NIH awarded $15,880 for 6" sterile swabs, a critical supply during the early COVID-19 pandemic

Contract Overview

Contract Amount: $15,880 ($15.9K)

Contractor: Puritan Medical Products Company I LP

Awarding Agency: Department of Health and Human Services

Start Date: 2020-04-24

End Date: 2020-05-05

Contract Duration: 11 days

Daily Burn Rate: $1.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 6" STERILE HYDRAFLOCK SWAB

Place of Performance

Location: GUILFORD, PISCATAQUIS County, MAINE, 04443

State: Maine Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,879.6 to PURITAN MEDICAL PRODUCTS COMPANY I LP for work described as: 6" STERILE HYDRAFLOCK SWAB Key points: 1. The contract secured essential medical supplies rapidly during a period of high demand. 2. Competition dynamics for this specific item are not fully detailed, but it was competed. 3. The short duration suggests an urgent need fulfillment rather than a long-term strategic acquisition. 4. Performance context is limited due to the nature of the item and short delivery window. 5. This falls within the broader healthcare and medical supplies sector, crucial for public health response. 6. The award to Puritan Medical Products Company indicates a supplier capable of meeting immediate needs.

Value Assessment

Rating: good

The price of $15,880 for 6" sterile swabs appears reasonable given the urgent procurement context and the period of intense demand for medical supplies. Benchmarking against similar, non-emergency procurements might show variations, but the value here lies in the rapid availability of a critical item. The fixed-price nature of the award provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process was employed for this purchase. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation implies that multiple offers were solicited and considered. This approach is suitable for procurements below certain dollar thresholds and aims to ensure fair pricing.

Taxpayer Impact: Competing this requirement, even under SAP, helps ensure that taxpayer funds are used efficiently by fostering price competition among potential suppliers.

Public Impact

The primary beneficiaries are healthcare providers and patients requiring diagnostic and testing supplies. The service delivered is the provision of essential sterile swabs for medical use. The geographic impact is national, supporting the US healthcare system's response capabilities. Workforce implications are indirect, supporting the jobs within the medical supply manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future similar procurements if demand remains high.
Reliance on a single supplier for a critical item could pose a risk if their production is disrupted.

Positive Signals

Successful and rapid fulfillment of an urgent need for medical supplies.
Award to a known supplier in the medical products industry.
Use of a competitive process to secure the items.

Sector Analysis

This contract falls within the broader medical supplies and equipment manufacturing sector, specifically Surgical Appliance and Supplies Manufacturing (NAICS 339113). This sector is vital for healthcare delivery, encompassing a wide range of products from basic consumables to complex medical devices. Spending in this area often fluctuates based on public health needs, research funding, and hospital demand. The market is characterized by both large established manufacturers and smaller specialized firms.

Small Business Impact

There is no indication that this specific purchase was set aside for small businesses, nor is there information on subcontracting plans. The award went to Puritan Medical Products Company, a known entity in the medical supply industry. Further analysis would be needed to determine the extent of small business participation in the supply chain for this product.

Oversight & Accountability

The contract was awarded as a Purchase Order with a Firm Fixed Price, providing clear terms and cost control. Oversight would typically involve the contracting officer and relevant program officials within NIH to ensure delivery and quality standards are met. Transparency is generally maintained through federal procurement databases where contract awards are reported.

Related Government Programs

COVID-19 Testing Supplies Procurement
Medical Equipment and Supplies
National Institutes of Health Contracts
Department of Health and Human Services Purchases

Risk Flags

Urgent Procurement Context
Potential for Price Volatility
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,879.6 to PURITAN MEDICAL PRODUCTS COMPANY I LP. 6" STERILE HYDRAFLOCK SWAB

Who is the contractor on this award?

The obligated recipient is PURITAN MEDICAL PRODUCTS COMPANY I LP.

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 $15,879.6.

What is the period of performance?

Start: 2020-04-24. End: 2020-05-05.

What is the track record of Puritan Medical Products Company with federal agencies?

Puritan Medical Products Company has a history of supplying various medical and laboratory consumables to federal agencies. Their awards often relate to swabs, specimen collection devices, and related laboratory supplies. Analyzing their contract history reveals a capacity to fulfill government requirements, particularly for essential healthcare items. The volume and value of their federal contracts can vary significantly year over year, often influenced by public health emergencies or specific agency needs. Their experience suggests they are a reliable, albeit sometimes high-volume, supplier within the federal healthcare procurement landscape.

How does the unit cost of these swabs compare to other federal procurements or market rates?

Without specific unit cost data and comparable contract details (volume, delivery terms, specific product variations), a precise benchmark is difficult. However, during the height of the COVID-19 pandemic, prices for essential supplies like sterile swabs saw significant volatility due to unprecedented demand and supply chain pressures. This $15,880 award for an unspecified quantity of swabs suggests a need for rapid acquisition. If this was for a large quantity, the per-unit cost might have been elevated compared to pre-pandemic or non-emergency rates. A detailed analysis would require comparing this award to other NIH or HHS contracts for similar items awarded around the same time, considering factors like quantity discounts and delivery urgency.

What are the primary risks associated with this type of procurement?

The primary risks in this procurement revolve around supply chain reliability and potential price volatility, especially given the context of urgent need during a pandemic. If the quantity procured was insufficient, there's a risk of stockouts impacting critical testing or medical procedures. Conversely, over-procurement could lead to waste if supplies expire or become obsolete. Dependence on a single supplier, even for a short duration, carries risk if that supplier faces production issues or quality control problems. Ensuring the quality and sterility of the swabs is paramount to avoid compromising patient safety or test accuracy.

How effective was this specific award in meeting the government's needs?

This award was likely effective in meeting an immediate, critical need for sterile swabs, as indicated by the short performance period (11 days) and the context of the pandemic. The primary goal was rapid acquisition of essential supplies. Effectiveness is measured by the timely delivery of the correct quantity and quality of swabs to support NIH operations or broader public health efforts. Given the urgency, the value proposition likely prioritized availability over the absolute lowest cost. Without further details on the quantity ordered and its utilization, a definitive assessment of 'effectiveness' beyond fulfilling the immediate order is limited.

What are the historical spending patterns for sterile swabs by the NIH or HHS?

Historical spending patterns for sterile swabs by NIH and HHS would show a baseline level of procurement for routine medical and research needs, likely with more stable pricing and predictable volumes. However, spending would have spiked dramatically during the COVID-19 pandemic (early 2020 onwards) as demand for testing and personal protective equipment surged. Analyzing spending trends would reveal this significant increase in both quantity and potentially cost per unit during peak pandemic periods. Post-pandemic, spending would likely normalize, though potentially at a higher baseline than pre-pandemic levels due to increased awareness and preparedness.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 31 SCHOOL ST, GUILFORD, ME, 04443

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,880

Exercised Options: $15,880

Current Obligation: $15,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline