HHS awards $6.7M for lab testing services to Siemens Healthcare Diagnostics Inc

Contract Overview

Contract Amount: $6,683,780 ($6.7M)

Contractor: Siemens Healthcare Diagnostics Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-12-30

End Date: 2026-06-30

Contract Duration: 2,008 days

Daily Burn Rate: $3.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PURHCASE ORDER FOR COST PER TEST AGREEMENT FOR CLINTON, WEWOKA, LAWTON AND CLAREMORE LABORATORIES.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73114

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.7 million to SIEMENS HEALTHCARE DIAGNOSTICS INC. for work described as: PURHCASE ORDER FOR COST PER TEST AGREEMENT FOR CLINTON, WEWOKA, LAWTON AND CLAREMORE LABORATORIES. Key points: 1. Siemens Healthcare Diagnostics Inc. is the sole awardee for this specific contract. 2. The contract spans over 5 years, indicating a long-term need for these services. 3. The procurement was competed under SAP, suggesting a streamlined process for smaller value contracts. 4. The sector is Analytical Laboratory Instrument Manufacturing, a specialized field.

Value Assessment

Rating: fair

The total award amount is $6,683,779.94. Without specific unit costs or historical data for similar agreements, a precise value assessment is difficult. However, the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which is typically used for smaller purchases. While this suggests some level of competition or market research, it may not represent the full breadth of potential competition available for such services.

Taxpayer Impact: Taxpayer funds are being used to procure essential laboratory testing services for multiple health facilities, aiming to ensure access to diagnostic capabilities.

Public Impact

Ensures continued access to critical laboratory testing services for patients in Clinton, Wewoka, Lawton, and Claremore. Supports the operational needs of the Indian Health Service by providing necessary diagnostic tools. Potential for improved health outcomes through timely and accurate laboratory results.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Long contract duration may not adapt to technological advancements.
Lack of detailed cost breakdown for unit pricing.

Positive Signals

Provides essential services to underserved areas.
Long-term agreement ensures service continuity.
Firm fixed price contract offers cost predictability.

Sector Analysis

The Analytical Laboratory Instrument Manufacturing sector is crucial for healthcare diagnostics. Spending in this area supports the infrastructure for medical testing. Benchmarks are difficult without specific instrument types, but consistent funding is typical for essential health services.

Small Business Impact

The awardee is Siemens Healthcare Diagnostics Inc., a large corporation. There is no indication of small business participation in this specific award, which is common for specialized equipment and services.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services, Indian Health Service. Oversight would involve ensuring service delivery meets the terms of the purchase order and that pricing remains consistent.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Limited competition
Potential for technological obsolescence
Lack of detailed unit cost data
Sole awardee for this specific contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.7 million to SIEMENS HEALTHCARE DIAGNOSTICS INC.. PURHCASE ORDER FOR COST PER TEST AGREEMENT FOR CLINTON, WEWOKA, LAWTON AND CLAREMORE LABORATORIES.

Who is the contractor on this award?

The obligated recipient is SIEMENS HEALTHCARE DIAGNOSTICS 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 $6.7 million.

What is the period of performance?

Start: 2020-12-30. End: 2026-06-30.

What is the cost per test, and how does it compare to industry benchmarks?

The provided data does not include a specific cost per test. The total award amount is $6,683,779.94 over approximately 5.5 years. To assess value, a breakdown of tests performed and their associated costs would be needed, followed by a comparison to similar agreements within the Indian Health Service or other federal agencies.

What are the risks associated with a long-term, firm-fixed-price contract for laboratory services?

A primary risk is that technological advancements in laboratory testing could outpace the contract's duration, potentially leading to the use of less efficient or outdated methods. Additionally, a firm-fixed-price contract might not fully capture potential cost savings if testing volumes decrease significantly or if more cost-effective solutions emerge during the contract period.

How effective is this contract in ensuring reliable and accessible laboratory services for the specified locations?

The contract appears effective in ensuring service continuity and accessibility by securing a long-term agreement with a known provider for multiple locations. The firm-fixed-price structure provides budget certainty for the Indian Health Service. However, effectiveness in terms of quality and timeliness of results would depend on Siemens' performance and ongoing monitoring.

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: IHS-21-0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 115 NORWOOD PARK S, NORWOOD, MA, 02062

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: $8,455,978

Exercised Options: $6,683,780

Current Obligation: $6,683,780

Actual Outlays: $5,851,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline