DOI's $34M Shimadzu Instrument Maintenance Contract Awarded to Sole Source Provider

Contract Overview

Contract Amount: $34,187 ($34.2K)

Contractor: Shimadzu Scientific Instruments, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-08-26

End Date: 2026-08-25

Contract Duration: 729 days

Daily Burn Rate: $47/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHIMADZU INSTRUMENT MAINTENANCE

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $34,186.88 to SHIMADZU SCIENTIFIC INSTRUMENTS, INC. for work described as: SHIMADZU INSTRUMENT MAINTENANCE Key points: 1. The contract is for maintenance of Shimadzu instruments, a critical need for the USGS. 2. Competition was limited, with the award going to the original equipment manufacturer. 3. The firm fixed price contract structure aims to control costs over the 2-year period. 4. Potential risks include lack of competitive pricing and reliance on a single vendor for specialized maintenance.

Value Assessment

Rating: fair

The contract value of $34.19 million over two years suggests a significant investment in maintaining specialized analytical instruments. Benchmarking against similar maintenance contracts for high-value scientific equipment is difficult without more specific details on the instruments covered and service levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), but the award went to Shimadzu Scientific Instruments, Inc., the likely sole source provider for maintenance of their own equipment. This limits price discovery and competitive pressure.

Taxpayer Impact: Taxpayer funds are being used for this contract. While essential for USGS operations, the lack of robust competition may lead to higher costs than if multiple vendors were involved.

Public Impact

Ensures continued operation of vital scientific instruments for geological research and data collection. Supports the U.S. Geological Survey's mission in areas like environmental monitoring and resource management. Potential for increased costs due to sole-source maintenance provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for higher maintenance costs
Reliance on a single vendor for critical support

Positive Signals

Essential service for USGS operations
Firm fixed price contract for cost certainty

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically for maintenance services. Spending in this area is crucial for government scientific agencies to maintain operational capabilities for research and analysis.

Small Business Impact

The award was not specifically analyzed for small business participation. Given the specialized nature of the equipment and the likely sole-source award to the manufacturer, opportunities for small businesses in this specific contract appear limited.

Oversight & Accountability

The contract was awarded under SAP, suggesting a streamlined process. Oversight will be critical to ensure the USGS receives the necessary maintenance services at a fair price, despite the limited competition.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of the Interior Contracting
U.S. Geological Survey Programs

Risk Flags

Sole-source nature of the award
Potential for inflated pricing
Dependency on a single vendor
Limited transparency in price justification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $34,186.88 to SHIMADZU SCIENTIFIC INSTRUMENTS, INC.. SHIMADZU INSTRUMENT MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SHIMADZU SCIENTIFIC INSTRUMENTS, 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 $34,186.88.

What is the period of performance?

Start: 2024-08-26. End: 2026-08-25.

What is the specific scope of maintenance services covered under this contract, and how does it compare to industry standards for similar equipment?

The contract details the maintenance of Shimadzu analytical laboratory instruments. A comprehensive understanding of the scope, including preventative maintenance, emergency repairs, parts, and labor, is necessary to benchmark against industry standards. Without this granular detail, assessing the value proposition is challenging, though the firm fixed price structure provides some cost predictability.

What efforts were made to explore competitive alternatives or ensure fair pricing, given the award to the original equipment manufacturer?

The contract was competed under SAP, which allows for simplified procedures for acquisitions below certain thresholds. However, the award to Shimadzu Scientific Instruments, Inc. suggests they are the sole authorized provider for maintenance. Further justification for the limited competition and the process for price reasonableness determination would be beneficial.

How will the USGS ensure the effectiveness of the maintenance services and the longevity of the instruments under this contract?

The effectiveness will be monitored through performance metrics outlined in the contract and regular reviews of service delivery. The firm fixed price structure incentivizes the contractor to perform efficiently. The USGS should maintain detailed records of instrument uptime, repair times, and overall performance to ensure the contract meets its objectives.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140G0224Q0159

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shimadzu Corporation

Address: 7102 RIVERWOOD DR, COLUMBIA, MD, 21046

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

Financial Breakdown

Contract Ceiling: $104,282

Exercised Options: $34,187

Current Obligation: $34,187

Actual Outlays: $17,093

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline