HHS Awards $313K for In-Vitro Diagnostic Substances to Roche Diagnostics, Serving Minnesota's Indian Health Service

Contract Overview

Contract Amount: $313,432 ($313.4K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2023-07-26

End Date: 2024-12-31

Contract Duration: 524 days

Daily Burn Rate: $598/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CLSU COST/PER/TEST, ANALYZERS, AND PM

Place of Performance

Location: CASS LAKE, CASS County, MINNESOTA, 56633

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $313,432.12 to ROCHE DIAGNOSTICS CORPORATION for work described as: CLSU COST/PER/TEST, ANALYZERS, AND PM Key points: 1. Spending focuses on essential diagnostic substances for healthcare. 2. Roche Diagnostics is a major player in the diagnostics market. 3. Potential risk lies in reliance on a single supplier for specific needs. 4. The healthcare sector sees significant investment in diagnostic technologies.

Value Assessment

Rating: fair

The contract value of $313,432.12 for a 524-day period appears reasonable for specialized diagnostic substances. Benchmarking against similar contracts for in-vitro diagnostic substances is difficult without more specific product details, but the price seems within a typical range for such specialized medical supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government compared to sole-source or limited competition.

Taxpayer Impact: Taxpayer funds are being used for essential healthcare supplies, ensuring access to diagnostic testing for the Indian Health Service population.

Public Impact

Ensures availability of critical diagnostic substances for IHS facilities. Supports patient care and disease management within the IHS. Contributes to the operational capacity of healthcare providers serving Native American communities.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Potential for price increases if competition diminishes in the future.
Dependence on a single vendor for critical supplies.

Positive Signals

Awarded under full and open competition.
Supports essential healthcare services.
Firm fixed price contract mitigates cost overrun risk.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on diagnostic substances. Spending in this area is crucial for public health infrastructure, with benchmarks varying widely based on the type and volume of substances required.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The awardee, Roche Diagnostics, is a large corporation, suggesting that small businesses were either not involved in this specific procurement or did not win the contract.

Oversight & Accountability

The contract is a delivery order under a larger agreement, implying some level of pre-qualification and oversight. Further oversight would involve monitoring delivery schedules, product quality, and adherence to the firm fixed price.

Related Government Programs

In-Vitro Diagnostic Substance Manufacturing
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential vendor lock-in for specific diagnostic needs.
Lack of detailed product specification for precise cost benchmarking.
Reliance on a large corporation may limit opportunities for small businesses.
Future price increases are a possibility if competition wanes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $313,432.12 to ROCHE DIAGNOSTICS CORPORATION. CLSU COST/PER/TEST, ANALYZERS, AND PM

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $313,432.12.

What is the period of performance?

Start: 2023-07-26. End: 2024-12-31.

What is the specific type of in-vitro diagnostic substance being procured, and how does its cost compare to similar substances in the market?

The specific type of in-vitro diagnostic substance is not detailed in the provided data. To assess value accurately, a comparison with market prices for equivalent substances is necessary. Without this, it's challenging to definitively state if the $313,432.12 award represents optimal value, though the full and open competition suggests a competitive price was likely achieved.

What is the risk associated with relying on Roche Diagnostics for these specific substances, particularly if future needs arise or if this is a sole-source situation for a critical component?

While awarded under full and open competition, there's an inherent risk in relying on a single vendor for critical diagnostic substances. If Roche Diagnostics were to face supply chain issues, discontinue the product, or significantly increase prices in the future, the Indian Health Service could face disruptions in essential healthcare services. Contingency planning for alternative suppliers or backup stock would mitigate this risk.

How effectively does this procurement contribute to the overall mission of the Indian Health Service in providing quality healthcare to its beneficiaries?

This procurement directly supports the IHS mission by ensuring the availability of necessary diagnostic tools. Access to reliable in-vitro diagnostic substances is fundamental for accurate diagnosis, treatment monitoring, and preventative care, thereby enhancing the quality and effectiveness of healthcare services delivered to Native American communities.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $313,432

Exercised Options: $313,432

Current Obligation: $313,432

Actual Outlays: $313,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75H70519D00022

IDV Type: IDC

Timeline