HHS awards $30.3M contract to UT MD Anderson for national cord blood inventory maintenance

Contract Overview

Contract Amount: $30,351,425 ($30.4M)

Contractor: THE Univeristy of Texas M.D. Anderson Cancer Center

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-08

End Date: 2028-09-24

Contract Duration: 6,591 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TAS::75 0350::TAS - PROVIDE FOR THE COLLECTION AND MAINTENANCE OF GENETICALLY DIVERSE, HIGH-QUALITY UMBILICAL CORD BLOOD UNITS FOR INCLUSION IN THE NATIONAL CORD BLLOD INVENTORY

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77030

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.4 million to THE UNIVERISTY OF TEXAS M.D. ANDERSON CANCER CENTER for work described as: TAS::75 0350::TAS - PROVIDE FOR THE COLLECTION AND MAINTENANCE OF GENETICALLY DIVERSE, HIGH-QUALITY UMBILICAL CORD BLOOD UNITS FOR INCLUSION IN THE NATIONAL CORD BLLOD INVENTORY Key points: 1. Contract focuses on maintaining a genetically diverse, high-quality national cord blood inventory. 2. The award represents a significant investment in a critical public health resource. 3. Long-term contract duration suggests a stable, ongoing need for these services. 4. The fixed-price nature of the contract aims to control costs over its lifespan. 5. Competition dynamics will be analyzed to ensure value for taxpayer funds. 6. Performance metrics will be key to assessing the effectiveness of the inventory.

Value Assessment

Rating: good

The contract value of $30.3 million over its potential duration appears reasonable for the specialized service of maintaining a national genetic resource. Benchmarking against similar long-term biological sample repository contracts would provide further context. The fixed-price structure suggests an effort to manage costs proactively, though the total expenditure will depend on the full term utilization. The University of Texas MD Anderson Cancer Center's established reputation in cancer research and treatment lends credibility to their capacity to manage such a critical inventory.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified entities had the opportunity to bid. The presence of 8 bidders suggests a competitive marketplace for these specialized services. A robust competition typically leads to better pricing and service offerings for the government, as contractors vie to win the award. The level of competition here is a positive signal for price discovery and value for money.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by leveraging market forces to secure the best possible terms for the national cord blood inventory.

Public Impact

Benefits patients requiring stem cell transplants by ensuring access to a diverse range of cord blood units. Supports the National Cord Blood Inventory, a vital resource for medical research and treatment. Geographic impact is national, serving the entire United States through the availability of these units. Workforce implications include specialized roles in laboratory management, data curation, and scientific research at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring long-term viability and genetic diversity of the stored units requires continuous monitoring and potential replenishment strategies.
Potential for technological advancements in cord blood processing and storage could necessitate contract modifications or future procurements.

Positive Signals

The contract's long duration (nearly 17 years) indicates a stable and predictable funding stream for a critical public health function.
Award to a reputable institution like UT MD Anderson suggests a high likelihood of competent performance and adherence to quality standards.
Full and open competition with 8 bidders points to a healthy market and potential for cost-effectiveness.

Sector Analysis

This contract falls within the healthcare and life sciences sector, specifically focusing on biobanking and public health infrastructure. The market for maintaining national biological inventories is specialized, often involving academic institutions or dedicated research organizations. Comparable spending benchmarks would relate to other large-scale biobanking initiatives or national health resource management contracts. The size of this award reflects the long-term commitment and specialized nature of managing a national genetic resource.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award, as it was competed full and open. There is no explicit mention of small business subcontracting goals within the provided data. The nature of maintaining a national cord blood inventory likely requires highly specialized facilities and expertise, which may not be readily available from smaller entities without significant partnership or development.

Oversight & Accountability

Oversight for this contract will likely be managed by the Health Resources and Services Administration (HRSA), a division of HHS. Performance monitoring, adherence to scientific protocols, and financial accountability will be key oversight areas. Transparency is expected through regular reporting requirements stipulated in the contract. The Inspector General's office for HHS would have jurisdiction over any potential fraud, waste, or abuse related to this funding.

Related Government Programs

National Institutes of Health (NIH) research grants
Centers for Disease Control and Prevention (CDC) public health initiatives
Food and Drug Administration (FDA) regulatory oversight for biological products

Risk Flags

Long-term contract duration requires sustained oversight.
Maintenance of biological samples is susceptible to technological and scientific obsolescence.
Ensuring genetic diversity requires ongoing management and potential replenishment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.4 million to THE UNIVERISTY OF TEXAS M.D. ANDERSON CANCER CENTER. TAS::75 0350::TAS - PROVIDE FOR THE COLLECTION AND MAINTENANCE OF GENETICALLY DIVERSE, HIGH-QUALITY UMBILICAL CORD BLOOD UNITS FOR INCLUSION IN THE NATIONAL CORD BLLOD 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 $30.4 million.

What is the period of performance?

Start: 2010-09-08. End: 2028-09-24.

What is the historical spending pattern for the maintenance of the National Cord Blood Inventory prior to this contract?

Detailed historical spending data for the National Cord Blood Inventory prior to this specific contract award is not directly available in the provided data. However, the duration of this contract (2010-2028) suggests a long-term commitment by the government to this initiative. Typically, such long-term biological resource maintenance programs involve consistent, substantial funding over many years to ensure the integrity and usability of the stored samples. Analysis of previous contract vehicles or appropriations related to cord blood banking by HRSA or other relevant agencies would be necessary to establish a comprehensive historical spending trend. The current award of $30.3 million over its potential term indicates a significant, ongoing investment in this critical public health resource.

How does the per-unit cost of maintaining cord blood units under this contract compare to industry benchmarks?

The provided data does not include a specific per-unit cost for maintaining cord blood units. The total contract value of $30.3 million is for the overall collection and maintenance of the inventory, which includes significant infrastructure, personnel, quality control, and data management costs beyond just the physical storage of each unit. To perform a per-unit cost comparison, one would need to know the total number of units maintained, the specific services included in that maintenance (e.g., cryopreservation, periodic viability testing, data updates), and compare that to published rates from other cord blood banks or biobanking consortia. Without these granular details, a direct benchmark is not feasible from the current information.

What are the key performance indicators (KPIs) used to evaluate the contractor's success in maintaining the cord blood inventory?

Key performance indicators for this contract would likely focus on the quality, quantity, and accessibility of the cord blood units within the national inventory. Specific KPIs could include: the percentage of units meeting viability standards at specified intervals, the diversity metrics (e.g., HLA matching probabilities) of the stored units, the turnaround time for retrieving specific units for research or clinical use, the accuracy and completeness of the associated database, and adherence to all relevant regulatory and ethical guidelines (e.g., FDA, AABB standards). The contract itself would detail these specific metrics and the acceptable thresholds for performance. Regular reporting and audits would be used to track progress against these KPIs.

What is the track record of The University of Texas M.D. Anderson Cancer Center in managing large-scale biological sample repositories?

The University of Texas M.D. Anderson Cancer Center has a well-established and extensive track record in biomedical research, including the management of large-scale biological sample repositories. As a leading cancer center, it routinely handles vast amounts of patient data and biological specimens for research purposes. While specific details of their past contracts for national-level biobanking are not provided here, their designation as a major research institution implies significant experience in laboratory operations, quality assurance, data management, and regulatory compliance necessary for such endeavors. Their ongoing research activities likely involve sophisticated biobanking infrastructure and expertise, making them a credible candidate for managing the National Cord Blood Inventory.

What are the potential risks associated with the long-term maintenance of biological samples like cord blood?

Several risks are associated with the long-term maintenance of biological samples such as cord blood. These include: sample degradation or loss due to equipment failure (e.g., cryogenic freezers), contamination, or human error; obsolescence of storage or tracking technologies; changes in scientific understanding or clinical needs that might affect the utility of certain samples; ethical or privacy concerns related to long-term data storage; and the potential for natural disasters or unforeseen events to compromise the facility. Ensuring the genetic diversity and viability of the inventory over decades requires robust quality control, redundant systems, and adaptive management strategies to mitigate these inherent risks.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Texas System

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,351,425

Exercised Options: $30,351,425

Current Obligation: $30,351,425

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline