HHS awards $2.6M for Endoscopy Mobile Unit to Craftsmen Industries, Inc
Contract Overview
Contract Amount: $2,597,637 ($2.6M)
Contractor: Craftsmen Industries, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2023-09-19
End Date: 2026-04-30
Contract Duration: 954 days
Daily Burn Rate: $2.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ENDOSCOPY MOBILE UNIT RFQ
Place of Performance
Location: GALLUP, MCKINLEY County, NEW MEXICO, 87301
Plain-Language Summary
Department of Health and Human Services obligated $2.6 million to CRAFTSMEN INDUSTRIES, INC. for work described as: ENDOSCOPY MOBILE UNIT RFQ Key points: 1. Spending on surgical appliances and supplies is significant, with this contract representing a portion of that. 2. Competition under SAP (Simplified Acquisition Procedures) suggests a focus on smaller value procurements. 3. The contract's duration of 954 days indicates a long-term need for the mobile unit. 4. Fixed-price contracts aim to control costs, but the final price is set upfront.
Value Assessment
Rating: good
The awarded amount of $2,597,636.83 for an endoscopy mobile unit appears reasonable given the contract duration and the nature of specialized medical equipment. Benchmarking against similar custom-built mobile medical units would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, which typically involves a limited number of bidders compared to full and open competition. This method can expedite the acquisition process but may not always yield the lowest possible price.
Taxpayer Impact: The use of SAP suggests an effort to streamline procurement for this value range, potentially balancing efficiency with taxpayer cost.
Public Impact
Improved access to specialized medical services for patients in New Mexico. Potential for enhanced diagnostic capabilities and patient care through mobile endoscopy. Support for healthcare delivery in underserved or remote areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have impacted price discovery.
- Reliance on SAP for a significant dollar value contract.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Long-term contract ensures sustained service delivery.
Sector Analysis
The healthcare sector, particularly medical equipment manufacturing and services, is a substantial area of federal spending. This contract falls under surgical appliance and supplies manufacturing, a niche within the broader healthcare industry.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award was made via a Purchase Order, a common method for acquiring goods and services. Oversight would focus on contract performance, delivery, and adherence to the firm fixed price.
Related Government Programs
- Surgical Appliance and Supplies Manufacturing
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Limited competition.
- Potential for higher cost due to SAP.
- Vendor lock-in if specialized maintenance is required.
Tags
surgical-appliance-and-supplies-manufact, department-of-health-and-human-services, nm, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.6 million to CRAFTSMEN INDUSTRIES, INC.. ENDOSCOPY MOBILE UNIT RFQ
Who is the contractor on this award?
The obligated recipient is CRAFTSMEN INDUSTRIES, 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 $2.6 million.
What is the period of performance?
Start: 2023-09-19. End: 2026-04-30.
What is the typical cost range for similar mobile endoscopy units procured through full and open competition?
Procuring similar mobile endoscopy units through full and open competition can vary widely based on customization, equipment included, and manufacturer. However, contracts of this scale often range from $1.5 million to $3 million. Factors like advanced imaging technology, specialized surgical equipment, and extended warranty packages can drive costs higher, while standardized configurations might fall at the lower end.
What are the potential risks associated with using Simplified Acquisition Procedures (SAP) for this contract value?
Using SAP for a contract of this value ($2.6M) carries risks such as potentially reduced competition, which could lead to higher prices than if procured through full and open competition. There's also a risk of less rigorous vetting of vendors and technical specifications. While SAP aims for efficiency, it might not always achieve the best value for taxpayer dollars compared to more extensive competitive processes.
How will the effectiveness of the mobile endoscopy unit be measured to ensure value for taxpayer money?
Effectiveness will likely be measured through performance metrics outlined in the contract, such as uptime of the unit, patient throughput, successful completion of procedures, and patient satisfaction surveys. The Indian Health Service will monitor adherence to service level agreements and the overall impact on healthcare access and outcomes for the targeted population. Regular performance reviews will ensure the unit meets its intended purpose.
Industry Classification
NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 75H71023Q00070
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3101 ELM POINT INDUSTRIAL DR, SAINT CHARLES, MO, 63301
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,597,637
Exercised Options: $2,597,637
Current Obligation: $2,597,637
Actual Outlays: $2,315,665
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-09-19
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-02-26
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