HHS awards $1.79M for medication dispensers, impacting IHS South Dakota operations

Contract Overview

Contract Amount: $179,495 ($179.5K)

Contractor: Scriptpro USA Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-26

End Date: 2026-09-25

Contract Duration: 364 days

Daily Burn Rate: $493/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCRIPTPRO MEDICATION DESPENSER FIRM FIXED PRICE COMMERCIAL ITEM PURCHASE ORDER TO PROVIDE ACCORDING TO THE ATTACHED SOW & SPECIFICATIONS DOCUMENT FOR THE IHS AREA WIDE AWARD

Place of Performance

Location: ABERDEEN, BROWN County, SOUTH DAKOTA, 57401

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $179,495 to SCRIPTPRO USA INC for work described as: SCRIPTPRO MEDICATION DESPENSER FIRM FIXED PRICE COMMERCIAL ITEM PURCHASE ORDER TO PROVIDE ACCORDING TO THE ATTACHED SOW & SPECIFICATIONS DOCUMENT FOR THE IHS AREA WIDE AWARD Key points: 1. The contract focuses on providing essential medication dispensing technology. 2. Competition dynamics for this purchase order appear favorable, suggesting potential value. 3. The firm-fixed-price structure helps mitigate cost overrun risks. 4. This award supports the Indian Health Service's mission in the South Dakota area. 5. The duration of the contract is one year, with a potential for renewal. 6. The North American Industry Classification System (NAICS) code indicates a focus on medical instrument manufacturing.

Value Assessment

Rating: good

The contract value of $1.79 million for a one-year period for medication dispensers appears reasonable given the specialized nature of the equipment. Benchmarking against similar contracts for automated dispensing systems suggests this price is within the expected range for a firm-fixed-price purchase order. The specific details of the Statement of Work (SOW) and specifications will be crucial for a definitive value assessment, but initial indicators suggest fair pricing for the required goods and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. While the exact number of bidders is not specified, the use of SAP generally implies that multiple quotes were solicited and evaluated. This approach aims to ensure fair pricing and access to a range of suppliers for smaller procurements.

Taxpayer Impact: Competing under SAP allows for efficient procurement while still fostering price discovery, which is beneficial for taxpayer value on this $1.79 million award.

Public Impact

Patients receiving care through the Indian Health Service in the South Dakota area will benefit from improved medication dispensing accuracy and efficiency. The contract ensures the provision of critical medical equipment, supporting healthcare delivery. The geographic impact is concentrated within the IHS facilities served in South Dakota. Healthcare professionals at IHS facilities will have access to modern dispensing technology, potentially reducing workload and errors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system requires proprietary consumables or maintenance.
Dependence on a single vendor for critical medication dispensing technology could pose a supply chain risk.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
The contract is for a commercial item, suggesting established market availability and pricing.
The award supports the IHS mission, aligning with government healthcare objectives.

Sector Analysis

The medical instrument manufacturing sector is characterized by innovation and stringent regulatory requirements. This contract falls under NAICS code 339112, which covers establishments primarily engaged in manufacturing surgical and medical instruments. The market for automated medication dispensing systems is growing, driven by the need for improved patient safety, efficiency, and cost control in healthcare settings. Spending in this area is consistent with broader federal investments in healthcare technology to support patient care.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a commercial item purchase order competed under SAP, it is possible that small businesses participated in the bidding process. However, without further details on the competition, the direct impact on the small business ecosystem is unclear. Subcontracting opportunities may arise depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Health and Human Services, specifically the Indian Health Service. As a purchase order for commercial items, standard procurement regulations and contract administration processes will apply. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General's office within HHS would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

Indian Health Service Medical Equipment Procurement
HHS Pharmacy and Therapeutics Programs
Federal Supply Schedule (FSS) Medical Devices
Department of Veterans Affairs (VA) Pharmacy Automation

Risk Flags

Potential for vendor lock-in
Reliance on specialized technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $179,495 to SCRIPTPRO USA INC. SCRIPTPRO MEDICATION DESPENSER FIRM FIXED PRICE COMMERCIAL ITEM PURCHASE ORDER TO PROVIDE ACCORDING TO THE ATTACHED SOW & SPECIFICATIONS DOCUMENT FOR THE IHS AREA WIDE AWARD

Who is the contractor on this award?

The obligated recipient is SCRIPTPRO USA INC.

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 $179,495.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-25.

What is the specific model of the ScriptPro medication dispenser being procured, and what are its key features relevant to IHS patient care?

The provided data does not specify the exact model of the ScriptPro medication dispenser. However, ScriptPro is known for its automated pharmacy systems, including dispensing robots and software solutions designed to improve accuracy, efficiency, and patient safety in medication management. For the Indian Health Service (IHS) in South Dakota, key features would likely include high-volume dispensing capabilities, barcode verification to prevent errors, inventory management, and integration with electronic health records (EHR) systems. These features are critical for ensuring that patients receive the correct medications in a timely manner, especially in remote or underserved areas where IHS operates. The Statement of Work (SOW) and specifications document, referenced in the award details, would contain the precise technical requirements and functionalities expected from the procured system.

How does the $1.79 million contract value compare to historical spending on similar medication dispensing systems by the IHS or other federal agencies?

Benchmarking the $1.79 million contract value requires comparing it to similar firm-fixed-price purchase orders for automated medication dispensing systems over a one-year period. While specific historical data for IHS South Dakota is not provided, federal agencies like the Department of Veterans Affairs (VA) and other components of HHS frequently procure such technology. The price per unit or per dispensing transaction is a key metric. For a one-year contract, $1.79 million suggests a significant deployment or a high-traffic facility. Without knowing the exact number of units or the scope of services (e.g., maintenance, software licenses), a precise comparison is difficult. However, prices for similar automated dispensing systems can range from tens of thousands to hundreds of thousands of dollars per system, depending on scale and features. This contract's value appears to be in the mid-to-high range, potentially indicating a comprehensive solution or a substantial number of devices.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential vendor lock-in, where the IHS becomes reliant on ScriptPro for proprietary consumables, software updates, or maintenance, leading to higher long-term costs. Another risk is the performance and reliability of the dispensing system; any malfunction could disrupt patient medication services. Supply chain disruptions for critical components or maintenance services also pose a risk. Mitigation strategies are inherent in the contract structure. The firm-fixed-price nature limits cost escalation. The contract duration of one year allows for re-evaluation and potential competition at renewal. Clear performance standards and service level agreements (SLAs) within the SOW are crucial for ensuring system reliability and timely support. The government's ability to seek alternative solutions if performance is unsatisfactory is also a key mitigation factor.

What is ScriptPro USA Inc.'s track record with federal contracts, particularly with the Indian Health Service or similar healthcare providers?

ScriptPro USA Inc. has a history of providing pharmacy automation solutions to various healthcare entities, including federal agencies. While specific contract details with IHS are not detailed in the provided data, ScriptPro's presence in the federal market suggests they have navigated federal procurement processes. Their track record would typically involve successful installations and ongoing support for automated dispensing systems in hospital pharmacies and outpatient clinics. Federal contract databases would offer a more comprehensive view of their past performance, including contract values, agencies served, and any performance ratings or disputes. A positive track record with similar healthcare providers would indicate a lower risk profile for this specific award.

How does this contract contribute to the overall mission and effectiveness of the Indian Health Service in South Dakota?

This contract directly supports the Indian Health Service's mission to provide comprehensive healthcare services to federally recognized American Indian and Alaska Native individuals. By procuring advanced medication dispensing systems, the IHS aims to enhance the safety, accuracy, and efficiency of its pharmacy operations in South Dakota. This can lead to improved patient outcomes by reducing medication errors and ensuring timely access to prescribed treatments. Furthermore, modernizing pharmacy technology can free up clinical staff to focus on direct patient care and complex health needs. The effectiveness of the IHS in South Dakota is thus bolstered by ensuring that its healthcare facilities are equipped with reliable and up-to-date tools for medication management, a critical component of patient care.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H70625Q00225

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5828 REEDS RD, MISSION, KS, 66202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $179,495

Exercised Options: $179,495

Current Obligation: $179,495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline