DOJ's Bureau of Prisons awards $23.5M for dialyzers to Fresenius USA, Inc
Contract Overview
Contract Amount: $23,486 ($23.5K)
Contractor: Fresenius USA, Inc
Awarding Agency: Department of Justice
Start Date: 2026-03-01
End Date: 2026-04-30
Contract Duration: 60 days
Daily Burn Rate: $391/day
Competition Type: COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY26 B6 FRESENIUS DIALYZERS #2 MAR 26
Place of Performance
Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451
Plain-Language Summary
Department of Justice obligated $23,486.4 to FRESENIUS USA, INC for work described as: FY26 B6 FRESENIUS DIALYZERS #2 MAR 26 Key points: 1. The contract is for a critical medical supply, dialyzers, essential for kidney dialysis. 2. Competition was utilized under SAP, suggesting a potentially competitive bidding process. 3. The award is a delivery order against an existing contract, indicating a need for ongoing supply. 4. The sector is healthcare, specifically medical equipment manufacturing.
Value Assessment
Rating: good
The firm fixed price contract for $23.5M over 60 days appears reasonable given the specialized nature of medical equipment. Benchmarking against similar large-scale procurements for dialysis supplies would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of offers. While competition was present, the extent of price discovery may be less robust than full and open competition.
Taxpayer Impact: Taxpayers are impacted by the cost of essential healthcare services for incarcerated individuals, with this award representing a significant investment in that care.
Public Impact
Ensures continued access to life-sustaining dialysis treatment for federal inmates. Supports the operational needs of the Federal Prison System's healthcare services. Potential for follow-on requirements based on ongoing inmate health needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP may not yield the absolute best price.
- Dependence on a single vendor for a critical supply.
- Potential for price increases in future orders if not recompeted broadly.
Positive Signals
- Awarded under an existing contract vehicle, suggesting streamlined acquisition.
- Firm fixed price contract provides cost certainty.
- Addresses a critical and ongoing healthcare need.
Sector Analysis
This procurement falls within the healthcare sector, specifically medical equipment. Spending benchmarks for dialysis supplies can vary significantly based on volume, contract type, and specific product requirements. The $23.5M award for a 60-day period suggests a substantial quantity or high-value specialized equipment.
Small Business Impact
The data indicates the award went to FRESENIUS USA, INC, a large corporation. There is no explicit indication of small business participation in this specific delivery order, which is common for specialized medical equipment procurements.
Oversight & Accountability
The Bureau of Prisons is responsible for managing healthcare services for federal inmates. Oversight would involve ensuring the quality and timely delivery of these essential medical supplies as per the contract terms.
Related Government Programs
- Electromedical and Electrotherapeutic Apparatus Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- Single source reliance
- Potential for price increases
- Critical medical supply dependency
Tags
electromedical-and-electrotherapeutic-ap, department-of-justice, ma, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $23,486.4 to FRESENIUS USA, INC. FY26 B6 FRESENIUS DIALYZERS #2 MAR 26
Who is the contractor on this award?
The obligated recipient is FRESENIUS USA, INC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $23,486.4.
What is the period of performance?
Start: 2026-03-01. End: 2026-04-30.
What is the historical pricing trend for Fresenius dialyzers procured by the federal government?
Analyzing historical pricing data for similar Fresenius dialyzer contracts would reveal any significant price escalations or reductions over time. This context is crucial for assessing the current award's value and identifying potential negotiation opportunities for future procurements to ensure cost-effectiveness for taxpayers.
What are the specific risks associated with relying on a single supplier for critical dialysis equipment?
Reliance on a single supplier like Fresenius for critical dialysis equipment poses risks such as supply chain disruptions, potential price gouging due to lack of competition, and limited flexibility in adopting newer technologies. Contingency planning and exploring alternative suppliers or generic options, where feasible, are important mitigation strategies.
How effectively does the Bureau of Prisons manage its inventory and demand forecasting for dialysis supplies?
Effective inventory management and demand forecasting are crucial for ensuring that the Bureau of Prisons procures the right quantity of dialyzers at optimal times, minimizing waste and avoiding stockouts. Regular reviews of usage data and collaboration with healthcare providers are key to maintaining efficient supply chain operations.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bio-Medical Applications of Missouri, Inc.
Address: 920 WINTER ST, WALTHAM, MA, 02451
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: $23,486
Exercised Options: $23,486
Current Obligation: $23,486
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15BGCS26D00000002
IDV Type: IDC
Timeline
Start Date: 2026-03-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-04-06
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