FDA Spends $12.7M on California Retailer Tobacco Compliance Inspections Through 2025
Contract Overview
Contract Amount: $12,725,318 ($12.7M)
Contractor: Public Health, California Department of
Awarding Agency: Department of Health and Human Services
Start Date: 2021-04-27
End Date: 2025-11-28
Contract Duration: 1,676 days
Daily Burn Rate: $7.6K/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: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95899
Plain-Language Summary
Department of Health and Human Services obligated $12.7 million to PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF 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 retailer compliance with tobacco regulations. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk of non-compliance by retailers could impact public health goals. 4. Sector is public health, with a focus on regulatory enforcement.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure for inspections needs careful monitoring to ensure efficiency. Benchmarking against similar public health inspection contracts is difficult without more detailed cost breakdowns.
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 may prevent the government from securing the most cost-effective solution available in the market.
Taxpayer Impact: Taxpayer funds are used for regulatory enforcement, aiming to reduce public health risks associated with tobacco sales.
Public Impact
Ensures retailers adhere to laws regarding the sale and advertising of regulated tobacco products. Aims to reduce youth access to tobacco and prevent illegal sales. Supports FDA's mission to protect public health by regulating tobacco products.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee structure requires diligent oversight.
- Potential for scope creep if inspection criteria are not clearly defined.
Positive Signals
- Addresses a critical public health need.
- Clear objective for regulatory compliance.
- Long-term contract provides stability for enforcement.
Sector Analysis
This contract falls within the public health sector, specifically focusing on regulatory compliance for tobacco products. Spending benchmarks for similar inspection services can vary widely based on geographic scope and complexity.
Small Business Impact
There is no indication that small businesses are involved in this contract, either as prime contractors or subcontractors. The focus appears to be on a specific state agency's capacity for inspections.
Oversight & Accountability
The contract's effectiveness will depend on robust oversight by the FDA to ensure the Department of Public Health, California, conducts thorough and accurate inspections and submits timely results.
Related Government Programs
- Administration of Public Health Programs
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Sole-source award.
- Cost-plus-fixed-fee contract type.
- Potential for inconsistent inspection quality.
- Reliance on a single state agency for critical federal function.
Tags
administration-of-public-health-programs, department-of-health-and-human-services, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.7 million to PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF. 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 PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF.
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 $12.7 million.
What is the period of performance?
Start: 2021-04-27. End: 2025-11-28.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without further details, it's difficult to assess the fairness of the pricing. The government should have conducted a price analysis to ensure the negotiated price was reasonable compared to independent estimates or historical data for similar services.
What are the key performance indicators (KPIs) for this contract, and how will compliance and effectiveness be measured?
Key performance indicators likely include the number of inspections conducted, the percentage of retailers found non-compliant, the timeliness of inspection reporting, and the accuracy of the submitted data. Effectiveness will be measured by trends in retailer compliance rates over time and any resulting reduction in illegal tobacco sales or advertising.
What is the potential impact on public health if these inspections are not conducted effectively or if compliance rates remain low?
Ineffective inspections or low compliance rates could lead to continued illegal sales of tobacco products, particularly to minors, and persistent non-compliant advertising. This undermines public health efforts to reduce tobacco use and its associated health risks, potentially increasing healthcare costs and perpetuating addiction.
Industry Classification
NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY 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
Address: 1615 CAPITOL AVE, SACRAMENTO, CA, 95814
Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $12,725,318
Exercised Options: $12,725,318
Current Obligation: $12,725,318
Actual Outlays: $12,395,853
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-27
Current End Date: 2025-11-28
Potential End Date: 2025-11-28 00:00:00
Last Modified: 2025-09-29
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