HHS awards $1.23M for Getinge IABP service, bypassing competition

Contract Overview

Contract Amount: $12,296 ($12.3K)

Contractor: Getinge USA Sales, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-11

End Date: 2024-08-15

Contract Duration: 1,100 days

Daily Burn Rate: $11/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GETINGE IABP SERVICE AGREEMENT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12,296 to GETINGE USA SALES, LLC for work described as: GETINGE IABP SERVICE AGREEMENT Key points: 1. Contract value is $1.23 million over 3 years. 2. Sole-source award to Getinge USA Sales, LLC. 3. Risk of inflated pricing due to lack of competition. 4. Service falls under 'Other Electronic and Precision Equipment Repair and Maintenance'.

Value Assessment

Rating: questionable

The contract is a sole-source award, making a direct pricing comparison difficult. Without competitive bids, it's hard to ascertain if the $1.23 million price represents fair market value for the IABP service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Getinge USA Sales, LLC. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding for this essential medical equipment service.

Public Impact

Ensures continued operation of critical IABP devices for NIH research. Potential for higher costs impacts overall healthcare spending efficiency. Lack of transparency in the procurement process raises accountability concerns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures critical equipment uptime
Supports NIH research continuity

Sector Analysis

This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' sector. Spending in this area is crucial for maintaining specialized medical and research equipment, but often lacks robust competition.

Small Business Impact

The awardee is Getinge USA Sales, LLC, a large business. There is no indication that small businesses were involved in this specific procurement, nor was it set aside for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the NIH received fair value. Further review of the justification for not competing the contract is recommended.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12,296 to GETINGE USA SALES, LLC. GETINGE IABP SERVICE AGREEMENT

Who is the contractor on this award?

The obligated recipient is GETINGE USA SALES, LLC.

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 $12,296.

What is the period of performance?

Start: 2021-08-11. End: 2024-08-15.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without access to the specific justification document, it's impossible to confirm the exact reasons, but it's crucial for understanding why competition was bypassed.

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

The primary financial risk is paying a non-competitive price, which could be higher than if multiple vendors had bid. This 'contractor's price' can inflate costs over the contract's duration, leading to inefficient use of taxpayer funds and potentially impacting the budget for other critical NIH initiatives.

How does this sole-source award impact the effectiveness of NIH's procurement strategy?

Sole-source awards, while sometimes necessary, can reduce the overall effectiveness of a procurement strategy by limiting opportunities for innovation and cost savings that competition often brings. Over-reliance on such awards may signal a need to re-evaluate market research and competition strategies for similar services.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N92021Q0190

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45 BARBOUR POND DR, WAYNE, NJ, 07470

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

Financial Breakdown

Contract Ceiling: $12,296

Exercised Options: $12,296

Current Obligation: $12,296

Actual Outlays: $9,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline