Department of Agriculture awards $5.2M for analytical instruments, raising questions about competition and value

Contract Overview

Contract Amount: $5,199 ($5.2K)

Contractor: Life Technologies Corporation

Awarding Agency: Department of Agriculture

Start Date: 2024-09-16

End Date: 2024-09-27

Contract Duration: 11 days

Daily Burn Rate: $473/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AXIOM 384HT MYDESIGN ARRAY 1.5K-50K (CAT# 000870)

Place of Performance

Location: STONEVILLE, WASHINGTON County, MISSISSIPPI, 38776

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $5,198.59 to LIFE TECHNOLOGIES CORPORATION for work described as: AXIOM 384HT MYDESIGN ARRAY 1.5K-50K (CAT# 000870) Key points: 1. The contract was awarded on a sole-source basis, limiting opportunities for competitive bidding and potentially impacting price. 2. The short performance period of 11 days suggests a need for immediate delivery or a specific, time-bound requirement. 3. The awarded amount of $5,198.59 is relatively small, but its justification under a sole-source award warrants scrutiny. 4. The product category, 'Analytical Laboratory Instrument Manufacturing,' is specialized, but the lack of competition is notable. 5. The contract's value is low, making extensive benchmarking difficult, but the absence of competition is a key risk indicator.

Value Assessment

Rating: questionable

Benchmarking the value of this specific contract is challenging due to its small dollar amount and sole-source nature. Without competitive bids, it's difficult to ascertain if the price paid by the Department of Agriculture represents a fair market value. The contract is for analytical laboratory instruments, a category where pricing can vary significantly based on specifications and features. The lack of comparative data from other bids or similar sole-source awards makes a definitive value assessment difficult, but the absence of competition inherently raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Life Technologies Corporation, was solicited. The justification for this approach is not provided in the data, but it typically implies that only one source is capable of meeting the agency's needs, or that a compelling reason exists to bypass full and open competition. The lack of multiple bidders means there was no opportunity for price discovery through a competitive process, which can lead to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from competitive bidding. This can result in the government paying more than necessary for goods or services.

Public Impact

Researchers at the Agricultural Research Service within the Department of Agriculture will benefit from the analytical instruments. The instruments are likely to be used for laboratory analysis, supporting agricultural research initiatives. The geographic impact is localized to Mississippi, where the contract is managed. The contract does not appear to have significant direct workforce implications, as it focuses on equipment procurement rather than services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Short performance period may indicate urgency or a lack of thorough planning.
Lack of transparency regarding the justification for sole-source award.

Positive Signals

Procurement of specialized analytical instruments supports critical research.
Contract awarded to a known entity, Life Technologies Corporation, potentially indicating a trusted supplier.

Sector Analysis

The market for analytical laboratory instruments is a specialized segment within the broader scientific and medical equipment industry. This sector is characterized by high-value, technologically advanced products. Companies like Life Technologies Corporation are key players, often providing a range of instruments for research, diagnostics, and industrial applications. Government agencies, particularly those involved in research and development like the USDA's Agricultural Research Service, are significant purchasers of such equipment to advance scientific understanding and innovation in agriculture.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting opportunities. The award was made directly to Life Technologies Corporation, a large corporation, and the value of the contract is relatively small, making it unlikely to be a vehicle for significant small business participation. The focus is on acquiring specialized equipment rather than services that might be more amenable to small business contracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's internal procurement regulations and the Agricultural Research Service's program management. Given the small dollar amount and short duration, it is unlikely to be a high-profile contract attracting extensive external oversight. Transparency is limited by the sole-source nature and the lack of publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Agriculture Research and Development Contracts
Agricultural Research Service Equipment Procurement
Analytical Laboratory Instrument Purchases by Federal Agencies

Risk Flags

Sole Source Justification Required
Potential Lack of Competition
Limited Value for Money Assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5,198.59 to LIFE TECHNOLOGIES CORPORATION. AXIOM 384HT MYDESIGN ARRAY 1.5K-50K (CAT# 000870)

Who is the contractor on this award?

The obligated recipient is LIFE TECHNOLOGIES CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5,198.59.

What is the period of performance?

Start: 2024-09-16. End: 2024-09-27.

What is the specific analytical instrument being procured, and what is its intended use by the Agricultural Research Service?

The data indicates the procurement is for 'AXIOM 384HT MYDESIGN ARRAY 1.5K-50K (CAT# 000870)' from Life Technologies Corporation. While the exact model number provides some specificity, the precise analytical function is not detailed. However, given the context of the Agricultural Research Service (ARS), these instruments are likely used for advanced biological, chemical, or genetic analysis relevant to agricultural science. This could include applications in crop research, soil analysis, pest identification, or food safety testing. The '1.5K-50K' might refer to a range of sample capacity or throughput, suggesting a high-volume or versatile analytical capability.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The provided data does not include the justification for the sole-source award. Typically, sole-source awards are made when only one responsible source is available to meet the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. For specialized laboratory instruments, it's possible that Life Technologies Corporation holds patents or exclusive rights to the specific technology, or that the ARS has a pre-existing infrastructure or standardization that makes this particular vendor the only viable option. Without the official justification, however, this remains speculative, and the lack of competition raises concerns about potential price inflation.

How does the awarded price of $5,198.59 compare to market rates for similar analytical instruments?

Directly comparing the price of $5,198.59 is difficult without knowing the exact specifications and capabilities of the 'AXIOM 384HT MYDESIGN ARRAY 1.5K-50K'. Analytical laboratory instruments can range from a few thousand dollars for basic equipment to hundreds of thousands or even millions for highly sophisticated systems. Given that this is a sole-source award for a short delivery period, and the total value is relatively low, it might represent a specific component, accessory, or a smaller-scale instrument. However, the absence of competitive bids prevents a robust market rate comparison. If this price is for a standard, widely available instrument, it might be reasonable; if it's for a highly specialized piece of equipment, it could be either a bargain or overpriced, but the sole-source nature makes definitive assessment impossible.

What are the potential risks associated with a sole-source award for specialized scientific equipment?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Taxpayers may end up paying more than necessary for the equipment. Another risk is reduced innovation, as agencies may become reliant on a single vendor, limiting exposure to alternative or potentially superior technologies from other manufacturers. Furthermore, sole-source awards can sometimes indicate a lack of strategic procurement planning or an inability to define requirements in a way that allows for broader competition. This can also lead to vendor lock-in, where the agency becomes dependent on a single supplier for maintenance, upgrades, and future purchases, potentially at non-competitive rates.

What is the significance of the short performance period (11 days) for this contract?

A performance period of only 11 days, from September 16, 2024, to September 27, 2024, suggests an urgent need for the analytical instruments. This could be tied to a specific research project deadline, a critical equipment failure requiring immediate replacement, or a time-sensitive experimental phase. Alternatively, it might indicate that the 'performance' refers solely to the delivery and installation of the equipment, rather than its operational use, which would be a much longer period. The short duration, combined with the sole-source award, could imply that the agency had to act quickly to acquire the necessary tools, potentially bypassing standard competitive processes due to time constraints.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thermo Fisher Scientific Inc.

Address: 5781 VAN ALLEN WAY, CARLSBAD, CA, 92008

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: $5,199

Exercised Options: $5,199

Current Obligation: $5,199

Actual Outlays: $5,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1232SA21D0001

IDV Type: IDC

Timeline