NIH awards $15.1M for Donor Apheresis Services to American National Red Cross over 5 years
Contract Overview
Contract Amount: $15,129,608 ($15.1M)
Contractor: American National RED Cross, the
Awarding Agency: Department of Health and Human Services
Start Date: 2007-09-30
End Date: 2013-02-28
Contract Duration: 1,978 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: DONOR APHERESIS SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $15.1 million to AMERICAN NATIONAL RED CROSS, THE for work described as: DONOR APHERESIS SERVICES Key points: 1. Significant contract value of $15.1M awarded to a single provider. 2. Competition was full and open, suggesting potential for price discovery. 3. Contract duration of 5 years presents potential for price escalation. 4. Services fall under the healthcare sector, specifically blood and organ banks.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar apheresis services is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the long duration and specific nature of apheresis services may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are used for essential healthcare services. The cost-plus nature requires careful monitoring to ensure value for money.
Public Impact
Ensures continued availability of critical blood products for research. Supports the National Institutes of Health's mission in medical research. Impacts patients relying on specialized blood components for treatment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (5 years)
- Potential for cost overruns if not managed effectively
Positive Signals
- Full and open competition utilized
- Essential healthcare service provided
- Supports critical NIH research
Sector Analysis
The healthcare sector, particularly blood and organ banks, is vital for public health. Spending in this area is driven by demand for services and research needs. Benchmarks are highly variable based on service type and volume.
Small Business Impact
No indication of small business participation in this award. The nature of specialized apheresis services may favor larger, established organizations.
Oversight & Accountability
The long contract duration necessitates robust oversight from HHS to ensure performance standards are met and costs remain within reasonable bounds.
Related Government Programs
- Blood and Organ Banks
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Potential for cost escalation
- Limited transparency on per-unit costs
Tags
blood-and-organ-banks, department-of-health-and-human-services, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $15.1 million to AMERICAN NATIONAL RED CROSS, THE. DONOR APHERESIS SERVICES
Who is the contractor on this award?
The obligated recipient is AMERICAN NATIONAL RED CROSS, THE.
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 $15.1 million.
What is the period of performance?
Start: 2007-09-30. End: 2013-02-28.
What is the average cost per apheresis procedure under this contract, and how does it compare to industry benchmarks?
The provided data does not include a per-unit cost breakdown for apheresis procedures. To assess value, a detailed analysis of the cost-plus fixed fee components and comparison with similar contracts or publicly available data for apheresis services would be necessary. Without this, a definitive benchmark is not possible.
What are the specific risks associated with a 5-year Cost Plus Fixed Fee contract for donor apheresis services?
A 5-year Cost Plus Fixed Fee contract carries risks of potential cost overruns if the government's oversight is insufficient to control the 'cost' portion. The fixed fee component might not adequately incentivize efficiency over such a long period. Additionally, market prices for services or supplies could fluctuate significantly over five years, potentially impacting the overall value proposition.
How effectively does this contract support the NIH's research objectives given the provider and contract structure?
The contract supports NIH research by ensuring a consistent supply of donor apheresis services. The American National Red Cross is a well-established provider. However, the Cost Plus Fixed Fee structure, while ensuring service availability, may not be the most cost-effective mechanism. Its effectiveness hinges on strong program management and performance monitoring by NIH to ensure the services directly and efficiently contribute to research goals.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks
Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8550 ARLINGTON BLVD., FAIRFAX, VA, 11
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,622,150
Exercised Options: $15,129,608
Current Obligation: $15,129,608
Timeline
Start Date: 2007-09-30
Current End Date: 2013-02-28
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2013-03-05
More Contracts from American National RED Cross, the
- Hotel Lodgings — $255.6M (Department of Homeland Security)
- THE Purpose of This Letter Contract and Eventual Definitive Contract IS to Acquire Services Related to the Functionality and System Changes That the Contractor Must Make Before Collecting Convalescent Plasma Samples — $110.3M (Department of Health and Human Services)
- American RED Cross:1108672 [13-007730] — $36.1M (Department of Health and Human Services)
- Blood Products — $4.8M (Department of Veterans Affairs)
- Blood and Blood Products — $3.2M (Department of Veterans Affairs)
View all American National RED Cross, the federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →