NIH awards $19.3M for diagnostic kits and lab supplies, bypassing competitive bidding

Contract Overview

Contract Amount: $19,314 ($19.3K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-09

End Date: 2026-09-30

Contract Duration: 174 days

Daily Burn Rate: $111/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PURCHASE OF BIOFIRE MYCOPLASMA TESTING KITS, BACT/ALERT FA &FN PLUS BOTTLES AND BIOBALL REHYDRATION FLUID BIOMERIEUX INDUSTRY BIOMERIEUX INC:1107530 [26-004336]

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 $19,314.18 to BIOMERIEUX INC for work described as: PURCHASE OF BIOFIRE MYCOPLASMA TESTING KITS, BACT/ALERT FA &FN PLUS BOTTLES AND BIOBALL REHYDRATION FLUID BIOMERIEUX INDUSTRY BIOMERIEUX INC:1107530 [26-004336] Key points: 1. Contract awarded without competition, raising questions about potential cost savings. 2. Limited competition may lead to higher prices than if multiple vendors were considered. 3. The contract duration of 174 days is relatively short, suggesting a need for immediate supplies. 4. Awarded to a single vendor, Biomérieux Inc., for specialized laboratory equipment and consumables. 5. The National Institutes of Health (NIH) is the contracting agency, focusing on health research. 6. The purchase order is for analytical laboratory instruments and related supplies.

Value Assessment

Rating: questionable

The contract's value of $19.3 million for diagnostic kits and lab supplies warrants scrutiny due to the lack of competitive bidding. Without a benchmark against other suppliers or a competitive process, it is difficult to ascertain if this represents a fair market price. The short duration of the contract (174 days) also suggests a potential for higher unit costs if not carefully managed. Further analysis would require comparing unit prices for similar items from other manufacturers or historical data for this specific vendor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order to Biomérieux Inc. The lack of competition means that other potential suppliers were not given an opportunity to bid on this requirement. This approach can be justified for specific proprietary products or urgent needs, but it limits price discovery and potentially increases costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these supplies due to the absence of a competitive bidding process, which typically drives down prices.

Public Impact

Researchers and laboratories within the National Institutes of Health will benefit from the timely acquisition of essential diagnostic kits and supplies. The contract ensures the availability of critical components for analytical laboratory instruments, supporting ongoing health research initiatives. The geographic impact is primarily within the facilities managed by the NIH, likely concentrated in research hubs. The contract supports the operational needs of scientific personnel involved in laboratory analysis and diagnostics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Sole-source award limits opportunities for small businesses to participate.
Short contract duration could indicate a reactive procurement rather than strategic planning.

Positive Signals

Ensures availability of critical diagnostic supplies for NIH research.
Award to an established manufacturer suggests product reliability.
Firm fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, which is a niche but critical part of the broader healthcare and life sciences industry. The market for diagnostic kits and laboratory consumables is competitive, with numerous players offering a range of products. However, specific proprietary instruments or reagents, like those potentially supplied by Biomérieux Inc., can sometimes lead to sole-source procurements. Benchmarking spending in this area would involve comparing NIH's expenditure on similar diagnostic tools and reagents against other federal health agencies or large research institutions.

Small Business Impact

The contract was not awarded as a small business set-aside, and the sole-source nature of the award means there are no subcontracting opportunities for small businesses stemming directly from this specific contract. This limits the direct impact on the small business ecosystem for this particular procurement. Future procurements of similar items could potentially be structured to include small business participation.

Oversight & Accountability

As a purchase order issued by the National Institutes of Health, this contract is subject to internal agency oversight and potentially the Government Accountability Office (GAO) if protests are filed. Transparency is limited due to the sole-source nature, but the contract details should be available through federal procurement databases. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud or mismanagement related to this award.

Related Government Programs

NIH Research Grants
CDC Diagnostic Supply Procurement
Medical Laboratory Equipment Purchases
Biotechnology Research Supplies

Risk Flags

Sole-source award lacks competition.
Potential for overpricing due to lack of competitive bidding.
Limited transparency in the procurement process.
No small business participation opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19,314.18 to BIOMERIEUX INC. PURCHASE OF BIOFIRE MYCOPLASMA TESTING KITS, BACT/ALERT FA &FN PLUS BOTTLES AND BIOBALL REHYDRATION FLUID BIOMERIEUX INDUSTRY BIOMERIEUX INC:1107530 [26-004336]

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 $19,314.18.

What is the period of performance?

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

What is the track record of Biomérieux Inc. with federal agencies, particularly the NIH?

Biomérieux Inc. has a history of supplying medical devices and diagnostic products to various federal agencies. While specific details for NIH require deeper database searches, their presence in the federal market suggests familiarity with government procurement processes. A review of past contracts would reveal their performance, pricing trends, and any past performance issues or commendations. This information is crucial for assessing the reliability and value proposition of awarding them this sole-source contract. Without this historical context, it's difficult to definitively state their track record specifically with NIH beyond the current award.

How does the $19.3 million value compare to similar NIH procurements for diagnostic kits and lab supplies?

Comparing the $19.3 million value requires access to historical NIH procurement data for similar items. Without direct access to this comparative data, it's challenging to benchmark. However, given the sole-source nature, there's an inherent risk that this amount might be higher than if the contract had been competed. If similar, competed contracts for comparable quantities and types of diagnostic kits and lab supplies exist within NIH or other agencies like the CDC or VA, a comparison could reveal significant price differences. The short duration (174 days) also means the annual spending rate could be substantially higher if this were a recurring need.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with this sole-source award include potential overpayment due to lack of price competition, reduced incentive for the contractor to offer the best possible price, and limited opportunities for other qualified vendors, including small businesses, to compete. There's also a risk that the government may not be getting the most innovative or cost-effective solutions available in the market. Furthermore, reliance on a single supplier can create supply chain vulnerabilities if the contractor faces production issues or other disruptions. The lack of a competitive process also makes it harder to assess if the chosen product is truly the best fit for NIH's needs compared to alternatives.

What is the expected effectiveness of these diagnostic kits and lab supplies for NIH's research programs?

The effectiveness of the Biofire Mycoplasma testing kits, Bact/Alert FA & FN Plus bottles, and Bioball rehydration fluid is presumed to be high, given that Biomérieux Inc. is a known manufacturer in this space. These products are likely critical for specific diagnostic assays and laboratory workflows within NIH research. Their effectiveness will directly impact the accuracy and efficiency of research studies relying on these consumables. The firm fixed-price nature of the contract suggests that the performance standards and specifications are clearly defined, and the government expects the delivered goods to meet these requirements to ensure research integrity and progress.

What are the historical spending patterns for similar diagnostic supplies at NIH?

Analyzing historical spending patterns for similar diagnostic supplies at NIH is crucial for context. Without direct access to NIH's historical procurement databases, a precise analysis is not possible. However, agencies like NIH typically have recurring needs for laboratory consumables and diagnostic kits. Spending patterns can fluctuate based on research priorities, new scientific discoveries, and the introduction of new testing methodologies. A review of past years' spending on items like 'diagnostic kits,' 'laboratory consumables,' or specific product categories from Biomérieux Inc. would reveal trends, identify potential increases or decreases in spending, and highlight any shifts in procurement strategies, such as a move towards or away from sole-source awards.

Are there any specific performance metrics or deliverables tied to this contract?

While the provided data indicates a 'FIRM FIXED PRICE' contract type, it does not explicitly detail specific performance metrics or deliverables beyond the general description of 'PURCHASE OF BIOFIRE MYCOPLASMA TESTING KITS, BACT/ALERT FA &FN PLUS BOTTLES AND BIOBALL REHYDRATION FLUID'. Typically, firm fixed-price contracts require the contractor to deliver goods or services that meet pre-defined specifications. Performance metrics might be implicitly tied to the quality and timely delivery of these items as per the purchase order's terms and conditions. Further examination of the full contract document would be necessary to identify any explicit quality assurance provisions, delivery schedules, or acceptance criteria that function as performance metrics.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory 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: $19,314

Exercised Options: $19,314

Current Obligation: $19,314

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline