Purdue University awarded $514K contract for egg-related food safety inspections by HHS

Contract Overview

Contract Amount: $514,774 ($514.8K)

Contractor: Purdue University

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-16

End Date: 2026-09-15

Contract Duration: 882 days

Daily Burn Rate: $584/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HUMAN FOOD INSPECTIONS (EGG ONLY) - PURDUE UNIVERSITY

Place of Performance

Location: WEST LAFAYETTE, TIPPECANOE County, INDIANA, 47906

State: Indiana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $514,773.78 to PURDUE UNIVERSITY for work described as: HUMAN FOOD INSPECTIONS (EGG ONLY) - PURDUE UNIVERSITY Key points: 1. Contract focuses on a specific niche within food safety, potentially limiting broad applicability. 2. Sole-source award raises questions about competition and potential for better pricing. 3. The contract duration of over two years suggests a sustained need for these services. 4. Geographic focus on Indiana may indicate a localized approach to food safety oversight. 5. Fixed-price contract type aims to control costs, but scope creep could be a risk.

Value Assessment

Rating: fair

The contract value of $514,773.78 for egg-related food inspections appears moderate for a federal contract of this nature. Without specific benchmarks for egg inspection services, it's difficult to definitively assess value for money. However, the sole-source nature of the award suggests that a competitive bidding process, which typically drives down prices, was not utilized. This could mean the price is higher than it might be under a competitive scenario. Comparing this to similar, competitively awarded contracts for broader food safety inspections would be necessary for a more robust valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Purdue University, was solicited. The justification for this approach is not provided in the data, but it implies that the agency determined Purdue University was the only entity capable of performing the required services. This lack of competition means that taxpayers did not benefit from the price discovery and potential cost savings that a competitive bidding process typically offers.

Taxpayer Impact: Sole-source awards limit opportunities for other qualified businesses to compete for federal dollars and can potentially lead to higher costs for taxpayers due to the absence of competitive pressure.

Public Impact

The primary beneficiaries are consumers who will be protected by enhanced food safety inspections related to eggs. The services delivered involve specialized inspections and potentially research related to egg production and safety. The geographic impact is primarily focused on Indiana, where Purdue University is located and likely where inspections will be conducted. Workforce implications include the utilization of Purdue University's expertise and potentially its students or researchers in conducting these inspections.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Lack of detailed scope of work makes it difficult to assess performance metrics.
Geographic limitation to Indiana may not address national egg safety concerns comprehensively.

Positive Signals

Purdue University is a reputable institution with expertise in agriculture and food science.
Fixed-price contract provides cost certainty for the government.
Contract duration allows for sustained focus on a specific food safety area.

Sector Analysis

The food safety sector within the federal government is vast, encompassing numerous agencies and a wide array of inspection and regulatory activities. This contract, focusing specifically on egg-related inspections by Purdue University, represents a niche within the broader Food and Drug Administration (FDA) mandate. While the overall federal spending on food safety is substantial, contracts for highly specialized services like this are typically smaller in value. Comparable spending might be found in contracts for specific commodity inspections or specialized laboratory testing.

Small Business Impact

This contract was awarded to Purdue University, an educational institution, and not directly to a small business. There is no indication of small business set-asides or subcontracting requirements within the provided data. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem. The focus is on leveraging the specialized capabilities of a large research university.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its Food and Drug Administration (FDA). The contract's fixed-price nature provides some cost control, but the effectiveness of the inspections and adherence to the scope of work would require diligent monitoring by the contracting officer's representative. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Food Safety Modernization Act (FSMA) implementation
FDA Food Safety Programs
Agricultural Research Service (ARS) programs
Cooperative Extension Service programs

Risk Flags

Sole-source award lacks competitive justification.
Limited geographic scope may not address national needs.
Lack of detailed performance metrics hinders evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $514,773.78 to PURDUE UNIVERSITY. HUMAN FOOD INSPECTIONS (EGG ONLY) - PURDUE UNIVERSITY

Who is the contractor on this award?

The obligated recipient is PURDUE UNIVERSITY.

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 $514,773.78.

What is the period of performance?

Start: 2024-04-16. End: 2026-09-15.

What is Purdue University's specific expertise in egg safety inspections that justified a sole-source award?

The provided data does not detail the specific expertise of Purdue University that justified the sole-source award for egg safety inspections. Typically, sole-source justifications cite unique capabilities, specialized knowledge, or a lack of other responsible sources. Purdue University, being a major land-grant institution with strong programs in agriculture, veterinary medicine, and food science, likely possesses relevant research infrastructure, faculty expertise, and potentially existing relationships or data pertinent to egg production and safety. However, without the agency's formal justification document, the precise reasons remain speculative. A deeper dive into Purdue's research portfolio and any prior work with the FDA on similar topics would be needed to fully understand this justification.

How does the cost of this contract compare to similar egg inspection services, if available?

Direct cost comparisons for specialized egg safety inspection services are challenging without access to a broader market dataset. Federal contracts for food safety inspections vary widely based on scope, duration, geographic coverage, and the specific type of inspection (e.g., facility audits, laboratory testing, outbreak investigations). Given this contract's sole-source nature, it's difficult to ascertain if the $514,773.78 represents a competitive market rate. If similar services were procured competitively, the pricing could offer a benchmark. However, the focus on a specific commodity (eggs) and a particular institution (Purdue) suggests this might be a unique arrangement, making direct comparisons less meaningful. Further analysis would require identifying contracts with similar specific objectives and service providers.

What are the potential risks associated with a sole-source award for food safety inspections?

Sole-source awards for food safety inspections carry several potential risks. Firstly, the absence of competition can lead to higher costs for taxpayers, as the government may not achieve the best possible price. Secondly, it limits the opportunity for other qualified entities, potentially including innovative small businesses, to participate in federal contracting. This can stifle market competition and reduce the diversity of service providers. Thirdly, without the vetting process inherent in a competitive bid, there's a potential risk that the chosen contractor, while deemed unique by the agency, might not be the most efficient or effective provider in the long run. Finally, sole-source awards can sometimes raise public perception concerns regarding fairness and transparency in government procurement.

What is the historical spending pattern for egg-related food safety inspections by the FDA or HHS?

The provided data does not include historical spending patterns for egg-related food safety inspections. This specific contract, valued at approximately $514,773 over roughly two years, represents a single data point. To understand historical spending, one would need to analyze federal procurement databases for similar contracts awarded over multiple fiscal years. This would involve searching for contracts with keywords related to 'egg safety,' 'egg inspection,' 'poultry inspection,' and relevant North American Industry Classification System (NAICS) codes or Product Service Codes (PSCs) associated with food safety and inspection services. Without this broader dataset, it's impossible to determine if this award is an increase, decrease, or consistent with past spending levels.

What performance metrics or deliverables are expected under this contract?

The provided data does not specify the performance metrics or deliverables expected under this contract. It only indicates the contract type (Firm Fixed Price), award amount, and period of performance (April 16, 2024, to September 15, 2026). Typically, a contract of this nature would include a detailed Statement of Work (SOW) outlining specific inspection protocols, reporting requirements, frequency of activities, and potentially research objectives related to egg safety. The effectiveness of the contract hinges on the clarity and measurability of these deliverables. Without them, assessing Purdue University's performance and the ultimate value derived from the contract is challenging. The FDA contracting officer's representative would be responsible for monitoring adherence to the SOW.

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 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: 2550 NORTHWESTERN AVE # 1100, WEST LAFAYETTE, IN, 47906

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public)

Financial Breakdown

Contract Ceiling: $865,389

Exercised Options: $514,774

Current Obligation: $514,774

Actual Outlays: $328,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline