Biomerieux Inc. receives $60,000 purchase order from NIH for surgical and medical instruments

Contract Overview

Contract Amount: $60,000 ($60.0K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-06

End Date: 2026-09-30

Contract Duration: 177 days

Daily Burn Rate: $339/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BIOMERIEUX INC:1107530 [26-001336]

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $60,000 to BIOMERIEUX INC for work described as: BIOMERIEUX INC:1107530 [26-001336] Key points: 1. Value for money appears fair given the fixed-price nature of the award. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are low due to the small contract value and short duration. 4. Performance context is a purchase order for instruments, suggesting routine operational needs. 5. Sector positioning is within medical instrument manufacturing, a critical healthcare sub-sector.

Value Assessment

Rating: fair

The contract value of $60,000 is relatively small, making a direct comparison to larger contracts difficult. The firm fixed-price award suggests that the contractor bears the risk of cost overruns. Without more detailed cost breakdowns or market data for these specific instruments, a precise value-for-money assessment is challenging. However, the price appears reasonable for a single purchase order of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures (SAP), indicating it was likely awarded on a sole-source basis. The absence of competition means that NIH did not solicit bids from multiple vendors. This approach may be justified if Biomerieux Inc. is the only known source for the required instruments, or if there were urgent circumstances. However, it limits the government's ability to ensure the lowest possible price through competitive bidding.

Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This contract's small value mitigates the financial impact, but it highlights a missed opportunity for potential savings.

Public Impact

The primary beneficiary is likely the National Institutes of Health (NIH) research facilities, which will receive necessary surgical and medical instruments. The services delivered are the provision of specific medical instruments, crucial for ongoing research and diagnostic activities. The geographic impact is localized to the NIH facilities where the instruments will be deployed, likely within Utah. There are no significant workforce implications associated with this specific purchase order.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to sole-source award.
Limited transparency on the justification for sole-source procurement.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Short contract duration minimizes long-term financial commitment.
Award to an established company in the medical instrument sector.

Sector Analysis

The surgical and medical instrument manufacturing sector is a vital part of the healthcare industry, encompassing a wide range of products from basic tools to complex diagnostic equipment. This contract falls within the North American Industry Classification System (NAICS) code 339112, which covers establishments primarily engaged in manufacturing surgical and medical instruments. Spending in this sector by federal agencies is consistent, supporting research, clinical care, and public health initiatives. Benchmarks for similar instrument purchases vary widely based on specificity and volume.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of the award (purchase order) and the specific product likely required, it is plausible that the vendor, Biomerieux Inc., is not a small business. There is no indication of subcontracting requirements for small businesses on this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the contracting officer and the relevant program managers within the National Institutes of Health. As a purchase order, it is subject to standard procurement regulations and internal agency financial controls. Transparency is limited due to the sole-source nature and small value, but records should be available through federal procurement databases.

Related Government Programs

Medical Supplies and Equipment
Research and Development Equipment
Healthcare Services Contracts
National Institutes of Health Procurement

Risk Flags

Sole-source award may limit price competition.
Lack of specific instrument details hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $60,000 to BIOMERIEUX INC. BIOMERIEUX INC:1107530 [26-001336]

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 $60,000.

What is the period of performance?

Start: 2026-04-06. End: 2026-09-30.

What is the specific type of surgical and medical instrument being procured under this purchase order?

The provided data does not specify the exact type of surgical or medical instrument. NAICS code 339112 covers a broad range of products, including surgical instruments, medical instruments, and diagnostic equipment. To understand the value and necessity of this purchase, further details on the specific item, its intended use (e.g., research, diagnostics, clinical support), and its technical specifications would be required. Without this information, it's difficult to assess if the price is competitive or if the instrument is critical for NIH operations.

What is the justification for awarding this contract on a sole-source basis?

The data indicates the contract was 'NOT COMPETED UNDER SAP,' strongly suggesting a sole-source award. The specific justification is not provided. Common reasons for sole-source awards include the unique capability of a single contractor, urgent and compelling needs, or when only one source is reasonably available. For a purchase order of this size, it might be that Biomerieux Inc. is the sole distributor of a proprietary instrument essential for ongoing NIH research, or that the administrative burden of a full competition was deemed disproportionate to the contract value. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required for larger sole-source awards.

How does the $60,000 value compare to typical NIH spending on similar instruments?

Without knowing the specific instrument, a direct comparison is difficult. However, $60,000 is a modest amount for federal procurement, especially for an agency like NIH which often engages in large-scale research and development contracts. This value suggests it might be for a specific piece of equipment, a limited quantity of consumables, or a specialized instrument rather than a large capital investment. NIH's overall budget is in the tens of billions, so this single purchase order represents a very small fraction of their total spending. Benchmarking would require identifying comparable instruments and their market prices.

What is Biomerieux Inc.'s track record with the federal government, particularly NIH?

Biomerieux Inc. is a known entity in the diagnostics and medical device market. While this specific data point doesn't detail their history, a quick search of federal procurement databases would likely reveal past contracts awarded to Biomerieux Inc. by various agencies, including potentially NIH. Their track record would involve examining past performance, delivery history, any past performance issues or awards, and the types of products or services previously provided. A positive history with reliable delivery and quality would reduce perceived risk for this current award.

What are the potential risks associated with this sole-source purchase order?

The primary risk associated with a sole-source award is the potential for paying a higher price than would be achieved through competition. Without bids from other vendors, there's less market pressure to ensure the most cost-effective solution. Another risk, though less likely for a small purchase order, is the possibility of vendor lock-in if the instrument requires proprietary consumables or support. Additionally, if the justification for sole-source is weak or not properly documented, it could raise concerns about procurement integrity. However, given the small value and short duration, the overall risk profile is likely low.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 S COLOROW DR, SALT LAKE CITY, UT, 84108

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: $60,000

Exercised Options: $60,000

Current Obligation: $60,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline