HHS awards $193K for Piccolo Xpress analyzers, with delivery in 30 days

Contract Overview

Contract Amount: $19,356 ($19.4K)

Contractor: RED Heritage Medical LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-03

End Date: 2026-05-15

Contract Duration: 42 days

Daily Burn Rate: $461/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PICCOLO XPRESS CHEMISTRY ANALYZER - FIRM FIXED PRICE COMMERCIAL ITEM PURCHASE ORDER FOR PICCOLO XPRESS CHEMISTRY ANALYZER FOR THE WAGNER IHS HOSPITAL POP AWARD OF PO FOR DELIVERY IN 30 DAYS

Place of Performance

Location: WAGNER, CHARLES MIX County, SOUTH DAKOTA, 57380

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19,356 to RED HERITAGE MEDICAL LLC for work described as: PICCOLO XPRESS CHEMISTRY ANALYZER - FIRM FIXED PRICE COMMERCIAL ITEM PURCHASE ORDER FOR PICCOLO XPRESS CHEMISTRY ANALYZER FOR THE WAGNER IHS HOSPITAL POP AWARD OF PO FOR DELIVERY IN 30 DAYS Key points: 1. The contract value of $193,560 for chemistry analyzers appears reasonable for the specified equipment. 2. Competition dynamics indicate a competed award under Simplified Acquisition Procedures (SAP), suggesting a degree of market engagement. 3. The short delivery timeline of 30 days may introduce logistical risks or necessitate expedited shipping costs. 4. This purchase supports the Indian Health Service's mission to provide healthcare services. 5. The contract falls within the Analytical Laboratory Instrument Manufacturing sector. 6. The firm fixed-price structure limits the government's exposure to cost overruns.

Value Assessment

Rating: good

The award of $193,560 for a Piccolo Xpress Chemistry Analyzer seems aligned with commercial market pricing for such diagnostic equipment. Benchmarking against similar sole-source or limited-competition procurements for specialized medical devices can be challenging, but the price appears competitive given the specific nature of the instrument. The firm fixed-price contract type provides cost certainty for the government, mitigating the risk of unexpected price increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but may not involve the full extent of public advertising seen in larger procurements. The number of bidders was not specified, but the use of SAP suggests that multiple quotes were likely solicited, fostering price discovery. The award indicates that the selected vendor offered a competitive price and met the technical requirements.

Taxpayer Impact: Competition under SAP generally leads to better pricing for taxpayers compared to sole-source awards, as it encourages vendors to offer their best terms to secure the business.

Public Impact

Patients served by the Indian Health Service (IHS) will benefit from access to rapid diagnostic testing capabilities. The contract delivers essential analytical laboratory instruments, enhancing the diagnostic capacity of healthcare facilities. The geographic impact is focused on South Dakota, where the Wagner IHS Hospital is located. The acquisition supports healthcare professionals by providing them with modern diagnostic tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short delivery window of 30 days could strain logistics and potentially increase costs if not managed efficiently.
Reliance on a single vendor for this specific analyzer model might limit future flexibility in equipment upgrades or service options.
The specific model and its capabilities should be thoroughly vetted to ensure it meets all current and future diagnostic needs of the facility.

Positive Signals

Firm fixed-price contract provides cost certainty and protects against inflation.
Awarded under SAP, indicating a competitive process was likely followed.
Supports the critical healthcare mission of the Indian Health Service.

Sector Analysis

The market for analytical laboratory instruments is a specialized segment within the broader healthcare technology sector. This contract for a Piccolo Xpress Chemistry Analyzer fits within the niche of point-of-care diagnostic devices. The industry is characterized by innovation, regulatory compliance, and a need for reliable, accurate testing. Spending in this area is driven by healthcare demand, technological advancements, and public health initiatives. Comparable spending benchmarks would typically involve analyzing procurements for similar point-of-care diagnostic systems by other federal agencies or large healthcare networks.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Red Heritage Medical LLC, a commercial item vendor, does not directly impact the small business ecosystem through set-asides or subcontracting provisions. Future analysis could explore if similar procurements are being awarded to small businesses or if there are opportunities for small business participation in the supply chain for these types of instruments.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the Department of Health and Human Services and the Indian Health Service's internal procurement and financial management systems. Accountability is ensured through the firm fixed-price contract terms, requiring delivery of the specified goods. Transparency is facilitated by federal procurement data systems that record contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement process.

Related Government Programs

Indian Health Service Medical Equipment Purchases
Department of Health and Human Services Laboratory Supplies
Point-of-Care Diagnostic Devices
Federal Healthcare Procurement

Risk Flags

Short Delivery Timeline
Commercial Item Purchase

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19,356 to RED HERITAGE MEDICAL LLC. PICCOLO XPRESS CHEMISTRY ANALYZER - FIRM FIXED PRICE COMMERCIAL ITEM PURCHASE ORDER FOR PICCOLO XPRESS CHEMISTRY ANALYZER FOR THE WAGNER IHS HOSPITAL POP AWARD OF PO FOR DELIVERY IN 30 DAYS

Who is the contractor on this award?

The obligated recipient is RED HERITAGE MEDICAL LLC.

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 $19,356.

What is the period of performance?

Start: 2026-04-03. End: 2026-05-15.

What is the track record of Red Heritage Medical LLC in fulfilling federal contracts, particularly for medical equipment?

A review of federal procurement data indicates that Red Heritage Medical LLC has been awarded federal contracts. To assess their track record specifically for medical equipment like the Piccolo Xpress Chemistry Analyzer, a deeper dive into their past performance on similar contracts would be necessary. This would involve examining contract completion timeliness, adherence to specifications, and any reported issues or disputes. Without specific data on past performance for this type of equipment, it's difficult to definitively assess their reliability in this context. However, the current award suggests they met the requirements for this specific purchase order.

How does the price of $193,560 for the Piccolo Xpress Chemistry Analyzer compare to similar federal procurements or commercial market rates?

Benchmarking the price of $193,560 for the Piccolo Xpress Chemistry Analyzer requires comparing it against similar federal contracts for the same or comparable point-of-care diagnostic systems, as well as prevailing commercial market rates. Given that this is a commercial item purchase order, the price is expected to be close to commercial pricing. The firm fixed-price nature of the award suggests that Red Heritage Medical LLC offered a price they deemed competitive. A comprehensive comparison would involve analyzing recent awards for similar analyzers by agencies like the Department of Veterans Affairs or other components of HHS, and cross-referencing with catalog prices or quotes from other medical equipment suppliers.

What are the potential risks associated with the short 30-day delivery timeline for the chemistry analyzers?

The 30-day delivery timeline presents several potential risks. Firstly, it could strain the contractor's supply chain and logistics, potentially leading to delays if unforeseen issues arise in manufacturing or shipping. Secondly, expedited shipping might be required, increasing the overall cost beyond the base price, although the firm fixed-price contract should ideally account for this. Thirdly, the IHS facility may need to prepare for the equipment's arrival and installation within this tight window, requiring prompt internal coordination. Failure to meet this deadline could disrupt the intended deployment and impact patient care services that rely on the new equipment.

How effective is the Piccolo Xpress Chemistry Analyzer in meeting the diagnostic needs of the Wagner IHS Hospital?

The effectiveness of the Piccolo Xpress Chemistry Analyzer in meeting the diagnostic needs of the Wagner IHS Hospital depends on its specific capabilities relative to the patient population's common conditions and the hospital's testing protocols. The Piccolo Xpress is designed for rapid, on-site testing of various analytes, which can improve patient throughput and reduce turnaround times for critical results. Its suitability would be determined by the range of tests it performs, its accuracy, reliability, and ease of use in a clinical setting. The Indian Health Service's decision to procure this specific analyzer suggests it aligns with their assessment of the hospital's requirements for timely and accurate diagnostic information.

What has been the historical spending pattern for analytical laboratory instruments by the Indian Health Service?

Analyzing the historical spending patterns of the Indian Health Service (IHS) for analytical laboratory instruments would provide context for the current $193,560 award. This would involve examining past contract awards for similar equipment, such as chemistry analyzers, hematology analyzers, or other diagnostic tools, over several fiscal years. Key metrics to consider would include the total annual expenditure on such instruments, the average price per unit, the types of instruments procured, and the primary vendors. Understanding these trends can help identify patterns of need, potential budget fluctuations, and the typical procurement strategies employed by the IHS for laboratory equipment.

What is the significance of this contract being a Firm Fixed Price (FFP) award for the government?

The significance of this contract being a Firm Fixed Price (FFP) award for the government is primarily related to cost control and risk management. In an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with maximum certainty regarding the total expenditure for the acquired goods. It shifts the risk of cost overruns from the government to the contractor. For the IHS, this means they know the exact cost of the Piccolo Xpress Chemistry Analyzer upfront, allowing for more predictable budgeting and financial planning. It also simplifies contract administration as there is less need to audit the contractor's costs.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H70626Q00099

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 705 COPELAND RD NE, ARAB, AL, 35016

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,356

Exercised Options: $19,356

Current Obligation: $19,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline