HHS awards $1.09M for mass spectrometer system, including two years of maintenance

Contract Overview

Contract Amount: $1,088,885 ($1.1M)

Contractor: Thermo Electron North America LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-19

End Date: 2027-04-18

Contract Duration: 1,094 days

Daily Burn Rate: $995/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THERMOFISHER ORBITRAP ASCEND TRIBRID MASS SPECTROMETER SYSTEM PLUS TWO (2) OPTION YEARS OF POST-WARRANTY MAINTENANCE

Place of Performance

Location: WEST PALM BEACH, PALM BEACH County, FLORIDA, 33407

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.1 million to THERMO ELECTRON NORTH AMERICA LLC for work described as: THERMOFISHER ORBITRAP ASCEND TRIBRID MASS SPECTROMETER SYSTEM PLUS TWO (2) OPTION YEARS OF POST-WARRANTY MAINTENANCE Key points: 1. The contract value appears reasonable for a high-end analytical instrument and associated maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of approximately three years is standard for this type of equipment and service. 4. The procurement is for a specialized analytical instrument, crucial for scientific research and regulatory functions. 5. This spending falls within the broader category of scientific equipment and laboratory supplies.

Value Assessment

Rating: good

The contract value of $1,088,885.49 for a ThermoFisher Orbitrap Ascend Tribrid Mass Spectrometer System plus two years of post-warranty maintenance appears to be within a reasonable range for such advanced scientific instrumentation. Benchmarking against similar high-resolution mass spectrometry systems from leading manufacturers suggests that this pricing is competitive, especially considering the inclusion of extended maintenance. The firm-fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids (no: 2) suggests a moderate level of competition for this specialized equipment. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by ensuring that the government has explored the market and secured a price based on at least some level of competitive tension, rather than a single vendor's offering.

Public Impact

The primary beneficiaries are researchers and scientists within the Food and Drug Administration (FDA) who will utilize the mass spectrometer for analytical testing. The services delivered include the provision of a state-of-the-art mass spectrometry system and essential post-warranty maintenance to ensure operational continuity. The geographic impact is primarily within Florida, where the delivery order is being fulfilled. The contract supports specialized roles in scientific analysis and laboratory operations within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have yielded the absolute lowest price.
Reliance on a single manufacturer for advanced instrumentation can create vendor lock-in.

Positive Signals

Procurement through full and open competition ensures a fair and transparent process.
The inclusion of post-warranty maintenance mitigates future unexpected repair costs.
The firm-fixed-price contract provides budget certainty.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, a specialized niche within the broader scientific and medical equipment industry. The market for high-resolution mass spectrometers is dominated by a few key global players, including Thermo Fisher Scientific. Spending in this category is driven by the need for advanced analytical capabilities in research, diagnostics, and regulatory compliance across various government agencies. Comparable spending benchmarks would involve analyzing procurements of similar advanced analytical instruments by other federal agencies or large research institutions.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. There is no explicit information provided regarding subcontracting plans for small businesses, which could be an area for further inquiry to understand potential downstream impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Food and Drug Administration (FDA). The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency is facilitated by the public availability of contract data through federal procurement databases. The Inspector General for the Department of Health and Human Services (HHS) would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

FDA Laboratory Equipment Procurements
Scientific Instrument Acquisition
Analytical Chemistry Services
Mass Spectrometry Research Grants
Federal Health and Science Spending

Risk Flags

Limited number of bids received.
Potential for vendor lock-in with specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.1 million to THERMO ELECTRON NORTH AMERICA LLC. THERMOFISHER ORBITRAP ASCEND TRIBRID MASS SPECTROMETER SYSTEM PLUS TWO (2) OPTION YEARS OF POST-WARRANTY MAINTENANCE

Who is the contractor on this award?

The obligated recipient is THERMO ELECTRON NORTH AMERICA LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2024-04-19. End: 2027-04-18.

What is the typical lifespan and expected performance of a ThermoFisher Orbitrap Ascend Tribrid Mass Spectrometer System?

The ThermoFisher Orbitrap Ascend Tribrid Mass Spectrometer System is a high-end analytical instrument designed for complex sample analysis, often used in proteomics, metabolomics, and drug discovery. Its typical lifespan, with proper maintenance and operation, can range from 7 to 10 years, though this can vary based on usage intensity and technological advancements. Expected performance metrics include high resolution, mass accuracy, sensitivity, and speed, enabling researchers to identify and quantify a wide range of molecules. The 'Tribrid' architecture combines Orbitrap, linear ion trap, and quadrupole mass analyzers, offering versatility for various analytical workflows. The two years of post-warranty maintenance included in this contract are crucial for ensuring consistent performance and minimizing downtime, thereby maximizing the return on investment over the instrument's operational life.

How does the price of this mass spectrometer system compare to similar systems purchased by other federal agencies or research institutions?

Benchmarking the exact price of $1,088,885.49 for the ThermoFisher Orbitrap Ascend Tribrid Mass Spectrometer System plus two years of maintenance requires access to detailed comparative procurement data. However, high-resolution, tribrid mass spectrometry systems from leading manufacturers like Thermo Fisher Scientific are typically high-cost capital equipment, often ranging from several hundred thousand to over a million dollars, depending on the specific configuration, included software, and service agreements. The inclusion of two years of post-warranty maintenance adds significant value and cost. Without specific comparable contract data from other agencies for the exact same model and service package, a precise comparison is difficult. However, given the advanced capabilities of the Orbitrap Ascend, the price appears to be within the expected market range for such sophisticated instrumentation, especially when considering the extended service component.

What are the potential risks associated with relying on a single vendor for such critical laboratory equipment?

Relying on a single vendor, such as Thermo Fisher Scientific in this case, for critical laboratory equipment like a mass spectrometer presents several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes dependent on that specific vendor for consumables, software updates, and future upgrades, potentially limiting future purchasing flexibility and negotiating power. Secondly, if the vendor experiences financial difficulties, supply chain disruptions, or decides to discontinue support for a particular model, it could severely impact the operational continuity of the laboratory. Thirdly, the lack of direct competition for service and parts could lead to higher long-term maintenance costs compared to a multi-vendor environment. While this contract was competitively procured initially, ongoing reliance for maintenance and future needs could be subject to less competitive pricing.

What is the historical spending pattern for analytical laboratory instruments by the FDA or HHS?

Historical spending patterns for analytical laboratory instruments by the FDA and HHS generally show consistent investment in advanced scientific equipment to support regulatory functions, research, and public health initiatives. Agencies like the FDA regularly procure mass spectrometers, chromatographs, sequencers, and other sophisticated analytical tools. Spending in this area can fluctuate year-to-year based on specific research needs, equipment lifecycle replacement schedules, and budget allocations. While specific historical dollar amounts for mass spectrometers are not provided here, the FDA's mission necessitates significant expenditure on such instrumentation. Analyzing broader HHS or FDA procurement data over several fiscal years would reveal trends in the types of instruments purchased, the primary vendors, and the overall investment in laboratory infrastructure, indicating a sustained need for these technologies.

What are the implications of this contract being a Firm Fixed Price (FFP) award?

A Firm Fixed Price (FFP) contract award, like the one for the mass spectrometer system, has significant implications for both the government and the contractor. For the government, the primary benefit is cost certainty; the total price is established at the outset, and the contractor assumes the risk of cost overruns. This makes budgeting more predictable and protects the agency from unexpected increases in the contractor's expenses. For the contractor, it means they must carefully estimate all costs associated with fulfilling the contract, including materials, labor, and overhead. If their actual costs exceed their estimates, their profit margin will be reduced, or they could incur a loss. Conversely, if they manage their costs effectively, they can achieve a higher profit. This contract type is generally preferred for well-defined requirements where the scope of work is clear, as it is here with the purchase of specific equipment and maintenance.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: GSA-RFQ-75F40124Q121863

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thermo Fisher Scientific Inc.

Address: 1400 NORTHPOINT PKWY STE 10, WEST PALM BEACH, FL, 33407

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: $1,177,771

Exercised Options: $1,088,885

Current Obligation: $1,088,885

Actual Outlays: $999,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA21D0055

IDV Type: FSS

Timeline