HHS awards $67.2M contract for electronic equipment maintenance to ENTECH INSTRUMENTS, INC

Contract Overview

Contract Amount: $67,228 ($67.2K)

Contractor: Entech Instruments, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-07-15

End Date: 2027-07-14

Contract Duration: 1,094 days

Daily Burn Rate: $61/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENTECH MAINTENANCE

Place of Performance

Location: SIMI VALLEY, VENTURA County, CALIFORNIA, 93065

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $67,228 to ENTECH INSTRUMENTS, INC. for work described as: ENTECH MAINTENANCE Key points: 1. Value for money assessed against market benchmarks for similar maintenance services. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the sole-source nature and the firm-fixed-price structure. 4. Performance context relies on the contractor's ability to deliver specialized maintenance. 5. Sector positioning within the broader IT and equipment maintenance market. 6. The contract duration of nearly three years suggests a need for sustained support.

Value Assessment

Rating: fair

Benchmarking the $67.2 million price tag for this three-year contract is challenging without specific service level agreements and detailed cost breakdowns. However, the firm-fixed-price structure suggests the government has accepted the contractor's proposed price. Compared to similar multi-year maintenance contracts for specialized electronic equipment, this award appears within a typical range, though a lack of competition limits direct price comparison. The value hinges on the criticality of the equipment and the specialized nature of the maintenance provided by ENTECH INSTRUMENTS, INC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning ENTECH INSTRUMENTS, INC. was the only vendor considered. This approach is typically used when a specific vendor possesses unique capabilities, proprietary technology, or when urgency precludes a competitive process. The absence of multiple bidders means there was no direct price competition, which could lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding. Without alternative quotes, it's difficult to ascertain if the price reflects the best possible value.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from this contract through the maintenance of critical electronic and precision equipment. Services delivered include repair and maintenance, ensuring the operational readiness of essential scientific and diagnostic tools. The geographic impact is primarily focused on facilities managed by the CDC, likely within California where the contractor is based, but could extend to other CDC locations. Workforce implications may involve specialized technicians employed by ENTECH INSTRUMENTS, INC. to perform the maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price negotiation and potential cost savings.
Firm-fixed-price contract shifts risk to the government if costs escalate beyond estimates.
Contract duration of nearly three years without clear performance metrics could lead to complacency.
Lack of transparency in the sole-source justification requires careful review.

Positive Signals

Contract awarded to a single, potentially specialized provider, ensuring focused expertise.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract (nearly 3 years) offers stability for essential maintenance services.
Awarded to ENTECH INSTRUMENTS, INC., suggesting a track record with this type of equipment.

Sector Analysis

The market for electronic and precision equipment repair and maintenance is a significant segment within the broader professional services industry. This contract falls under NAICS code 811210, encompassing establishments primarily engaged in the repair and maintenance of electronic and precision equipment. The federal government is a major consumer of such services, particularly for scientific, medical, and defense-related apparatus. Spending benchmarks for this sector vary widely based on equipment complexity and service level agreements, but multi-year contracts for critical infrastructure often represent substantial investments.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to ENTECH INSTRUMENTS, INC., a single entity, does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. Further analysis would be needed to determine if ENTECH INSTRUMENTS, INC. itself is a small business or if there are indirect impacts.

Oversight & Accountability

Oversight for this contract will likely reside with the contracting officers and program managers within the Centers for Disease Control and Prevention (CDC). As a purchase order, it may fall under less stringent formal oversight than a large-scale prime contract, but performance monitoring and payment verification are standard. Transparency is limited due to the sole-source nature, and accountability will be measured by the successful maintenance and repair of the specified equipment. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Maintenance Contracts
Healthcare Equipment Maintenance
Scientific Equipment Repair Services
General Services Administration (GSA) Schedules for Maintenance

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67,228 to ENTECH INSTRUMENTS, INC.. ENTECH MAINTENANCE

Who is the contractor on this award?

The obligated recipient is ENTECH INSTRUMENTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $67,228.

What is the period of performance?

Start: 2024-07-15. End: 2027-07-14.

What is ENTECH INSTRUMENTS, INC.'s track record with the federal government, particularly with the CDC?

A review of federal procurement data indicates that ENTECH INSTRUMENTS, INC. has received federal contracts in the past, though the volume and nature of these awards require deeper investigation. Specific details on their performance history with the Centers for Disease Control and Prevention (CDC) are not immediately available from the provided data. Understanding their past performance, including any past performance evaluations or contract disputes, is crucial for assessing the risk associated with this new sole-source award. A comprehensive review would involve examining contract databases for previous awards, payment histories, and any reported issues to gauge their reliability and capability in delivering electronic and precision equipment repair and maintenance services.

How does the $67.2 million price compare to similar federal contracts for electronic equipment maintenance?

Directly comparing the $67.2 million price tag for this three-year contract is difficult without detailed service scope and equipment specifics. However, federal spending on maintenance for specialized electronic and precision equipment can range significantly, from tens of thousands to millions of dollars annually, depending on the criticality and complexity of the assets. Given the sole-source nature of this award, a true market benchmark is absent. Typically, competitive solicitations allow for price discovery, leading to potentially lower costs. This award's value is best assessed internally by the CDC against their budget and the essentiality of the equipment being maintained, rather than external market comparisons which are limited by the procurement method.

What are the primary risks associated with this sole-source, firm-fixed-price contract?

The primary risks associated with this sole-source, firm-fixed-price contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than could have been achieved through open competition. This lack of price discovery is a significant risk to value for money. Secondly, while firm-fixed-price contracts offer cost certainty, they shift the risk of cost overruns to the contractor. However, if the contractor underperforms or faces unforeseen challenges, the government might still face risks related to service quality, delivery delays, or the need to re-compete the contract prematurely, potentially at a higher cost. The absence of competition also reduces leverage for negotiating favorable terms or addressing performance issues.

How effective is the CDC likely to be in overseeing this contract given its sole-source nature?

The effectiveness of the CDC's oversight for this sole-source contract hinges on robust internal management processes rather than external competitive pressure. While the sole-source award limits the government's leverage in price negotiation, effective oversight can still ensure performance and value. This involves diligent monitoring of service delivery against the contract's statement of work, regular performance reviews, and prompt attention to any deviations or issues. The CDC's contracting officers and technical monitors must actively manage the relationship and ensure that ENTECH INSTRUMENTS, INC. meets all contractual obligations. Without competition, the onus is entirely on the government to define clear performance metrics and enforce them rigorously to guarantee the intended outcomes.

What are the historical spending patterns for electronic equipment maintenance at the CDC or HHS?

Analyzing historical spending patterns for electronic equipment maintenance at the CDC or the broader Department of Health and Human Services (HHS) is crucial for contextualizing the $67.2 million award. While specific historical data is not provided, federal agencies typically allocate significant budgets towards maintaining critical infrastructure, including scientific and medical equipment. Spending can fluctuate based on equipment lifecycles, technological upgrades, and agency priorities. Understanding past expenditures on similar services, the number of competitive versus sole-source awards, and average contract values would provide a baseline for evaluating the current contract's scale and necessity. This context helps determine if the current spending aligns with historical trends or represents a significant deviation.

Industry Classification

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

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: 75D301-24-Q-77599

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2207 AGATE COURT, SIMI VALLEY, CA, 93065

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

Financial Breakdown

Contract Ceiling: $123,103

Exercised Options: $67,228

Current Obligation: $67,228

Actual Outlays: $25,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline