NIH awards $158K for Sony Cytometer Maintenance, a sole-source contract lacking competition

Contract Overview

Contract Amount: $158,561 ($158.6K)

Contractor: Sony Biotechnology Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-05-20

End Date: 2027-05-19

Contract Duration: 2,190 days

Daily Burn Rate: $72/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SONY SYSTEM MAINTENANCE SERVICE CONTRACT FOR SONY SH800 FLOW CYTOMETER

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95112

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $158,560.54 to SONY BIOTECHNOLOGY INC. for work described as: SONY SYSTEM MAINTENANCE SERVICE CONTRACT FOR SONY SH800 FLOW CYTOMETER Key points: 1. The contract value appears reasonable for specialized equipment maintenance. 2. Limited competition raises concerns about potential overpricing and reduced value. 3. The long duration of the contract warrants close monitoring for performance. 4. This contract supports critical research infrastructure at NIH. 5. The specific equipment type suggests a niche market for maintenance services.

Value Assessment

Rating: fair

The contract value of $158,560.54 for a 5-year maintenance term for a Sony SH800 Flow Cytometer seems within a reasonable range for specialized scientific equipment. However, without competitive bidding, it's difficult to definitively benchmark the value against market rates or identify potential cost savings. The firm-fixed-price structure provides cost certainty but may not reflect actual service utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used when a single vendor possesses unique capabilities or proprietary knowledge essential for the service. However, the lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed scenario. The government did not solicit bids from other potential service providers.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for this service, as there was no market pressure to drive down prices. This could represent a less efficient use of federal funds.

Public Impact

Researchers at the National Institutes of Health (NIH) benefit from uninterrupted access to the Sony SH800 Flow Cytometer. Essential services for maintaining the operational status of critical scientific research equipment are delivered. The primary geographic impact is within the facilities where the cytometer is located, likely at an NIH research campus. The contract supports specialized technical roles for maintaining advanced scientific instrumentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can limit innovation and service options.
Long contract duration without competitive review poses a risk to sustained value.

Positive Signals

Ensures continued operation of vital research equipment.
Firm-fixed-price provides budget predictability.
Specialized nature of the equipment may justify a sole-source approach in some cases.

Sector Analysis

The market for specialized scientific equipment maintenance, such as flow cytometers, is often characterized by a limited number of qualified providers due to the technical expertise and proprietary nature of the technology. This contract falls within the broader category of scientific instrument repair and maintenance services. Comparable spending benchmarks are difficult to establish without more data on similar sole-source agreements for this specific equipment model.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities. The award to Sony Biotechnology Inc., a likely large business, suggests that the primary focus was on securing specialized maintenance services rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program officials within the National Institutes of Health. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver services as agreed. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts.

Related Government Programs

NIH Research Equipment Maintenance
Biotechnology Instrument Services
Flow Cytometry Support Contracts
Federal Scientific Instrument Procurement

Risk Flags

Sole-source award lacks competition.
Long contract duration may not reflect evolving market conditions.
Potential for price overruns due to lack of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $158,560.54 to SONY BIOTECHNOLOGY INC.. SONY SYSTEM MAINTENANCE SERVICE CONTRACT FOR SONY SH800 FLOW CYTOMETER

Who is the contractor on this award?

The obligated recipient is SONY BIOTECHNOLOGY 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 $158,560.54.

What is the period of performance?

Start: 2021-05-20. End: 2027-05-19.

What is the track record of Sony Biotechnology Inc. in providing maintenance services for the SH800 Flow Cytometer to other federal agencies?

Information regarding Sony Biotechnology Inc.'s specific track record with other federal agencies for the SH800 Flow Cytometer is not readily available in public contract databases. Federal procurement data often aggregates information at a broader level. To assess their track record thoroughly, one would need to examine past performance evaluations, if available, from previous government contracts or consult internal agency records. Without this specific data, it's challenging to provide a detailed assessment of their past performance in a federal context for this particular instrument.

How does the annual cost of this maintenance contract compare to the initial purchase price of the Sony SH800 Flow Cytometer?

The provided data does not include the initial purchase price of the Sony SH800 Flow Cytometer. Therefore, a direct comparison of the annual maintenance cost ($158,560.54 over 5 years, averaging approximately $31,712 per year) to the acquisition cost cannot be made. Generally, annual maintenance for complex scientific instruments can range from 5% to 20% of the original purchase price, depending on the technology, service level, and vendor. A higher percentage might indicate a more costly maintenance agreement or a less expensive initial purchase.

What are the specific risks associated with a sole-source contract for specialized equipment maintenance?

The primary risks associated with a sole-source contract for specialized equipment maintenance include potential price inflation due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve service quality, and a lack of alternative options if the contractor fails to perform adequately. Taxpayers may bear higher costs. Furthermore, the government becomes dependent on a single vendor, which can create vulnerabilities if that vendor experiences financial difficulties, changes its business strategy, or ceases to support the product. This dependence can also limit the government's ability to negotiate favorable terms in the future.

What is the typical duration for maintenance contracts of similar scientific equipment in the federal sector?

Maintenance contracts for specialized scientific equipment in the federal sector can vary significantly in duration, often ranging from one to five years. Longer-term contracts, like the 5-year term here, can offer price stability and reduce administrative burden by minimizing the frequency of re-procurement. However, they also increase the risk of locking the government into a potentially suboptimal agreement if market conditions or technology evolve rapidly. Shorter terms (1-2 years) allow for more frequent re-evaluation of pricing and performance but incur higher administrative costs.

Are there any publicly available performance metrics or service level agreements (SLAs) associated with this contract?

Specific performance metrics or Service Level Agreements (SLAs) for this particular contract are not detailed in the provided data. Typically, such details would be outlined in the contract's statement of work or terms and conditions. For a sole-source award, these SLAs are negotiated directly with the contractor. Without access to the full contract document, it is impossible to ascertain the exact performance standards, response times, or uptime guarantees. Agencies usually establish SLAs to ensure the equipment remains operational and meets research needs.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other 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: 75N92021Q0117

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1730 N 1ST ST 2FL, SAN JOSE, CA, 95112

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: $185,327

Exercised Options: $158,561

Current Obligation: $158,561

Actual Outlays: $65,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline