HHS awards $15.8M for Optomechanical Equipment to Newport Corp via competed SAP

Contract Overview

Contract Amount: $15,835 ($15.8K)

Contractor: Newport Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2020-12-04

End Date: 2021-01-03

Contract Duration: 30 days

Daily Burn Rate: $528/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTOMECHANICAL EQUIPMENT

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92606

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,835.07 to NEWPORT CORP for work described as: OPTOMECHANICAL EQUIPMENT Key points: 1. Spending on optomechanical equipment totals $15.8M. 2. Newport Corp is the sole awardee. 3. The contract was competed under SAP, suggesting a focus on smaller procurements. 4. The sector is Optical Instrument and Lens Manufacturing.

Value Assessment

Rating: fair

The award amount of $15.8M for optomechanical equipment is a significant sum. Benchmarking against similar contracts is difficult without more specific product details, but the price appears reasonable for specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition environment likely due to the procurement value. This method may not yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are utilized for this purchase. While competed under SAP, the potential for higher pricing due to limited competition warrants consideration.

Public Impact

Supports NIH's research and development activities. Procurement of specialized optical instruments. Potential impact on scientific advancement and medical research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for price not being fully optimized.

Positive Signals

Awarded to a single vendor.
Procurement falls under simplified acquisition procedures.

Sector Analysis

The Optical Instrument and Lens Manufacturing sector is critical for scientific research and development. Spending benchmarks vary widely based on specialization, but $15.8M suggests a substantial acquisition of advanced equipment.

Small Business Impact

This award does not appear to have specific set-asides for small businesses, as indicated by 'sb': false. The procurement method (SAP) can sometimes favor small businesses, but no explicit small business participation is noted here.

Oversight & Accountability

Oversight is managed by the Department of Health and Human Services, specifically the National Institutes of Health. The use of a Purchase Order under SAP suggests a streamlined process, but accountability for value and performance remains crucial.

Related Government Programs

Optical Instrument and Lens Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition
Potential for suboptimal pricing
Lack of specific product details for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,835.07 to NEWPORT CORP. OPTOMECHANICAL EQUIPMENT

Who is the contractor on this award?

The obligated recipient is NEWPORT CORP.

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 $15,835.07.

What is the period of performance?

Start: 2020-12-04. End: 2021-01-03.

What specific types of optomechanical equipment were procured, and how do their prices compare to market rates for similar items?

The data does not specify the exact types of optomechanical equipment. To assess value, a detailed breakdown of the items, their specifications, and a comparison against current market prices from multiple vendors would be necessary. Without this, it's challenging to definitively determine if the $15.8M represents optimal value for the government.

What were the primary reasons for limiting competition to SAP, and what was the potential price impact?

Simplified Acquisition Procedures (SAP) are typically used for procurements under a certain dollar threshold (e.g., $250,000, though this can vary). If this contract exceeded that threshold, the use of SAP might indicate a specific justification, such as urgency or a limited number of capable sources. This limitation likely resulted in less price competition than a full and open process.

How will the procured optomechanical equipment contribute to the NIH's research objectives and overall effectiveness?

The optomechanical equipment is intended to support the National Institutes of Health's research and development activities. Its effectiveness will be measured by its contribution to scientific breakthroughs, the quality of research data generated, and its role in advancing medical understanding. The specific impact depends on the nature of the research it facilitates.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: NHLBI-RTB-21-000044

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MKS Inc.

Address: 1791 DEERE AVE, IRVINE, CA, 92606

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

Financial Breakdown

Contract Ceiling: $15,835

Exercised Options: $15,835

Current Obligation: $15,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline