NIH Spends $86M on Ortho-Clinical Diagnostics Reagents and Consumables, Sole-Source Awarded

Contract Overview

Contract Amount: $86,122 ($86.1K)

Contractor: Ortho-Clinical Diagnostics, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-03-01

End Date: 2021-02-28

Contract Duration: 364 days

Daily Burn Rate: $237/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ORTHO-CLINICAL DIAGNOSTICS INC REAGENTS AND CONSUMABLES

Place of Performance

Location: RARITAN, SOMERSET County, NEW JERSEY, 08869

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $86,121.97 to ORTHO-CLINICAL DIAGNOSTICS, INC for work described as: ORTHO-CLINICAL DIAGNOSTICS INC REAGENTS AND CONSUMABLES Key points: 1. Significant spending on specialized diagnostic reagents and consumables. 2. Sole-source award raises questions about price discovery and competition. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Focus on healthcare sector, specifically diagnostic supplies.

Value Assessment

Rating: questionable

The contract value of $86.12M for reagents and consumables is substantial. Without competitive benchmarking, it's difficult to assess if this price is fair compared to similar contracts or market rates for diagnostic supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP, indicating a sole-source or limited competition award. This lack of competition likely hindered price discovery and may have resulted in a higher price than could have been achieved through a competitive process.

Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive bidding, as the government did not explore alternative, potentially lower-cost options.

Public Impact

Essential diagnostic supplies for NIH research and operations. Potential for increased healthcare costs if similar sole-source awards are common. Impact on the broader diagnostics market if key suppliers are awarded contracts without competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential supplies for critical research
Established supplier relationship

Sector Analysis

This spending falls within the healthcare sector, specifically for diagnostic reagents and consumables. Benchmarks for this category can vary widely based on product type and volume, but a lack of competition makes direct comparison difficult.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this sole-source award. The focus appears to be on a large, established supplier.

Oversight & Accountability

Oversight is needed to ensure that sole-source awards are justified and that pricing is reasonable. Regular review of procurement strategies is essential to identify opportunities for competition and cost savings.

Related Government Programs

Biological Product (except Diagnostic) Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing.
Lack of transparency in vendor selection.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $86,121.97 to ORTHO-CLINICAL DIAGNOSTICS, INC. ORTHO-CLINICAL DIAGNOSTICS INC REAGENTS AND CONSUMABLES

Who is the contractor on this award?

The obligated recipient is ORTHO-CLINICAL DIAGNOSTICS, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $86,121.97.

What is the period of performance?

Start: 2020-03-01. End: 2021-02-28.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves a unique capability, proprietary product, or urgent need where only one vendor can fulfill the requirement. Without specific documentation, it's impossible to confirm the exact reason, but it's crucial for ensuring fair and efficient use of taxpayer funds.

What is the potential financial risk to taxpayers due to the lack of competition?

The primary financial risk is overpayment. Without competitive bids, the government may not be securing the best possible price for these reagents and consumables. This could lead to millions in unnecessary spending over the contract's duration, impacting the overall budget.

How effective is this procurement strategy in ensuring the NIH receives high-quality diagnostic supplies?

While a sole-source award to an established vendor might ensure access to specific, high-quality products, it doesn't inherently guarantee effectiveness in terms of value for money. The lack of competition raises concerns about whether alternative, equally effective, and potentially more cost-efficient options were overlooked.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 20-004078

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ortho-Clinical Diagnostics, Inc.

Address: 1001 RTE 202 US HWY, RARITAN, NJ, 08869

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: $86,122

Exercised Options: $86,122

Current Obligation: $86,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline