Preventative maintenance for analyzer at Pawnee Indian Health Center awarded for $19,131.60

Contract Overview

Contract Amount: $19,132 ($19.1K)

Contractor: Cepheid

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-22

End Date: 2027-05-23

Contract Duration: 1,462 days

Daily Burn Rate: $13/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTATIVE MAINTENANCE SERVICES FOR ANALYZER - PAWNEE INDIAN HEALTH CENTER

Place of Performance

Location: PAWNEE, PAWNEE County, OKLAHOMA, 74058

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19,131.6 to CEPHEID for work described as: PREVENTATIVE MAINTENANCE SERVICES FOR ANALYZER - PAWNEE INDIAN HEALTH CENTER Key points: 1. Value for money appears reasonable given the fixed-price nature and duration. 2. Competition dynamics indicate a standard procurement process. 3. Risk indicators are low, with a stable performance rating. 4. Performance context shows a multi-year contract for essential equipment. 5. Sector positioning is within healthcare equipment maintenance.

Value Assessment

Rating: good

The contract value of $19,131.60 over approximately four years for preventative maintenance services is modest. Benchmarking against similar contracts for analyzer maintenance is difficult without more specific equipment details, but the price appears to be in a reasonable range for specialized technical services. The firm fixed-price structure helps control costs for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting it was likely a competitive process among multiple vendors. While the exact number of bidders is not specified, SAP is designed to encourage competition for smaller dollar value procurements. This level of competition generally leads to fair market pricing.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, suggests that taxpayer funds are being used efficiently by obtaining services at a market-driven price.

Public Impact

Patients at the Pawnee Indian Health Center benefit from reliable access to diagnostic services. Essential preventative maintenance services ensure the operational integrity of critical medical equipment. The contract supports the healthcare infrastructure within the Oklahoma region. The contract indirectly supports skilled technicians performing specialized maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Contract awarded under standard procurement procedures.
Stable performance rating ('OK') indicates satisfactory vendor execution.
Firm Fixed Price contract type limits cost uncertainty.

Sector Analysis

This contract falls within the healthcare equipment maintenance sector, a critical component of the broader healthcare industry. The market for specialized repair and maintenance services for medical analyzers is driven by the need for precision, reliability, and adherence to regulatory standards. Spending in this area is essential for healthcare providers to maintain operational efficiency and patient care quality.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The value of the contract is within the simplified acquisition threshold, which can be accessible to small businesses, but without specific set-aside language, it's presumed to have been competed more broadly.

Oversight & Accountability

The contract is managed by the Indian Health Service, an agency within the Department of Health and Human Services, which has established oversight mechanisms for procurement. The firm fixed-price nature provides a degree of accountability. Transparency is facilitated through federal procurement databases where contract awards are recorded.

Related Government Programs

Medical Equipment Maintenance Services
Indian Health Service Contracts
Preventative Maintenance Contracts
Analyzer Maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19,131.6 to CEPHEID. PREVENTATIVE MAINTENANCE SERVICES FOR ANALYZER - PAWNEE INDIAN HEALTH CENTER

Who is the contractor on this award?

The obligated recipient is CEPHEID.

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 $19,131.6.

What is the period of performance?

Start: 2023-05-22. End: 2027-05-23.

What is the specific type of analyzer being maintained under this contract?

The provided data does not specify the exact model or type of analyzer requiring preventative maintenance. The North American Industry Classification System (NAICS) code 811210, 'Electronic and Precision Equipment Repair and Maintenance,' is broad and covers a wide range of equipment. Knowing the specific analyzer would allow for a more precise comparison of maintenance costs against industry benchmarks and an assessment of the contractor's specialized expertise.

How does the annual cost of this maintenance contract compare to similar contracts for analyzer maintenance?

The total contract value is $19,131.60 over approximately 4 years (1462 days), equating to roughly $4,782.90 per year. Without knowing the specific analyzer model and its complexity, a direct comparison is challenging. However, for routine preventative maintenance on standard diagnostic analyzers, this annual cost appears to be within a reasonable range. More specialized or high-throughput analyzers might incur higher annual maintenance fees, potentially exceeding $10,000-$20,000 or more depending on service level agreements and parts included.

What is the track record of the contractor, CEPHEID, with federal agencies?

Cepheid is a known entity in the diagnostics industry, particularly for molecular testing systems. While this specific contract is a Purchase Order, their broader federal contracting history would need to be reviewed for a comprehensive assessment. Generally, their presence in the market suggests a level of established capability. A deeper dive into past performance reviews and any prior federal awards or terminations would provide more insight into their reliability and adherence to contract terms.

What are the potential risks associated with a multi-year maintenance contract for critical medical equipment?

Potential risks include vendor lock-in, where switching providers becomes difficult or costly. There's also the risk of service degradation over time if contract oversight is weak, or if the contractor's financial stability declines. Furthermore, if the technology of the analyzer becomes obsolete, the maintenance contract might become less valuable. Ensuring clear service level agreements (SLAs), performance metrics, and termination clauses can mitigate many of these risks.

How has federal spending on analyzer maintenance evolved over the past five years?

Analyzing historical spending trends for analyzer maintenance across the federal government requires access to comprehensive contract databases. Generally, spending in this area is expected to be relatively stable, driven by the ongoing need for diagnostic equipment in federal healthcare facilities (like VA hospitals, IHS clinics, military medical centers). Increases might correlate with new equipment procurements or expansions in healthcare services. Decreases could reflect consolidation, technology shifts, or budget constraints. Without specific data, it's difficult to provide precise figures, but the demand for reliable equipment maintenance remains a constant.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 904, EAST CARIBBEAN DRIVE, SUNNYVALE, CA, 94089

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

Financial Breakdown

Contract Ceiling: $23,915

Exercised Options: $19,132

Current Obligation: $19,132

Actual Outlays: $14,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline