NIH awards $1.5M purchase order for scientific supplies, raising questions about competition and value

Contract Overview

Contract Amount: $15,000 ($15.0K)

Contractor: Mirimus, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-12

End Date: 2021-05-12

Contract Duration: 30 days

Daily Burn Rate: $500/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SCIENTIFIC SUPPLIES C.:1242131 [21-007510]

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11226

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,000 to MIRIMUS, INC. for work described as: SCIENTIFIC SUPPLIES C.:1242131 [21-007510] Key points: 1. The contract was awarded on a sole-source basis, limiting competitive pressure on pricing. 2. The short duration of 30 days suggests a need for immediate supplies rather than a long-term strategic acquisition. 3. The specific nature of 'All Other Animal Production' supplies warrants further investigation into necessity and alternatives. 4. The award amount of $1.5M for a single month of supplies appears high, necessitating a value-for-money assessment. 5. Lack of competition indicates potential risks of overpayment and reduced innovation. 6. The contract's limited scope and duration may not significantly impact the broader sector positioning.

Value Assessment

Rating: questionable

The awarded amount of $1.5M for a 30-day purchase order for scientific supplies is substantial. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of transparency in how this price was determined raises concerns about whether the government received the best possible value. Further analysis would be needed to compare the unit costs of the supplies to industry averages or previous NIH procurements for similar items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services. However, for scientific supplies, it is often possible to find multiple vendors. The absence of a competitive process means that MIRIMUS, INC. did not face pressure from other suppliers to offer lower prices or better terms. This lack of competition limits the government's ability to ensure it is obtaining the most cost-effective solution.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's purchasing power and potentially diverts funds that could be used for other essential services.

Public Impact

The primary beneficiaries are researchers and staff within the National Institutes of Health (NIH) who require specific scientific supplies for animal production and related research activities. The services delivered include the provision of essential scientific supplies crucial for ongoing research projects, potentially impacting the progress of biomedical studies. The geographic impact is localized to the NIH facilities in New York, where the supplies will be utilized. Workforce implications are minimal, as this contract primarily concerns the procurement of goods rather than services that would directly employ or affect a large workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially leads to overpayment.
Short contract duration may indicate urgency or a lack of strategic planning for supply needs.
The specific nature of 'All Other Animal Production' supplies requires validation of necessity and exploration of alternatives.
High dollar amount for a single month of supplies warrants scrutiny of unit costs and overall value.

Positive Signals

Awarded to a single vendor, potentially ensuring rapid delivery of critical supplies.
The contract is for a firm fixed price, providing cost certainty for the government once awarded.

Sector Analysis

The procurement of scientific supplies falls under the broader healthcare and research sector. This contract specifically supports the National Institutes of Health (NIH), a leading government agency for biomedical research. The market for scientific supplies is competitive, with numerous manufacturers and distributors. However, specific or specialized items can sometimes lead to limited vendor options. The NIH, as a major buyer, influences market dynamics through its purchasing power. Comparable spending benchmarks for scientific supplies can vary widely based on the type and quantity of items procured.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. While MIRIMUS, INC. may be a large business, the lack of a small business set-aside means that the direct economic benefit to the small business ecosystem from this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and specifically the National Institutes of Health (NIH). As a purchase order, it is subject to internal procurement regulations and financial controls. Transparency is limited due to the sole-source nature of the award. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract if concerns arise.

Related Government Programs

NIH Research Grants
Biomedical Research Supplies
Federal Scientific Equipment Procurement
Animal Research Facilities Support

Risk Flags

Sole-source award
High value for short duration
Lack of competitive bidding
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,000 to MIRIMUS, INC.. SCIENTIFIC SUPPLIES C.:1242131 [21-007510]

Who is the contractor on this award?

The obligated recipient is MIRIMUS, 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 $15,000.

What is the period of performance?

Start: 2021-04-12. End: 2021-05-12.

What is the track record of MIRIMUS, INC. in fulfilling government contracts, particularly for scientific supplies?

A review of federal procurement data would be necessary to assess MIRIMUS, INC.'s track record. This would involve examining past contract awards, performance evaluations, and any reported issues or disputes. Understanding their history with similar agencies and contract types (e.g., purchase orders, sole-source awards) would provide context for their ability to meet the NIH's needs. Without specific data on MIRIMUS, INC.'s past performance, it is difficult to definitively assess their reliability and capability for this $1.5 million award.

How does the $1.5 million cost for a 30-day supply of scientific materials compare to industry benchmarks or previous NIH procurements?

Benchmarking this $1.5 million expenditure for a single month of scientific supplies is challenging without detailed itemization and quantity information. However, as a general rule, such a high value for a short-term supply contract raises a red flag. A thorough value-for-money assessment would require comparing the unit prices of the specific items procured against market rates from other suppliers and against historical NIH spending on similar supplies. The sole-source nature of this award further complicates direct price comparisons, as competitive bidding typically drives prices down. If this amount represents a significant increase over previous similar procurements or exceeds typical industry costs for the specified items, it suggests potential overpayment.

What are the specific risks associated with awarding a sole-source contract for scientific supplies, especially at this value?

The primary risk of a sole-source award is the lack of competition, which can lead to inflated prices and reduced value for the government. Taxpayers may end up paying more than necessary for the supplies. Additionally, sole-source contracts can limit access to innovative products or services offered by other vendors. For scientific supplies, there's also a risk that the chosen vendor may not have the most up-to-date or cost-effective inventory. Without competitive pressure, there's less incentive for the vendor to offer discounts or superior service. This procurement mechanism bypasses the standard checks and balances inherent in a competitive bidding process, increasing the potential for financial mismanagement or suboptimal resource allocation.

What is the justification for the 'All Other Animal Production' classification and its relevance to the NIH's research objectives?

The classification 'All Other Animal Production' likely refers to a broad category of supplies necessary for the care, maintenance, and use of animals in research settings, beyond more specific categories like feed or veterinary pharmaceuticals. The NIH utilizes animal models extensively in biomedical research to understand diseases and develop treatments. Supplies under this classification could range from specialized bedding and caging materials to sanitation products and environmental control equipment essential for maintaining animal welfare and research integrity. The specific relevance to NIH's objectives would depend on the precise nature of the research being conducted, which often involves complex biological processes that require controlled environments and specific husbandry practices for the animal subjects.

How does this contract align with NIH's overall spending patterns for scientific supplies and research materials?

To assess alignment, one would need to analyze NIH's historical spending data on scientific supplies over several fiscal years. This analysis should break down spending by category, vendor, and contract type (competed vs. sole-source). If this $1.5 million sole-source award represents a significant deviation from typical monthly or annual spending on similar supplies, or if it constitutes a larger proportion of sole-source awards than usual, it would indicate a potential misalignment. NIH generally aims for competitive procurements to maximize value. A sole-source award of this magnitude warrants scrutiny to ensure it is an exception driven by genuine necessity rather than a departure from established procurement best practices.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Other Animal Production › All Other Animal Production

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 760 PARKSIDE AVENUE SUITE 206, BROOKLYN, NY, 11226

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

Financial Breakdown

Contract Ceiling: $15,000

Exercised Options: $15,000

Current Obligation: $15,000

Actual Outlays: $15,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline