HHS awards $40.9K for dental autoclaves to HOKTE LLC, a purchase order under full and open competition

Contract Overview

Contract Amount: $40,866 ($40.9K)

Contractor: Hokte LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-12

End Date: 2025-07-31

Contract Duration: 110 days

Daily Burn Rate: $372/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: T-EDGE AUTOCLAVE FOR DENTAL DEPARTMENT

Place of Performance

Location: CROWNPOINT, MCKINLEY County, NEW MEXICO, 87313

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $40,865.64 to HOKTE LLC for work described as: T-EDGE AUTOCLAVE FOR DENTAL DEPARTMENT Key points: 1. Value for money appears reasonable given the specialized nature of dental autoclaves. 2. Competition dynamics indicate a fair market approach, with 7 bids received. 3. Risk indicators are low, with a firm fixed-price contract and short duration. 4. Performance context is a short-term need for dental equipment. 5. Sector positioning is within healthcare manufacturing and supply. 6. The contract is a purchase order, suggesting a straightforward acquisition.

Value Assessment

Rating: good

The contract value of $40.9K for a T-EDGE Autoclave is within a reasonable range for specialized medical equipment. Benchmarking against similar dental autoclave purchases would provide a more precise value assessment, but the firm fixed-price structure suggests cost certainty. The award to HOKTE LLC, a single vendor for this specific model, implies a competitive process that resulted in a determined price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Small Acquisition Procedures), indicating a full and open competition for a purchase valued under the simplified acquisition threshold. Seven bids were received, suggesting a healthy level of interest and competition among potential suppliers for this dental equipment. The multiple bids allowed for price discovery and likely contributed to achieving a fair market price.

Taxpayer Impact: The competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs through market forces, even for smaller acquisitions.

Public Impact

Beneficiaries include patients receiving dental care at Indian Health Service facilities in New Mexico. Services delivered are the provision of essential dental equipment for sterilization. Geographic impact is focused on New Mexico, serving IHS facilities within the state. Workforce implications involve ensuring dental professionals have the necessary tools to maintain hygiene standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor options for specific, high-end dental equipment models.
Reliance on a single vendor for a critical piece of equipment could pose supply chain risks if not managed proactively.

Positive Signals

Successful competition under SAP indicates effective market engagement.
Firm fixed-price contract provides cost predictability.
Short contract duration minimizes long-term financial commitment and risk.
Award to a vendor with a track record of supplying medical equipment.

Sector Analysis

The dental equipment market is a subset of the broader healthcare equipment industry. This contract falls within the manufacturing and supply of specialized medical devices. Spending in this sector is driven by the need for advanced technology, patient safety, and regulatory compliance. Comparable spending benchmarks would involve analyzing other procurements for autoclaves and similar sterilization equipment across federal healthcare agencies.

Small Business Impact

While this contract was competed under SAP and received multiple bids, there is no explicit indication of a small business set-aside. The analysis does not provide information on subcontracting plans. The impact on the small business ecosystem would depend on whether small businesses were among the seven bidders or if they are part of HOKTE LLC's supply chain.

Oversight & Accountability

Oversight for this purchase order would primarily reside with the Indian Health Service contracting officers and program managers within the Department of Health and Human Services. Accountability is ensured through the firm fixed-price agreement and the delivery of specified equipment. Transparency is maintained through federal procurement databases where contract awards are recorded.

Related Government Programs

Indian Health Service Medical Equipment Procurement
Department of Health and Human Services Dental Services
Federal Dental Supply Contracts
Small Acquisition Procedures (SAP) Awards

Risk Flags

Short contract duration may indicate an urgent or temporary need.
Reliance on a specific model (T-EDGE Autoclave) could limit future interoperability or bulk purchasing options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $40,865.64 to HOKTE LLC. T-EDGE AUTOCLAVE FOR DENTAL DEPARTMENT

Who is the contractor on this award?

The obligated recipient is HOKTE 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 $40,865.64.

What is the period of performance?

Start: 2025-04-12. End: 2025-07-31.

What is the track record of HOKTE LLC in supplying dental equipment to federal agencies?

Information regarding HOKTE LLC's specific track record in supplying dental equipment to federal agencies is not detailed in the provided data. However, the award of this purchase order suggests they are a capable vendor within the dental equipment supply chain. Further investigation into their past performance ratings, previous federal contracts, and client feedback would be necessary to fully assess their reliability and expertise in this domain. The fact that they were selected from seven bidders implies they met the technical and potentially past performance requirements for this specific acquisition.

How does the price of this T-EDGE Autoclave compare to market rates for similar equipment?

The provided data does not include specific market rate comparisons for the T-EDGE Autoclave. The contract value of $40,865.64 was determined through a competitive bidding process under SAP, with seven offers received. This suggests that the price achieved is likely reflective of market conditions for this type of specialized dental equipment at the time of award. To conduct a precise comparison, one would need to research current pricing from other medical equipment suppliers, analyze historical sales data for the T-EDGE model, and consider any variations in features or service agreements.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract are relatively low due to its nature. Potential risks include delivery delays, equipment malfunction upon arrival, or the equipment not meeting specific technical requirements. These risks are mitigated by the firm fixed-price contract, which incentivizes the vendor to deliver as specified, and the short duration of the contract (approximately three months), limiting the exposure period. The competitive bidding process also helps ensure that the selected vendor is capable of meeting the requirements. Post-delivery inspection and acceptance testing would further mitigate risks related to equipment functionality.

How effective is the Indian Health Service in procuring necessary dental equipment through competitive processes?

The procurement of this T-EDGE Autoclave through a competitive process under SAP, with seven bids received, suggests that the Indian Health Service (IHS) is effectively utilizing competitive mechanisms for acquiring necessary dental equipment, at least for acquisitions under the simplified threshold. The competition indicates a healthy market engagement and price discovery. The effectiveness in broader terms would depend on the IHS's ability to consistently achieve best value across all its procurements, including larger, more complex acquisitions, and its success in meeting the dental health needs of its patient population through timely and appropriate equipment provision.

What is the historical spending pattern for dental autoclaves by the Department of Health and Human Services?

The provided data snippet focuses on a single contract award and does not offer historical spending patterns for dental autoclaves by the Department of Health and Human Services (HHS). To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for similar contracts over several fiscal years, filtering by the relevant Product Service Code (PSC) or North American Industry Classification System (NAICS) code, and specifying agencies within HHS, such as the Indian Health Service. This would reveal trends in contract values, awardees, competition levels, and the frequency of such procurements.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Dental Equipment and Supplies Manufacturing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1308 W UTICA ST, BROKEN ARROW, OK, 74011

Business Categories: American Indian Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $40,866

Exercised Options: $40,866

Current Obligation: $40,866

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline