VA awards $2.39M for temperature monitoring services to Rees Scientific Corporation

Contract Overview

Contract Amount: $239,270 ($239.3K)

Contractor: Rees Scientific Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-11

End Date: 2027-07-10

Contract Duration: 1,094 days

Daily Burn Rate: $219/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REES SCIENTIFIC TEMPERATURE MONITORING | SERVICE | BASE + 4

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $239,269.53 to REES SCIENTIFIC CORPORATION for work described as: REES SCIENTIFIC TEMPERATURE MONITORING | SERVICE | BASE + 4 Key points: 1. Contract awarded for temperature monitoring services, indicating a need for consistent environmental control. 2. The award is a Purchase Order, suggesting a streamlined procurement process for this specific need. 3. The contract duration of nearly three years implies a stable, ongoing requirement for these services. 4. The fixed-price contract type helps manage cost certainty for the agency. 5. The awardee, Rees Scientific Corporation, is likely a specialist in this niche area. 6. The lack of competition raises questions about potential cost efficiencies and market exploration.

Value Assessment

Rating: fair

The contract value of $2.39 million over approximately three years for temperature monitoring services appears to be within a reasonable range for specialized equipment and service contracts. However, without specific details on the scope of services, number of units monitored, or the complexity of the system, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for laboratory instrument maintenance and monitoring would provide a clearer picture of whether the pricing is competitive. The fixed-price nature offers cost predictability.

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 captured in the provided data. The absence of a competitive bidding process means the Department of Veterans Affairs did not explore the full market for potential providers. This could lead to higher prices than might be achieved in an open competition and limits the opportunity to identify innovative solutions from a wider range of vendors.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential monitoring services due to the lack of competitive pressure. The agency may also be missing out on potentially more cost-effective or technologically advanced solutions that could have emerged from a broader solicitation.

Public Impact

The Department of Veterans Affairs benefits from this contract by ensuring the integrity and reliability of temperature-sensitive materials and environments within its facilities. Services delivered likely include installation, maintenance, calibration, and monitoring of temperature control systems for laboratories, pharmacies, or storage areas. The geographic impact is primarily within Texas, where the contractor is located, but the services support VA facilities nationwide. This contract supports specialized technical roles related to environmental monitoring and laboratory equipment management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the selection process for a sole-source award.
Potential for missed opportunities to leverage market innovation through open competition.

Positive Signals

Fixed-price contract provides cost certainty for the agency.
Award to a specific company suggests expertise in temperature monitoring solutions.
Longer contract duration indicates a stable and ongoing need for these critical services.

Sector Analysis

The market for analytical laboratory instrument manufacturing and related services is a specialized sector within the broader scientific and healthcare industries. Companies in this space provide essential equipment and support for research, diagnostics, and quality control. Spending in this area is driven by the need for accurate and reliable data, particularly in regulated environments like healthcare and pharmaceuticals. Benchmarks for similar service contracts can vary widely based on the scale and complexity of the monitoring systems required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the sole-source nature of the award. Rees Scientific Corporation's size is not specified, but the lack of a small business set-aside suggests it may not be a small business itself, or that the specific requirements of the contract did not lend themselves to a small business set-aside under the applicable procurement regulations.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers responsible for laboratory and facility management. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, with details of the justification for not competing likely residing within internal VA procurement files. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Laboratory Equipment Maintenance Services
Medical Equipment and Supplies
Facilities Maintenance and Management
Healthcare IT and Services

Risk Flags

Sole-source award without clear justification
Potential for overpayment due to lack of competition
Limited market exploration for advanced solutions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $239,269.53 to REES SCIENTIFIC CORPORATION. REES SCIENTIFIC TEMPERATURE MONITORING | SERVICE | BASE + 4

Who is the contractor on this award?

The obligated recipient is REES SCIENTIFIC CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $239,269.53.

What is the period of performance?

Start: 2024-07-11. End: 2027-07-10.

What specific temperature monitoring systems or equipment does Rees Scientific Corporation provide under this contract, and what is the scope of services?

The provided data identifies the contract as being for 'REES SCIENTIFIC TEMPERATURE MONITORING | SERVICE'. This suggests the contract covers the provision of temperature monitoring systems, which could include sensors, data loggers, and associated software, along with ongoing maintenance, calibration, and support services. The exact scope would detail the number of units to be monitored, the types of environments (e.g., refrigerators, freezers, ambient rooms, incubators), the required monitoring parameters (temperature, humidity, etc.), and the frequency of service calls or preventative maintenance. Without the full contract details, it's presumed the services are critical for maintaining the integrity of pharmaceuticals, biological samples, or other temperature-sensitive materials within VA facilities.

How does the $2.39 million contract value compare to industry benchmarks for similar temperature monitoring services?

Benchmarking the $2.39 million contract value for temperature monitoring services is challenging without more specific details on the scope, scale, and duration of services provided. However, for context, contracts for laboratory equipment maintenance and monitoring can range significantly. A contract of this size, spanning nearly three years, suggests a substantial deployment of monitoring points or a high level of service complexity. If this contract covers a large number of facilities or highly sensitive equipment requiring continuous, validated monitoring, the price might be considered reasonable. Conversely, if it covers a limited number of standard units, it could be on the higher end. A more precise comparison would require access to databases of similar government or commercial contracts, factoring in the number of devices, geographical coverage, and specific technological features.

What is Rees Scientific Corporation's track record with the Department of Veterans Affairs or other federal agencies for similar services?

The provided data does not include specific details on Rees Scientific Corporation's past performance or track record with the Department of Veterans Affairs (VA) or other federal agencies. However, the fact that the VA has awarded them a contract, even on a sole-source basis, suggests some level of prior engagement or a perceived capability to meet the agency's needs. To assess their track record thoroughly, one would need to examine past performance evaluations, any previous contracts awarded to them by the VA or other government entities, and any reported issues or successes in fulfilling similar service requirements. This information is often available through federal procurement databases or agency performance records.

What are the potential risks associated with awarding this contract on a sole-source basis?

Awarding this contract on a sole-source basis carries several potential risks. Primarily, it limits price competition, which could result in the government paying a higher price than if the contract had been competed openly. This lack of competition also reduces the incentive for the contractor to innovate or offer cost-saving measures. Furthermore, it prevents the VA from exploring potentially superior or more cost-effective solutions that might be offered by other qualified vendors in the market. There's also a risk that the sole-source justification might not be robust, potentially leading to questions of fairness and efficiency in procurement. Finally, reliance on a single vendor can create supply chain risks or service disruptions if the vendor experiences operational issues.

How does this contract align with the VA's broader objectives for maintaining laboratory and storage integrity?

This contract directly aligns with the VA's critical objective of maintaining the integrity and safety of pharmaceuticals, biological samples, and other temperature-sensitive materials stored within its facilities. Accurate and reliable temperature monitoring is essential for compliance with regulatory standards, preventing spoilage or degradation of valuable medical supplies, and ensuring patient safety. By securing specialized services for temperature monitoring, the VA demonstrates a commitment to safeguarding its resources and upholding the quality of care it provides. The duration of the contract suggests a long-term commitment to these essential environmental controls across its operations.

What is the historical spending pattern for temperature monitoring services by the Department of Veterans Affairs?

The provided data only pertains to a single contract award and does not offer historical spending patterns for temperature monitoring services by the Department of Veterans Affairs (VA). To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying all contracts related to temperature monitoring, environmental controls, and related laboratory equipment services. This analysis would reveal trends in spending, identify key contractors, and highlight any shifts in procurement strategies or technology adoption within the VA for these types of services. Without this broader dataset, it's impossible to establish a historical context for the current $2.39 million award.

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

Solicitation ID: 36C25724Q305

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1007 WHITEHEAD ROAD EXT, EWING, NJ, 08638

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

Financial Breakdown

Contract Ceiling: $541,849

Exercised Options: $239,270

Current Obligation: $239,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline