HHS awarded KOL Bio-Medical Instruments a $52.8K purchase order for analytical lab instruments

Contract Overview

Contract Amount: $52,764 ($52.8K)

Contractor: KOL Bio-Medical Instruments, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-04-22

End Date: 2021-01-31

Contract Duration: 650 days

Daily Burn Rate: $81/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: KOL BIO-MEDICAL INSTRUMENTS INC:1233312 [POTS#19-007698]

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $52,764.2 to KOL BIO-MEDICAL INSTRUMENTS, INC. for work described as: KOL BIO-MEDICAL INSTRUMENTS INC:1233312 [POTS#19-007698] Key points: 1. The contract was awarded using a 'not competed under SAP' method, suggesting limited competition. 2. The fixed-price contract type aims to control costs for the government. 3. The duration of 650 days for a $52.8K award warrants scrutiny for efficiency. 4. The award to KOL Bio-Medical Instruments, Inc. represents a small portion of federal spending in this category. 5. The contract falls under the 'Analytical Laboratory Instrument Manufacturing' NAICS code.

Value Assessment

Rating: fair

The award amount of $52,764.20 is relatively small. Benchmarking per-unit costs for analytical laboratory instruments is challenging without specific item details. However, the duration of 650 days for this value suggests a potentially high per-day cost if the instruments are not continuously utilized or if the service component is extensive. Further analysis would require understanding the specific instruments and their expected usage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED UNDER SAP,' which typically indicates that the procurement was conducted using simplified acquisition procedures and likely did not involve full and open competition. The specific reason for this limited competition is not detailed, but it could be due to the small dollar value, specific vendor qualifications, or urgency. Without more information on the competition process, it's difficult to assess the number of bidders or the extent of price discovery.

Taxpayer Impact: Limited competition can potentially lead to higher prices for taxpayers if alternative, more cost-effective solutions were not explored.

Public Impact

The National Institutes of Health (NIH) benefits from this contract by acquiring necessary analytical laboratory instruments. These instruments are crucial for supporting research and development activities within the agency. The contract supports the agency's mission in biomedical research and public health. The geographic impact is primarily within Virginia, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract's duration of 650 days for a $52.8K award raises questions about the efficiency and necessity of such a long period for the value exchanged.
The 'not competed under SAP' designation suggests a lack of robust competition, potentially impacting value for money.

Positive Signals

The use of a Firm Fixed Price (FFP) contract type provides cost certainty for the government.
The award is to a specific company, KOL Bio-Medical Instruments, Inc., indicating a potential specialization or existing relationship.

Sector Analysis

The federal spending on analytical laboratory instruments falls within the broader scientific and medical equipment manufacturing sector. This sector is characterized by innovation and specialized production. Federal agencies like NIH are significant purchasers of such equipment to support cutting-edge research. Comparable spending benchmarks would depend heavily on the specific type and quantity of instruments procured, but this $52.8K award is a very small transaction within the overall federal procurement landscape for laboratory equipment.

Small Business Impact

There is no indication that this contract was a small business set-aside, as the 'sb' field is false. Furthermore, the 'ss' field is also false, meaning it was not set aside for any specific category. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Health and Human Services' internal procurement regulations and the National Institutes of Health's administrative controls. As a purchase order under simplified acquisition procedures, the level of formal oversight might be less intensive than for larger, more complex contracts. Transparency is limited by the available data, and there is no specific mention of an Inspector General's jurisdiction for this particular transaction.

Related Government Programs

National Institutes of Health Procurement
Department of Health and Human Services Contracts
Analytical Laboratory Instrument Procurement
Medical Equipment Federal Spending

Risk Flags

Limited Competition
Long Contract Duration for Value
Lack of Specific Product Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $52,764.2 to KOL BIO-MEDICAL INSTRUMENTS, INC.. KOL BIO-MEDICAL INSTRUMENTS INC:1233312 [POTS#19-007698]

Who is the contractor on this award?

The obligated recipient is KOL BIO-MEDICAL INSTRUMENTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $52,764.2.

What is the period of performance?

Start: 2019-04-22. End: 2021-01-31.

What specific analytical laboratory instruments were procured under this contract?

The provided data does not specify the exact analytical laboratory instruments purchased. The NAICS code 334516, 'Analytical Laboratory Instrument Manufacturing,' covers a broad range of equipment used for testing, measuring, and analyzing substances. Without a detailed product description or line-item breakdown, it is impossible to determine the specific instruments. This information is crucial for understanding the contract's true value and its impact on research capabilities.

What is the justification for the 'not competed under SAP' award method?

The data indicates the contract was 'NOT COMPETED UNDER SAP.' Simplified Acquisition Procedures (SAP) are typically used for purchases below the simplified acquisition threshold (SAT), currently $250,000. The 'not competed' aspect suggests that the agency may have identified a specific source without soliciting offers from multiple vendors. Common justifications include urgency, availability from a single source, or a prior existing contract. However, the specific rationale for bypassing competition for this $52.8K award is not detailed in the provided information and warrants further inquiry.

How does the 650-day duration compare to the typical lifecycle or service period for similar analytical instruments?

A contract duration of 650 days (approximately 21 months) for a $52.8K award for analytical laboratory instruments is relatively long, especially if it primarily covers the supply of equipment. Typically, the acquisition of such instruments might involve a shorter delivery period, followed by potential maintenance or service contracts. If the 650 days encompass installation, training, and ongoing support, it might be justifiable. However, if it solely represents the delivery timeline or a period of expected use without significant service, it could indicate inefficiency or a prolonged procurement cycle compared to market norms for similar equipment.

What is KOL BIO-MEDICAL INSTRUMENTS, INC.'s track record with federal contracts, particularly with HHS/NIH?

The provided data identifies KOL BIO-MEDICAL INSTRUMENTS, INC. as the contractor. While this specific award is noted, the data does not offer a comprehensive history of their federal contracting performance, including past performance ratings, previous awards, or any disputes. To assess their track record, a deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to identify other contracts awarded to this entity, their values, agencies involved, and any performance feedback or issues.

Are there any comparable federal contracts for similar analytical laboratory instruments that could serve as a benchmark?

Without knowing the specific type of analytical laboratory instruments procured, it is difficult to identify direct comparable federal contracts. The NAICS code 334516 is broad. However, federal agencies frequently purchase laboratory equipment. Benchmarking would require identifying contracts for instruments with similar specifications, intended use, and quantity. Given the limited competition and the specific nature of laboratory instruments, finding perfectly comparable contracts might be challenging, but reviewing other NIH or similar agency procurements within the same NAICS code could provide some context.

What are the potential risks associated with awarding this contract without full and open competition?

The primary risk associated with awarding this contract without full and open competition is the potential for suboptimal value for taxpayers. Limited competition can lead to higher prices than might be achieved in a more robustly competed environment. It also reduces the opportunity to discover innovative solutions or alternative suppliers that could offer better performance or lower costs. Furthermore, it raises concerns about fairness and equal opportunity for other qualified vendors who were not solicited.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19007698

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13901 WILLARD RD, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $52,764

Exercised Options: $52,764

Current Obligation: $52,764

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline