Treasury's $717K AB SCIEX maintenance contract awarded via purchase order, raising value-for-money questions

Contract Overview

Contract Amount: $71,726 ($71.7K)

Contractor: AB Sciex LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-02-03

End Date: 2025-02-02

Contract Duration: 730 days

Daily Burn Rate: $98/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AB SCIEX MAINTENANCE SERVICE

Place of Performance

Location: REDWOOD CITY, SAN MATEO County, CALIFORNIA, 94065

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $71,726.26 to AB SCIEX LLC for work described as: AB SCIEX MAINTENANCE SERVICE Key points: 1. The contract's value-for-money is questionable due to its sole-source nature and lack of competitive bidding. 2. Competition dynamics are absent, as the contract was not competed, potentially leading to suboptimal pricing. 3. Risk indicators include the lack of a competitive process and the potential for overpayment. 4. Performance context is limited, with no clear metrics provided for the maintenance services. 5. Sector positioning is within the testing laboratories and services industry, supporting scientific equipment. 6. The contract duration of two years for a maintenance service warrants scrutiny for potential long-term cost implications.

Value Assessment

Rating: questionable

Benchmarking the value of this $717,262.26 contract for AB SCIEX maintenance is challenging without competitive data. As a sole-source award, it's difficult to assess if the pricing is fair market value. Typically, maintenance contracts for specialized scientific equipment can vary significantly based on service level agreements, included parts, and response times. Without a competitive process, there's a risk that the government may not be receiving the most cost-effective solution available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. The Bureau of the Fiscal Service did not solicit offers from multiple vendors. This lack of competition limits price discovery and may prevent the government from obtaining the best possible pricing or service terms. The rationale for a sole-source award, if any, is not detailed.

Taxpayer Impact: Taxpayers may be paying a premium for these maintenance services due to the absence of a competitive bidding process. Without competition, there is less pressure on the vendor to offer the lowest possible price.

Public Impact

The primary beneficiary is the Bureau of the Fiscal Service, which receives maintenance for its AB SCIEX equipment. The services delivered are critical for ensuring the operational readiness and accuracy of scientific testing equipment. The geographic impact is localized to the facility where the AB SCIEX equipment is located in California. Workforce implications are minimal, primarily affecting the vendor's technical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award limits options and potential for better service agreements.
Absence of performance metrics makes it difficult to assess service quality.
Long-term commitment without competitive review could be financially disadvantageous.

Positive Signals

Contract ensures continued operation of critical scientific equipment.
Awarding to AB SCIEX LLC likely leverages existing expertise with their specific equipment.
Firm Fixed Price contract provides cost certainty for the duration of the award.

Sector Analysis

The contract falls within the Scientific and Technical Instruments subsector, specifically related to maintenance services for analytical and testing equipment. The market for such specialized maintenance can be concentrated, with original equipment manufacturers often being the primary or sole providers. Comparable spending benchmarks are difficult to establish without knowing the specific model and service level, but maintenance contracts for complex scientific instruments can represent a significant portion of the equipment's lifecycle cost.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The award to AB SCIEX LLC, a specific equipment manufacturer, suggests a direct relationship that may not easily accommodate small business participation unless they are specialized service providers for that equipment.

Oversight & Accountability

Oversight for this purchase order would typically reside with the Bureau of the Fiscal Service's contracting officers and program managers. Accountability measures would be tied to the terms of the firm fixed-price contract and the delivery of agreed-upon maintenance services. Transparency is limited due to the sole-source nature and the lack of publicly available details regarding the justification for this procurement method.

Related Government Programs

Scientific Equipment Maintenance
Laboratory Services
Analytical Instrument Support
Federal Scientific Instrument Procurement

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing due to lack of bidding.
Absence of detailed performance metrics.
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $71,726.26 to AB SCIEX LLC. AB SCIEX MAINTENANCE SERVICE

Who is the contractor on this award?

The obligated recipient is AB SCIEX LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $71,726.26.

What is the period of performance?

Start: 2023-02-03. End: 2025-02-02.

What is the specific AB SCIEX equipment model being maintained under this contract, and what is its criticality to the Bureau of the Fiscal Service's operations?

The provided data does not specify the exact AB SCIEX equipment model. However, AB SCIEX is known for producing mass spectrometry and chromatography systems used in various analytical testing applications. Given the agency is the Bureau of the Fiscal Service, the equipment likely supports financial analysis, fraud detection, or other critical operational functions requiring precise scientific measurement. The criticality can be inferred from the agency's mission; if the equipment is essential for core functions, its maintenance is paramount to ensuring uninterrupted service delivery and data integrity.

What is the justification for awarding this contract on a sole-source basis, and were any market research efforts conducted?

The data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Typically, sole-source justifications are required by federal acquisition regulations and often cite reasons such as unique capabilities of the vendor, urgent and compelling needs, or when only one responsible source is available. Without further details, it's unknown if comprehensive market research was performed to confirm that no other vendors could provide the required maintenance services or if the justification was based on factors like proprietary technology or existing infrastructure compatibility that only AB SCIEX LLC could meet.

How does the $717,262.26 contract value compare to historical spending on similar AB SCIEX maintenance services by the Bureau of the Fiscal Service or other federal agencies?

Direct comparison of the $717,262.26 contract value is difficult without knowing the specific equipment model, service level agreement, and contract duration. However, for a two-year firm fixed-price contract (730 days), this equates to approximately $358,631 per year. This figure should be benchmarked against previous contracts for the same or similar equipment by the Bureau of the Fiscal Service, or against publicly available data for maintenance of comparable AB SCIEX instruments by other federal agencies. A lack of historical data or competitive bids makes it challenging to definitively assess if this represents a fair market price.

What are the specific maintenance tasks and service level agreements (SLAs) included in this contract, and are there performance metrics to ensure adequate service delivery?

The provided data is limited and does not detail the specific maintenance tasks or service level agreements (SLAs) covered by this contract. It is a 'PURCHASE ORDER' with a 'FIRM FIXED PRICE' for 'AB SCIEX MAINTENANCE SERVICE.' Essential details such as the frequency of preventative maintenance, response times for emergency repairs, included parts, and labor coverage are not specified. Without defined performance metrics or clear SLAs, it is difficult for the Bureau of the Fiscal Service to objectively measure the quality and effectiveness of the maintenance services provided by AB SCIEX LLC.

What is the track record of AB SCIEX LLC in fulfilling federal contracts for maintenance services, particularly for the Bureau of the Fiscal Service?

The provided data does not include information on AB SCIEX LLC's track record with federal contracts. To assess this, one would typically review contract performance reports (e.g., CPARS), past performance questionnaires, and any available data on contract awards and terminations. Understanding their history with similar maintenance services, their on-time delivery rates, and any past performance issues would provide valuable insight into their reliability and capability to fulfill this current contract effectively for the Bureau of the Fiscal Service.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 1201 RADIO ROAD, REDWOOD CITY, CA, 94065

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,726

Exercised Options: $71,726

Current Obligation: $71,726

Actual Outlays: $71,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline