Commerce Awards $3.7M for Plasma Tool Maintenance to Oxford Instruments, Sole Source
Contract Overview
Contract Amount: $3,724,343 ($3.7M)
Contractor: Oxford Instruments America, Inc.
Awarding Agency: Department of Commerce
Start Date: 2023-12-21
End Date: 2026-03-28
Contract Duration: 828 days
Daily Burn Rate: $4.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: PLASMA TOOL AND MAINTENANCE OPTIONS
Plain-Language Summary
Department of Commerce obligated $3.7 million to OXFORD INSTRUMENTS AMERICA, INC. for work described as: PLASMA TOOL AND MAINTENANCE OPTIONS Key points: 1. High value contract for specialized analytical equipment maintenance. 2. Sole source award limits competitive pricing and innovation. 3. Risk of overpayment due to lack of competition. 4. Sector: Analytical Laboratory Instrument Manufacturing.
Value Assessment
Rating: questionable
The contract value of $3.72M for a 2.3-year period appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the pricing is reasonable compared to potential alternatives or market rates for similar maintenance services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive discovery, potentially leading to higher prices and reduced value for taxpayer dollars as there's no market pressure to offer the best price.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending, as taxpayers may be paying a premium without the benefit of competitive bidding.
Public Impact
Taxpayers may be overpaying for essential laboratory equipment maintenance. Limited opportunity for small businesses to compete for this specialized service. Reliance on a single vendor could impact future service availability and cost.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential equipment maintenance secured
- Firm fixed price contract
Sector Analysis
This contract falls within the Analytical Laboratory Instrument Manufacturing sector, which often involves highly specialized and proprietary equipment. Spending benchmarks are difficult to establish without comparable sole-source maintenance contracts.
Small Business Impact
The award was not competed, and there is no indication that small businesses were involved or considered. The specialized nature of the service may also present barriers to entry for smaller firms.
Oversight & Accountability
The sole-source nature of this award warrants further review to ensure the pricing is justified and that future procurements explore competitive options where feasible.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing.
- Lack of transparency in price discovery.
- Dependency on a single vendor.
- Limited opportunity for market innovation.
Tags
analytical-laboratory-instrument-manufac, department-of-commerce, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $3.7 million to OXFORD INSTRUMENTS AMERICA, INC.. PLASMA TOOL AND MAINTENANCE OPTIONS
Who is the contractor on this award?
The obligated recipient is OXFORD INSTRUMENTS AMERICA, 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 $3.7 million.
What is the period of performance?
Start: 2023-12-21. End: 2026-03-28.
What is the justification for the sole-source award, and has the government explored all avenues for competition?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must document extensive market research to prove no other sources exist or can meet the need. Without this documentation, the award raises concerns about whether competitive options were adequately explored, potentially leading to suboptimal pricing for the government.
How does the pricing compare to industry standards for similar maintenance contracts, given the lack of competition?
Assessing the pricing against industry standards is challenging due to the sole-source nature of this award. Without competitive bids, there's no direct market comparison. The government should have conducted independent government cost estimates and potentially engaged third-party experts to validate the reasonableness of Oxford Instruments' pricing. The absence of competition inherently limits the ability to ensure the best possible value.
What is the long-term risk associated with relying on a single vendor for critical laboratory equipment maintenance?
The long-term risk includes potential price escalations in future contracts as the vendor faces no competitive pressure. There's also a risk of service degradation or dependency, where the government becomes reliant on one provider, potentially limiting flexibility in upgrades or alternative solutions. Vendor viability and commitment to long-term support are also critical factors that need continuous monitoring.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 1333ND24QNB680010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 BAKER AVE, CONCORD, MA, 01742
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: $3,988,574
Exercised Options: $3,724,343
Current Obligation: $3,724,343
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-12-21
Current End Date: 2026-03-28
Potential End Date: 2029-03-28 00:00:00
Last Modified: 2026-03-27
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