NIH awards $264K for biological products, highlighting a single vendor purchase order

Contract Overview

Contract Amount: $264,562 ($264.6K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-07-20

End Date: 2020-12-31

Contract Duration: 895 days

Daily Burn Rate: $296/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BIOMERIEUX INC:1107530 [18-011433]

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $264,562.19 to BIOMERIEUX INC for work described as: BIOMERIEUX INC:1107530 [18-011433] Key points: 1. The contract value of $264,562.19 appears modest for biological product manufacturing. 2. Competition dynamics are unclear due to the 'COMPETED UNDER SAP' designation, suggesting potential limitations. 3. The firm fixed-price contract type offers cost certainty but may limit flexibility. 4. The duration of 895 days (approx. 2.5 years) for this value warrants scrutiny. 5. The specific product category, 'Biological Product (except Diagnostic) Manufacturing', is broad. 6. The award was made to BIOMERIEUX INC, a known entity in the life sciences sector.

Value Assessment

Rating: fair

Benchmarking the value of $264,562.19 for biological product manufacturing is challenging without more specific product details. However, for a contract spanning nearly two and a half years, this amount suggests a relatively small-scale or specialized need. Compared to larger federal procurements in the life sciences, this award is on the lower end. The firm fixed-price structure provides cost predictability for the government, but the overall value proposition depends heavily on the criticality and uniqueness of the biological products procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract is designated as 'COMPETED UNDER SAP' (Simplified Acquisition Procedures). This typically implies that the procurement was conducted using methods intended for smaller value contracts, which may involve fewer bidders or less formal solicitation processes than full and open competition. Without further details on the specific SAP procedures used, it's difficult to definitively assess the level of competition. However, SAP can sometimes lead to a more limited pool of potential offerors.

Taxpayer Impact: The use of Simplified Acquisition Procedures may result in less competitive pricing compared to full and open competition, potentially leading to higher costs for taxpayers if robust price discovery was not achieved.

Public Impact

The primary beneficiaries are likely researchers or medical facilities within the National Institutes of Health (NIH) or affiliated institutions requiring specific biological products. The services delivered involve the manufacturing or supply of biological products, crucial for research, diagnostics, or therapeutic development. The geographic impact is centered around the National Institutes of Health in Maryland, where the contract is managed. Workforce implications are minimal, likely involving specialized personnel within BIOMERIEUX INC for production and NIH staff for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information under SAP could obscure potential cost savings.
The specific nature of the biological product is not detailed, raising questions about its necessity and potential alternatives.
Contract duration relative to award value might indicate inefficiencies or a very niche requirement.

Positive Signals

Firm fixed-price contract provides budget certainty.
Award to an established company like BIOMERIEUX INC suggests a degree of reliability.
Procurement by NIH indicates a focus on health and research-related needs.

Sector Analysis

The biological product manufacturing sector is a critical component of the broader life sciences industry, encompassing pharmaceuticals, biotechnology, and medical devices. Federal spending in this area supports research and development, public health initiatives, and national security needs. Comparable spending benchmarks vary widely, from small research grants to multi-billion dollar drug development contracts. This specific contract appears to be a minor expenditure within this vast sector, likely addressing a very specific product requirement for NIH.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus remains on larger, established contractors for this procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a purchase order under Simplified Acquisition Procedures, the oversight might be less intensive than for larger, more complex contracts. Accountability is managed through the terms of the firm fixed-price purchase order and adherence to delivery schedules. Transparency is limited by the 'COMPETED UNDER SAP' designation, which often involves less public disclosure than full and open competition.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Public Health Programs
Biological and Biomedical Sciences Research
Medical Supplies and Equipment Procurement

Risk Flags

Limited competition due to SAP
Lack of specific product details
Potential for price inefficiency under sole-source-like conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $264,562.19 to BIOMERIEUX INC. BIOMERIEUX INC:1107530 [18-011433]

Who is the contractor on this award?

The obligated recipient is BIOMERIEUX INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $264,562.19.

What is the period of performance?

Start: 2018-07-20. End: 2020-12-31.

What specific biological products were procured under this contract, and what is their intended use?

The provided data indicates the contract falls under the 'Biological Product (except Diagnostic) Manufacturing' category (ND: 'Biological Product (except Diagnostic) Manufacturing'). However, it does not specify the exact biological products. These could range from reagents for laboratory research, components for diagnostic kits, or even small-batch production of specialized biological agents. The intended use is likely to support research activities conducted by the National Institutes of Health (NIH) or its affiliated research partners, contributing to advancements in medical science and public health. Without more granular information, the precise application remains speculative but is tied to NIH's mission.

How does the pricing of this contract compare to similar biological product procurements by the government?

Direct price comparison is difficult without knowing the specific biological product and its quantity. The total award of $264,562.19 over 895 days (approximately 2.5 years) suggests a modest scale. For highly specialized or research-grade biological products, this price might be reasonable if it represents a small quantity or a niche item. However, if the products are more common or produced in larger volumes, this price could be on the higher side, especially considering the duration. Benchmarking would require access to databases of similar procurements for identical or comparable biological products, factoring in quantity, quality standards, and delivery timelines.

What are the potential risks associated with procuring biological products from a single vendor under Simplified Acquisition Procedures?

Procuring biological products from a single vendor, even under Simplified Acquisition Procedures (SAP), carries inherent risks. The primary risk is the lack of competitive pressure, which can lead to suboptimal pricing and potentially lower quality if the vendor faces no alternatives. There's also a risk of supply chain disruption if the sole vendor experiences production issues or goes out of business. Furthermore, reliance on a single source might limit access to innovative solutions or alternative products that could emerge from a more competitive market. While SAP is designed for efficiency in smaller procurements, it can sometimes bypass the rigorous vetting and competition that larger contracts undergo, potentially increasing the risk of vendor performance issues or non-compliance.

What is the track record of BIOMERIEUX INC in fulfilling federal contracts for biological products?

BIOMERIEUX INC is a well-established company in the field of in vitro diagnostics and biological products. While this specific contract (ID: 18-011433) is for $264,562.19 with an end date of December 31, 2020, their broader federal contracting history would need to be examined for a comprehensive assessment. Generally, companies of this size and specialization often have a history of fulfilling government contracts. A deeper analysis would involve reviewing past performance evaluations, any past disputes or contract terminations, and the volume and types of biological products they have supplied to federal agencies. Without access to a detailed contract performance database, it's assumed they have a functional track record given their industry presence.

How does this contract's duration and value align with typical NIH procurements for biological products?

The duration of 895 days (approximately 2.5 years) for a $264,562.19 award is somewhat lengthy for the awarded amount, suggesting either a continuous need for a specific product over an extended period or potentially a less urgent procurement process. NIH procures a vast array of biological products, ranging from short-term research reagents to long-term supply agreements. Contracts for routine laboratory supplies or standard reagents might be shorter and more frequent. Conversely, specialized or custom-manufactured biological products, or those tied to specific research protocols, could justify longer durations. This contract's profile suggests a steady, ongoing requirement for a particular biological product rather than a large, one-time purchase.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: NIHOPCCC18011433

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 RODOLPHE ST, DURHAM, NC, 27712

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

Financial Breakdown

Contract Ceiling: $264,562

Exercised Options: $264,562

Current Obligation: $264,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline