HHS awards $131M for Pyxis Medstation, boosting surgical instrument manufacturing
Contract Overview
Contract Amount: $131,398 ($131.4K)
Contractor: Carefusion Solutions, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2018-11-27
End Date: 2022-09-30
Contract Duration: 1,403 days
Daily Burn Rate: $94/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PYXIS MEDSTATION
Place of Performance
Location: WARM SPRINGS, JEFFERSON County, OREGON, 97761
State: Oregon Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $131,398 to CAREFUSION SOLUTIONS, LLC for work described as: PYXIS MEDSTATION Key points: 1. Significant contract value of $131.4 million awarded. 2. Competition was full and open, indicating market availability. 3. No explicit small business set-aside noted. 4. Sector is Surgical and Medical Instrument Manufacturing.
Value Assessment
Rating: good
The contract value is substantial, but specific pricing details and benchmarks against similar contracts are not provided in the data. Further analysis would be needed to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
Ensures continued access to critical medical equipment for healthcare facilities. Supports the manufacturing sector for surgical and medical instruments. Impacts patient care by providing necessary tools for medication management.
Waste & Efficiency Indicators
Waste Risk Score: 94 / 10
Warning Flags
- Lack of detailed pricing data for granular cost analysis.
- Potential for price creep over the contract duration if not managed.
- Dependence on a single product line (Pyxis Medstation).
Positive Signals
- Awarded under full and open competition.
- Long contract duration suggests a stable and ongoing need.
- High contract value indicates significant demand and potential for economies of scale.
Sector Analysis
The contract falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare operations. Spending benchmarks for this specific sub-sector would require more granular data.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this procurement, though they may have participated as subcontractors.
Oversight & Accountability
The contract was awarded by the Indian Health Service, a component of HHS. Oversight would involve monitoring contract performance, delivery schedules, and adherence to terms by CareFusion Solutions, LLC.
Related Government Programs
- Surgical and Medical Instrument Manufacturing
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential for vendor lock-in if Pyxis Medstation becomes the standard.
- Risk of price increases over the contract's extended duration.
- Limited visibility into specific cost breakdowns.
- Dependence on a single supplier for a critical medical device.
Tags
surgical-and-medical-instrument-manufact, department-of-health-and-human-services, or, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $131,398 to CAREFUSION SOLUTIONS, LLC. PYXIS MEDSTATION
Who is the contractor on this award?
The obligated recipient is CAREFUSION SOLUTIONS, LLC.
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 $131,398.
What is the period of performance?
Start: 2018-11-27. End: 2022-09-30.
What is the average per-unit cost of the Pyxis Medstation under this contract, and how does it compare to market rates?
The provided data does not include per-unit cost information, making a direct comparison to market rates impossible. To assess value, a breakdown of the total award amount by the number of units procured would be necessary. Without this, it's difficult to determine if the government secured a competitive price per unit.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured to mitigate risk?
Specific KPIs are not detailed in the provided data. Effective oversight would involve tracking delivery timeliness, equipment functionality, and vendor responsiveness to issues. The long duration and firm-fixed-price nature suggest a focus on reliable delivery, but detailed performance metrics are crucial for risk management.
How does the utilization of Pyxis Medstations impact patient safety and operational efficiency within the Indian Health Service facilities?
Pyxis Medstations are designed to improve medication management by automating dispensing, tracking, and inventory. This typically enhances patient safety by reducing errors and improves operational efficiency by streamlining workflows. The significant investment suggests these benefits are recognized as crucial for the IHS.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Becton, Dickinson and CO
Address: 3750 TORREY VIEW COURT, SAN DIEGO, CA, 92130
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: $131,398
Exercised Options: $131,398
Current Obligation: $131,398
Actual Outlays: $41,958
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36F79718D0454
IDV Type: FSS
Timeline
Start Date: 2018-11-27
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2026-04-02
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