Siemens awarded $1.2M contract for in-vitro diagnostic substances by IHS, competing under SAP

Contract Overview

Contract Amount: $1,200,000 ($1.2M)

Contractor: Siemens Healthcare Diagnostics Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-06-16

End Date: 2026-06-30

Contract Duration: 379 days

Daily Burn Rate: $3.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BPA CALL AGAINST 75H71221A00002, SIEMENS.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85016

State: Arizona Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.2 million to SIEMENS HEALTHCARE DIAGNOSTICS INC. for work described as: BPA CALL AGAINST 75H71221A00002, SIEMENS. Key points: 1. Contract awarded to Siemens Healthcare Diagnostics Inc. for in-vitro diagnostic substances. 2. The contract has a duration of 379 days, ending June 30, 2026. 3. Awarded under a Simplified Acquisition Procedure (SAP), indicating a focus on smaller procurements. 4. The contract is firm-fixed-price, providing cost certainty for the government. 5. The base award amount is $1.2 million. 6. The contract was competed, suggesting multiple offers were considered. 7. The procurement is for the Indian Health Service (IHS) in Arizona.

Value Assessment

Rating: good

The contract value of $1.2 million for in-vitro diagnostic substances appears reasonable for a one-year duration. Benchmarking against similar contracts for diagnostic reagents and manufacturing services would provide a more precise assessment. However, given the firm-fixed-price nature and the competitive award, it suggests a fair market price was likely achieved. The specific nature of the substances and their criticality to IHS operations will influence the ultimate value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedure (SAP), which typically allows for full and open competition for procurements below a certain threshold. While the exact number of bidders is not specified, the fact that it was competed under SAP suggests that multiple vendors had the opportunity to submit offers. This competitive process is designed to ensure fair pricing and access to a range of qualified suppliers.

Taxpayer Impact: Competing this contract under SAP likely resulted in a more favorable price for taxpayers compared to a sole-source award. The competitive process encourages vendors to offer their best pricing to secure the business.

Public Impact

The contract directly benefits the Indian Health Service (IHS) by ensuring a supply of essential in-vitro diagnostic substances. These substances are critical for laboratory testing and diagnosis, supporting patient care within IHS facilities. The geographic impact is primarily within Arizona, where the IHS operates facilities served by this contract. The contract supports the manufacturing and supply chain workforce involved in producing these specialized diagnostic materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting critical diagnostic services.
Reliance on a single vendor for a specific set of diagnostic substances could pose a risk if not managed proactively.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Competitive award process suggests fair market value.
Contract duration allows for consistent supply of essential materials.

Sector Analysis

The market for in-vitro diagnostic substances is a significant segment of the broader healthcare and life sciences industry. This contract falls within the 'In-Vitro Diagnostic Substance Manufacturing' (NAICS 325413) category. The global market for in-vitro diagnostics is substantial and growing, driven by advancements in medical technology and increasing demand for accurate disease detection and monitoring. This specific contract represents a small but vital component of the federal government's procurement within this sector, ensuring the IHS has access to necessary laboratory supplies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. As a competed contract under SAP, it's possible that small businesses could have participated, but the award went to Siemens Healthcare Diagnostics Inc., a large entity. Further analysis would be needed to determine if any small business subcontracting opportunities were included or realized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Indian Health Service's contracting and program management offices. As a firm-fixed-price contract, the primary accountability measure is the delivery of the specified in-vitro diagnostic substances according to the contract terms and schedule. Transparency is facilitated by the contract award itself being publicly available. The Department of Health and Human Services (HHS) Office of Inspector General (OIG) would have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Department of Health and Human Services Contracts
Indian Health Service Procurements
Medical Supplies and Equipment Contracts
In-Vitro Diagnostic Substance Contracts

Risk Flags

Potential supply chain disruption risk
Dependence on a single supplier for critical materials

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.2 million to SIEMENS HEALTHCARE DIAGNOSTICS INC.. BPA CALL AGAINST 75H71221A00002, SIEMENS.

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 $1.2 million.

What is the period of performance?

Start: 2025-06-16. End: 2026-06-30.

What is the historical spending by the Indian Health Service on in-vitro diagnostic substances?

Analyzing historical spending by the Indian Health Service (IHS) on in-vitro diagnostic substances requires accessing and aggregating procurement data over several fiscal years. While this specific contract is for $1.2 million, understanding the IHS's broader expenditure patterns in this category provides context for the current award. Factors such as the number of facilities served, patient demographics, and the types of diagnostic tests performed influence these spending levels. A trend analysis could reveal whether spending has been consistent, increasing, or decreasing, and whether this contract represents a typical award size or a deviation. Without access to a comprehensive historical database for IHS-specific spending on this particular product category, a precise figure cannot be provided, but it is a crucial element for assessing long-term budget allocation and potential cost efficiencies.

How does the price of these diagnostic substances compare to similar products from other manufacturers?

To compare the price of these diagnostic substances, one would need to identify comparable products from other manufacturers and their respective contract award prices or catalog prices. This involves detailed product specification matching and market research. The current contract's firm-fixed-price nature with Siemens Healthcare Diagnostics Inc. at $1.2 million provides a benchmark. If other federal agencies or large healthcare systems have recently procured similar substances, their contract data could serve as a valuable comparison point. Factors such as volume discounts, contract duration, and specific product formulations can influence price variations. A thorough value-for-money assessment would involve analyzing these comparative prices against the quality, reliability, and delivery performance of the substances provided by Siemens.

What are the key performance indicators (KPIs) for this contract, and how is Siemens' performance being measured?

Key performance indicators (KPIs) for a contract involving the supply of in-vitro diagnostic substances typically revolve around delivery timeliness, product quality, and adherence to specifications. For this firm-fixed-price contract, the Indian Health Service (IHS) would likely monitor metrics such as on-time delivery rates, the percentage of acceptable product received (i.e., meeting quality standards and specifications), and responsiveness to any issues or inquiries. Performance is usually measured through contract surveillance, periodic reviews, and potentially contractor performance assessment reporting (CPARs). Siemens' adherence to the delivery schedule and the quality of the diagnostic substances provided are critical to ensuring uninterrupted patient care within IHS facilities. Failure to meet these KPIs could result in contract remedies or impact future award decisions.

What is the potential impact of this contract on the availability of diagnostic services for Native American communities?

This contract directly impacts the availability of diagnostic services for Native American communities served by the Indian Health Service (IHS). By ensuring a consistent supply of essential in-vitro diagnostic substances, the contract supports the IHS's ability to perform critical laboratory tests. These tests are fundamental for diagnosing a wide range of conditions, monitoring treatment efficacy, and conducting public health surveillance. Reliable access to these substances means that IHS facilities can continue to provide timely and accurate diagnostic information to healthcare providers, enabling better patient care and health outcomes for the communities relying on IHS services. Disruptions in the supply of these substances could lead to delays in diagnosis and treatment, negatively affecting community health.

Are there any specific risks associated with relying on Siemens Healthcare Diagnostics Inc. for these critical substances?

Potential risks associated with relying on Siemens Healthcare Diagnostics Inc. for these critical substances include supply chain vulnerabilities, potential for price increases in future contract renewals, and dependence on a single supplier for specific product lines. Geopolitical events, manufacturing issues, or logistical challenges could disrupt the supply chain, impacting the IHS's ability to perform necessary tests. While this contract is firm-fixed-price, future procurements could face price escalations. Furthermore, if Siemens is the sole or primary provider of certain specialized diagnostic substances, the IHS may have limited alternatives if performance issues arise or if market conditions change. Mitigating these risks involves robust contract management, exploring alternative suppliers where feasible, and maintaining strong communication channels with the contractor.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

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: 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: $1,200,000

Exercised Options: $1,200,000

Current Obligation: $1,200,000

Actual Outlays: $161,723

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75H71221A00002

IDV Type: BPA

Timeline