NIH awards $14.9M for scientific laboratory supplies, with a sole-source contract to STERIS CORPORATION

Contract Overview

Contract Amount: $14,946 ($14.9K)

Contractor: Steris Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-10

End Date: 2026-05-06

Contract Duration: 2,064 days

Daily Burn Rate: $7/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCIENTIFIC LABORATORY SUPPLIES.

Place of Performance

Location: MENTOR, LAKE County, OHIO, 44060

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14,945.79 to STERIS CORPORATION for work described as: SCIENTIFIC LABORATORY SUPPLIES. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is over 6 years, suggesting a long-term need. 3. The award is a Purchase Order, typically used for smaller, simpler acquisitions. 4. The North American Industry Classification System (NAICS) code 339113 indicates a focus on surgical appliance and supplies manufacturing. 5. The contract is not set aside for small businesses. 6. The base contract value is approximately $14.9 million.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to the sole-source nature and lack of publicly available pricing details. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The duration of the contract (over 6 years) suggests a significant commitment, and the value proposition hinges on the necessity and quality of the supplies provided by STERIS CORPORATION.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition means that taxpayers did not benefit from potential cost savings that could arise from a competitive bidding process.

Taxpayer Impact: The absence of competition for this contract means that the government may not have secured the best possible price. This could lead to higher costs for taxpayers compared to a scenario where multiple vendors vied for the contract.

Public Impact

Researchers and staff at the National Institutes of Health (NIH) will benefit from the consistent supply of necessary scientific laboratory equipment and consumables. The contract ensures the availability of critical supplies for ongoing research and development activities within the NIH. The geographic impact is primarily within the facilities served by the NIH, likely concentrated in Maryland and other research sites. The contract supports the scientific endeavors of the U.S. Public Health Service, contributing to advancements in health and medicine.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for other suppliers and potentially higher costs.
Long contract duration may not adapt well to rapidly changing supply needs or market prices.
Lack of transparency in pricing due to sole-source nature makes value assessment difficult.

Positive Signals

Ensures a reliable supply chain for critical research materials.
STERIS CORPORATION is an established provider, potentially offering expertise and quality.
Fixed-price contract provides cost predictability for the NIH.

Sector Analysis

The scientific laboratory supplies sector is a critical component of the broader healthcare and research industries. This contract falls under the manufacturing of surgical appliances and supplies. The market is characterized by a mix of large, established players and specialized niche providers. Government contracts in this area are essential for supporting public health research and medical advancements.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, with opportunities for small businesses to participate primarily through indirect supply chains if they are vendors to STERIS CORPORATION.

Oversight & Accountability

As a Purchase Order issued by the National Institutes of Health (part of HHS), oversight would typically fall under the agency's internal procurement and financial management systems. The Department of Health and Human Services Office of Inspector General (HHS-OIG) would have jurisdiction for investigating fraud, waste, and abuse related to this contract. Transparency is limited due to the sole-source nature.

Related Government Programs

NIH Research Supplies
Medical Equipment Procurement
Laboratory Consumables Contracts
HHS Supply Chain Management

Risk Flags

Sole-source award may indicate limited market availability or a specific justification for non-competition.
Long contract duration requires careful monitoring for potential price escalations or changes in market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14,945.79 to STERIS CORPORATION. SCIENTIFIC LABORATORY SUPPLIES.

Who is the contractor on this award?

The obligated recipient is STERIS CORPORATION.

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 $14,945.79.

What is the period of performance?

Start: 2020-09-10. End: 2026-05-06.

What is the track record of STERIS CORPORATION in fulfilling government contracts, particularly for scientific laboratory supplies?

STERIS CORPORATION is a well-established company in the healthcare and life sciences industries, known for its sterilization, surgical, and infection prevention solutions. While specific details on their track record for fulfilling NIH contracts for scientific laboratory supplies are not provided in this data snippet, their broad presence in the healthcare sector suggests experience. A deeper dive into federal procurement databases (like FPDS-NG) would reveal their history of awards, performance ratings, and any past issues or successes with government agencies. Their specialization in medical and surgical products indicates a potential capability to supply laboratory needs, but the exact fit and performance for this specific contract would require further investigation into past performance reviews and contract completion data.

How does the pricing of this contract compare to similar sole-source awards for scientific laboratory supplies?

Direct comparison of pricing for this sole-source contract is difficult without access to detailed pricing structures and specific item lists, as well as comparable sole-source awards. Sole-source contracts inherently lack the price discovery mechanism of competitive bidding, making it challenging to benchmark against market rates or other government awards. To assess value, one would need to compare the unit prices of key items against catalog prices, GSA schedules (if applicable), or prices paid by other federal agencies for similar items, assuming such data is available and comparable. The absence of competition suggests a higher risk of non-competitive pricing, necessitating careful internal review by the agency.

What are the primary risks associated with a sole-source award for scientific laboratory supplies?

The primary risks associated with a sole-source award for scientific laboratory supplies include: 1. **Higher Costs:** Without competition, the contractor may charge premium prices, leading to increased expenditure for the government. 2. **Limited Innovation:** The lack of competitive pressure can reduce the incentive for the contractor to innovate or offer cost-saving solutions. 3. **Vendor Lock-in:** The agency becomes dependent on a single supplier, potentially facing difficulties if the supplier's quality declines, prices increase significantly, or they discontinue certain products. 4. **Reduced Transparency:** Sole-source awards often have less transparent pricing structures, making it harder to verify fair market value. 5. **Potential for Inadequate Performance:** While not inherent to sole-source, the absence of competitive vetting means the agency relies solely on its pre-award due diligence to ensure the contractor's capability and reliability.

What is the historical spending pattern for scientific laboratory supplies at the NIH, and how does this award fit within that pattern?

Historical spending patterns for scientific laboratory supplies at the NIH are likely substantial, given its role as a leading biomedical research institution. The NIH consistently procures a wide array of consumables, equipment, and services to support its extensive research portfolio. This $14.9 million award, spread over approximately 6.7 years, represents an average annual expenditure of roughly $2.2 million for these specific supplies from STERIS CORPORATION. To understand how this fits, one would need to analyze NIH's total annual spending on laboratory supplies, identify other major suppliers, and determine the proportion this contract represents. If the NIH spends hundreds of millions annually on supplies, this award might be a significant but not dominant portion. Its sole-source nature also suggests it might be for specialized or proprietary items within their broader supply needs.

What are the potential implications for the scientific research mission of the NIH if there are disruptions in the supply of these laboratory materials?

Disruptions in the supply of essential scientific laboratory materials can have severe implications for the NIH's research mission. Research projects often rely on a continuous flow of specific reagents, consumables, and equipment. Any interruption can lead to project delays, loss of valuable samples, and increased costs due to the need to restart experiments or procure emergency supplies at higher prices. For long-term studies, supply chain disruptions can jeopardize years of work and potentially halt critical research progress. Given the sole-source nature of this contract, the NIH is particularly reliant on STERIS CORPORATION's ability to maintain consistent delivery, making supply chain resilience and contingency planning crucial.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5960 HEISLEY RD, MENTOR, OH, 44060

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: $14,946

Exercised Options: $14,946

Current Obligation: $14,946

Actual Outlays: $2,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline