HHS awards $660K purchase order for surgical instruments to QIAGEN, LLC, with no competition

Contract Overview

Contract Amount: $65,981 ($66.0K)

Contractor: Qiagen, LLC

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: $379/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: QIAGEN INC:1110297 [26-000312]

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $65,980.68 to QIAGEN, LLC for work described as: QIAGEN INC:1110297 [26-000312] Key points: 1. The contract value of $659,806.68 for surgical and medical instruments appears to be a moderate expenditure for this category. 2. The award was made on a sole-source basis, raising questions about potential price overruns and lack of market-driven cost discovery. 3. The short performance period of approximately five months suggests a need for immediate or urgent supply. 4. The contract is for surgical and medical instruments, a sector with established manufacturers and potential for competitive bidding. 5. The vendor, QIAGEN, LLC, is a known entity in the life sciences and diagnostics market. 6. The lack of competition is a significant risk indicator for value for money.

Value Assessment

Rating: questionable

Benchmarking the value of this $659,806.68 purchase order is challenging without specific details on the instruments. However, the absence of competition suggests that the government may not have secured the most favorable pricing. Compared to similar sole-source awards, the price could be higher than if multiple vendors had competed. The fixed-price nature offers some cost certainty, but the lack of competitive pressure limits the ability to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award. The data explicitly states 'NOT COMPETED UNDER SAP'. This means that the agency did not solicit offers from multiple potential sources. The lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these surgical instruments due to the absence of competitive bidding. Without multiple offers, there is no assurance that the price reflects the best market value.

Public Impact

The primary beneficiaries are likely healthcare providers within the National Institutes of Health (NIH) or other HHS facilities requiring these specific surgical instruments. The services delivered include the provision of surgical and medical instruments essential for medical procedures and research. The geographic impact is concentrated in Maryland (MD), where the contract is managed or the delivery is expected. Workforce implications are minimal, primarily involving the logistics and supply chain personnel for both the vendor and the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source awards can indicate potential issues with market research or planning.
Short performance period could imply urgent, unplanned needs, potentially at a higher cost.

Positive Signals

The award is a firm fixed-price contract, providing cost certainty once awarded.
QIAGEN, LLC is an established company in the life sciences sector.
The contract is for essential surgical and medical instruments.

Sector Analysis

The contract falls within the Surgical and Medical Instrument Manufacturing sector. This industry is characterized by innovation and a range of suppliers, from large corporations to specialized niche providers. The market size for medical instruments is substantial globally. This contract represents a small portion of overall federal spending in this category, but its sole-source nature warrants scrutiny within the broader context of efficient procurement.

Small Business Impact

The contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, this award does not appear to directly benefit small businesses through set-aside provisions. The lack of competition also means potential subcontracting opportunities for small businesses are not being explored through a competitive process.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its respective contracting officers and program managers. The specific Inspector General for HHS would have jurisdiction for audits and investigations. Transparency is limited due to the sole-source nature, with fewer public details available compared to competed contracts.

Related Government Programs

Medical Supplies and Equipment
Surgical Instruments
Federal Supply Schedule (FSS) Contracts
National Institutes of Health (NIH) Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $65,980.68 to QIAGEN, LLC. QIAGEN INC:1110297 [26-000312]

Who is the contractor on this award?

The obligated recipient is QIAGEN, LLC.

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 $65,980.68.

What is the period of performance?

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

What specific surgical and medical instruments are being procured under this contract?

The provided data indicates the contract is for 'Surgical and Medical Instrument Manufacturing' (NAICS code 339112). However, it does not specify the exact types or quantities of instruments. This level of detail is crucial for a comprehensive value assessment. Without knowing if these are standard items, specialized equipment, or consumables, it's difficult to benchmark pricing effectively. Further inquiry with the agency would be needed to obtain a detailed list of the procured items to understand their criticality and market availability.

Why was this contract awarded on a sole-source basis instead of being competed?

The data states the contract was 'NOT COMPETED UNDER SAP'. This implies that the agency determined that competition was not feasible or practicable under the Simplified Acquisition Procedures. Common reasons for sole-source awards include the existence of only one responsible source, urgent and compelling needs that preclude competition, or specific statutory authority. Without further justification from the agency, the rationale for bypassing competition remains unclear, raising concerns about potential missed opportunities for better pricing and vendor selection.

What is QIAGEN, LLC's track record with the federal government, particularly with HHS?

QIAGEN, LLC is a known entity in the life sciences and diagnostics market. While the provided data shows this specific purchase order, a deeper dive into federal procurement databases would reveal their broader contract history. Assessing their past performance, including any awards from HHS or other agencies, their on-time delivery rates, and any past performance issues or disputes, would provide valuable context. A positive track record could mitigate some concerns associated with a sole-source award, but it does not replace the benefits of competition.

How does the $659,806.68 contract value compare to historical spending on similar instruments by HHS or NIH?

Comparing this $659,806.68 award to historical spending requires access to detailed historical procurement data for similar surgical and medical instruments. Without specific itemization, a direct comparison is difficult. However, if this represents a significant increase or is awarded under terms that deviate from previous competitive procurements for comparable items, it would signal a potential issue. Analyzing trends in spending for this NAICS code or specific product categories within NIH would provide a benchmark for assessing whether this award represents good value over time.

What are the potential risks associated with a sole-source award for medical instruments?

The primary risk of a sole-source award for medical instruments is the potential for paying a higher price than would be achieved through competition. Without competing offers, the government lacks leverage to negotiate the best possible price. Other risks include limited access to innovative solutions from other vendors, potential for complacency from the awarded vendor regarding quality or service, and the perception of unfairness in the procurement process. For critical medical supplies, a sole-source award can also pose a supply chain risk if the single vendor faces disruptions.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19300 GERMANTOWN RD, GERMANTOWN, MD, 20874

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: $65,981

Exercised Options: $65,981

Current Obligation: $65,981

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline