source award raises questions about competition and price discovery. 3. Long contract duration (4 years) may not align with evolving regulations. 4. Limited public impact, primarily focused on regulatory enforcement.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure for inspections is common in regulatory enforcement. However, without a competitive bidding process, it's difficult to assess if this price is optimal compared to similar contracts for public health program administration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs than if multiple vendors had competed. The rationale for sole-source is not provided.

Taxpayer Impact: Taxpayer funds are used for regulatory enforcement. The lack of competition could lead to inefficient use of these funds.

Public Impact

Ensures compliance with federal tobacco sales and advertising regulations. Aims to reduce youth access to regulated tobacco products. Supports public health goals by enforcing tobacco control policies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under public health administration, specifically focused on regulatory compliance within the tobacco sector. Benchmarks for similar inspection services are difficult to establish due to the specialized nature and sole-source award.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded small business participation.

Oversight & Accountability

Oversight is provided by the Food and Drug Administration (FDA). The contract's long duration necessitates consistent monitoring to ensure performance and cost control.

Related Government Programs

Risk Flags

Tags

administration-of-public-health-programs, department-of-health-and-human-services, pa, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.0 million to PENNSYLVANIA DEPARTMENT OF HEALTH. CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA.

Who is the contractor on this award?

The obligated recipient is PENNSYLVANIA DEPARTMENT OF HEALTH.

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 $3.0 million.

What is the period of performance?

Start: 2021-03-29. End: 2025-09-29.

What is the justification for the sole-source award, and could competitive bidding have yielded better value?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are used when only one vendor possesses the unique capability or when urgency prevents a competitive process. Without this information, it's impossible to definitively say if competitive bidding could have yielded better value, though it generally increases price discovery and potential cost savings.

What are the specific performance metrics and how is compliance with tobacco regulations being measured?

The contract description indicates the purpose is to 'CONDUCT INSPECTIONS OF RETAILERS THAT SELL AND ADVERTISE ANY REGULATED TOBACCO PRODUCTS TO DETERMINE COMPLIANCE AND SUBMIT INSPECTION RESULTS TO FDA.' Specific performance metrics and detailed compliance measurement criteria would be outlined in the contract's statement of work, which is not provided here. These would likely include the number of inspections conducted, accuracy of reporting, and adherence to inspection protocols.

How does the $2.97M expenditure align with the FDA's overall budget for tobacco regulation enforcement in Pennsylvania?

This contract represents a significant investment in tobacco retailer inspections within Pennsylvania. To assess its alignment with the FDA's overall budget, one would need to compare this amount against the agency's allocated funds for state-level enforcement activities and its total budget for tobacco control programs. Without that broader budgetary context, it's difficult to determine if this spending is proportionate or excessive.

Industry Classification

NAICS: Public AdministrationAdministration of Human Resource ProgramsAdministration of Public Health Programs

Product/Service Code: QUALITY CONTROL, TEST, INSPECTIONQUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75F40120R00008

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Commonwealth of Pennsylvania

Address: 625 FORSTER ST, HARRISBURG, PA, 17120

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $2,972,587

Exercised Options: $2,972,587

Current Obligation: $2,972,587

Actual Outlays: $2,882,609

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-03-29

Current End Date: 2025-09-29

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2026-03-31

More Contracts from Pennsylvania Department of Health

View all Pennsylvania Department of Health federal contracts →

Other Department of Health and Human Services Contracts

View all Department of Health and Human Services contracts →

Explore Related Government Spending