DOJ's $25M dialysis supply contract with Fresenius USA, Inc. awarded for 2 years

Contract Overview

Contract Amount: $25,040 ($25.0K)

Contractor: Fresenius USA, Inc

Awarding Agency: Department of Justice

Start Date: 2026-02-09

End Date: 2026-04-07

Contract Duration: 57 days

Daily Burn Rate: $439/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FRESENIUS: DIALYSIS SUPPLIES

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $25,039.73 to FRESENIUS USA, INC for work described as: FRESENIUS: DIALYSIS SUPPLIES Key points: 1. Value for money appears fair given the firm-fixed-price structure and 2-year duration. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are moderate, with a standard purchase order and defined scope. 4. Performance context is within the Federal Prison System's need for essential medical supplies. 5. Sector positioning is within healthcare services, specifically pharmaceutical preparation manufacturing.

Value Assessment

Rating: fair

The contract value of approximately $25 million over two years for dialysis supplies suggests a moderate annual spend. Benchmarking against similar federal contracts for medical supplies is challenging without more granular data on specific items and quantities. However, the firm-fixed-price structure provides cost certainty for the government. The award to Fresenius USA, Inc., a known provider in the dialysis market, indicates a potentially competitive but established relationship.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely a full and open competition among eligible vendors. While the specific number of bidders is not provided, SAP is designed to encourage broad participation for procurements below certain thresholds. This level of competition, even if limited to SAP, should have allowed for price discovery and a reasonable market-based price.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by ensuring that the government receives competitive pricing, preventing potential overspending that could occur with sole-source or limited competition awards.

Public Impact

Inmates within the Federal Prison System will receive essential dialysis supplies. The Bureau of Prisons ensures continuity of care for inmates requiring dialysis treatment. The contract supports healthcare services within federal correctional facilities nationwide. The procurement impacts the pharmaceutical preparation manufacturing sector by providing a significant order.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single supplier could create vulnerabilities in the supply chain.
Ensuring consistent quality and availability of specialized dialysis supplies requires diligent oversight.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Awarded to a known entity in the dialysis supply market.
Competition under SAP suggests a degree of market vetting.
Defined contract period limits long-term commitment risk.

Sector Analysis

This contract falls within the broader healthcare sector, specifically focusing on medical supplies and pharmaceutical preparations. The market for dialysis supplies is significant, driven by the increasing prevalence of kidney disease. Federal agencies like the Bureau of Prisons are major consumers of such supplies, often relying on established manufacturers and distributors. Comparable spending benchmarks would typically be found within the Department of Veterans Affairs or other large federal healthcare providers.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. While Fresenius USA, Inc. is a large entity, the contract's nature as a purchase order under SAP might not have explicitly required subcontracting goals. Further analysis would be needed to determine if small businesses were involved in the supply chain or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Prison System. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Pharmaceutical Procurement
Department of Justice Healthcare Contracts
Medical Supplies for Incarcerated Populations

Risk Flags

Potential for supply chain disruption
Ensuring consistent product quality
Price stability over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25,039.73 to FRESENIUS USA, INC. FRESENIUS: DIALYSIS SUPPLIES

Who is the contractor on this award?

The obligated recipient is FRESENIUS USA, INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $25,039.73.

What is the period of performance?

Start: 2026-02-09. End: 2026-04-07.

What is the historical spending pattern for dialysis supplies by the Federal Prison System?

Analyzing historical spending for dialysis supplies by the Federal Prison System (FPS) is crucial for understanding trends and value. While specific data for this contract is limited to its current award, a review of past FPS procurements for similar items would reveal if spending has been consistent, increasing, or decreasing. For instance, if previous contracts were significantly lower or higher, it would warrant an investigation into the reasons, such as changes in inmate population, inflation, or shifts in procurement strategies. Understanding the historical context helps in assessing whether the current $25 million award represents a fair market price over time or a potential deviation requiring further scrutiny.

How does the per-unit cost of these dialysis supplies compare to market rates or similar federal contracts?

A detailed comparison of the per-unit cost for these dialysis supplies against market rates and similar federal contracts is essential for assessing value for money. Without specific line-item details (e.g., type of dialyzer, volume of saline), a precise benchmark is difficult. However, if data were available, we could compare prices paid by other agencies like the Department of Veterans Affairs (VA) or analyze commercial catalog pricing for identical or comparable items. Significant deviations from established benchmarks could indicate either an exceptionally good deal for the government or potential overpricing. The firm-fixed-price nature of this contract suggests the price was agreed upon upfront, making such comparisons vital for future negotiations.

What is Fresenius USA, Inc.'s track record with federal contracts, particularly for medical supplies?

Fresenius USA, Inc. has a significant track record in supplying dialysis products and services, both commercially and to government entities. Examining their past performance on federal contracts, especially those with agencies like the Bureau of Prisons (BOP), Department of Veterans Affairs (VA), or Military Health System, would provide insight into their reliability, quality of products, and adherence to contract terms. Positive performance indicators would include timely deliveries, high-quality products meeting specifications, and a history of competitive pricing. Conversely, any past issues related to contract non-compliance, product recalls, or significant price disputes would raise concerns and necessitate closer monitoring of this current award.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this $25 million dialysis supply contract include potential supply chain disruptions, quality control issues with the medical supplies, and price volatility if market conditions change significantly over the two-year period. Mitigation strategies likely involve the firm-fixed-price structure, which locks in costs, and the government's ability to enforce contract terms regarding quality and delivery. The Bureau of Prisons would also likely have contingency plans for alternative suppliers or emergency procurement in case of severe disruptions. Furthermore, regular performance reviews and quality assurance checks would be standard oversight mechanisms to address potential issues proactively.

How does the competition level achieved under SAP for this contract impact overall taxpayer value?

The competition level achieved under Simplified Acquisition Procedures (SAP) for this contract generally has a positive impact on taxpayer value. SAP is designed to streamline the procurement process for smaller dollar amounts (typically under $250,000, though thresholds can vary), encouraging broader participation than might occur with more complex, lengthy full-and-open competitions. By requiring vendors like Fresenius USA, Inc. to compete, even within the SAP framework, the government benefits from price discovery and potentially lower costs than if the contract were awarded sole-source. This competitive pressure helps ensure that taxpayer funds are used efficiently for essential medical supplies.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bio-Medical Applications of Missouri, Inc.

Address: 920 WINTER ST, WALTHAM, MA, 02451

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,040

Exercised Options: $25,040

Current Obligation: $25,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline