NIST Awards $10M for New MRI System Maintenance to Hyperfine Operations, Inc
Contract Overview
Contract Amount: $10,000 ($10.0K)
Contractor: Hyperfine Operations, Inc
Awarding Agency: Department of Commerce
Start Date: 2026-07-01
End Date: 2027-06-30
Contract Duration: 364 days
Daily Burn Rate: $27/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: OU68-FY26-128-NEW MRI SYSTEM MAINTENANCE
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80305
State: Colorado Government Spending
Plain-Language Summary
Department of Commerce obligated $10,000 to HYPERFINE OPERATIONS, INC for work described as: OU68-FY26-128-NEW MRI SYSTEM MAINTENANCE Key points: 1. Spending focuses on essential maintenance for advanced medical equipment. 2. Sole-source award to Hyperfine Operations, Inc. raises questions about competition. 3. Risk of higher costs due to lack of competitive bidding. 4. Sector: Healthcare technology maintenance.
Value Assessment
Rating: questionable
The $10 million award for a single year of maintenance is significant. Without competitive data, it's difficult to assess if this price is fair compared to similar MRI 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 potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying a premium for this MRI maintenance service.
Public Impact
Ensures continued operation of critical medical diagnostic equipment. Potential for increased healthcare costs if pricing is not optimized. Limited transparency in procurement process due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential service for NIST research
- Clear contract duration
Sector Analysis
This contract falls within the IT and Healthcare sectors, specifically for the maintenance of advanced medical equipment. Benchmarks for similar maintenance contracts are crucial for evaluating cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this sole-source procurement, missing an opportunity for small business participation.
Oversight & Accountability
Oversight is needed to ensure the justification for the sole-source award is robust and that future procurements for similar services explore competitive options.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing.
- No competitive bidding process.
- Limited opportunity for small business participation.
Tags
electronic-and-precision-equipment-repai, department-of-commerce, co, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $10,000 to HYPERFINE OPERATIONS, INC. OU68-FY26-128-NEW MRI SYSTEM MAINTENANCE
Who is the contractor on this award?
The obligated recipient is HYPERFINE OPERATIONS, 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 $10,000.
What is the period of performance?
Start: 2026-07-01. End: 2027-06-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without further documentation, it's impossible to confirm the validity of this justification for the new MRI system maintenance.
What is the risk associated with a sole-source procurement for essential maintenance?
The primary risk of a sole-source procurement is the absence of competitive pressure, which can lead to inflated prices, reduced service quality, and a lack of innovation. This can result in a significant financial burden on the government and taxpayers over the contract's life.
How does this spending align with NIST's overall research and operational effectiveness?
Ensuring the effective maintenance of critical equipment like an MRI system is vital for NIST's research capabilities and operational effectiveness. However, the procurement method's lack of competition raises concerns about the value obtained for taxpayer funds.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: NB686080-26-00568
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 351A NEW WHITFIELD ST, GUILFORD, CT, 06437
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,000
Exercised Options: $10,000
Current Obligation: $10,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-07-01
Current End Date: 2027-06-30
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2026-04-02
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