NIH Awards $4.38M for Surgical/Medical Instruments to LGC Clinical Diagnostics Inc

Contract Overview

Contract Amount: $43,810 ($43.8K)

Contractor: LGC Clinical Diagnostics Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-06

End Date: 2026-09-30

Contract Duration: 177 days

Daily Burn Rate: $248/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: (R) LGC CLINICAL DIAGNOSTICS, INC:1107053 [26-002116]

Place of Performance

Location: MILFORD, WORCESTER County, MASSACHUSETTS, 01757

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $43,810 to LGC CLINICAL DIAGNOSTICS INC for work described as: (R) LGC CLINICAL DIAGNOSTICS, INC:1107053 [26-002116] Key points: 1. The award is a firm-fixed-price purchase order for surgical and medical instruments. 2. LGC Clinical Diagnostics Inc. is the sole awardee, indicating a limited competition scenario. 3. The contract duration is 177 days, suggesting a short-term need. 4. The primary sector is Surgical and Medical Instrument Manufacturing (NAICS 339112).

Value Assessment

Rating: fair

The award amount of $4.38M for a 177-day period for surgical and medical instruments appears to be within a reasonable range for specialized equipment, but without specific item details, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP (Simplified Acquisition Procedures), suggesting it may have been sole-sourced or awarded under specific circumstances that limited broader competition. This limits price discovery and potentially increases costs.

Taxpayer Impact: Taxpayer funds are being used for this purchase. The lack of full and open competition may lead to a higher price than if multiple vendors were considered.

Public Impact

Ensures availability of critical surgical and medical instruments for NIH research or operations. Supports a specific manufacturer in the medical device supply chain. Potential for increased costs due to limited competition, impacting overall value for taxpayer money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition
  • Potential for overpricing due to lack of competition

Positive Signals

  • Supports a known entity (LGC Clinical Diagnostics Inc.)
  • Firm-fixed-price contract limits cost overrun risk for the government

Sector Analysis

The Surgical and Medical Instrument Manufacturing sector is highly specialized, with significant R&D investment. Spending benchmarks vary widely based on product complexity and volume, but NIH's focus suggests a need for advanced instrumentation.

Small Business Impact

The awardee is LGC Clinical Diagnostics Inc., a known entity. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The award is a purchase order, which typically has less stringent oversight than larger, multi-year contracts. Accountability relies on the NIH's internal procurement and quality assurance processes.

Related Government Programs

  • Surgical and Medical Instrument Manufacturing
  • Department of Health and Human Services Contracting
  • National Institutes of Health Programs

Risk Flags

  • Limited competition
  • Potential for price inflation
  • Short contract duration may indicate a non-strategic or urgent need
  • Lack of small business participation

Tags

surgical-and-medical-instrument-manufact, department-of-health-and-human-services, ma, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $43,810 to LGC CLINICAL DIAGNOSTICS INC. (R) LGC CLINICAL DIAGNOSTICS, INC:1107053 [26-002116]

Who is the contractor on this award?

The obligated recipient is LGC CLINICAL DIAGNOSTICS 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 $43,810.

What is the period of performance?

Start: 2026-04-06. End: 2026-09-30.

What specific instruments are being procured, and how do their prices compare to market rates for similar items?

The provided data does not specify the exact instruments. A detailed analysis would require reviewing the contract line item details (CLINs) to compare unit prices against industry benchmarks for comparable surgical and medical equipment. Without this, assessing true value is challenging.

What justified the limited competition for this procurement, and were alternative sourcing strategies considered?

The data states 'NOT COMPETED UNDER SAP,' which implies a justification for limited competition, possibly due to urgency, unique capabilities, or existing relationships. A thorough review would examine the specific justification cited by NIH to ensure it was appropriate and that no viable alternatives were overlooked.

How will the effectiveness of these instruments be measured to ensure they meet NIH's research or operational needs?

Effectiveness is typically measured through acceptance testing upon delivery, performance monitoring during use, and adherence to specifications outlined in the purchase order. NIH's quality assurance and end-user feedback mechanisms would be crucial in determining if the instruments adequately fulfill their intended purpose.

Industry Classification

NAICS: ManufacturingMedical Equipment and Supplies ManufacturingSurgical and Medical Instrument Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTIONOTHER QUALITY, TEST, INSPECT SVCS

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: KKR & CO. Inc.

Address: 37 BIRCH ST, MILFORD, MA, 01757

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

Financial Breakdown

Contract Ceiling: $43,810

Exercised Options: $43,810

Current Obligation: $43,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-04-06

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2026-04-09

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