HHS awards $38.9K for surgical instruments, raising questions about competition and value

Contract Overview

Contract Amount: $38,913 ($38.9K)

Contractor: Government Scientific Source Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $107/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AKTA GO (R) GOVERNMENT SCIENTIFIC SOURCE INC:1108892 [25-011398]

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $38,912.96 to GOVERNMENT SCIENTIFIC SOURCE INC for work described as: AKTA GO (R) GOVERNMENT SCIENTIFIC SOURCE INC:1108892 [25-011398] Key points: 1. Contract awarded via a non-competitive process, limiting price discovery. 2. Limited competition may lead to suboptimal pricing for taxpayers. 3. The contract duration is one year, with a potential for follow-on work. 4. The awardee, GOVERNMENT SCIENTIFIC SOURCE INC, is a known supplier in this category. 5. The specific use of the surgical instruments is not detailed, impacting performance assessment. 6. The contract value is relatively small, suggesting a focus on specific needs.

Value Assessment

Rating: fair

The contract value of $38,912.96 is modest. Without comparable contract data or detailed pricing breakdowns, it is difficult to definitively assess value for money. The fixed-price nature of the award offers some cost certainty. However, the lack of competition means there is no benchmark to ensure the price is aligned with market rates for similar surgical instruments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition award. The absence of a competitive bidding process means that multiple vendors were not given the opportunity to offer their products and pricing. This limits the government's ability to secure the best possible price and potentially overlooks innovative solutions from other suppliers.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure to drive down costs. The government missed an opportunity to leverage market forces for a more economical purchase.

Public Impact

The primary beneficiaries are likely researchers and medical staff within the National Institutes of Health (NIH). The contract provides essential surgical and medical instruments for research and clinical support. The geographic impact is localized to NIH facilities, primarily in Virginia. There are no immediate significant workforce implications directly tied to this specific contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Limited transparency on the specific instruments procured hinders detailed value analysis.
The sole-source nature prevents exploration of alternative, potentially more cost-effective suppliers.

Positive Signals

The awardee is an established supplier, suggesting reliability in delivery.
The fixed-price contract provides cost predictability for the government.
The contract supports critical NIH research and medical operations.

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector is a vital component of the healthcare industry, providing essential tools for diagnosis, treatment, and research. This contract falls within the broader healthcare supply chain, supporting the operational needs of a major federal research institution. Comparable spending in this sector by federal agencies can range from thousands to millions of dollars, depending on the scope and scale of the procurement.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. The awardee is a firm, and without further information on their subcontracting practices, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' internal procurement regulations and the National Institutes of Health's administrative controls. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH Research Supplies
Medical Equipment Procurement
Federal Healthcare Spending
Surgical Instrument Contracts

Risk Flags

Non-competitive award
Lack of price benchmark
Limited transparency on specific items

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $38,912.96 to GOVERNMENT SCIENTIFIC SOURCE INC. AKTA GO (R) GOVERNMENT SCIENTIFIC SOURCE INC:1108892 [25-011398]

Who is the contractor on this award?

The obligated recipient is GOVERNMENT SCIENTIFIC SOURCE 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 $38,912.96.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the track record of GOVERNMENT SCIENTIFIC SOURCE INC with federal agencies, particularly HHS?

GOVERNMENT SCIENTIFIC SOURCE INC has a history of receiving federal contracts, including with the Department of Health and Human Services (HHS). Their awards often span various scientific and medical supplies. A review of federal procurement databases would reveal the volume and nature of their past contracts. While their established presence suggests a capacity to meet government needs, the specifics of their performance on previous HHS contracts, including on-time delivery, quality of goods, and adherence to pricing agreements, would require a deeper dive into contract performance reports and payment histories. Without this granular data, it's difficult to assess their overall reliability beyond their status as a registered vendor.

How does the pricing of this contract compare to similar surgical instrument procurements by the government?

Direct price comparison is challenging without knowing the exact specifications of the surgical instruments procured under this $38,912.96 purchase order. However, the fact that this contract was awarded on a sole-source basis (or not competed under SAP) inherently limits the ability to benchmark its pricing against market rates or other competitive bids. Typically, competitive solicitations allow agencies to compare multiple offers and select the best value, which often translates to more favorable pricing for the government. In the absence of competition, the government relies on the vendor's proposed price, which may not reflect the lowest possible cost. Further analysis would require access to detailed product lists and pricing from other government contracts for comparable items.

What are the primary risks associated with a sole-source award for surgical instruments?

The primary risks associated with a sole-source award for surgical instruments include potential overpricing due to the lack of competitive pressure, limited access to a broader range of innovative or specialized products from other manufacturers, and a reduced incentive for the awarded contractor to offer the most competitive terms. Taxpayers may bear a higher cost for these instruments than if the contract had been competed. Additionally, reliance on a single source could create supply chain vulnerabilities if the contractor experiences production or delivery issues. While the contractor is established, the absence of competition means the government cannot easily pivot to an alternative supplier if performance falters.

How effective is the National Institutes of Health (NIH) in procuring necessary surgical instruments through competitive means?

The National Institutes of Health (NIH), as a major research institution, procures a vast array of surgical instruments. While many of these procurements likely undergo competitive processes, the provided data indicates that this specific contract was not competed under Simplified Acquisition Procedures (SAP), suggesting a sole-source or limited competition scenario. NIH, like other federal agencies, is mandated to promote full and open competition whenever possible. However, exceptions exist for specific circumstances, such as when only one responsible source can provide the required supplies or when urgency dictates. Assessing NIH's overall effectiveness in competitive procurement would require analyzing a broader sample of their contracts, looking at metrics like the number of bids received, the frequency of sole-source awards, and the achieved cost savings through competition.

What is the historical spending pattern for surgical and medical instruments by the Department of Health and Human Services (HHS)?

The Department of Health and Human Services (HHS), including its sub-agencies like the National Institutes of Health (NIH), consistently spends significant amounts on surgical and medical instruments. Historical spending data would reveal a pattern of regular procurement to support research, clinical care, and public health initiatives across its various operating divisions. This spending can fluctuate based on research priorities, new technological advancements, and public health emergencies. Analyzing HHS's historical spending in this category would likely show a substantial and ongoing requirement, with procurements ranging from small, specialized items to large-scale equipment. The provided contract represents a small fraction of this overall expenditure, highlighting the continuous need for such supplies within the department.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12355 SUNRISE VALLEY DR STE 400, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $38,913

Exercised Options: $38,913

Current Obligation: $38,913

Actual Outlays: $33,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline