Commerce awards $391K for particle size analyzer maintenance, raising value-for-money questions

Contract Overview

Contract Amount: $39,122 ($39.1K)

Contractor: Malvern Panalytical Inc

Awarding Agency: Department of Commerce

Start Date: 2021-08-01

End Date: 2025-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $27/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE SUPPORT SERVICE FOR MALVERN MASTERSIZER 3000 PARTICLE SIZE ANALYZER INSTRUMENT

Place of Performance

Location: WESTBOROUGH, WORCESTER County, MASSACHUSETTS, 01581

State: Massachusetts Government Spending

Plain-Language Summary

Department of Commerce obligated $39,121.69 to MALVERN PANALYTICAL INC for work described as: MAINTENANCE SUPPORT SERVICE FOR MALVERN MASTERSIZER 3000 PARTICLE SIZE ANALYZER INSTRUMENT Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Limited competition may lead to higher costs for taxpayers. 3. The contract duration of 1460 days (4 years) is substantial for a maintenance service. 4. The service is for a specific instrument, suggesting a niche requirement. 5. The fixed-price contract type aims to control costs, but initial pricing is unbenchmarked. 6. The award was a purchase order, a less formal contract vehicle.

Value Assessment

Rating: questionable

Without competitive bids or market data, it is difficult to assess if the $391,211 price represents good value for maintenance of a particle size analyzer. The lack of competition suggests potential overpricing. Benchmarking against similar maintenance contracts for scientific equipment is not feasible with the provided data. The fixed-price nature provides some cost certainty, but the baseline price is unverified.

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 award. The data explicitly states 'NOT COMPETED UNDER SAP'. This lack of open competition means that other potential vendors were not solicited, and the government did not benefit from a range of proposals and pricing.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for this maintenance service, as there was no pressure from competing bids to drive down the price.

Public Impact

The National Institute of Standards and Technology (NIST) benefits from the continued operation of the Malvern Mastersizer 3000. This ensures the availability of a critical instrument for scientific research and measurement. The service supports ongoing research and development activities within NIST. The geographic impact is localized to the NIST facility where the instrument is housed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness.
Extended contract duration without competitive re-evaluation.
Potential for vendor lock-in due to specialized equipment maintenance.

Positive Signals

Fixed-price contract type helps manage cost certainty.
Maintenance ensures continuity of critical scientific operations.
Awarded to a known entity, Malvern Panalytical Inc., which likely has specialized knowledge.

Sector Analysis

The maintenance of specialized scientific instruments like particle size analyzers falls within the broader 'Other Electronic and Precision Equipment Repair and Maintenance' sector. This sector is characterized by highly specialized technical skills and often involves original equipment manufacturers or authorized service providers due to proprietary technology. Spending in this area is typically driven by the operational needs of research institutions, laboratories, and manufacturing facilities that rely on precise measurement equipment.

Small Business Impact

The contract was awarded to Malvern Panalytical Inc. and there is no indication of small business set-asides or subcontracting requirements. Given the specialized nature of maintaining specific scientific equipment, it is unlikely that small businesses would be primary contractors unless they are authorized service partners. The absence of small business considerations in this award does not appear to significantly impact the broader small business ecosystem.

Oversight & Accountability

As a purchase order, oversight may be less formalized than for larger, competitively bid contracts. However, the National Institute of Standards and Technology (NIST) is expected to have internal procurement policies and quality assurance processes to monitor contract performance and ensure the service meets requirements. The fixed-price nature provides a degree of financial oversight. Further transparency would be enhanced by public reporting on performance metrics and any modifications to the contract.

Related Government Programs

Scientific Equipment Maintenance
Research and Development Support Services
National Institute of Standards and Technology Operations

Risk Flags

Sole-source award
Lack of competitive bidding
Unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $39,121.69 to MALVERN PANALYTICAL INC. MAINTENANCE SUPPORT SERVICE FOR MALVERN MASTERSIZER 3000 PARTICLE SIZE ANALYZER INSTRUMENT

Who is the contractor on this award?

The obligated recipient is MALVERN PANALYTICAL 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 $39,121.69.

What is the period of performance?

Start: 2021-08-01. End: 2025-07-31.

What is the track record of Malvern Panalytical Inc. with federal agencies?

Malvern Panalytical Inc. has a history of receiving federal contracts, primarily for the sale and maintenance of their scientific instruments. While specific details on past performance quality are not provided in this data, their continued awards suggest a level of satisfaction or necessity for their specialized products and services within government research and testing facilities. Further investigation into past performance reviews and any documented issues on federal contract databases would provide a more comprehensive understanding of their track record.

How does the $391,211 price compare to similar maintenance contracts?

Benchmarking this specific contract's price is challenging without access to comparable data for the Malvern Mastersizer 3000 particle size analyzer. Maintenance costs for scientific equipment can vary significantly based on the instrument's complexity, age, required service level, and the vendor's pricing structure. Given this was a sole-source award, it's difficult to ascertain if the price is competitive. A thorough value assessment would require comparing it against quotes from other qualified service providers or industry benchmarks for similar equipment maintenance, which are not publicly available in this context.

What are the primary risks associated with this sole-source maintenance contract?

The primary risk is the lack of price competition, which could lead to the government paying more than necessary. Another risk is potential vendor lock-in; if Malvern Panalytical Inc. is the only entity capable of servicing the Mastersizer 3000, NIST may be dependent on their terms and pricing for the duration of the contract and potentially beyond. Furthermore, without competitive pressure, there's a risk of complacency in service quality, although this is mitigated by the fixed-price nature and NIST's oversight.

How effective is the fixed-price contract type in ensuring value for this service?

The fixed-price contract type is generally effective in controlling costs for well-defined services like maintenance, as it shifts the risk of cost overruns to the contractor. For taxpayers, this means the total cost is known upfront, assuming the scope of work is accurately defined and the initial price is reasonable. However, the effectiveness in ensuring *value* is contingent on the initial price being competitive. Since this was a sole-source award, the 'fixed' price might not reflect the best possible value achievable through competition.

What is the historical spending pattern for maintenance of this specific instrument or similar equipment at NIST?

The provided data does not include historical spending patterns for this specific instrument or similar equipment at NIST. To assess historical trends, one would need to query federal procurement databases for previous awards related to the Malvern Mastersizer 3000 or comparable particle size analyzers. Analyzing past contract values, durations, and competition levels for similar services would reveal whether this $391,211 award represents an increase, decrease, or consistent level of spending for such maintenance.

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

The data indicates the contract was 'NOT COMPETED UNDER SAP,' which strongly suggests a sole-source justification was likely invoked. Common reasons for sole-source awards include that only one responsible source is available or capable of meeting the requirement, or that the cost of competition would exceed the benefit. For specialized scientific equipment maintenance, the justification often rests on the proprietary nature of the technology, requiring original equipment manufacturer (OEM) expertise or authorized service providers. A formal justification document would typically detail these reasons.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: NIST-NOI-21-73-01945

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 COMPUTER DR, WESTBOROUGH, MA, 01581

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $49,858

Exercised Options: $39,122

Current Obligation: $39,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline