NIH Clinical Center Pharmacy Buys $10.3M in Pharmaceuticals, Awarded via Non-Competitive Contract
Contract Overview
Contract Amount: $102,615,000 ($102.6M)
Contractor: DLA Troop Support
Awarding Agency: Department of Health and Human Services
Start Date: 2025-02-06
End Date: 2025-11-12
Contract Duration: 279 days
Daily Burn Rate: $367.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PHARMACEUTICALS AND RELATED SUPPLIES FOR NIH CLINICAL CENTER, PHARMACY DEPT. UNITED STATES DEPARTMENT OF DEFENSE:1133869 [25-001813]
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19111
Plain-Language Summary
Department of Health and Human Services obligated $102.6 million to DLA TROOP SUPPORT for work described as: PHARMACEUTICALS AND RELATED SUPPLIES FOR NIH CLINICAL CENTER, PHARMACY DEPT. UNITED STATES DEPARTMENT OF DEFENSE:1133869 [25-001813] Key points: 1. The National Institutes of Health (NIH) is procuring pharmaceuticals for its Clinical Center. 2. The contract is a Firm Fixed Price award, indicating predictable costs for the government. 3. The procurement is not competed, raising potential concerns about price discovery and value. 4. The sector is Pharmaceuticals, a critical area for healthcare and research.
Value Assessment
Rating: questionable
The contract value is $10.3 million. Without a competitive process, it's difficult to assess if this price is optimal compared to market rates for similar pharmaceutical preparations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning there was no open bidding process. This limits price discovery and may result in higher costs than if multiple vendors had competed.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these essential pharmaceuticals.
Public Impact
Ensures supply of critical pharmaceuticals for NIH clinical research and patient care. Potential for higher costs due to sole-source award impacts research budget allocation. Lack of transparency in pricing due to non-competitive nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited vendor options
Positive Signals
- Essential for NIH operations
- Firm Fixed Price contract type
Sector Analysis
This procurement falls within the Pharmaceuticals sector, which is vital for healthcare and medical research. Spending benchmarks in this sector can vary widely based on drug type, volume, and exclusivity.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. The sole-source nature often limits opportunities for small business participation.
Oversight & Accountability
The contract is managed by the Department of Health and Human Services (NIH). Oversight is crucial to ensure the necessity and fair pricing of pharmaceuticals, especially in non-competitive awards.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs.
- Lack of transparency in vendor selection.
- Dependence on a single supplier.
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $102.6 million to DLA TROOP SUPPORT. PHARMACEUTICALS AND RELATED SUPPLIES FOR NIH CLINICAL CENTER, PHARMACY DEPT. UNITED STATES DEPARTMENT OF DEFENSE:1133869 [25-001813]
Who is the contractor on this award?
The obligated recipient is DLA TROOP SUPPORT.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $102.6 million.
What is the period of performance?
Start: 2025-02-06. End: 2025-11-12.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary products, or urgent needs where only one vendor can fulfill the requirement. Without this information, it's impossible to fully assess the necessity and potential cost implications of bypassing the competitive process.
How does the awarded price compare to benchmark pricing for similar pharmaceutical preparations?
Benchmarking the price is challenging without competitive bids. A thorough review would involve comparing the unit costs against publicly available pricing data for comparable drugs, considering factors like volume discounts, formulation complexity, and market availability. This comparison is essential to determine if the government received fair value.
What measures are in place to ensure the effectiveness and quality of the pharmaceuticals procured under this sole-source contract?
While the contract type doesn't directly address quality, the NIH likely has internal quality assurance protocols and relies on the vendor's established reputation and adherence to pharmaceutical manufacturing standards (e.g., FDA regulations). Post-award monitoring and acceptance testing are critical to verify product efficacy and safety.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Government of the United States
Address: 700 ROBBINS AVENUE, PHILADELPHIA, PA, 19111
Business Categories: Category Business, Federally Funded Research and Development Corp, Government, U.S. Interstate Government Entity, U.S. National Government, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $102,615,000
Exercised Options: $102,615,000
Current Obligation: $102,615,000
Actual Outlays: $78,822,965
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-06
Current End Date: 2025-11-12
Potential End Date: 2025-11-12 00:00:00
Last Modified: 2026-04-03
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