Transportation contract for lab equipment calibration awarded to AD-TEK INC for over $1.4M

Contract Overview

Contract Amount: $144,789 ($144.8K)

Contractor: Ad-Tek Inc

Awarding Agency: Department of Transportation

Start Date: 2022-04-13

End Date: 2027-04-30

Contract Duration: 1,843 days

Daily Burn Rate: $79/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABORATORY EQUIPMENT CALIBRATION AND CERTIFICATION

Place of Performance

Location: VANCOUVER, CLARK County, WASHINGTON, 98661

State: Washington Government Spending

Plain-Language Summary

Department of Transportation obligated $144,789 to AD-TEK INC for work described as: LABORATORY EQUIPMENT CALIBRATION AND CERTIFICATION Key points: 1. Value for money appears fair given the fixed-price nature and multi-year duration. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are moderate, with a fixed-price contract and standard duration. 4. Performance context is within essential maintenance for transportation infrastructure. 5. Sector positioning is in equipment maintenance, a critical but non-strategic area.

Value Assessment

Rating: fair

The contract value of $1.44M over approximately five years for laboratory equipment calibration and certification appears within a reasonable range for specialized maintenance services. Benchmarking against similar contracts is difficult without more specific details on the types and volume of equipment. However, the firm fixed-price structure suggests the government has locked in costs, which can be advantageous if the contractor's costs are well-managed. The absence of small business set-aside flags suggests this was not specifically targeted for smaller entities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely a full and open competition among eligible vendors. While the number of bidders is not specified, SAP is designed to encourage broad participation for procurements below certain thresholds. This competitive process should have allowed for price discovery and selection of the most advantageous offer for the government.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by fostering competition, which tends to drive down prices and improve the quality of services received.

Public Impact

The Federal Highway Administration benefits from ensured accuracy and reliability of its laboratory testing equipment. Services delivered include calibration and certification, crucial for maintaining quality control and compliance. Geographic impact is primarily within Washington D.C., where the Federal Highway Administration's operations are likely centered. Workforce implications are minimal, likely involving specialized technicians from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's internal estimates are inaccurate, though mitigated by fixed-price.
Dependence on a single contractor for a critical maintenance function could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Multi-year duration allows for consistent service and planning.
Awarded to a single entity (AD-TEK INC) suggests a potentially established relationship or specialized capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on equipment maintenance and repair. The market for calibration and certification services is specialized, often requiring certified technicians and adherence to strict industry standards. Comparable spending benchmarks are difficult to establish without knowing the exact scope of equipment, but federal spending on such services is consistent across agencies requiring precise measurement and testing.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the specific competition details under SAP are not fully elaborated, the absence of set-aside provisions means small businesses may have competed alongside larger firms. There is no explicit information on subcontracting requirements, but it's common for larger contracts to include provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Highway Administration's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring AD-TEK INC to meet specific calibration and certification standards by the end date. Transparency is generally maintained through federal procurement databases, though detailed performance reports are often internal.

Related Government Programs

Laboratory Equipment Maintenance
Calibration Services
Federal Highway Administration Operations Support
Transportation Infrastructure Testing

Risk Flags

Potential for performance issues impacting critical testing.
Limited visibility into specific competition details beyond 'competed under SAP'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $144,789 to AD-TEK INC. LABORATORY EQUIPMENT CALIBRATION AND CERTIFICATION

Who is the contractor on this award?

The obligated recipient is AD-TEK INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $144,789.

What is the period of performance?

Start: 2022-04-13. End: 2027-04-30.

What is AD-TEK INC's track record with federal contracts, particularly for calibration services?

AD-TEK INC has been awarded federal contracts, including this one from the Department of Transportation's Federal Highway Administration. The provided data indicates this is a Purchase Order with a firm fixed-price structure, awarded under Simplified Acquisition Procedures. To fully assess their track record, a deeper dive into their contract history would be necessary, looking at past performance evaluations, any reported disputes or terminations, and the types and values of previous contracts. Without this additional data, it's difficult to definitively gauge their experience specifically with laboratory equipment calibration and certification beyond this single award.

How does the $1.44M contract value compare to similar calibration and certification contracts?

Benchmarking the $1.44M contract value for laboratory equipment calibration and certification requires detailed comparison with contracts of similar scope, duration, and complexity. The provided data is limited, offering only the total value, award date, and estimated end date (approximately 5 years). Factors such as the number and type of instruments requiring calibration, the required precision levels, and the geographic location of service delivery significantly influence pricing. Without access to a database of comparable federal contracts or specific details on the Federal Highway Administration's calibration needs, it is challenging to definitively state whether this price represents excellent, good, fair, or questionable value for money.

What are the primary risks associated with this contract for AD-TEK INC and the Federal Highway Administration?

For AD-TEK INC, the primary risk lies in accurately estimating the costs associated with performing the calibration and certification services over the contract's duration. As it's a firm fixed-price contract, any underestimation of labor, materials, or unforeseen technical challenges could reduce their profit margin or lead to losses. For the Federal Highway Administration (FHWA), the main risks include potential performance failures by AD-TEK INC, leading to inaccurate test results or equipment downtime, which could impact critical transportation research or quality control. There's also a risk of price escalation if the contract were to be extended or re-competed in a market with rising service costs, although the current fixed price mitigates this for the existing term.

How effective is the Simplified Acquisition Procedures (SAP) competition in ensuring fair pricing for this type of service?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below certain thresholds, encouraging broader competition than traditional, more complex methods. For a contract valued at $1.44M, SAP likely involved soliciting quotes or proposals from multiple vendors. This process generally fosters fair pricing by allowing vendors to compete based on price and technical merit. However, the effectiveness can vary depending on the number of vendors actively participating and the specific market dynamics for laboratory equipment calibration services in the Washington D.C. area. If only a few vendors responded, the price discovery might be less robust than in a larger, more widely advertised competition.

What is the historical spending pattern for laboratory equipment calibration and certification by the Federal Highway Administration?

The provided data only details a single contract award to AD-TEK INC. To understand the historical spending patterns for laboratory equipment calibration and certification by the Federal Highway Administration (FHWA), one would need to analyze procurement data over several fiscal years. This would involve identifying all contracts awarded for similar services, their values, durations, and the contractors involved. Such an analysis would reveal trends in spending levels, identify key service providers, and potentially highlight any significant increases or decreases in demand or cost for these essential maintenance services.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 69056722Q000015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28111 SE WALLY RD, BORING, OR, 97009

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

Financial Breakdown

Contract Ceiling: $144,789

Exercised Options: $144,789

Current Obligation: $144,789

Actual Outlays: $103,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline