HHS's $89.8M Contract for Marrow Donor Search System Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $89,809,722 ($89.8M)

Contractor: National Marrow Donor Program

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $61.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SINGLE POINT OF ACCESS-COORDINATING CENTER (SPA-CC) - ESTABLISH AND MAINTAIN A SYSTEM FOR HEALTH CARE PROFESSIONALS AND PHYSICIANS SEARCHING ON BEHALF OF PATIENTS TO SEARCH ELECTRONICALLY FOR CELLS DERIVED FROM ADULT BONE MARROW DONORS AND CORD BLOOD

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $89.8 million to NATIONAL MARROW DONOR PROGRAM for work described as: SINGLE POINT OF ACCESS-COORDINATING CENTER (SPA-CC) - ESTABLISH AND MAINTAIN A SYSTEM FOR HEALTH CARE PROFESSIONALS AND PHYSICIANS SEARCHING ON BEHALF OF PATIENTS TO SEARCH ELECTRONICALLY FOR CELLS DERIVED FROM ADULT BONE MARROW DONORS AND CORD BLOOD Key points: 1. The contract supports a critical health service for finding bone marrow and cord blood donors. 2. National Marrow Donor Program is the sole awardee, raising questions about competition. 3. The firm fixed-price contract aims to control costs, but value for money needs assessment. 4. This spending falls within the professional, scientific, and technical services sector.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without benchmarks for similar health IT coordination systems. The firm fixed-price structure is positive for cost control, but the lack of competitive bidding may lead to suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being awarded under 'full and open competition,' the data indicates only one awardee, the National Marrow Donor Program. This suggests potential issues in the solicitation or bidding process that limited participation or resulted in a single viable offer.

Taxpayer Impact: Taxpayer funds are being used for a critical healthcare service. The lack of robust competition could mean higher costs than necessary, impacting the overall value for taxpayer investment.

Public Impact

Ensures access to life-saving donor matches for patients needing transplants. Supports the critical infrastructure for bone marrow and cord blood donation registries. Facilitates faster and more efficient searches for compatible donors. Potential for improved patient outcomes through timely access to treatment options.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation
Potential for inflated costs due to lack of bidding
Dependence on a single provider for a critical service

Positive Signals

Supports a vital healthcare function
Firm fixed-price contract structure
Long-term contract duration provides stability

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically related to health IT and data coordination. Benchmarks for similar health information systems or donor registry management services would be useful for comparison.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as the awardee is the National Marrow Donor Program and the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

Oversight of this contract should focus on ensuring the National Marrow Donor Program is delivering services effectively and efficiently, and that the pricing remains fair despite the limited competition. Regular performance reviews and cost audits are recommended.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Health and Human Services Contracting
Health Resources and Services Administration Programs

Risk Flags

Lack of demonstrated competition
Potential for overpayment
Single point of failure risk
Limited transparency in award process

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $89.8 million to NATIONAL MARROW DONOR PROGRAM. SINGLE POINT OF ACCESS-COORDINATING CENTER (SPA-CC) - ESTABLISH AND MAINTAIN A SYSTEM FOR HEALTH CARE PROFESSIONALS AND PHYSICIANS SEARCHING ON BEHALF OF PATIENTS TO SEARCH ELECTRONICALLY FOR CELLS DERIVED FROM ADULT BONE MARROW DONORS AND CORD BLOOD

Who is the contractor on this award?

The obligated recipient is NATIONAL MARROW DONOR PROGRAM.

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 $89.8 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What specific factors led to only one awardee despite the 'full and open competition' designation?

Investigating the solicitation details, pre-bid conferences, and the number of proposals received is crucial. Potential reasons include highly specialized requirements, restrictive specifications, or a lack of market interest from other qualified entities. Understanding these factors will clarify if the competition was genuinely limited or if other bidders were unable to meet the stringent criteria.

How does the per-unit cost of searching for a donor compare to industry benchmarks or historical data for similar services?

Without specific metrics on the cost per search or per successful match, a direct comparison is challenging. Benchmarking against other health data coordination platforms or similar registry services, if available, would provide insight. Analyzing the total contract value against the volume of searches performed and successful matches facilitated is essential for assessing cost-effectiveness.

What is the long-term risk associated with relying on a single entity for such a critical healthcare coordination function?

The primary risk is service disruption if the National Marrow Donor Program faces operational issues, financial instability, or decides not to renew the contract. This could significantly impact patient access to potential life-saving treatments. Contingency planning and exploring alternative providers or developing internal capabilities should be considered to mitigate this dependency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75R60222R00019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N 5TH ST, MINNEAPOLIS, MN, 55401

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: $123,734,082

Exercised Options: $89,809,722

Current Obligation: $89,809,722

Actual Outlays: $73,732,990

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline