Treasury's $519,500 EDAX Maintenance Agreement awarded to EDAX, LLC for analytical instruments

Contract Overview

Contract Amount: $51,950 ($52.0K)

Contractor: Edax, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-07-16

End Date: 2026-04-05

Contract Duration: 628 days

Daily Burn Rate: $83/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EDAX MAINTENANCE AGREEMENT

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Treasury obligated $51,950 to EDAX, LLC for work described as: EDAX MAINTENANCE AGREEMENT Key points: 1. This contract supports critical analytical laboratory instrument maintenance, ensuring operational continuity for the U.S. Mint. 2. The firm-fixed-price structure provides cost certainty for the government. 3. Awarded as a purchase order, suggesting a streamlined procurement process. 4. The duration of the contract is approximately 21 months. 5. Maintenance services are crucial for the longevity and accuracy of specialized scientific equipment.

Value Assessment

Rating: fair

Benchmarking the value of this specific maintenance agreement is challenging without detailed service scope and market data for EDAX instruments. The award amount of $519,500 over 628 days (approx. 21 months) translates to roughly $24,738 per month. This figure needs to be compared against the original equipment cost, expected lifespan, and typical maintenance costs for similar high-value analytical instruments. Without comparative pricing or a breakdown of services, it's difficult to definitively assess if this represents excellent value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis or through a limited competition not publicly advertised. The absence of open competition raises questions about whether the U.S. Mint explored all available options to secure the best possible pricing and terms. A sole-source award typically occurs when only one vendor can provide the required goods or services, often due to proprietary technology or unique expertise.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from potential cost savings that could have arisen from a more open bidding process. This could lead to higher overall spending for the government.

Public Impact

The U.S. Mint benefits through the continued operational capability of its analytical laboratory instruments. This ensures the accuracy and reliability of testing and analysis performed by the Mint. The contract supports the workforce that operates and relies on these instruments. Geographic impact is localized to the facility where the EDAX instruments are maintained, likely in Pennsylvania given the state code.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to sole-source award.
Lack of transparency in the procurement process.
Dependence on a single vendor for critical maintenance.

Positive Signals

Ensures continuity of essential analytical services.
Firm-fixed-price contract provides budget predictability.
Supports specialized scientific equipment vital for the Mint's operations.

Sector Analysis

The market for analytical laboratory instruments and their maintenance is a specialized segment within the broader scientific and industrial equipment sector. Companies like EDAX provide highly technical equipment used for material analysis, quality control, and research across various industries, including manufacturing, pharmaceuticals, and government laboratories. Spending in this area is driven by the need for precise measurement and compliance with regulatory standards. Comparable spending benchmarks would involve analyzing maintenance contracts for similar high-precision analytical equipment from other manufacturers.

Small Business Impact

This contract was awarded to EDAX, LLC, and there is no indication of a small business set-aside. The 'sb' field is false, suggesting it was not specifically targeted towards small businesses. Furthermore, the 'ss' field is also false, meaning it was not a small business prime award. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but given the sole-source nature, the potential for such opportunities may be limited.

Oversight & Accountability

Oversight for this purchase order would typically fall under the U.S. Mint's internal procurement and financial management controls. As a sole-source award, it may warrant closer scrutiny from internal audit or oversight bodies to ensure the justification for non-competition was sound and that the pricing is reasonable. Transparency is limited due to the lack of public competition. Inspector General jurisdiction would depend on the specific agency's IG mandate and whether the Treasury OIG has oversight over such procurements.

Related Government Programs

Analytical Laboratory Instrument Maintenance
Scientific Equipment Services
U.S. Mint Operations Support
Treasury Department Procurement

Risk Flags

Sole-source award may lead to higher costs.
Limited competition reduces price discovery.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $51,950 to EDAX, LLC. EDAX MAINTENANCE AGREEMENT

Who is the contractor on this award?

The obligated recipient is EDAX, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $51,950.

What is the period of performance?

Start: 2024-07-16. End: 2026-04-05.

What is the specific type and model of EDAX instrument being maintained under this agreement?

The provided data indicates the contract is for 'EDAX MAINTENANCE AGREEMENT' and the Product Service Code (PSC) is blank, which usually provides more detail. However, the North American Industry Classification System (NAICS) code is 334516, which covers 'Analytical Laboratory Instrument Manufacturing'. This suggests the contract pertains to the maintenance of analytical instruments manufactured by EDAX, likely specialized equipment used for scientific analysis within the U.S. Mint's operations. Without further details, the exact model or specific function of the instrument remains unspecified in the provided data.

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

The data explicitly states 'CT: NOT COMPETED UNDER SAP', which implies the contract was not competed under the Simplified Acquisition Procedures. This often points towards a sole-source award, especially when no other bidders are mentioned. The typical justifications for sole-source procurement include that the property or service is available only from a single responsible source (e.g., proprietary technology, unique expertise, or specific compatibility requirements). For EDAX instruments, it's plausible that only EDAX, LLC, as the manufacturer or authorized service provider, possesses the necessary technical knowledge, proprietary tools, or replacement parts to perform the required maintenance effectively and safely, thus justifying a sole-source award to ensure operational continuity and equipment integrity.

How does the monthly cost of this maintenance agreement compare to industry benchmarks for similar analytical instruments?

The total award is $519,500 over 628 days, equating to approximately $827 per day or roughly $24,738 per month. Benchmarking this against industry standards for analytical instrument maintenance is challenging without knowing the specific EDAX instrument model, its criticality, and the scope of services included (e.g., preventative maintenance, on-call repairs, parts, software updates). However, high-end analytical instruments, such as mass spectrometers or electron microscopes, can have annual maintenance contracts ranging from 10% to 20% of the equipment's purchase price. If the EDAX instrument is a high-value piece of equipment, this monthly cost might be within a reasonable range, but a definitive assessment requires more specific comparative data on similar instrument maintenance contracts within the government or private sector.

What is the track record of EDAX, LLC in providing maintenance services to federal agencies?

The provided data identifies EDAX, LLC as the contractor. While the data confirms this specific award, it does not offer details on EDAX, LLC's broader track record with federal agencies. To assess their performance history, one would typically look at past contract awards, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes on previous government contracts. Without access to this broader performance data, it is difficult to definitively evaluate EDAX, LLC's reliability and effectiveness in fulfilling federal maintenance service requirements beyond this single award.

What are the potential risks associated with a sole-source maintenance contract for critical analytical equipment?

The primary risk associated with a sole-source maintenance contract is the potential for inflated pricing, as the absence of competition removes the incentive for the vendor to offer the most competitive rates. Taxpayers may end up paying more than necessary. Another risk is vendor lock-in, where the agency becomes overly dependent on a single provider, potentially limiting flexibility in future procurement decisions or technology upgrades. Furthermore, if the sole-source provider experiences financial difficulties or decides to discontinue services, the agency could face significant operational disruptions. Ensuring robust contract management and periodic reviews of the sole-source justification is crucial to mitigate these risks.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5794 W LAS POSITAS BLVD, PLEASANTON, CA, 94588

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

Financial Breakdown

Contract Ceiling: $51,950

Exercised Options: $51,950

Current Obligation: $51,950

Actual Outlays: $51,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline