HHS awards $50,000 purchase order for media and reagents to Hardy Diagnostics

Contract Overview

Contract Amount: $50,000 ($50.0K)

Contractor: Hardy Diagnostics

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $137/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PURCHASE OF MEDIA AND REAGENTS FROM HARDY DIAGNOSTICS HARDY DIAGNOSTICS:1254944 [26-002531]

Place of Performance

Location: SANTA MARIA, SANTA BARBARA County, CALIFORNIA, 93455

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50,000 to HARDY DIAGNOSTICS for work described as: PURCHASE OF MEDIA AND REAGENTS FROM HARDY DIAGNOSTICS HARDY DIAGNOSTICS:1254944 [26-002531] Key points: 1. This contract represents a small portion of the NIH's overall spending on laboratory supplies. 2. The fixed-price contract structure aims to control costs for the duration of the agreement. 3. The sole-source nature of this award warrants scrutiny regarding potential price inflation. 4. Performance will be monitored by the National Institutes of Health. 5. This purchase falls within the broader category of medical supplies and equipment manufacturing.

Value Assessment

Rating: fair

The contract value of $50,000 is relatively small, making direct comparison to larger contracts difficult. However, as a sole-source award, there is a risk that the pricing may not reflect competitive market rates. Without more data on the specific media and reagents purchased, it's challenging to benchmark the value effectively against similar products. The fixed-price nature provides some cost certainty, but the lack of competition is a concern for overall value.

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 award to Hardy Diagnostics. The absence of a competitive bidding process means that multiple suppliers were not evaluated, and the government did not benefit from price discovery through market competition. This approach is typically used when only one source can fulfill the requirement.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not explore potentially lower prices from other vendors.

Public Impact

This contract directly supports research activities at the National Institutes of Health by providing essential laboratory media and reagents. Researchers and scientists at NIH facilities will benefit from the timely availability of these critical supplies. The supplies will be utilized within NIH laboratories, primarily in California. The contract supports the ongoing operations of federal health research initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to not being competed under SAP.
Potential for price increases over the contract term if not closely monitored.

Positive Signals

Firm fixed-price contract provides cost certainty for the specified period.
Contract supports critical research functions at a leading health agency.
Clear end-date for the contract limits long-term financial commitment.

Sector Analysis

This contract falls within the broader healthcare and life sciences sector, specifically the manufacturing of surgical appliances and supplies. The market for laboratory media and reagents is substantial, driven by ongoing research and diagnostic needs across academic, government, and private institutions. This specific purchase is a small component of the overall federal spending on such supplies, which often involves competitive bidding for larger quantities or more standardized items.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award, it is unlikely to involve subcontracting opportunities for small businesses unless Hardy Diagnostics voluntarily engages them. The impact on the small business ecosystem is minimal given the contract's nature and value.

Oversight & Accountability

Oversight for this contract will be managed by the National Institutes of Health (NIH), a division of the Department of Health and Human Services. As a purchase order, it is subject to standard federal procurement regulations and internal agency controls. Transparency is limited due to the sole-source nature, but performance and delivery will be monitored to ensure compliance with the terms of the order.

Related Government Programs

NIH Research Supplies
Medical and Surgical Supplies Procurement
Laboratory Reagents and Media Contracts

Risk Flags

Sole-source procurement
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50,000 to HARDY DIAGNOSTICS. PURCHASE OF MEDIA AND REAGENTS FROM HARDY DIAGNOSTICS HARDY DIAGNOSTICS:1254944 [26-002531]

Who is the contractor on this award?

The obligated recipient is HARDY DIAGNOSTICS.

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 $50,000.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What specific types of media and reagents are being purchased, and what is their intended use within NIH research?

The provided data does not specify the exact types of media and reagents. However, given the contractor's specialization (Hardy Diagnostics) and the NAICS code (339113 - Surgical Appliance and Supplies Manufacturing), these likely include microbiological culture media, diagnostic reagents, and related laboratory consumables essential for biological research, diagnostics, and quality control testing. Their intended use would be within various NIH research laboratories to support experiments, analyze samples, and conduct diagnostic procedures related to health and disease.

How does the $50,000 contract value compare to typical NIH spending on similar laboratory supplies?

The $50,000 contract value is relatively small in the context of the National Institutes of Health's overall budget, which runs into billions of dollars annually. NIH procures vast quantities of laboratory supplies, including media and reagents, through numerous contracts. While this specific award is modest, the NIH likely awards larger, competitively bid contracts for bulk purchases of common media and reagents. This smaller, sole-source award might be for specialized items or to fulfill an urgent, specific need where competition was deemed impractical or unnecessary under simplified acquisition thresholds.

What are the risks associated with a sole-source award for essential laboratory supplies?

The primary risk of a sole-source award is the potential for inflated pricing, as there is no competitive pressure to drive down costs. Taxpayers may end up paying more than if the contract had been competed. Additionally, sole-source awards can limit access for other qualified vendors, potentially stifling innovation and market competition in the long run. There's also a risk of vendor lock-in, where the agency becomes dependent on a single supplier, making future procurement more difficult and potentially more expensive.

What oversight mechanisms are in place to ensure the quality and timely delivery of these media and reagents?

Oversight for this purchase order will be managed by the National Institutes of Health (NIH). Standard government procurement procedures require the agency to monitor the contractor's performance against the terms and conditions of the purchase order. This includes verifying that the correct media and reagents are delivered, that they meet specified quality standards (e.g., through inspection and acceptance processes), and that delivery occurs within the agreed-upon timeframe (by March 31, 2027). While specific details of the oversight plan are not provided, the contracting officer and technical monitors at NIH are responsible for ensuring compliance and addressing any performance issues.

What is Hardy Diagnostics' track record with federal contracts, particularly with the NIH?

The provided data does not include information on Hardy Diagnostics' broader federal contract history. However, the fact that they were awarded this contract by the NIH suggests they are a recognized supplier in the field of diagnostic products. Further investigation into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain the full extent of their federal contract awards, past performance ratings, and any history of issues or successes with government agencies, including the NIH.

Industry Classification

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

Address: 1430 W MCCOY LN, SANTA MARIA, CA, 93455

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,000

Exercised Options: $50,000

Current Obligation: $50,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline