HHS Awards $1.33M for Electronic Equipment Repair to Melling LLC Under SAP

Contract Overview

Contract Amount: $13,305 ($13.3K)

Contractor: Melling LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $37/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPTUS SERVICE AGREEMENT

Place of Performance

Location: PONCA CITY, KAY County, OKLAHOMA, 74601

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13,305 to MELLING LLC for work described as: OPTUS SERVICE AGREEMENT Key points: 1. Contract Value: $1.33 million over 364 days. 2. Competition: Competed under Simplified Acquisition Procedures (SAP). 3. Risk: Low risk indicated by 'OK' status and 'OKLAHOMA' location. 4. Sector: Primarily IT/Equipment Maintenance.

Value Assessment

Rating: good

The contract value of $1.33M for a 364-day period appears reasonable for specialized electronic equipment repair and maintenance services. Benchmarking against similar contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Competed under SAP, suggesting a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest price compared to full and open competition.

Taxpayer Impact: The use of SAP for this contract value could potentially lead to higher costs for taxpayers than a fully competitive process, though it offers administrative efficiency.

Public Impact

Ensures continued operation of critical electronic and precision equipment for the Indian Health Service. Supports healthcare delivery by maintaining essential medical and operational technology. Local economic impact through contract award to Melling LLC in Oklahoma.

Waste & Efficiency Indicators

Waste Risk Score: 37 / 10

Warning Flags

Potential for better pricing through full and open competition.
Limited visibility into the specific services provided under the agreement.

Positive Signals

Ensures continuity of essential services.
Awarded to a specific company, potentially indicating specialized capabilities.
Clear contract duration and fixed price.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on the repair and maintenance of electronic and precision equipment. Spending benchmarks for this niche service vary widely based on equipment type and complexity.

Small Business Impact

The data does not indicate if Melling LLC is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

Standard purchase order issuance suggests adherence to procurement processes. Oversight would focus on service delivery quality and adherence to the firm fixed price.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Limited competition may not yield the best price.
Lack of detail on specific equipment types.
Potential for vendor lock-in if specialized knowledge is required.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13,305 to MELLING LLC. OPTUS SERVICE AGREEMENT

Who is the contractor on this award?

The obligated recipient is MELLING LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $13,305.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the specific type of electronic and precision equipment being repaired and maintained under this agreement?

The provided data specifies the NAICS code 811210 for Electronic and Precision Equipment Repair and Maintenance but does not detail the exact types of equipment. Understanding the specific equipment is crucial for assessing the contract's necessity and the vendor's specialized capabilities.

How does the $1.33M contract value compare to industry benchmarks for similar repair and maintenance services?

Without specific details on the equipment and service scope, a precise benchmark is difficult. However, $1.33M for a year of specialized repair services is substantial, warranting comparison against contracts for similar equipment maintenance within the federal or commercial sectors to ensure value for money.

What is the potential impact on service continuity if Melling LLC's performance is unsatisfactory?

Given the critical nature of healthcare equipment, unsatisfactory performance could disrupt IHS operations. The agency would likely have recourse through the purchase order terms, potentially including termination for default and seeking alternative vendors, but this could lead to temporary service gaps and additional costs.

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: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 658 S COLUMBUS ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $66,525

Exercised Options: $13,305

Current Obligation: $13,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline