USDA's $5.8M Lab Equipment Service Agreement with Nexus Group, LLC for 2 Years

Contract Overview

Contract Amount: $58,380 ($58.4K)

Contractor: Nexus Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-07-02

End Date: 2027-07-01

Contract Duration: 729 days

Daily Burn Rate: $80/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 12 MONTH LAB. EQUIPMENT SERVICE AGREEMENT WITH OPTION YEARS

Place of Performance

Location: MAYAGUEZ, MAYAGUEZ County, PUERTO RICO, 00680

Plain-Language Summary

Department of Agriculture obligated $58,380 to NEXUS GROUP, LLC for work described as: 12 MONTH LAB. EQUIPMENT SERVICE AGREEMENT WITH OPTION YEARS Key points: 1. The contract is for lab equipment service, a critical function for research. 2. Nexus Group, LLC is the sole provider, raising competition concerns. 3. The firm fixed price contract aims to control costs. 4. The Agricultural Research Service is the primary beneficiary. 5. The contract duration is 2 years with potential for extension.

Value Assessment

Rating: fair

The contract value of $5.8M over two years for lab equipment service is moderate. Without specific benchmarks for similar service agreements for analytical laboratory instruments, a precise pricing assessment is difficult. However, the absence of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for the government compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for this essential laboratory equipment service.

Public Impact

Ensures continued operation of critical analytical laboratory instruments for agricultural research. Potential for higher costs due to sole-source award impacts taxpayer funds. Reliability of research findings may depend on the quality of this service agreement. Limited transparency in the procurement process due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive bidding.
Limited transparency in the procurement process.

Positive Signals

Ensures continuity of essential lab equipment services.
Firm fixed price contract provides cost certainty.
Specific agency need addressed.

Sector Analysis

The contract falls under the 'Analytical Laboratory Instrument Manufacturing' sector, which often involves specialized services. Spending benchmarks for such niche service agreements are not readily available, but competitive procurement is generally preferred to ensure value.

Small Business Impact

The award was made to Nexus Group, LLC, and there is no indication that small businesses were involved in this sole-source procurement. Further analysis would be needed to determine if small business set-asides were considered or applicable.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of the sole-source justification and verifying that the pricing is fair and reasonable, even without competition.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency in the procurement process.
Dependency on a single provider for critical services.
Potential for higher costs to taxpayers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $58,380 to NEXUS GROUP, LLC. 12 MONTH LAB. EQUIPMENT SERVICE AGREEMENT WITH OPTION YEARS

Who is the contractor on this award?

The obligated recipient is NEXUS GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $58,380.

What is the period of performance?

Start: 2025-07-02. End: 2027-07-01.

What is the justification for the sole-source award, and was a market research conducted to confirm no other sources could provide the service?

The justification for the sole-source award is not provided in the data. Typically, agencies must conduct thorough market research to determine if other sources exist and are capable of meeting the requirement. If no other sources are found, a sole-source award may be justified, but it requires rigorous documentation and approval processes to ensure it's in the government's best interest.

How does the per-unit cost of this service compare to industry benchmarks for similar laboratory equipment maintenance?

Without specific details on the types of equipment covered and the scope of services, a direct per-unit cost comparison is challenging. However, the absence of competition inherently makes it difficult to ascertain if the pricing is competitive. A review of historical pricing for similar services, if available, or an independent government estimate would be necessary to assess value.

What is the potential impact on research continuity if Nexus Group, LLC is unable to fulfill its obligations under this contract?

The potential impact on research continuity could be significant, as the Agricultural Research Service relies on this equipment for its operations. A sole-source contract for essential services creates a dependency. Contingency plans, such as ensuring adequate internal expertise or identifying potential backup providers in advance, could mitigate this risk, though such measures are less likely with a sole-source award.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 SARDIS RD N STE 205, CHARLOTTE, NC, 28227

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $153,000

Exercised Options: $58,380

Current Obligation: $58,380

Actual Outlays: $14,430

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline