HHS awards $40M for Cepheid testing kits, with contract ending March 2026

Contract Overview

Contract Amount: $40,000 ($40.0K)

Contractor: Cepheid

Awarding Agency: Department of Health and Human Services

Start Date: 2026-03-06

End Date: 2026-09-30

Contract Duration: 208 days

Daily Burn Rate: $192/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TESTING KITS CEPHEID:1109680 [26-001331]

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $40,000 to CEPHEID for work described as: TESTING KITS CEPHEID:1109680 [26-001331] Key points: 1. The contract is for testing kits manufactured by Cepheid. 2. The Department of Health and Human Services is the awarding agency. 3. The contract has a duration of 208 days. 4. The contract is for Firm Fixed Price.

Value Assessment

Rating: fair

The contract value is $40 million. Without specific unit cost data or benchmarks for similar testing kits, a precise pricing assessment is difficult. However, the firm fixed-price structure suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may not yield the best possible price discovery compared to full and open competition.

Taxpayer Impact: The $40 million award represents taxpayer funds. The limited competition raises questions about whether taxpayers received the best value for these essential testing kits.

Public Impact

Ensures availability of critical testing kits for public health initiatives. Supports the National Institutes of Health's research and operational needs. Potential for increased demand and reliance on specific manufacturers for health supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher prices.
Short contract duration could necessitate future procurements.
Reliance on a single manufacturer for critical supplies.

Positive Signals

Firm fixed-price contract provides cost certainty.
Supports a known supplier for essential medical equipment.

Sector Analysis

The contract falls under Surgical and Medical Instrument Manufacturing. Spending in this sector is crucial for public health infrastructure, especially for diagnostic tools. Benchmarks would typically consider volume, complexity, and urgency of the medical instruments.

Small Business Impact

The data indicates this contract was awarded to Cepheid, a specific company. There is no explicit information provided regarding small business participation or subcontracting opportunities within this award.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services, specifically the National Institutes of Health. Oversight would involve ensuring delivery, quality, and adherence to the firm fixed-price terms.

Related Government Programs

Surgical and Medical Instrument Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition
Potential for price inflation
Supply chain dependency
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $40,000 to CEPHEID. TESTING KITS CEPHEID:1109680 [26-001331]

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $40,000.

What is the period of performance?

Start: 2026-03-06. End: 2026-09-30.

What is the historical pricing for similar testing kits from Cepheid or competitors?

Historical pricing data for similar testing kits is crucial for evaluating the $40 million award. Without this, it's difficult to determine if the current price reflects market value or if limited competition inflated costs. Analyzing past contracts and competitor pricing would provide a clearer picture of value for money.

What are the risks associated with relying on a single source for these testing kits?

Reliance on a single source, Cepheid in this case, poses risks such as supply chain disruptions, potential price increases due to lack of competition, and vulnerability if the manufacturer faces production issues. This could impact the availability of essential testing kits during critical periods.

How effective is the firm fixed-price contract in ensuring the quality and timely delivery of the testing kits?

A firm fixed-price contract generally incentivizes the contractor to control costs and deliver on time to maximize profit. However, effectiveness in ensuring quality depends on robust inspection and acceptance criteria within the contract terms and diligent oversight by the agency.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 26-001331

Offers Received: 1

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: $40,000

Exercised Options: $40,000

Current Obligation: $40,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline