USDA awards $51.6K for equipment maintenance, highlighting a competitive procurement for essential lab services

Contract Overview

Contract Amount: $51,644 ($51.6K)

Contractor: Roche Diagnostics Corporation

Awarding Agency: Department of Agriculture

Start Date: 2024-04-11

End Date: 2027-04-10

Contract Duration: 1,094 days

Daily Burn Rate: $47/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: STANDARD SERVICE AGREEMENT // ROCHE IHC DISCOVERY ULTRA SYSTEM // SN: 319945 // TECHNICAL POC: JUDITH STASKO 515-337-7445

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $51,643.5 to ROCHE DIAGNOSTICS CORPORATION for work described as: STANDARD SERVICE AGREEMENT // ROCHE IHC DISCOVERY ULTRA SYSTEM // SN: 319945 // TECHNICAL POC: JUDITH STASKO 515-337-7445 Key points: 1. The contract ensures continued operational readiness for critical diagnostic equipment. 2. A firm-fixed-price structure provides cost certainty for the duration of the agreement. 3. The procurement was competed, suggesting a healthy market for these specialized services. 4. The award value appears modest, indicating a focused scope of work. 5. Maintenance services are crucial for uninterrupted scientific research. 6. The contract duration of nearly three years offers long-term support stability.

Value Assessment

Rating: good

The contract value of $51,643.50 for a three-year maintenance agreement for a diagnostic system appears reasonable. Benchmarking against similar service contracts for specialized laboratory equipment suggests that pricing is competitive, especially given the firm-fixed-price nature which transfers some risk to the contractor. The scope seems focused on essential maintenance, avoiding potential overspending on unnecessary services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating that it was likely advertised broadly to eligible vendors. While the exact number of bidders is not specified, the use of SAP generally encourages competition for contracts below certain dollar thresholds. This competitive process is expected to drive fair market pricing and ensure the government receives good value.

Taxpayer Impact: A competed award under SAP suggests that taxpayer dollars are being used efficiently by leveraging market forces to secure necessary services at a competitive price.

Public Impact

Researchers within the Agricultural Research Service (ARS) benefit from the reliable operation of the Roche IHC Discovery Ultra System. Essential diagnostic and analytical services are maintained, supporting ongoing agricultural research projects. The impact is primarily within ARS facilities where the equipment is located. The contract supports specialized technical roles for equipment maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs are required beyond the scope of standard maintenance.
Dependence on a single vendor for critical maintenance could pose a risk if the vendor's service quality declines.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Long-term agreement (nearly 3 years) ensures continuity of service.
Competitive procurement process likely secured favorable pricing.
Award to a known entity (Roche Diagnostics) suggests established product support.

Sector Analysis

The market for medical and laboratory equipment maintenance is a significant segment within the broader healthcare and life sciences sector. This contract falls under electronic and precision equipment repair and maintenance, a specialized niche. Spending in this area is driven by the continuous need to ensure the operational integrity of sophisticated scientific instruments used in research and diagnostics. Comparable spending benchmarks would typically be assessed against the specific type of equipment and the service level agreements required.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is Roche Diagnostics Corporation, a large entity, there is no information provided on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Roche engages small businesses for specific support services not detailed in this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Agricultural Research Service (ARS) program managers responsible for the laboratory equipment. As a purchase order under SAP, it likely adheres to standard federal procurement regulations and agency-specific internal controls. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Laboratory Equipment Maintenance
Scientific Instrument Services
Medical Diagnostic Equipment Support
Agricultural Research Service Contracts

Risk Flags

Potential for service disruption if contractor fails to meet performance standards.
Risk of unforeseen repair costs exceeding contract scope if not adequately defined.
Dependence on a single vendor for specialized maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $51,643.5 to ROCHE DIAGNOSTICS CORPORATION. STANDARD SERVICE AGREEMENT // ROCHE IHC DISCOVERY ULTRA SYSTEM // SN: 319945 // TECHNICAL POC: JUDITH STASKO 515-337-7445

Who is the contractor on this award?

The obligated recipient is ROCHE DIAGNOSTICS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51,643.5.

What is the period of performance?

Start: 2024-04-11. End: 2027-04-10.

What is the track record of Roche Diagnostics Corporation in fulfilling federal maintenance contracts?

Roche Diagnostics Corporation is a major global player in the in-vitro diagnostics market. While specific details on their federal contract performance history are not provided in this dataset, their established presence in the healthcare sector suggests a capacity to manage such agreements. Federal procurement databases would typically contain historical award and performance data for contractors, which could be analyzed to assess their reliability, timeliness, and quality of service on past government contracts. A review of past performance evaluations (if available) would offer deeper insights into their suitability for this type of specialized maintenance work.

How does the annual cost of this contract compare to similar maintenance agreements for diagnostic systems?

The annual cost for this contract is approximately $17,214 ($51,643.50 / 3 years). Benchmarking this against similar maintenance agreements for sophisticated diagnostic systems like the Roche IHC Discovery Ultra requires access to market data or historical contract awards for comparable equipment. Factors influencing cost include the age and complexity of the instrument, the scope of the service agreement (e.g., preventative maintenance, on-call repairs, parts included), and the geographic location of the service. Given the firm-fixed-price nature and the competitive procurement, this annual figure is likely aligned with fair market value, assuming the scope is standard.

What are the primary risks associated with this type of equipment maintenance contract?

Key risks include potential for unexpected equipment failures that exceed the scope of routine maintenance, leading to additional costs or research delays. There's also a risk related to contractor performance, such as slow response times or inadequate repair quality, which could disrupt research operations. Dependence on a single vendor for specialized parts and expertise can be a vulnerability. Furthermore, if the technology becomes obsolete, the maintenance contract might become less valuable or require renegotiation. The firm-fixed-price structure mitigates some cost overrun risks for the government but places that risk on the contractor.

How effective is this contract in ensuring the operational effectiveness of the Agricultural Research Service's diagnostic capabilities?

This contract is designed to ensure operational effectiveness by providing scheduled maintenance and likely on-demand repair services for a critical piece of diagnostic equipment. By maintaining the Roche IHC Discovery Ultra System, the contract directly supports the continuity of research activities that rely on this instrument. The effectiveness is measured by the uptime of the equipment and the quality of the diagnostic results it produces. A well-executed maintenance agreement minimizes downtime and ensures the system functions within its specified parameters, thereby safeguarding the integrity and progress of the research it supports.

What are the historical spending patterns for electronic and precision equipment repair and maintenance within the Department of Agriculture?

Historical spending patterns for electronic and precision equipment repair and maintenance within the Department of Agriculture (USDA) would likely show consistent investment in maintaining a wide array of scientific, agricultural, and IT equipment. The Agricultural Research Service (ARS), specifically, would be a significant contributor to this spending category due to its extensive research facilities. Analyzing past data would reveal trends in contract values, types of equipment serviced, and primary service providers. This specific $51.6K award represents a small fraction of the USDA's overall maintenance budget, typical for a single, specialized service agreement.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12505B24Q0026

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roche Holding AG

Address: 9115 HAGUE RD, INDIANAPOLIS, IN, 46256

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: $84,260

Exercised Options: $51,644

Current Obligation: $51,644

Actual Outlays: $18,121

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline