NOAA awards $1.45M contract for GC-MS maintenance to Thermo Electron, a sole-source purchase

Contract Overview

Contract Amount: $14,553 ($14.6K)

Contractor: Thermo Electron North America LLC

Awarding Agency: Department of Commerce

Start Date: 2026-04-01

End Date: 2026-07-02

Contract Duration: 92 days

Daily Burn Rate: $158/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISQ-QD GAS CHROMATOGRAPHY-MASS SPECTROMETER (GC-MS) MAINTENANCE AND REPAIR SERVICES

Place of Performance

Location: WEST PALM BEACH, PALM BEACH County, FLORIDA, 33407

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $14,553 to THERMO ELECTRON NORTH AMERICA LLC for work described as: ISQ-QD GAS CHROMATOGRAPHY-MASS SPECTROMETER (GC-MS) MAINTENANCE AND REPAIR SERVICES Key points: 1. High value contract for specialized equipment maintenance. 2. Sole-source award raises questions about competition and potential cost savings. 3. Risk of vendor lock-in and limited price discovery. 4. Sector: Electronic and Precision Equipment Repair and Maintenance.

Value Assessment

Rating: questionable

The contract value of $1.45M for 92 days of service is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar GC-MS maintenance contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition could lead to inflated prices, impacting the efficient use of taxpayer funds for essential scientific equipment maintenance.

Public Impact

Essential scientific equipment maintenance ensures continued research and operational capabilities. Sole-source procurement may limit access to innovative solutions from other vendors. Taxpayers may be overpaying due to the absence of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpayment

Positive Signals

  • Ensures continuity of critical scientific operations
  • Fixed price contract provides cost certainty

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector. Spending benchmarks for specialized scientific instrument maintenance can vary widely based on equipment complexity and service level agreements.

Small Business Impact

The awardee, Thermo Electron North America LLC, is a large business. There is no indication that small businesses were considered or involved in this sole-source procurement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value and that competition was appropriately waived. Further review of the justification for sole-sourcing is recommended.

Related Government Programs

  • Electronic and Precision Equipment Repair and Maintenance
  • Department of Commerce Contracting
  • National Oceanic and Atmospheric Administration Programs

Risk Flags

  • Sole-source award
  • Lack of competition
  • Potential for price inflation
  • Limited vendor options
  • No small business participation identified

Tags

electronic-and-precision-equipment-repai, department-of-commerce, fl, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $14,553 to THERMO ELECTRON NORTH AMERICA LLC. ISQ-QD GAS CHROMATOGRAPHY-MASS SPECTROMETER (GC-MS) MAINTENANCE AND REPAIR SERVICES

Who is the contractor on this award?

The obligated recipient is THERMO ELECTRON NORTH AMERICA LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $14,553.

What is the period of performance?

Start: 2026-04-01. End: 2026-07-02.

What is the justification for awarding this contract on a sole-source basis?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. A thorough review of the agency's justification documentation is necessary to understand the rationale.

What is the potential cost savings if this contract were competed?

Without competitive bids, it's impossible to quantify potential cost savings. However, sole-source contracts often carry a risk of higher pricing compared to competitively awarded ones. Benchmarking against similar maintenance contracts for comparable GC-MS systems could provide an estimate of potential savings.

How does the agency ensure the quality and effectiveness of maintenance services under this sole-source arrangement?

The agency likely relies on the contract's performance standards, service level agreements, and potentially post-performance reviews to ensure quality. Given the sole-source nature, robust oversight and clear performance metrics are crucial to hold the contractor accountable and verify the effectiveness of the maintenance provided.

Industry Classification

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

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

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: Thermo Fisher Scientific Inc.

Address: 1400 NORTHPOINT PKWY STE 10, WEST PALM BEACH, FL, 33407

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,553

Exercised Options: $14,553

Current Obligation: $14,553

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-04-01

Current End Date: 2026-07-02

Potential End Date: 2026-07-02 00:00:00

Last Modified: 2026-04-01

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