HHS awards $727K contract for IHS inpatient pharmacy USP compliance design in Minnesota

Contract Overview

Contract Amount: $727,077 ($727.1K)

Contractor: Damberg Scott Gerzina Wagner Architects, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-03-03

End Date: 2026-08-31

Contract Duration: 1,277 days

Daily Burn Rate: $569/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IHS INPATIENT PHARMACY USP COMPLIANCE DESIGN

Place of Performance

Location: DULUTH, SAINT LOUIS County, MINNESOTA, 55802

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $727,077.49 to DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC for work described as: IHS INPATIENT PHARMACY USP COMPLIANCE DESIGN Key points: 1. Contract focuses on essential pharmacy compliance, indicating a need for specialized architectural and engineering expertise. 2. The fixed-price contract type suggests a defined scope and potential for cost control, though final costs depend on execution. 3. Competition was full and open after exclusion of sources, implying a broad initial search but specific criteria for participation. 4. The contract duration of 1277 days suggests a complex project requiring phased implementation and oversight. 5. The award to a single contractor, DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC, warrants scrutiny of the selection process and potential alternatives. 6. Geographic focus on Minnesota highlights regional needs within the Indian Health Service network.

Value Assessment

Rating: fair

The contract value of $727,077.49 for design services appears reasonable for a multi-year project of this nature. Benchmarking against similar USP compliance design contracts within federal healthcare is challenging due to the specialized scope. However, the firm fixed-price structure provides a degree of cost certainty for the government. Further analysis would require comparing the scope of work and deliverables to other architectural and engineering contracts for healthcare facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was initially broad, certain sources were excluded based on specific criteria, possibly related to qualifications, past performance, or specific technical requirements for USP compliance design. The exact number of bidders is not specified, but the 'full and open' nature suggests an intent to solicit from a wide range of qualified firms.

Taxpayer Impact: This competition method aims to ensure fair pricing by allowing multiple qualified vendors to bid, potentially driving down costs for taxpayers. However, the exclusion of sources might limit the pool of bidders, potentially impacting the level of price competition achieved.

Public Impact

The primary beneficiaries are patients served by the Indian Health Service (IHS) facilities, who will receive safer and compliant pharmacy services. The contract delivers essential design services for inpatient pharmacies, ensuring adherence to United States Pharmacopeia (USP) standards. The geographic impact is focused on IHS facilities within Minnesota, addressing specific regional healthcare infrastructure needs. The project will likely involve architects, engineers, and compliance specialists, potentially creating or sustaining jobs in these professional fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a full and open competition needs further clarification to ensure no qualified small businesses were unfairly prevented from bidding.
The long contract duration (1277 days) could introduce risks related to scope creep or changes in regulatory requirements over time.
Lack of specific details on the number of bidders makes it difficult to fully assess the robustness of the competition.
The fixed-price nature, while offering cost control, could lead to contractor disputes if unforeseen complexities arise during the design phase.

Positive Signals

The contract addresses critical USP compliance, enhancing patient safety and regulatory adherence for IHS pharmacies.
The firm fixed-price contract type provides budget certainty for the government, assuming the scope is well-defined.
The use of a specialized firm suggests access to necessary expertise for a complex design project.
The award is for design services, which is a foundational step for infrastructure improvements, potentially leading to better healthcare delivery.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on architectural and engineering design for healthcare facilities. The market for healthcare design is driven by regulatory compliance, technological advancements, and the need for efficient patient care environments. Spending in this area is often tied to federal and state healthcare initiatives, such as those managed by the IHS. Comparable spending benchmarks would involve analyzing other federal contracts for similar specialized design work in healthcare settings.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. This means the competition was open to all eligible firms, regardless of size. There is no explicit mention of subcontracting requirements for small businesses. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, but larger firms winning such contracts may have their own small business subcontracting plans that could indirectly benefit small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Indian Health Service (IHS) contracting and program officials. The firm fixed-price nature implies that oversight will focus on adherence to the defined scope, schedule, and quality standards. Transparency is facilitated by the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Indian Health Service Facility Modernization Projects
USP Compliance Initiatives
Healthcare Architecture and Engineering Services
Federal Pharmacy Infrastructure Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Risk of scope creep in long-duration design contracts.
Need for verification of contractor's relevant experience.
Ensuring consistent application of USP standards across all IHS facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $727,077.49 to DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC. IHS INPATIENT PHARMACY USP COMPLIANCE DESIGN

Who is the contractor on this award?

The obligated recipient is DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $727,077.49.

What is the period of performance?

Start: 2023-03-03. End: 2026-08-31.

What is the specific scope of work for the USP compliance design, and what are the key deliverables expected from DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC?

The specific scope of work for this contract involves the design of inpatient pharmacies to ensure compliance with United States Pharmacopeia (USP) standards. Key deliverables are expected to include detailed architectural and engineering plans, specifications, and potentially construction documents necessary for renovating or constructing compliant pharmacy spaces. This would encompass aspects like sterile compounding areas, storage requirements, ventilation, workflow design, and security measures, all tailored to meet the stringent requirements of USP <797> and <800> for hazardous and non-hazardous drug handling. The exact deliverables would be detailed in the Statement of Work (SOW) attached to the contract award.

How does the $727,077.49 contract value compare to similar USP compliance design projects within the IHS or other federal healthcare agencies?

Benchmarking this specific contract value is challenging without access to detailed project scopes and deliverables of comparable contracts. However, for a multi-year design project focused on specialized healthcare compliance like USP standards, $727,077.49 appears to be within a reasonable range. Federal healthcare design projects can vary significantly in cost based on facility size, complexity of existing infrastructure, and the specific USP chapters being addressed. Contracts for full architectural and engineering services for new hospital wings or major renovations can run into millions of dollars, while smaller, focused design efforts like this one for pharmacy compliance would naturally be lower. The firm fixed-price nature suggests a well-defined scope, which aids in cost predictability.

What are the potential risks associated with a 1277-day contract duration for design services, and how are they being mitigated?

A 1277-day (approximately 3.5 years) duration for design services presents several potential risks. These include the possibility of scope creep, where requirements evolve beyond the initial agreement, leading to cost overruns or delays. Changes in USP regulations or healthcare best practices during the contract period could necessitate design revisions. Furthermore, contractor performance could degrade over a long period, or key personnel might leave. Mitigation strategies typically involve robust contract management, including regular progress reviews, clear change order processes, and performance monitoring. The firm fixed-price structure incentivizes the contractor to manage scope effectively, while the government's oversight team would be responsible for ensuring adherence to the SOW and addressing any necessary modifications through formal channels.

Given the 'Full and Open Competition After Exclusion of Sources' award type, what does this imply about the contractor selection and potential for future competition?

The award type 'Full and Open Competition After Exclusion of Sources' suggests that the government initially solicited proposals from a broad range of qualified firms but subsequently excluded certain sources based on predefined criteria. These criteria could relate to technical expertise, past performance, security clearances, or specific certifications required for USP compliance design. While it indicates an attempt at broad competition, the exclusion aspect means not all interested parties may have been considered in the final evaluation. This implies that DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC likely met stringent requirements that other potential bidders did not. For future competitions, the criteria used for exclusion would need to be re-evaluated to ensure continued fair opportunity.

What is the track record of DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC with federal contracts, particularly within the Department of Health and Human Services?

Information regarding the specific track record of DAMBERG SCOTT GERZINA WAGNER ARCHITECTS, INC with federal contracts, especially within HHS, is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases like SAM.gov or FPDS-NG for past awards, contract performance evaluations (e.g., CPARS), and any reported issues. Understanding their history with similar healthcare design projects, their performance on fixed-price contracts, and their experience with regulatory compliance work would be crucial for evaluating their suitability and reliability for this IHS contract.

How does the geographic focus on Minnesota impact the IHS's ability to ensure USP compliance across all its facilities?

The geographic focus on Minnesota for this specific contract means that the design services are intended for IHS facilities within that state. This addresses a localized need and allows for tailored solutions based on the specific infrastructure and operational context of pharmacies in Minnesota. However, it does not inherently guarantee USP compliance across all IHS facilities nationwide. The IHS likely undertakes similar projects or has broader compliance strategies that may involve different contractors or internal efforts in other regions. This contract represents one piece of a larger puzzle to ensure consistent healthcare standards across the diverse network of IHS facilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 W 1ST ST STE 201, DULUTH, MN, 55802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $727,077

Exercised Options: $727,077

Current Obligation: $727,077

Actual Outlays: $684,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75H70118D00014

IDV Type: IDC

Timeline