HHS awards Duke University $19M contract for national cord blood inventory maintenance
Contract Overview
Contract Amount: $19,088,600 ($19.1M)
Contractor: Duke University
Awarding Agency: Department of Health and Human Services
Start Date: 2010-09-09
End Date: 2028-09-24
Contract Duration: 6,590 days
Daily Burn Rate: $2.9K/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 BLOOD INVENTORY
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27710
Plain-Language Summary
Department of Health and Human Services obligated $19.1 million to DUKE UNIVERSITY 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 BLOOD INVENTORY Key points: 1. Contract supports critical public health initiative for rare disease treatment. 2. Duke University is a sole provider for this specialized service. 3. Long-term contract duration raises questions about ongoing cost-effectiveness. 4. Spending aligns with sector benchmarks for biological sample management.
Value Assessment
Rating: fair
The contract value of $19.09 million over its term appears reasonable given the specialized nature of collecting and maintaining genetically diverse, high-quality umbilical cord blood units. Benchmarking is difficult due to the unique service provided.
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 specialized nature may limit the number of potential bidders.
Taxpayer Impact: Taxpayer funds support a vital national health resource, potentially saving lives and reducing healthcare costs for rare diseases.
Public Impact
Ensures availability of life-saving treatments for patients with rare diseases. Contributes to medical research and advancements in regenerative medicine. Provides a critical resource for transplant centers and healthcare providers nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may reduce future competition and price negotiation opportunities.
- Lack of small business participation noted.
Positive Signals
- Supports a critical national health resource.
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the healthcare sector, specifically related to biological sample management and public health initiatives. Spending benchmarks for similar long-term biological repository contracts are scarce due to the specialized nature of cord blood banking.
Small Business Impact
The data indicates no small business participation in this contract. Given the specialized nature of cord blood banking and the long-term commitment, it's possible that only large, established institutions like Duke University can meet the requirements.
Oversight & Accountability
The Health Resources and Services Administration (HRSA) is responsible for overseeing this contract. The long duration necessitates regular performance reviews to ensure continued value and adherence to quality standards.
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
- No small business participation
- Sole provider for specialized service
- Potential for vendor lock-in
Tags
blood-and-organ-banks, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $19.1 million to DUKE UNIVERSITY. 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 BLOOD INVENTORY
Who is the contractor on this award?
The obligated recipient is DUKE UNIVERSITY.
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 $19.1 million.
What is the period of performance?
Start: 2010-09-09. End: 2028-09-24.
What is the long-term cost-effectiveness of maintaining the national cord blood inventory under this contract?
Assessing long-term cost-effectiveness requires analyzing the utilization rates of the stored units, the cost per unit maintained over time, and comparing these to the societal benefits of available treatments. Without utilization data and detailed cost breakdowns, it's difficult to definitively determine cost-effectiveness beyond the initial award value.
What are the risks associated with a single provider maintaining such a critical national resource for an extended period?
The primary risks include potential vendor lock-in, reduced incentive for innovation, and vulnerability to disruptions if the sole provider faces operational issues. While competition was initially full and open, the long-term nature means the government relies heavily on Duke's continued capability and commitment.
How effectively does this contract contribute to the overall goals of the National Cord Blood Inventory?
The contract directly supports the goal of collecting and maintaining high-quality cord blood units. The significant funding and long duration suggest a strong commitment to ensuring the inventory's availability and genetic diversity, crucial for meeting transplant needs.
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
Address: 1 TOWERVIEW DR, DURHAM, NC, 27708
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,088,600
Exercised Options: $19,088,600
Current Obligation: $19,088,600
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-09-09
Current End Date: 2028-09-24
Potential End Date: 2028-09-24 00:00:00
Last Modified: 2022-04-26
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