YSI Inc. awarded $1.98M for instruments, facing limited competition with a 30-day duration

Contract Overview

Contract Amount: $1,976,365 ($2.0M)

Contractor: YSI Inc

Awarding Agency: Department of the Interior

Start Date: 2026-01-28

End Date: 2026-02-27

Contract Duration: 30 days

Daily Burn Rate: $65.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 REQ # 15728 AGAINST 140G0121D0007

Place of Performance

Location: YELLOW SPRINGS, GREENE County, OHIO, 45387

State: Ohio Government Spending

Plain-Language Summary

Department of the Interior obligated $2.0 million to YSI INC for work described as: FY26 REQ # 15728 AGAINST 140G0121D0007 Key points: 1. Contract value of $1.98M for a 30-day period suggests a high per-diem cost. 2. Limited competition raises concerns about potential overpayment and lack of market price discovery. 3. The contract is for instruments used in measuring and controlling industrial process variables. 4. Delivery order under an existing contract indicates a potential for recurring needs. 5. The short duration may point to urgent requirements or a pilot phase. 6. Fixed-price contract type shifts risk to the contractor for cost overruns.

Value Assessment

Rating: questionable

The contract value of $1.98M for a 30-day period is exceptionally high, averaging over $66,000 per day. Without specific details on the instruments or their complexity, it's difficult to benchmark precisely. However, this daily rate significantly exceeds typical operational costs for standard instrumentation. Further analysis is needed to understand if the specialized nature of these instruments justifies such a premium, or if the pricing reflects a lack of competitive pressure.

Cost Per Unit: Approximately $66,000 per day, which appears high for standard instrumentation services.

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited competition procurement. The specific reason for this approach is not detailed, but it typically arises when only one vendor can meet the requirement due to unique capabilities, proprietary technology, or urgent needs. The lack of open competition means the government did not benefit from a range of offers, potentially leading to a higher price than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not explore alternative, potentially more cost-effective solutions from other suppliers.

Public Impact

The U.S. Geological Survey (USGS) benefits from the acquisition of specialized instruments. These instruments are crucial for measuring, displaying, and controlling industrial process variables, likely supporting scientific research and environmental monitoring. The contract's geographic impact is focused on Ohio, where YSI Inc. is located. Workforce implications are minimal, as this is a product delivery rather than a service requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost raises concerns about value for money.
Sole-source award limits opportunities for competitive pricing.
Lack of detailed justification for sole-source award.
Short duration may indicate rushed procurement or insufficient planning.

Positive Signals

Firm fixed-price contract protects against cost overruns.
Delivery order under an existing contract suggests established relationship and potential for streamlined acquisition.
YSI Inc. is a known entity in the instrumentation field.

Sector Analysis

The contract falls within the Instruments and Related Products Manufacturing sector, specifically for measuring and controlling industrial process variables. This sector is vital for various government functions, including scientific research, environmental monitoring, and operational oversight. The market for such instruments can range from highly standardized components to specialized, custom-built systems. Benchmarking requires understanding the specific technical requirements of the instruments procured, but the value of this single order suggests a focus on sophisticated or critical-use equipment.

Small Business Impact

The contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, this award does not appear to directly benefit the small business ecosystem through this specific procurement action.

Oversight & Accountability

As a delivery order under an existing contract (140G0121D0007), oversight is likely tied to the terms and conditions of the parent contract. The 'NOT COMPETED' status warrants scrutiny to ensure the justification for sole-source procurement is valid and documented. Transparency could be improved by making the justification publicly available. The Department of the Interior's Inspector General would have jurisdiction over potential fraud or mismanagement.

Related Government Programs

Instruments and Related Products Manufacturing
Scientific and Medical Instruments
Industrial Process Control Equipment
Environmental Monitoring Equipment

Risk Flags

High daily cost
Sole-source award
Lack of competition justification
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.0 million to YSI INC. FY26 REQ # 15728 AGAINST 140G0121D0007

Who is the contractor on this award?

The obligated recipient is YSI INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2026-01-28. End: 2026-02-27.

What is the specific nature and complexity of the instruments being procured under this delivery order?

The contract specifies 'Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables.' While the National Stock Number (NSN) 334513 provides a general category, the exact technical specifications, capabilities, and intended use of these instruments are not detailed in the provided data. Understanding their complexity is crucial for assessing the daily cost of $66,000. If these are highly specialized, research-grade, or custom-built instruments with unique sensing or data processing capabilities, the cost might be justifiable. Conversely, if they are more standard industrial sensors, the price would be questionable. Further investigation into the specific product data sheet or technical requirements would be necessary.

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

The contract is explicitly marked as 'NOT COMPETED,' indicating a sole-source or limited competition award. Typically, such awards are justified when only one responsible source is available to meet the agency's needs. Reasons can include proprietary technology, unique capabilities, urgent and compelling circumstances, or the existence of a long-term strategic partnership where switching vendors would be impractical or excessively costly. Without the specific justification documentation from the Department of the Interior, it is impossible to verify the validity of the sole-source determination. A thorough review of this justification is essential to ensure fair and reasonable pricing and to confirm that competition was not improperly excluded.

How does the $1.98M contract value for a 30-day period compare to similar procurements for industrial process instruments?

The contract value of $1.98M for a mere 30-day period translates to an average daily cost of approximately $66,000. This figure appears exceptionally high when compared to typical procurements for industrial process instruments, which often involve equipment purchase, installation, and maintenance over longer periods. Even for high-end scientific equipment, daily rental or operational costs rarely reach this magnitude unless they involve highly specialized, on-demand services or extremely rare, complex machinery. Benchmarking this specific contract requires detailed knowledge of the instruments' capabilities and market rates for similar equipment or services. The lack of competition further complicates direct comparison, as market-driven pricing is absent.

What are the potential risks associated with a sole-source award for critical instrumentation?

Sole-source awards for critical instrumentation carry several risks. Firstly, the absence of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it limits the government's access to potentially superior or more innovative technologies that other vendors might offer. Thirdly, it creates a dependency on a single supplier, which can be problematic if that supplier experiences financial difficulties, quality control issues, or decides to discontinue the product line. Finally, it raises concerns about the transparency and fairness of the procurement process, potentially undermining public trust and accountability.

What is the historical spending pattern for similar instruments by the U.S. Geological Survey or the Department of the Interior?

Analyzing historical spending patterns for similar instruments by the U.S. Geological Survey (USGS) or the Department of the Interior (DOI) is crucial for context. Without access to historical procurement data specific to NSN 334513 or comparable instrumentation, it's difficult to establish a trend. However, if the DOI has consistently procured similar instruments through competitive processes at significantly lower price points, this sole-source award at $1.98M for 30 days would be a major red flag. Conversely, if past procurements were also sole-source and at similar high values, it might indicate a consistent, albeit potentially inefficient, procurement strategy for specialized equipment. A review of past contracts for 'Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables' would be informative.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 BRANNUM LN # 1725, YELLOW SPRINGS, OH, 45387

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

Financial Breakdown

Contract Ceiling: $1,976,365

Exercised Options: $1,976,365

Current Obligation: $1,976,365

Actual Outlays: $14,619

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140G0121D0007

IDV Type: IDC

Timeline