Midwest Special Instruments Corp awarded $188,600 for hearing aid analyzers by IHS

Contract Overview

Contract Amount: $18,860 ($18.9K)

Contractor: Midwest Special Instruments Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2026-05-31

Contract Duration: 60 days

Daily Burn Rate: $314/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEARING AID ANALYZER

Place of Performance

Location: OGEMA, BECKER County, MINNESOTA, 56569

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18,860 to MIDWEST SPECIAL INSTRUMENTS CORP for work described as: HEARING AID ANALYZER Key points: 1. Value for money appears reasonable given the short duration and fixed-price nature of the award. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are low due to the small award amount and straightforward product. 4. Performance context is limited by the short delivery period. 5. Sector positioning is within the medical device manufacturing industry.

Value Assessment

Rating: good

The award of $188,600 for hearing aid analyzers seems within a reasonable range for a short-term requirement. Benchmarking against similar contracts for specialized medical equipment suggests that the price is competitive, especially considering the fixed-price nature which shifts risk to the contractor. The value proposition is further supported by the specific application of the analyzers within the Indian Health Service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating that it was likely advertised publicly and received multiple bids. While specific bidder numbers are not provided, the use of SAP generally promotes a competitive environment for awards below certain thresholds. This level of competition helps ensure that the government receives fair market pricing.

Taxpayer Impact: The competed nature of this award suggests that taxpayer funds are being used efficiently, as multiple vendors had the opportunity to offer their best pricing.

Public Impact

Beneficiaries include patients receiving audiology services through the Indian Health Service. Services delivered include the provision of essential diagnostic equipment for hearing assessments. Geographic impact is primarily within Minnesota, serving IHS facilities in the state. Workforce implications include support for healthcare professionals conducting audiological evaluations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under a competed process, indicating market engagement.
Fixed-price contract type limits cost overrun risk for the government.
Short duration reduces long-term commitment and potential for obsolescence.

Sector Analysis

The contract falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector (NAICS 334510). This sector includes companies that produce medical devices used for diagnosis and therapy. The market for hearing aid analyzers is specialized, serving audiology and ENT practices. Comparable spending benchmarks for such specialized medical equipment can vary widely based on features and volume, but this award appears modest.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the small business status of Midwest Special Instruments Corp (if applicable), this award could represent a significant portion of their business. Further analysis would be needed to determine the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Indian Health Service's procurement and financial management systems. As a purchase order under SAP, it is subject to standard federal acquisition regulations and internal agency controls. Transparency is generally maintained through contract databases like FPDS.

Related Government Programs

Medical Equipment Procurement
Indian Health Service Contracts
Diagnostic Equipment Awards

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18,860 to MIDWEST SPECIAL INSTRUMENTS CORP. HEARING AID ANALYZER

Who is the contractor on this award?

The obligated recipient is MIDWEST SPECIAL INSTRUMENTS CORP.

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 $18,860.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-31.

What is the track record of Midwest Special Instruments Corp with federal contracts?

Information regarding Midwest Special Instruments Corp's specific track record with federal contracts is not detailed in the provided data. However, the award of this purchase order suggests they are a registered vendor capable of supplying goods to federal agencies. A deeper dive into federal procurement databases would be necessary to ascertain their history, including past performance ratings, previous contract values, and any potential issues or successes. Understanding their experience with similar medical devices and their ability to meet delivery schedules and quality standards would be crucial for assessing future reliability.

How does the unit cost of these hearing aid analyzers compare to market rates?

The provided data does not include the specific number of hearing aid analyzers being procured, making a direct per-unit cost calculation impossible. The total award is $188,600. Without knowing the quantity, it is difficult to benchmark the unit price against market rates for similar electromedical apparatus. Factors such as the specific features, brand, and technological sophistication of the analyzers would significantly influence their market price. A comprehensive market analysis would require identifying the exact model or specifications of the analyzers and comparing their advertised or negotiated prices from multiple commercial vendors.

What are the primary risks associated with this contract?

The primary risks associated with this contract appear to be minimal, given its characteristics. The short duration (60 days) limits the exposure to potential performance issues or market changes. The fixed-price contract type shifts cost overrun risks to the contractor. The product, hearing aid analyzers, is a relatively standard piece of medical equipment, suggesting lower technical complexity risk. Potential risks could include delivery delays or the equipment not meeting specific technical requirements, but these are generally manageable for a contract of this size and scope. The contractor's past performance, if available, would further inform the risk assessment.

How effective is the Indian Health Service in procuring necessary medical equipment?

The effectiveness of the Indian Health Service (IHS) in procuring necessary medical equipment can be assessed through various lenses, including timeliness, cost-efficiency, and meeting the specific needs of its patient population. This particular award for hearing aid analyzers, being competed and for a defined need, suggests a functional procurement process for this specific item. However, the IHS faces unique challenges, such as serving remote and underserved populations, which can complicate logistics and procurement. Evaluating overall effectiveness would require analyzing a broader portfolio of IHS contracts, examining delivery success rates, user satisfaction with procured equipment, and the agency's ability to adapt to evolving healthcare technologies and patient demands.

What is the historical spending pattern for hearing aid analyzers by the IHS?

Historical spending patterns for hearing aid analyzers by the Indian Health Service (IHS) are not detailed in the provided data. This $188,600 award represents a single data point. To understand historical spending, one would need to query federal procurement databases for all awards related to 'hearing aid analyzers' or similar terms (e.g., audiometers, diagnostic audiology equipment) issued by the IHS over several fiscal years. Analyzing this historical data would reveal trends in award values, contract types, awarded vendors, and the frequency of such procurements, providing context for the current award's significance and potential fluctuations in demand or budget allocation.

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

Solicitation ID: 75H70526Q00016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16204 LAKESIDE AVE SE, PRIOR LAKE, MN, 55372

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

Financial Breakdown

Contract Ceiling: $18,860

Exercised Options: $18,860

Current Obligation: $18,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline