HHS Awards $4.78M for Cepheid Lab Supplies to Cepheid, Undermining Competition

Contract Overview

Contract Amount: $4,780 ($4.8K)

Contractor: Cepheid

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-08

End Date: 2026-05-29

Contract Duration: 51 days

Daily Burn Rate: $94/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CEPHEID LAB SUPPLIES - WSSU

Place of Performance

Location: WARM SPRINGS, JEFFERSON County, OREGON, 97761

State: Oregon Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4,780 to CEPHEID for work described as: CEPHEID LAB SUPPLIES - WSSU Key points: 1. Significant award to a single vendor for essential lab supplies. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The Indian Health Service relies on these supplies for critical analytical functions. 4. The contract's short duration suggests a potential for future competitive re-evaluation.

Value Assessment

Rating: questionable

The award of $4.78 million to Cepheid for lab supplies lacks a clear benchmark for value. Without competitive bidding, it's difficult to assess if this price is fair compared to market rates for similar analytical instruments and consumables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition approach. This significantly limits price discovery and may lead to higher costs for taxpayers as the vendor faces no pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition in this $4.78 million award means taxpayers may be paying a premium for essential laboratory supplies, as there was no market pressure to secure the best possible price.

Public Impact

Ensures continued operation of analytical laboratories within the Indian Health Service. Potential for increased healthcare costs due to non-competitive award. Impacts the availability and cost of diagnostic testing for specific populations.

Waste & Efficiency Indicators

Waste Risk Score: 94 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Essential supplies for healthcare operations
Clear end date for the contract

Sector Analysis

The healthcare sector, particularly analytical laboratory instrument manufacturing, often involves specialized equipment. While some components might be proprietary, a lack of competition for consumables or routine supplies warrants scrutiny to ensure cost-effectiveness.

Small Business Impact

This award does not appear to include provisions for small business participation. The sole-source nature of the contract likely precluded opportunities for small businesses to compete for this significant portion of federal spending.

Oversight & Accountability

The non-competed nature of this award raises questions about the oversight processes within the Indian Health Service. A review of the justification for sole-source procurement is warranted to ensure adherence to federal acquisition regulations.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Sole-source justification unclear
Limited small business opportunity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4,780 to CEPHEID. CEPHEID LAB SUPPLIES - WSSU

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $4,780.

What is the period of performance?

Start: 2026-04-08. End: 2026-05-29.

What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification (e.g., urgent need, unique capability). Without this, it's impossible to definitively assess if alternative competitive strategies were explored or if a sole-source award was truly the only viable option to meet the government's requirements.

How does the $4.78 million price compare to market benchmarks for similar analytical laboratory instruments and supplies?

Without access to detailed pricing breakdowns and market analysis conducted by the agency, a direct comparison is difficult. However, the absence of competition inherently suggests the price may not be optimized. Benchmarking would involve comparing unit costs for reagents, consumables, and instrument maintenance against similar contracts or commercial price lists from other vendors.

What is the potential impact of this sole-source award on the long-term availability and cost-effectiveness of critical laboratory services for the Indian Health Service?

A sole-source award can lead to vendor lock-in, potentially increasing costs over time as competition is absent. This could strain the budget for critical laboratory services. Future competitive procurements, if pursued, would be essential to ensure sustained cost-effectiveness and potentially introduce newer, more efficient technologies.

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

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 904, EAST CARIBBEAN DRIVE, SUNNYVALE, CA, 94089

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: $4,780

Exercised Options: $4,780

Current Obligation: $4,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H71322D00001

IDV Type: IDC

Timeline