NIH awards $150K purchase order for surgical instruments to Depuy Synthesys Sales Inc

Contract Overview

Contract Amount: $150,000 ($150.0K)

Contractor: Depuy Synthes Sales, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-02

End Date: 2026-09-30

Contract Duration: 181 days

Daily Burn Rate: $829/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DEPUY SYNTHES SALES INC:1247062 [26-001683]

Place of Performance

Location: WARSAW, KOSCIUSKO County, INDIANA, 46582

State: Indiana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $150,000 to DEPUY SYNTHES SALES, INC. for work described as: DEPUY SYNTHES SALES INC:1247062 [26-001683] Key points: 1. Value for money appears fair given the firm-fixed-price contract type. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are moderate, with a short performance period and a single awardee. 4. Performance context is a purchase order for surgical instruments, a common need. 5. Sector positioning is within medical device manufacturing, a critical healthcare area.

Value Assessment

Rating: fair

The contract value of $150,000 for surgical instruments is a relatively small award. Without specific details on the instruments or quantities, a direct comparison to similar contracts is challenging. However, the firm-fixed-price nature suggests that the government has a clear understanding of the costs involved, which can be a positive indicator for value. The price is likely benchmarked against catalog prices or previous similar purchases by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis. This means that only one vendor, Depuy Synthesys Sales, Inc., was solicited for this requirement. While sole-source awards can be efficient for specific needs, they bypass the competitive process, which typically drives down prices and fosters innovation.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from potential cost savings that could have arisen from a competitive bidding process.

Public Impact

The National Institutes of Health (NIH) benefits from access to necessary surgical instruments. Services delivered include the provision of medical devices essential for research and clinical activities. Geographic impact is primarily within the facilities served by the NIH. Workforce implications are minimal, likely supporting existing medical staff rather than creating new jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competed award.
Sole-source awards can reduce transparency in government spending.
Dependence on a single supplier could pose supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established supplier like Depuy Synthesys Sales, Inc. suggests reliability.
Short performance period limits long-term financial commitment.

Sector Analysis

The surgical and medical instrument manufacturing sector (NAICS 339112) is a vital part of the healthcare industry, encompassing a wide range of products from basic surgical tools to complex medical devices. This contract falls within this sector, supplying essential equipment to a leading biomedical research institution. Spending in this sector by federal agencies is substantial, driven by the needs of the Department of Veterans Affairs, military health services, and research arms like NIH.

Small Business Impact

This contract was awarded to Depuy Synthesys Sales, Inc., a large business. There is no indication of a small business set-aside or subcontracting plan. Therefore, this award does not directly benefit small businesses through set-asides, nor does it appear to include specific provisions for small business subcontracting.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) at the NIH. Accountability is maintained through adherence to the contract terms and conditions. Transparency is limited due to the sole-source nature of the award, with details primarily available through contract databases. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Medical Supplies
Surgical Equipment
NIH Procurement
Healthcare Services Contracts

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $150,000 to DEPUY SYNTHES SALES, INC.. DEPUY SYNTHES SALES INC:1247062 [26-001683]

Who is the contractor on this award?

The obligated recipient is DEPUY SYNTHES SALES, 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 $150,000.

What is the period of performance?

Start: 2026-04-02. End: 2026-09-30.

What is the specific type and quantity of surgical instruments being procured?

The provided data does not specify the exact type or quantity of surgical instruments. The NAICS code 339112 covers a broad range of products, including surgical appliances and supplies, and diagnostic and medical instruments. Without this detail, it is difficult to assess the appropriateness of the $150,000 award value or to benchmark it against specific market prices for particular items. Further investigation into the contract line items or associated documentation would be necessary to ascertain the precise nature of the goods.

Has Depuy Synthesys Sales, Inc. previously supplied these or similar instruments to the NIH?

The provided data does not contain historical contract information for Depuy Synthesys Sales, Inc. with the NIH. However, as a known manufacturer and supplier in the medical device industry, it is plausible they have supplied similar instruments. A review of historical federal procurement databases (like FPDS or USASpending) would be required to determine the extent of their past performance with this agency and for these specific product categories. Past performance is a key factor in sole-source justifications, though not explicitly detailed here.

What is the justification for the sole-source award?

The data indicates the contract was 'NOT COMPETED UNDER SAP,' which strongly suggests a sole-source justification. Common reasons for sole-source awards include unique capabilities of the vendor, urgent and compelling needs, or when only one responsible source is available. For a sole-source award to be legally permissible, the agency must document a valid justification, often requiring approval from higher authorities, especially for awards exceeding certain dollar thresholds. The specific justification for this $150,000 award is not provided in the summary data.

How does the $150,000 award compare to typical NIH spending on surgical instruments?

The $150,000 award is a relatively modest sum in the context of federal agency procurement, especially for an institution like the NIH, which has extensive research and clinical operations. NIH's annual spending on medical supplies and equipment can run into hundreds of millions of dollars. This particular award represents a small fraction of that overall expenditure. Without knowing the specific items and their quantities, it's hard to say if it's high or low per item, but the total award amount is not indicative of a large-scale or long-term commitment.

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

The primary risks associated with a sole-source award for surgical instruments include the potential for paying a higher price than would be achieved through competition, reduced incentive for the contractor to innovate or offer superior service, and a lack of transparency in the procurement process. Furthermore, if the instruments are critical, reliance on a single supplier could create supply chain vulnerabilities. While Depuy Synthesys Sales, Inc. is a reputable company, the absence of competition means the NIH cannot be certain they are receiving the absolute best value or terms available in the market.

Industry Classification

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

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

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

Parent Company: Johnson & Johnson

Address: 700 ORTHOPAEDIC DR, WARSAW, IN, 46582

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: $150,000

Exercised Options: $150,000

Current Obligation: $150,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline