HHS awards $184,590 for Nitronox Plus System, a sole-source purchase for NNMC labor and delivery

Contract Overview

Contract Amount: $18,459 ($18.5K)

Contractor: Linde GAS & Equipment Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-07

End Date: 2026-05-11

Contract Duration: 34 days

Daily Burn Rate: $543/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NITRONOX PLUS SYSTEM FOR NNMC LABOR AND DELIVERY

Place of Performance

Location: SHIPROCK, SAN JUAN County, NEW MEXICO, 87420

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18,459 to LINDE GAS & EQUIPMENT INC. for work described as: NITRONOX PLUS SYSTEM FOR NNMC LABOR AND DELIVERY Key points: 1. The contract is a sole-source award, limiting competitive opportunities. 2. The price of $184,590 for a 34-day period appears high, warranting further scrutiny. 3. The sector is healthcare, specifically medical equipment for labor and delivery. 4. Potential risks include lack of competition and overpayment for the service.

Value Assessment

Rating: questionable

The awarded price of $184,590 for a 34-day period is exceptionally high. Without comparable contract data or detailed cost breakdowns, it's difficult to assess value, but the per-day cost is significantly above typical benchmarks for similar medical equipment rentals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning no competition was sought. This method bypasses the standard procurement process and can lead to inflated prices and reduced value for taxpayer money, as there's no market pressure to offer competitive rates.

Taxpayer Impact: The sole-source nature of this award raises concerns about taxpayer impact, as the absence of competition may have resulted in a price higher than what could have been achieved through a competitive bidding process.

Public Impact

Patients at NNMC will benefit from the Nitronox Plus System for labor and delivery. The high cost raises questions about the efficient use of federal funds for essential medical services. Lack of transparency in sole-source contracts can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High price point
Short contract duration with high cost

Positive Signals

Provides essential medical equipment for patient care

Sector Analysis

The healthcare sector, particularly medical equipment procurement, often involves specialized items. While essential, the high cost of this sole-source Nitronox Plus System warrants careful review against industry standards for similar rental services.

Small Business Impact

This award was not competed under SAP and does not indicate any specific provisions for small business participation. The sole-source nature further limits opportunities for small businesses to compete for this contract.

Oversight & Accountability

The sole-source justification for this contract needs thorough review by oversight bodies to ensure it was truly the only viable option and that the price is fair and reasonable, despite the lack of competition.

Related Government Programs

Metal Tank (Heavy Gauge) Manufacturing
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Lack of competition
Potentially inflated pricing
Limited transparency
High cost per day

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18,459 to LINDE GAS & EQUIPMENT INC.. NITRONOX PLUS SYSTEM FOR NNMC LABOR AND DELIVERY

Who is the contractor on this award?

The obligated recipient is LINDE GAS & EQUIPMENT 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 $18,459.

What is the period of performance?

Start: 2026-04-07. End: 2026-05-11.

What is the justification for awarding this contract sole-source, and were alternative options explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without specific documentation, it's unclear why competition was bypassed. Agencies should provide detailed rationale and explore all avenues for competition to ensure best value and taxpayer protection.

How does the $184,590 price for a 34-day rental compare to market rates for similar medical equipment?

The awarded price of $184,590 for a 34-day rental translates to approximately $5,430 per day. This figure appears exceptionally high when compared to typical rental costs for medical equipment, even specialized systems. A thorough market analysis is needed to validate this pricing.

What is the long-term impact of relying on sole-source contracts for essential medical equipment?

Long-term reliance on sole-source contracts can stifle innovation, reduce competition, and lead to consistently higher prices. It also limits the government's ability to leverage market dynamics for cost savings. Agencies should prioritize competitive procurements to ensure sustained value and access to a broader range of suppliers.

Industry Classification

NAICS: Manufacturing › Boiler, Tank, and Shipping Container Manufacturing › Metal Tank (Heavy Gauge) Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71026P00084

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 RIVERVIEW DR, DANBURY, CT, 06810

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

Financial Breakdown

Contract Ceiling: $18,459

Exercised Options: $18,459

Current Obligation: $18,459

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline