Interior's USGS awards $2.7M for hydrometric instruments, with limited competition

Contract Overview

Contract Amount: $2,704,218 ($2.7M)

Contractor: OTT Hydromet Corp

Awarding Agency: Department of the Interior

Start Date: 2026-01-30

End Date: 2026-03-01

Contract Duration: 30 days

Daily Burn Rate: $90.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 REQ # 15736 AGAINST 140G0125D0003

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20164

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $2.7 million to OTT HYDROMET CORP for work described as: FY26 REQ # 15736 AGAINST 140G0125D0003 Key points: 1. Value for money is difficult to assess due to the sole-source nature of the award. 2. Competition dynamics are limited, raising questions about price discovery and potential overpayment. 3. Risk indicators include the short performance period and lack of competitive pressure. 4. Performance context is provided by the specific need for instruments related to measuring industrial process variables. 5. Sector positioning is within the Instruments and Related Products Manufacturing industry.

Value Assessment

Rating: fair

The contract value of $2.7 million for a 30-day delivery order is substantial for a short-term requirement. Without competitive bidding, it's challenging to benchmark the pricing against market rates or similar contracts. The fixed-price nature provides some cost certainty, but the absence of competition prevents a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. The specific justification for this limited competition is not provided in the data. This approach bypasses the opportunity for multiple vendors to bid, which typically drives down prices and fosters innovation.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competitive bidding. This could lead to higher costs than if the contract had been competed.

Public Impact

The U.S. Geological Survey (USGS) benefits from this contract by acquiring necessary hydrometric instruments. These instruments are crucial for measuring, displaying, and controlling industrial process variables, likely supporting environmental monitoring and resource management. The geographic impact is national, as USGS operations span across the United States. The contract supports the workforce within the Instruments and Related Products Manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for better value.
Short performance duration (30 days) may indicate an urgent or specific need, but also limits long-term planning.
Lack of detailed justification for sole-source award raises transparency concerns.

Positive Signals

Award is for essential instruments supporting critical USGS functions.
Firm Fixed Price contract provides cost certainty for the government.
Contract is for a specific, defined need within the Instruments and Related Products Manufacturing sector.

Sector Analysis

This contract falls within the Instruments and Related Products Manufacturing sector, specifically for instruments used in measuring and controlling industrial process variables. This sector is vital for various government functions, including scientific research, environmental monitoring, and industrial oversight. Comparable spending benchmarks are difficult to establish without more specific details on the type of instruments, but the value suggests a significant procurement.

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-aside or subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal unless the sole-source contractor utilizes small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Geological Survey's internal procurement and program management. As a sole-source award, it may warrant closer scrutiny from agency oversight bodies to ensure the justification was sound and the pricing is reasonable. Transparency is limited by the lack of competitive details.

Related Government Programs

Federal Scientific Instrument Procurement
Environmental Monitoring Equipment
Industrial Process Control Systems
USGS Hydrological Equipment

Risk Flags

Sole-source award
Limited competition
Short performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.7 million to OTT HYDROMET CORP. FY26 REQ # 15736 AGAINST 140G0125D0003

Who is the contractor on this award?

The obligated recipient is OTT HYDROMET CORP.

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 $2.7 million.

What is the period of performance?

Start: 2026-01-30. End: 2026-03-01.

What is the specific type of hydrometric instrument being procured and its intended use?

The contract data specifies the North American Industry Classification System (NAICS) code 334513, which covers Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables. While 'hydrometric' suggests water measurement, the exact instruments are not detailed. They are likely used by the U.S. Geological Survey (USGS) for hydrological studies, water resource management, flood prediction, or monitoring water quality and flow rates. The short 30-day delivery period implies a specific, potentially urgent need for these instruments to support ongoing field operations or research projects.

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

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. However, the specific justification for this determination is not included. Typically, sole-source awards are justified under circumstances such as urgent and compelling needs, unique capabilities of a single contractor, or when only one responsible source exists. Without the official justification document, it is impossible to ascertain the precise rationale. This lack of transparency is a common concern with sole-source procurements, as it bypasses the standard competitive process designed to ensure fair pricing and broad market access.

How does the $2.7 million price compare to similar procurements for hydrometric instruments?

Benchmarking the $2.7 million price against similar procurements is challenging without knowing the exact specifications of the instruments and the duration of the contract. The contract is a delivery order with a very short performance period (30 days), suggesting a focus on immediate acquisition rather than a long-term supply agreement. Given the sole-source nature, there's no direct competitive data to compare against. To assess value, one would need to compare the unit costs of these specific instruments against market rates or historical data for comparable items procured competitively by other agencies or within the USGS itself.

What are the potential risks associated with a sole-source award for this type of equipment?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competition. Without competing bids, the government may pay more than necessary. Other risks include limited access to innovation or alternative solutions that other vendors might offer. Furthermore, reliance on a single source can create supply chain vulnerabilities if that contractor experiences production issues or goes out of business. The short performance period also presents a risk if the instruments are critical for ongoing operations and delivery is delayed.

What is the track record of OTT Hydromet Corp. as a government contractor?

OTT Hydromet Corp. is identified as the contractor for this award. While the provided data does not detail their specific track record with the federal government, their selection suggests they possess the necessary capabilities or are the sole provider for the required instruments. A deeper analysis would involve reviewing their past federal contract awards, performance reviews, and any reported issues to assess their reliability and pricing history. Their specialization in hydrometric instrumentation indicates expertise in this niche market.

What is the historical spending pattern for similar instruments by the Department of the Interior or USGS?

The provided data focuses solely on this specific FY26 requirement. To understand historical spending patterns, one would need to access broader federal procurement databases (like FPDS or USASpending.gov) and filter for contracts awarded to the Department of the Interior or the USGS for 'hydrometric instruments' or related NAICS codes (like 334513) over previous fiscal years. Analyzing this historical data would reveal trends in spending volume, average contract values, and the extent to which these procurements were competed versus awarded sole-source.

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: 22400 DAVIS DR STE 100, STERLING, VA, 20164

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: $2,704,218

Exercised Options: $2,704,218

Current Obligation: $2,704,218

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140G0125D0003

IDV Type: IDC

Timeline