NIH Awards $4.5M for Zeiss Microscope Maintenance, Lacking Competition

Contract Overview

Contract Amount: $45,474 ($45.5K)

Contractor: Carl Zeiss Microscopy, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $125/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CARL ZEISS ELYRA MICROSCOPE EQUIPMENT MAINTENANCE AND SERVICE AGREEMENT FOR NCI

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45,474.03 to CARL ZEISS MICROSCOPY, LLC for work described as: CARL ZEISS ELYRA MICROSCOPE EQUIPMENT MAINTENANCE AND SERVICE AGREEMENT FOR NCI Key points: 1. Spending focuses on specialized microscope maintenance, a niche but critical area for research. 2. Sole reliance on Carl Zeiss Microscopy, LLC raises concerns about potential price inflation. 3. The contract's value is moderate, but the lack of competition limits taxpayer value. 4. This spending falls within the broader IT and scientific equipment maintenance sector.

Value Assessment

Rating: fair

The contract price of $4.5M over one year for specialized microscope maintenance appears reasonable given the niche equipment. However, without competitive bidding, it's difficult to ascertain if this represents the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This likely means the agency identified a specific need that only Carl Zeiss Microscopy, LLC could fulfill, potentially leading to higher prices than a fully competed contract.

Taxpayer Impact: The lack of full and open competition limits the potential for cost savings, meaning taxpayers may be paying more than necessary for this essential maintenance service.

Public Impact

Ensures continued operation of critical research equipment at the National Institutes of Health. Supports advanced biomedical research by maintaining high-precision microscopy tools. Potential for higher costs due to limited competition impacts research budgets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source provider
Potential for price creep

Positive Signals

Essential service for research continuity
Specialized equipment maintenance

Sector Analysis

This contract falls under the repair and maintenance of electronic and precision equipment, a segment often characterized by specialized providers. Benchmarks for similar maintenance contracts can vary widely based on equipment complexity and service level agreements.

Small Business Impact

The data indicates this contract was not competed under SAP and does not specify any small business set-asides. This suggests that small businesses were likely not considered or did not participate in the bidding process for this specific requirement.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services for the National Institutes of Health. Oversight would typically involve contract management by NIH officials to ensure service delivery and adherence to terms.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition
Potential for overpricing
Vendor lock-in
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45,474.03 to CARL ZEISS MICROSCOPY, LLC. CARL ZEISS ELYRA MICROSCOPE EQUIPMENT MAINTENANCE AND SERVICE AGREEMENT FOR NCI

Who is the contractor on this award?

The obligated recipient is CARL ZEISS MICROSCOPY, LLC.

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 $45,474.03.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the justification for not competing this contract more broadly, given the significant value?

The justification for not competing this contract more broadly likely stems from the specialized nature of the CARL ZEISS ELYRA microscope and its maintenance requirements. Agencies often cite unique technical expertise, proprietary technology, or critical operational needs that only the original equipment manufacturer or a highly specialized vendor can meet. However, a thorough justification and market research should be documented to ensure this is truly the only viable option.

What are the risks associated with a limited competition contract for essential equipment maintenance?

The primary risks include inflated pricing due to the absence of competitive pressure, potential for vendor lock-in, and reduced flexibility in service terms. If the vendor experiences financial difficulties or service quality declines, the agency has limited recourse without re-competing the contract, which can be time-consuming and disruptive to critical research operations.

How does this spending align with NIH's overall mission effectiveness?

This spending directly supports NIH's mission by ensuring the operational readiness of advanced microscopy equipment, which is crucial for cutting-edge biomedical research. Maintaining these instruments prevents costly downtime and data loss, thereby enabling scientists to continue their work without interruption. The effectiveness is high in terms of enabling research, but the value proposition could be improved through competition.

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: NOI-PCA-NCI-01526

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 N BROADWAY STE 1501, WHITE PLAINS, NY, 10601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $45,474

Exercised Options: $45,474

Current Obligation: $45,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline