HHS awards $15,924 purchase order for chemistry analyzer to Abbott Laboratories Inc

Contract Overview

Contract Amount: $15,925 ($15.9K)

Contractor: Abbott Laboratories Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-28

End Date: 2021-09-27

Contract Duration: 364 days

Daily Burn Rate: $44/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FIRM, FIXED-PRICE PURCHASE ORDER FOR PICCOLO XPRESS CHEMISTRY ANALYZER FOR RAPID CITY SERVICE UNIT, RAPID CITY, SD

Place of Performance

Location: RAPID CITY, PENNINGTON County, SOUTH DAKOTA, 57702

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,924.5 to ABBOTT LABORATORIES INC. for work described as: FIRM, FIXED-PRICE PURCHASE ORDER FOR PICCOLO XPRESS CHEMISTRY ANALYZER FOR RAPID CITY SERVICE UNIT, RAPID CITY, SD Key points: 1. Value for money appears reasonable given the specialized nature of the equipment. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Short contract duration (364 days) suggests a need for ongoing evaluation or potential for future competition. 4. Performance context is specific to the Rapid City Service Unit's analytical needs. 5. Sector positioning is within the analytical laboratory instrument manufacturing market. 6. Risk indicators include lack of competition and reliance on a single supplier.

Value Assessment

Rating: fair

The contract value of $15,924 for a chemistry analyzer is relatively small. Benchmarking against similar specialized laboratory equipment is difficult without more detailed specifications. However, the price appears within a plausible range for such a device, though the lack of competition prevents a definitive value assessment. The firm fixed-price structure shifts risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. Abbott Laboratories Inc. was the only identified source. This approach bypasses the standard competitive bidding process, which could lead to higher prices than if multiple vendors had submitted proposals. The rationale for the sole-source award is not detailed in the provided data.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the government secured the best possible price for this essential equipment.

Public Impact

The primary beneficiaries are the patients served by the Indian Health Service in Rapid City, SD, who will receive diagnostic services. The service delivered is the provision of a Piccolo Xpress Chemistry Analyzer, enabling rapid diagnostic testing. The geographic impact is localized to Rapid City, South Dakota. Workforce implications include enabling laboratory technicians to perform tests efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited vendor options.
Sole-source awards can stifle innovation by not encouraging new market entrants.
Reliance on a single supplier for critical equipment can create supply chain vulnerabilities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Short contract duration allows for periodic review and potential re-competition.
The equipment supports essential healthcare services for a specific community.

Sector Analysis

This contract falls within the analytical laboratory instrument manufacturing sector. This market is characterized by specialized equipment used for scientific analysis. While the overall market size for such instruments is substantial, individual contracts for specific analyzers can vary significantly in value. This purchase order represents a small segment of spending within this sector, likely serving a specific operational need rather than a broad programmatic requirement.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses. The award to a large corporation like Abbott Laboratories Inc. suggests that small business participation was likely minimal or non-existent in this specific transaction.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Indian Health Service's procurement and financial management systems. As a sole-source award, it may warrant closer scrutiny to ensure the justification for not competing was valid. Transparency is limited by the lack of public competition details. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Medical Equipment Purchases
Laboratory Services
Indian Health Service Contracts
Department of Health and Human Services Procurement

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,924.5 to ABBOTT LABORATORIES INC.. FIRM, FIXED-PRICE PURCHASE ORDER FOR PICCOLO XPRESS CHEMISTRY ANALYZER FOR RAPID CITY SERVICE UNIT, RAPID CITY, SD

Who is the contractor on this award?

The obligated recipient is ABBOTT LABORATORIES INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $15,924.5.

What is the period of performance?

Start: 2020-09-28. End: 2021-09-27.

What is the track record of Abbott Laboratories Inc. in supplying similar chemistry analyzers to federal agencies?

Abbott Laboratories Inc. is a major global healthcare company with a long history of providing medical devices, diagnostics, and pharmaceuticals. They are known for their range of diagnostic instruments, including chemistry analyzers. While specific federal contract history for this exact model (Piccolo Xpress) is not detailed here, Abbott has a significant presence in supplying healthcare products to government entities, including the Department of Defense and the Department of Veterans Affairs, through various contract vehicles. Their track record generally reflects a capacity to meet federal procurement requirements, though the specific performance and pricing on individual contracts can vary.

How does the $15,924 price compare to market rates for similar chemistry analyzers?

Determining precise market rates for the Piccolo Xpress Chemistry Analyzer without specific configurations and service agreements is challenging. However, based on publicly available information and industry benchmarks, the price of $15,924 for the instrument itself appears to be within a reasonable range, potentially on the lower end if it includes basic accessories. Many similar point-of-care or small laboratory analyzers can range from $10,000 to $30,000 or more, depending on features, throughput, and associated reagent costs. The firm fixed-price nature of this purchase order suggests the quoted price was accepted as is, but the lack of competition prevents a definitive statement on whether it represents the best possible market value.

What are the primary risks associated with this sole-source award?

The primary risks associated with this sole-source award are related to cost and competition. Firstly, without competitive bidding, there is a significant risk that the government paid a higher price than could have been achieved through a competitive process. Secondly, the sole-source nature limits the government's options for future procurements, potentially locking them into a single vendor relationship which could stifle innovation and reduce leverage in negotiations. Thirdly, there's a risk of vendor lock-in, where the agency becomes dependent on Abbott Laboratories for maintenance, consumables, and future upgrades, potentially at non-competitive prices. Finally, the lack of transparency inherent in sole-source awards can obscure potential inefficiencies or suboptimal decision-making.

How effective is the Piccolo Xpress Chemistry Analyzer in supporting the Rapid City Service Unit's healthcare mission?

The Piccolo Xpress Chemistry Analyzer is designed for point-of-care or decentralized laboratory testing, providing rapid results for a range of common chemistry tests. For the Rapid City Service Unit, which serves a specific geographic area, this analyzer likely enhances their ability to provide timely diagnostic information to patients, potentially improving treatment decisions and patient outcomes. Its effectiveness is tied to its reliability, the range of tests it can perform relevant to the patient population's needs, and its ease of use for the laboratory staff. While the data doesn't provide direct performance metrics, the acquisition suggests it is considered an effective tool for their mission.

What are the historical spending patterns for analytical laboratory instruments by the Indian Health Service?

Historical spending patterns for analytical laboratory instruments by the Indian Health Service (IHS) would likely show a consistent need for diagnostic equipment across its various service units and facilities. IHS operates numerous clinics and hospitals serving Native American populations, all of which require laboratory capabilities. Spending would typically involve procurements of various analyzers (chemistry, hematology, immunoassay), microscopes, and related consumables. The frequency and value of these procurements would fluctuate based on equipment lifecycle, technological advancements, and specific health needs of the communities served. While this specific $15,924 purchase is a single data point, IHS generally invests in laboratory infrastructure to ensure access to essential diagnostic services.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), and the contract type is 'SOLE SOURCE'. However, the specific justification or rationale for why this particular chemistry analyzer from Abbott Laboratories Inc. was deemed a sole-source requirement is not detailed. Common justifications for sole-source awards include unique capabilities of the product, urgent and compelling needs where competition is not feasible, or if only one responsible source exists. Without further information from the agency (Department of Health and Human Services, Indian Health Service), the precise reason for bypassing competition remains unknown.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 ABBOTT PARK RD, ABBOTT PARK, IL, 60064

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: $15,925

Exercised Options: $15,925

Current Obligation: $15,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline