HHS awards $338K for laboratory gas supply, highlighting a competitive procurement process

Contract Overview

Contract Amount: $337,975 ($338.0K)

Contractor: Cee-Kay Supply, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-29

End Date: 2027-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $309/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABORATORY GAS SUPPLY SERVICES - ST LOUIS

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63110

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $337,974.67 to CEE-KAY SUPPLY, INC. for work described as: LABORATORY GAS SUPPLY SERVICES - ST LOUIS Key points: 1. The contract value appears reasonable for a 3-year firm-fixed-price agreement for laboratory gas supply. 2. Procurement was conducted under SAP, suggesting a streamlined process for smaller value contracts. 3. The single award indicates a focused selection, but the competitive nature needs further examination. 4. Performance duration of 1095 days provides stability for the agency's laboratory operations. 5. The contract is categorized under Industrial Gas Manufacturing, aligning with the service provided.

Value Assessment

Rating: good

The contract value of approximately $338,000 over three years for laboratory gas supply services seems aligned with typical market rates for such specialized needs. Benchmarking against similar contracts for laboratory gases in the Midwest region would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for a broad range of potential bidders, including small businesses. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation implies that the agency sought multiple offers, fostering price discovery and ensuring a competitive environment for this requirement.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, suggests that taxpayers likely benefited from a fair market price, avoiding potential overpayment associated with sole-source or limited competition awards.

Public Impact

The Food and Drug Administration (FDA) laboratories in Missouri will benefit from a reliable supply of essential gases for their research and testing activities. This contract ensures the continuity of critical scientific operations, supporting public health initiatives. The services are geographically focused within Missouri, supporting local laboratory infrastructure. The contract supports the industrial gas manufacturing sector, potentially involving specialized logistics and delivery personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competition intensity.
The SAP procurement method, while efficient, may not always yield the absolute lowest price compared to full and open competition for larger contracts.

Positive Signals

The contract was competed, indicating an effort to secure competitive pricing.
Firm-fixed-price contract type provides cost certainty for the agency.
The 3-year duration offers stability and reduces administrative burden for repeated procurements.

Sector Analysis

The industrial gas manufacturing sector is a critical component of the broader chemical industry, providing essential gases for a wide range of applications, including scientific research, healthcare, and manufacturing. Spending in this sector often involves specialized logistics and adherence to strict safety regulations. This contract, valued at approximately $338,000 over three years, represents a modest but vital expenditure within the federal government's procurement of laboratory support services, fitting within the typical range for specialized gas supply agreements.

Small Business Impact

The data indicates this contract was competed under SAP, which often includes provisions for small business participation. However, the 'sb' (small business set-aside) field is false, suggesting it was not specifically set aside for small businesses. The prime contractor, CEE-KAY SUPPLY, INC., is not explicitly identified as a small business in the provided data. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and its Food and Drug Administration (FDA) contracting officers and program managers. The firm-fixed-price nature of the award simplifies oversight by focusing on delivery and performance rather than cost reconciliation. Transparency is facilitated by the contract award notice, and any specific Inspector General (IG) jurisdiction would be determined by HHS's internal policies and the nature of any potential issues arising from contract performance.

Related Government Programs

Laboratory Equipment Procurement
Scientific Research Services
Chemical and Material Supply Contracts
Federal Agency Operational Support

Risk Flags

Potential for supply chain disruptions
Ensuring consistent gas purity standards
Timeliness of delivery to support lab operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $337,974.67 to CEE-KAY SUPPLY, INC.. LABORATORY GAS SUPPLY SERVICES - ST LOUIS

Who is the contractor on this award?

The obligated recipient is CEE-KAY SUPPLY, 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 $337,974.67.

What is the period of performance?

Start: 2024-09-29. End: 2027-09-29.

What is the track record of CEE-KAY SUPPLY, INC. with federal contracts, particularly for laboratory gas supply?

A review of federal procurement databases would be necessary to fully assess CEE-KAY SUPPLY, INC.'s track record. Information such as past performance ratings, previous contract values, and any history of disputes or performance issues would provide crucial context. Without this specific data, it's difficult to definitively evaluate their reliability and experience in fulfilling federal requirements for laboratory gas supply. However, the award of this contract by the FDA suggests they met the agency's minimum requirements at the time of procurement.

How does the awarded price compare to similar laboratory gas supply contracts awarded by federal agencies in the same region?

To benchmark the value, one would compare the approximate annual cost of this contract ($112,667) against similar firm-fixed-price purchase orders for laboratory gases awarded by federal agencies in Missouri or surrounding states over the past 1-2 years. Factors such as the specific types and purity of gases, delivery frequency, volume commitments, and contract duration would need to be considered for an accurate comparison. A higher annual cost than comparable contracts, after adjusting for these variables, could indicate a less favorable price.

What are the primary risks associated with this laboratory gas supply contract?

Key risks include potential supply chain disruptions affecting gas availability, price volatility of raw materials impacting future renewals (though mitigated by FFP for this term), and performance issues related to timely delivery or gas purity standards. For the FDA, maintaining the integrity of research and testing is paramount, so any lapse in gas quality or supply could have significant scientific and public health implications. Ensuring robust quality control and contingency planning by the contractor is essential.

How effective is the SAP procurement method in ensuring optimal value for this type of contract?

The Simplified Acquisition Procedures (SAP) are designed for purchases below the simplified acquisition threshold (currently $250,000, though this contract is slightly above, suggesting it might have been processed under older thresholds or specific exceptions). SAP aims to increase efficiency and reduce administrative burden. For a contract of this value, SAP can be effective in achieving fair market prices through competition among a reasonable number of offerors. However, for larger or more complex requirements, full and open competition might yield even greater cost savings and broader innovation.

What is the historical spending pattern for laboratory gas supply services by the FDA or HHS?

Analyzing historical spending data for laboratory gas supply services by the FDA and HHS would reveal trends in contract values, durations, and procurement methods. This includes identifying the primary contractors, average contract costs per year, and the prevalence of competed versus sole-source awards. Understanding these patterns helps assess whether current spending aligns with historical norms, identifies potential cost-saving opportunities, and highlights any shifts in agency reliance on specific suppliers or contract types.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75F40124Q00391

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5835 MANCHESTER AVE, SAINT LOUIS, MO, 63110

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

Financial Breakdown

Contract Ceiling: $337,975

Exercised Options: $337,975

Current Obligation: $337,975

Actual Outlays: $114,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline