HHS awards $169K for blood products to Vitalant in New Mexico

Contract Overview

Contract Amount: $169,143 ($169.1K)

Contractor: Vitalant

Awarding Agency: Department of Health and Human Services

Start Date: 2024-07-29

End Date: 2025-10-21

Contract Duration: 449 days

Daily Burn Rate: $377/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROVIDE QUALITY BLOOD PRODUCT SUPPLIES FOR ZCCHC.

Place of Performance

Location: ZUNI, MCKINLEY County, NEW MEXICO, 87327

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $169,142.78 to VITALANT for work described as: PROVIDE QUALITY BLOOD PRODUCT SUPPLIES FOR ZCCHC. Key points: 1. Vitalant, a major blood donation organization, is the sole provider. 2. The contract is for blood product supplies for Zuni Community Health Center. 3. The award is a firm-fixed-price purchase order. 4. The contract duration is 449 days. 5. The contract is not competed.

Value Assessment

Rating: fair

The contract value of $169,142.78 for blood products over 449 days appears reasonable given the specialized nature of blood banking services. Benchmarking against similar contracts for essential medical supplies is difficult without more specific data on product types and quantities.

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 potentially leads to higher costs compared to a competitive bidding process. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential blood products.

Public Impact

Ensures continued access to critical blood products for the Zuni Community Health Center. Supports public health services in the Zuni Pueblo region of New Mexico. Vitalant's role as a non-profit blood bank is crucial for community health infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Positive Signals

Sector Analysis

The healthcare sector, particularly in remote or underserved areas, often relies on specialized providers for essential services like blood banking. Spending benchmarks for such niche services are highly variable and depend on geographic location and specific needs.

Small Business Impact

This award does not appear to involve small businesses. Vitalant is a large, established blood donation organization. Further analysis would be needed to confirm if any subcontracting opportunities exist for small businesses.

Oversight & Accountability

The award was made by the Indian Health Service, an agency within HHS. Oversight should focus on the justification for the sole-source award and ensuring the pricing remains fair and reasonable throughout the contract period.

Related Government Programs

Risk Flags

Tags

blood-and-organ-banks, department-of-health-and-human-services, nm, purchase-order, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $169,142.78 to VITALANT. PROVIDE QUALITY BLOOD PRODUCT SUPPLIES FOR ZCCHC.

Who is the contractor on this award?

The obligated recipient is VITALANT.

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 $169,142.78.

What is the period of performance?

Start: 2024-07-29. End: 2025-10-21.

What is the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. For blood products, this might relate to specific licensing, distribution networks, or existing infrastructure that only one entity possesses. Without this justification, it's difficult to assess if the government received the best possible value.

How does the per-unit cost of these blood products compare to national averages or similar contracts?

Benchmarking the per-unit cost is essential for evaluating value for money. Without specific details on the types and quantities of blood products procured, a direct comparison is challenging. However, if data were available, it would be compared against established benchmarks for similar medical supplies. A significant deviation from the norm, especially in a sole-source scenario, would raise concerns about pricing efficiency and taxpayer impact.

What is the impact of this sole-source award on the long-term availability and cost of blood products for IHS facilities?

Sole-source awards can create dependency on a single supplier, potentially limiting future negotiation leverage and driving up costs over time if not managed carefully. While ensuring immediate supply continuity, it may hinder the government's ability to solicit competitive bids in the future, potentially impacting the long-term affordability and accessibility of these critical resources for IHS facilities.

Industry Classification

NAICS: Health Care and Social AssistanceOther Ambulatory Health Care ServicesBlood and Organ Banks

Product/Service Code: MEDICAL SERVICESOTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: INTENT TO SOLE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9305 E VIA DE VENTURA, SCOTTSDALE, AZ, 85258

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $388,015

Exercised Options: $169,143

Current Obligation: $169,143

Actual Outlays: $133,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2024-07-29

Current End Date: 2025-10-21

Potential End Date: 2025-10-21 00:00:00

Last Modified: 2026-04-03

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