NIH Awards $456K for Electronic Equipment Repair to Leica Microsystems Inc

Contract Overview

Contract Amount: $45,625 ($45.6K)

Contractor: Leica Microsystems Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-27

End Date: 2027-04-26

Contract Duration: 364 days

Daily Burn Rate: $125/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LEICA MICROSYSTEMS INC:1106691 [26-010499]

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45,624.8 to LEICA MICROSYSTEMS INC. for work described as: LEICA MICROSYSTEMS INC:1106691 [26-010499] Key points: 1. Contract awarded to a single, established vendor for specialized equipment maintenance. 2. Competition was limited, potentially impacting price discovery and overall value. 3. Risk is moderate due to reliance on a specific vendor for critical equipment. 4. Spending falls within the Electronic and Precision Equipment Repair and Maintenance sector.

Value Assessment

Rating: fair

The contract value of $456,248 for a 364-day period appears reasonable for specialized electronic equipment repair. Benchmarking against similar contracts for precision equipment maintenance would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting limited competition. While SAP can expedite procurement, it may not always yield the best price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are utilized for essential equipment maintenance. The limited competition may result in a higher cost than if broader market options were explored.

Public Impact

Ensures continued operation of critical NIH research equipment. Supports scientific research by maintaining necessary tools and instruments. Potential for higher costs due to limited vendor pool.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Sole-source potential for future needs
Reliance on specific vendor expertise

Positive Signals

Supports critical NIH research infrastructure
Firm fixed price contract provides cost certainty

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector, which is crucial for research institutions like the NIH. Spending in this area is generally driven by the need for specialized technical services.

Small Business Impact

The contract was awarded to Leica Microsystems Inc., a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract is a Purchase Order, indicating a standard procurement instrument. Oversight would focus on contract performance, adherence to terms, and timely delivery of services.

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 may lead to higher costs.
Vendor lock-in for specialized equipment.
Potential for price escalation in future contracts.
Dependence on vendor's supply chain and operational stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45,624.8 to LEICA MICROSYSTEMS INC.. LEICA MICROSYSTEMS INC:1106691 [26-010499]

Who is the contractor on this award?

The obligated recipient is LEICA MICROSYSTEMS 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 $45,624.8.

What is the period of performance?

Start: 2026-04-27. End: 2027-04-26.

What is the benchmark cost for similar electronic and precision equipment repair services?

Benchmarking the cost of this contract against similar services is challenging without access to a comprehensive database of repair contracts for specialized electronic equipment. Factors like the specific equipment model, complexity of repairs, and vendor's unique expertise significantly influence pricing. A detailed market analysis would be required to establish a precise benchmark.

What are the risks associated with relying on a single vendor for critical equipment maintenance?

Relying on a single vendor like Leica Microsystems Inc. for critical equipment maintenance poses risks such as potential price increases in the future, limited flexibility in service options, and vulnerability to vendor-specific issues like supply chain disruptions or changes in their business operations. This dependence could also hinder the adoption of newer technologies or alternative maintenance solutions.

How effectively does this contract support the NIH's research mission?

This contract directly supports the NIH's research mission by ensuring the operational readiness of essential electronic and precision equipment. Reliable maintenance prevents downtime, allowing researchers to conduct experiments without interruption. The vendor's specialized knowledge is crucial for maintaining the integrity and accuracy of sensitive scientific instruments, thereby facilitating robust research outcomes.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75N91026Q00011

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 10 PARKWAY NORTH, DEERFIELD, IL, 60015

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

Financial Breakdown

Contract Ceiling: $45,625

Exercised Options: $45,625

Current Obligation: $45,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline