HHS awards $115.6K for scientific instrument maintenance to Thermo Electron, a sole-source contract

Contract Overview

Contract Amount: $115,557 ($115.6K)

Contractor: Thermo Electron North America LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-07

End Date: 2022-04-11

Contract Duration: 369 days

Daily Burn Rate: $313/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: ORBITRAP FUSION LUMOS INSTRUMENT MAINTENANCE (TWO INSTRUMENTS) THERMO DIONEX HPLC INSTRUMENT MAINTENANCE (TWO AUTOSAMPLERS AND LCS)

Place of Performance

Location: WEST PALM BEACH, PALM BEACH County, FLORIDA, 33407

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $115,556.62 to THERMO ELECTRON NORTH AMERICA LLC for work described as: ORBITRAP FUSION LUMOS INSTRUMENT MAINTENANCE (TWO INSTRUMENTS) THERMO DIONEX HPLC INSTRUMENT MAINTENANCE (TWO AUTOSAMPLERS AND LCS) Key points: 1. The contract covers maintenance for Orbitrap Fusion Lumos and Dionex HPLC instruments. 2. Thermo Electron North America LLC is the sole provider for this specialized maintenance. 3. The contract value is $115,556.62 over 369 days. 4. This falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990).

Value Assessment

Rating: fair

The pricing for instrument maintenance is difficult to assess without comparable contract data. Given the specialized nature of the equipment, it's possible Thermo Electron's pricing reflects unique expertise and parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: Taxpayer funds are used for this maintenance, and the lack of competition may result in a less cost-effective outcome.

Public Impact

Ensures continued operation of critical scientific research instruments at NIH. Supports advanced analytical capabilities for health and biomedical research. Lack of competition raises concerns about potential overspending on maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 31 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Potential for higher costs due to lack of competitive bidding.
Contract duration is relatively short, requiring future procurement decisions.

Positive Signals

Maintains essential scientific equipment for research.
Contract awarded to a known entity with likely specialized knowledge.

Sector Analysis

The spending is within the scientific and technical services sector, specifically for laboratory instrument maintenance. Benchmarks for this niche service are hard to establish without specific equipment and service level details.

Small Business Impact

This contract was awarded to a large corporation (Thermo Electron North America LLC) and does not appear to involve small businesses as prime contractors or subcontractors.

Oversight & Accountability

The contract was awarded via a purchase order, which is a standard procurement instrument. Oversight would focus on ensuring the maintenance services meet the agreed-upon terms and conditions.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source procurement
Lack of competitive pricing
Potential for high maintenance costs
Reliance on a single vendor for critical equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $115,556.62 to THERMO ELECTRON NORTH AMERICA LLC. ORBITRAP FUSION LUMOS INSTRUMENT MAINTENANCE (TWO INSTRUMENTS) THERMO DIONEX HPLC INSTRUMENT MAINTENANCE (TWO AUTOSAMPLERS AND LCS)

Who is the contractor on this award?

The obligated recipient is THERMO ELECTRON NORTH AMERICA 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 $115,556.62.

What is the period of performance?

Start: 2021-04-07. End: 2022-04-11.

What is the justification for the sole-source award, and were alternatives explored?

The justification for a sole-source award typically stems from the unique capabilities or proprietary nature of the product or service. For specialized scientific instruments like the Orbitrap Fusion Lumos and Dionex HPLC systems, the original equipment manufacturer (OEM) often holds exclusive rights to maintenance, parts, and necessary expertise. Agencies are usually required to document why competition is not feasible, such as the unavailability of alternative service providers or the risk of voiding warranties.

How does the maintenance cost compare to industry benchmarks for similar high-end scientific instruments?

Benchmarking maintenance costs for highly specialized scientific instruments like the Orbitrap Fusion Lumos and Dionex HPLC systems is challenging due to the proprietary nature of the technology and the specific service agreements. Without access to detailed service level agreements and pricing structures from multiple vendors (if available), a direct comparison is difficult. However, the annual cost per instrument appears to be approximately $57,778, which is substantial and warrants scrutiny to ensure it aligns with the value derived from instrument uptime and performance.

What is the potential impact on research continuity if maintenance is delayed or inadequate?

Inadequate or delayed maintenance of critical scientific instruments like the Orbitrap Fusion Lumos and Dionex HPLC systems can have severe repercussions on research continuity. These instruments are often central to complex experiments, and downtime can lead to significant delays in data collection, project timelines, and the potential loss of valuable samples. This can impact the progress of scientific discovery, grant funding, and the overall productivity of the research institution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N92021Q0088

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thermo Fisher Scientific Inc.

Address: 1400 NORTHPOINT PKWY STE 10, WEST PALM BEACH, FL, 33407

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

Financial Breakdown

Contract Ceiling: $115,557

Exercised Options: $115,557

Current Obligation: $115,557

Actual Outlays: $86,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline