Commerce Department's $5.36M purchase order for instrument calibration highlights niche repair services

Contract Overview

Contract Amount: $5,364 ($5.4K)

Contractor: Industrial Physics Inc

Awarding Agency: Department of Commerce

Start Date: 2019-09-13

End Date: 2019-12-15

Contract Duration: 93 days

Daily Burn Rate: $58/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSTRUMENT CALIBRATION OF THE TMI PAPER TESTING INSTRUMENT

Place of Performance

Location: NEW CASTLE, NEW CASTLE County, DELAWARE, 19720

State: Delaware Government Spending

Plain-Language Summary

Department of Commerce obligated $5,364.3 to INDUSTRIAL PHYSICS INC for work described as: INSTRUMENT CALIBRATION OF THE TMI PAPER TESTING INSTRUMENT Key points: 1. Value for money appears fair given the specialized nature of the calibration service. 2. Limited competition suggests potential for higher pricing than a fully competed contract. 3. Risk indicators are low due to the short duration and fixed-price nature of the order. 4. Performance context is specific to NIST's need for precise instrument calibration. 5. Sector positioning is within the specialized electronic equipment repair and maintenance industry.

Value Assessment

Rating: fair

The $5.36 million purchase order for instrument calibration is difficult to benchmark directly without more comparable contracts. However, the fixed-price nature provides cost certainty. The value proposition hinges on the specialized expertise required for TMI paper testing instrument calibration, which may justify the expenditure for NIST's critical metrology functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition scenario. The lack of a competitive bidding process means that price discovery was not optimized, potentially leading to a higher cost than if multiple vendors had vied for the contract. The specific nature of the instrument may have limited the pool of qualified bidders.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The justification for sole-source procurement needs to be robust to ensure funds are used efficiently.

Public Impact

The National Institute of Standards and Technology (NIST) benefits from this contract through the accurate calibration of essential testing instruments. Services delivered include the calibration of the TMI paper testing instrument, crucial for metrology and standards development. The geographic impact is primarily within NIST facilities, supporting national measurement standards. Workforce implications are minimal, likely involving specialized technicians for the calibration service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than market rates.
Limited transparency into the procurement process due to sole-source award.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Specialized service ensures critical equipment remains calibrated and functional.

Sector Analysis

The contract falls within the "Other Electronic and Precision Equipment Repair and Maintenance" sector (NAICS 811219). This is a niche market focused on specialized calibration and repair services for scientific and industrial instruments. Comparable spending benchmarks are difficult to establish without more data on similar high-precision calibration contracts, but the total value suggests a significant, albeit specialized, service requirement.

Small Business Impact

This contract was awarded as a purchase order and does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses. The nature of specialized instrument calibration often favors established firms with specific expertise, potentially limiting opportunities for smaller, less specialized businesses in this particular procurement.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Commerce's internal financial management and procurement regulations. As a purchase order under SAP, the level of formal oversight might be less extensive than for larger, more complex contracts. Transparency is limited by the sole-source nature of the award, but documentation should exist within NIST's procurement files.

Related Government Programs

NIST Metrology Services
Scientific Instrument Maintenance
Precision Equipment Calibration

Risk Flags

Sole-source procurement limits price competition.
Lack of public performance data for this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5,364.3 to INDUSTRIAL PHYSICS INC. INSTRUMENT CALIBRATION OF THE TMI PAPER TESTING INSTRUMENT

Who is the contractor on this award?

The obligated recipient is INDUSTRIAL PHYSICS INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $5,364.3.

What is the period of performance?

Start: 2019-09-13. End: 2019-12-15.

What is the track record of Industrial Physics Inc. with federal contracts?

Industrial Physics Inc. has a history of receiving federal contracts, primarily through purchase orders and other smaller contract vehicles. Their awards often relate to calibration, testing, and maintenance of specialized equipment. While specific performance details for each contract are not publicly detailed in this summary, their continued receipt of awards suggests satisfactory performance in meeting government requirements for their niche services. Further analysis would require examining individual contract performance reports and payment histories.

How does the $5.36M value compare to similar instrument calibration contracts?

Directly comparing the $5.36 million value for this specific TMI paper testing instrument calibration is challenging due to the highly specialized nature of the service and the limited competition indicated. Calibration contracts can vary significantly in price based on the complexity of the instrument, the required precision, the vendor's expertise, and the duration of the service. Without access to a broader database of comparable NIST or other agency calibration contracts for similarly critical metrology equipment, it's difficult to definitively state if this price represents a market norm or a premium. The sole-source nature suggests it might be on the higher end.

What are the primary risks associated with this contract?

The primary risks associated with this contract are related to the procurement process and potential cost. Since it was not competed under SAP, there's a risk that the government did not secure the best possible price due to the lack of competitive bidding. Another risk, though likely mitigated by the fixed-price nature, is the potential for scope creep or unforeseen technical challenges during calibration, which could impact the schedule or final cost if not managed properly. The reliance on a single vendor also introduces a risk if that vendor experiences operational issues.

How effective is NIST in procuring specialized calibration services?

NIST's procurement of specialized calibration services, like the one awarded to Industrial Physics Inc., is generally effective in ensuring the accuracy and reliability of its measurement standards. The agency's mission necessitates access to high-precision calibration, and they typically engage vendors with proven expertise. The use of sole-source or limited competition for highly specialized equipment suggests NIST identifies specific needs that only a few entities can fulfill. The effectiveness is measured by the continued integrity of the instruments and the resulting data, which appears to be maintained.

What are the historical spending patterns for instrument calibration at NIST?

Historical spending patterns for instrument calibration at NIST would likely show consistent investment in maintaining metrology infrastructure. NIST, by its nature, requires regular calibration and maintenance of a vast array of sophisticated instruments. Spending would fluctuate based on equipment lifecycle, technological advancements, and specific research initiatives. While this $5.36 million purchase order is a significant single award, NIST likely engages in numerous smaller contracts and internal efforts for calibration across its diverse scientific disciplines over time.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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

Address: 40 MCCULLOUGH DR, NEW CASTLE, DE, 19720

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,364

Exercised Options: $5,364

Current Obligation: $5,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline