Department of State awards $748K contract for medical supplies, with a significant portion allocated to surgical instruments

Contract Overview

Contract Amount: $74,820 ($74.8K)

Contractor: Phoenix Contracting LLC

Awarding Agency: Department of State

Start Date: 2026-04-01

End Date: 2026-04-05

Contract Duration: 4 days

Daily Burn Rate: $18.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: JUSMAG/MARFORPAC: BK26 COOPERATIVE HEALTH ENGAGEMENT-MEDICAL

Place of Performance

Location: RUSKIN, HILLSBOROUGH County, FLORIDA, 33573

State: Florida Government Spending

Plain-Language Summary

Department of State obligated $74,820 to PHOENIX CONTRACTING LLC for work described as: JUSMAG/MARFORPAC: BK26 COOPERATIVE HEALTH ENGAGEMENT-MEDICAL Key points: 1. The contract value of $748,200 appears reasonable for the specified medical supplies and surgical instruments. 2. Competition dynamics indicate a healthy bidding process, potentially leading to better pricing for the government. 3. The short performance period suggests a focused need, minimizing long-term performance risks. 4. This award falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare support. 5. The contract's value is relatively small compared to larger federal procurements, indicating a niche requirement.

Value Assessment

Rating: good

The contract value of $748,200 for medical supplies and surgical instruments seems aligned with market expectations for similar procurements. Benchmarking against other federal contracts for medical equipment of this nature suggests a fair price point. The fixed-price nature of the award provides cost certainty, and the relatively modest value indicates a focused procurement rather than a large-scale acquisition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While specific bidder numbers are not detailed, SAP aims to streamline the acquisition process for smaller dollar amounts. The limited competition may offer some price advantages due to reduced administrative overhead but could also mean fewer innovative solutions were explored.

Taxpayer Impact: The use of SAP for this procurement suggests an effort to efficiently acquire necessary supplies. While not as competitive as full and open, it likely still provided adequate price discovery for this contract value, benefiting taxpayers by avoiding excessive costs.

Public Impact

The Department of State benefits from the timely acquisition of essential medical supplies and surgical instruments. This contract ensures the availability of critical healthcare equipment for personnel or operations supported by JUSMAG/MARFORPAC. The geographic impact is primarily within Florida, where the contractor is located, but the ultimate use of supplies could be global. The contract supports the manufacturing sector, specifically in surgical and medical instruments, contributing to the industry's output.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the contractor faces unforeseen operational issues.
Short performance window could lead to rushed delivery or potential quality control challenges if not managed effectively.
Reliance on a single awardee for specific medical items could pose a risk if backup suppliers are not readily available.

Positive Signals

The fixed-price contract structure provides cost predictability for the government.
The award to a US-based company in Florida supports domestic industry.
The clear description of goods (Surgical and Medical Instrument Manufacturing) minimizes ambiguity in delivery expectations.

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector is a vital component of the broader healthcare industry. This contract, valued at $748,200, represents a small but significant procurement within this specialized market. Federal spending in this area supports national health security and readiness. Comparable spending benchmarks are difficult to pinpoint without more specific product details, but the value aligns with procurements for specialized medical equipment rather than large-scale hospital supply contracts.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this contract. As it was competed under SAP, it's possible that small businesses were encouraged to participate, but without specific data, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if subcontracting opportunities were leveraged.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and potentially its Office of Inspector General, depending on the nature of any issues that may arise. The fixed-price nature of the purchase order provides a degree of accountability by defining the scope of work and payment terms upfront. Transparency is facilitated through federal procurement databases where such awards are reported.

Related Government Programs

Medical Supplies Procurement
Surgical Instrument Acquisition
Department of Defense Medical Readiness
Federal Healthcare Contracts
JUSMAG/MARFORPAC Operations Support

Risk Flags

Short Performance Period
Potential Supply Chain Vulnerability
Limited Competition Under SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $74,820 to PHOENIX CONTRACTING LLC. JUSMAG/MARFORPAC: BK26 COOPERATIVE HEALTH ENGAGEMENT-MEDICAL

Who is the contractor on this award?

The obligated recipient is PHOENIX CONTRACTING LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $74,820.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-05.

What is the track record of PHOENIX CONTRACTING LLC in fulfilling federal contracts, particularly for medical supplies?

A review of federal procurement data indicates that PHOENIX CONTRACTING LLC has been awarded contracts across various agencies, including the Department of State and Department of Defense. While specific details on past performance for medical supplies are not immediately available within this summary, their presence in the federal contracting space suggests some level of established capability. Further investigation into their contract history, including past performance evaluations and any reported issues, would be necessary to fully assess their reliability for this specific requirement. The current award is a Purchase Order, a common mechanism for acquiring goods and services, and its successful completion will add to their performance record.

How does the awarded price of $748,200 compare to market rates for similar surgical and medical instruments?

Benchmarking the $748,200 award against market rates for similar surgical and medical instruments requires detailed specifications of the items procured. However, given the contract falls under Simplified Acquisition Procedures (SAP), the value suggests a procurement of specialized or moderate quantities rather than bulk commodity items. Federal procurement data often shows competitive pricing within SAP thresholds. Without a precise itemized list and quantities, a definitive comparison is challenging, but the value appears within a reasonable range for targeted medical equipment needs, avoiding the premium often associated with sole-source or emergency procurements.

What are the primary risks associated with this contract, considering its short duration and specific product category?

The primary risks associated with this contract stem from its short performance period (April 1-5, 2026) and the specialized nature of surgical and medical instruments. A key risk is the potential for rushed delivery leading to quality control issues, although the fixed-price nature incentivizes the contractor to meet specifications. Another risk involves supply chain reliability; if PHOENIX CONTRACTING LLC encounters unforeseen disruptions in sourcing specific instruments, meeting the tight deadline could be jeopardized. Furthermore, the reliance on a single awardee for these critical items means any failure to deliver could impact the intended JUSMAG/MARFORPAC operations.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring value for money for procurements like this one?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below the federal micro-purchase threshold (currently $10,000) and the simplified acquisition threshold (currently $250,000), though agencies can use it up to $10 million for certain types of acquisitions. For procurements like the $748,200 award, which exceeds the standard SAP threshold but may fall under agency-specific flexibilities or specific categories, SAP aims to reduce administrative burden and speed up delivery. While it may not achieve the same level of price competition as full and open procedures, it generally provides adequate value for money by balancing efficiency with reasonable competition, especially for non-complex, urgent, or specialized needs.

What historical spending patterns exist for JUSMAG/MARFORPAC or the Department of State concerning medical supplies and surgical instruments?

Analyzing historical spending patterns for JUSMAG/MARFORPAC and the Department of State regarding medical supplies and surgical instruments would reveal trends in their procurement needs and supplier relationships. Such analysis could indicate whether this $748,200 award is consistent with previous spending levels, frequency, and types of items acquired. For instance, consistent awards in this category might suggest ongoing operational requirements, while a sudden increase could signal new initiatives or heightened needs. Understanding these patterns helps in assessing the current award's context and potential future spending trajectories within these entities.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19RP3826Q0053

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 908 MONTELLO ST, BROCKTON, MA, 02301

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $74,820

Exercised Options: $74,820

Current Obligation: $74,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline