California's Department of Public Health awarded $2.5M contract for food inspections, raising competition concerns

Contract Overview

Contract Amount: $2,517,238 ($2.5M)

Contractor: Public Health, California Department of

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-22

End Date: 2026-09-29

Contract Duration: 1,103 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HUMAN FOOD INSPECTIONS - CALIFORNIA (H)

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.5 million to PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF for work described as: HUMAN FOOD INSPECTIONS - CALIFORNIA (H) Key points: 1. Contract awarded to California Department of Public Health for $2.5M. 2. Limited competition due to contract type. 3. Potential risk associated with sole-source nature of the award. 4. Sector: Healthcare/Public Health.

Value Assessment

Rating: questionable

The contract value of $2.5M for food inspections is difficult to benchmark without specific service details. The lack of competitive bidding suggests potential overpricing or inefficient allocation of funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited procurement approach. This lack of competition may have hindered price discovery and potentially led to a higher cost for taxpayers.

Taxpayer Impact: Taxpayer funds may not have been used most efficiently due to the absence of competitive bidding.

Public Impact

Ensures continued food safety and public health in California. Potential for increased costs due to lack of competition. Limited transparency in the award process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Healthcare and Public Health sector, specifically focusing on regulatory and inspection services. Benchmarks for similar public health program administration contracts vary widely based on scope and duration.

Small Business Impact

There is no indication that small businesses were involved in this contract award, as it was awarded directly to a state department.

Oversight & Accountability

Oversight of this contract's effectiveness and cost-efficiency is crucial, especially given the limited competition. The Food and Drug Administration's role in awarding this contract warrants scrutiny to ensure proper use of federal funds.

Related Government Programs

Risk Flags

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.5 million to PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF. HUMAN FOOD INSPECTIONS - CALIFORNIA (H)

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 $2.5 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-09-29.

What specific services are included in these food inspections to justify the $2.5M cost?

The provided data does not detail the specific services encompassed by the 'HUMAN FOOD INSPECTIONS - CALIFORNIA' contract. A comprehensive understanding of the scope, frequency, and specialized nature of these inspections is necessary to accurately assess the $2.5M expenditure and determine if it aligns with industry standards and public health objectives.

How does the lack of competition impact the risk of inflated pricing for these essential public health services?

The absence of competitive bidding significantly increases the risk of inflated pricing. Without competing offers, the awarded entity may not be incentivized to offer the most cost-effective solution. This can lead to taxpayers bearing a higher cost than necessary for the same or similar services, potentially diverting funds from other critical public health initiatives.

What measures are in place to ensure the effectiveness and accountability of the California Department of Public Health in performing these inspections under this contract?

Accountability for this contract likely relies on the oversight mechanisms of the Food and Drug Administration (FDA) and the internal quality assurance processes of the California Department of Public Health. Performance metrics, reporting requirements, and periodic reviews should be established to ensure the inspections are conducted effectively and meet federal standards for public health protection.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75F40123C

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $2,811,741

Exercised Options: $2,517,238

Current Obligation: $2,517,238

Actual Outlays: $1,877,972

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-09-22

Current End Date: 2026-09-29

Potential End Date: 2027-03-29 00:00:00

Last Modified: 2026-03-24

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