National Cord Blood Inventory Contract Exceeds $57.9M, Awarded to UT MD Anderson
Contract Overview
Contract Amount: $57,937,279 ($57.9M)
Contractor: THE Univeristy of Texas M.D. Anderson Cancer Center
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-27
End Date: 2035-09-03
Contract Duration: 5,820 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: NATIONAL CORD BLOOD INVENTORY
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77030
State: Texas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $57.9 million to THE UNIVERISTY OF TEXAS M.D. ANDERSON CANCER CENTER for work described as: NATIONAL CORD BLOOD INVENTORY Key points: 1. Significant investment in a critical national resource. 2. Potential for high value in medical research and treatment. 3. Long-term contract duration raises questions about ongoing need and cost-effectiveness. 4. Health and Human Services is the primary agency. 5. Focus on blood and organ banks sector.
Value Assessment
Rating: fair
The contract value of $57.9M over its term is substantial. Benchmarking against similar national inventory or bio-repository contracts is difficult due to the unique nature of cord blood. Further analysis of the per-unit cost or service delivery metrics would be needed for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and specific nature of the service may limit the number of truly competitive bids received over time. Price discovery is likely influenced by the specialized requirements.
Taxpayer Impact: Taxpayers are funding a critical national asset for public health. The long-term commitment implies a sustained investment, the ultimate return on which depends on the utilization and success of the cord blood inventory.
Public Impact
Ensures a national supply of cord blood for potential life-saving treatments and research. Supports advancements in regenerative medicine and disease treatment. Provides a critical resource for public health emergencies. Potential for long-term medical breakthroughs. Benefits patients requiring stem cell transplants.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (16 years)
- Lack of clear performance metrics in provided data
- Potential for cost overruns over the contract's life
Positive Signals
- Supports a vital national health resource
- Awarded through full and open competition
- Firm Fixed Price contract type can limit cost uncertainty
Sector Analysis
This contract falls within the Health and Human Services sector, specifically related to bio-repository and blood banking services. Spending benchmarks for national-scale cord blood inventories are scarce due to their unique nature, but this represents a significant investment in a specialized area of healthcare.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Given the scale and specialized nature of the National Cord Blood Inventory, it is likely that larger, specialized organizations are better positioned to compete for and manage such a contract.
Oversight & Accountability
The Health Resources and Services Administration (HRSA) is responsible for overseeing this contract. The long duration necessitates robust oversight to ensure continued relevance, cost-effectiveness, and adherence to scientific and ethical standards throughout the contract period.
Related Government Programs
- Blood and Organ Banks
- Department of Health and Human Services Contracting
- Health Resources and Services Administration Programs
Risk Flags
- Long contract duration may lead to cost inefficiencies
- Potential for technological obsolescence
- Uncertainty regarding future demand and utilization rates
- Biological sample integrity over extended periods
- Limited transparency on specific performance metrics
Tags
blood-and-organ-banks, department-of-health-and-human-services, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $57.9 million to THE UNIVERISTY OF TEXAS M.D. ANDERSON CANCER CENTER. NATIONAL CORD BLOOD INVENTORY
Who is the contractor on this award?
The obligated recipient is THE UNIVERISTY OF TEXAS M.D. ANDERSON CANCER CENTER.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $57.9 million.
What is the period of performance?
Start: 2019-09-27. End: 2035-09-03.
What is the projected utilization rate of the cord blood inventory over the contract's lifespan, and how does this inform the value proposition?
The projected utilization rate is crucial for assessing the contract's value. A low utilization rate might indicate over-investment or a lack of demand, questioning the efficiency of the $57.9M expenditure. Conversely, high utilization for critical treatments or research would strongly justify the investment, demonstrating significant public health impact and return on taxpayer funds.
What are the specific risks associated with maintaining a national cord blood inventory for over 16 years, and how are they being mitigated?
Risks include biological degradation of samples, evolving scientific standards for storage and processing, and potential obsolescence of technology. Mitigation strategies likely involve stringent quality control, regular protocol updates based on scientific advancements, and contingency plans for sample management and data security. The long duration necessitates proactive risk management.
How effectively is the National Cord Blood Inventory contributing to medical research and patient treatment outcomes compared to alternative approaches?
Effectiveness is measured by the number of successful transplants, research breakthroughs enabled, and lives saved or improved. Comparing this to alternative stem cell sources or decentralized inventory models is essential. Data on the inventory's specific contributions to published research and clinical applications would provide concrete evidence of its impact and justify the substantial federal investment.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19250SOL00062
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1515 HOLCOMBE BLVD UNIT 207, HOUSTON, TX, 77030
Business Categories: Category Business, Educational Institution, Government, Higher Education, Hospital, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, Special Designations
Financial Breakdown
Contract Ceiling: $62,742,484
Exercised Options: $57,937,279
Current Obligation: $57,937,279
Actual Outlays: $32,715,099
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-27
Current End Date: 2035-09-03
Potential End Date: 2035-09-03 00:00:00
Last Modified: 2025-12-04
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