HHS awards $804K for electronic equipment maintenance, raising questions about competition and value

Contract Overview

Contract Amount: $80,417 ($80.4K)

Contractor: Becton, Dickinson and Company

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $110/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICE AGREEMENT SYMPHONY A3 AND LASERS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $80,416.8 to BECTON, DICKINSON AND COMPANY for work described as: SERVICE AGREEMENT SYMPHONY A3 AND LASERS Key points: 1. Contract awarded via purchase order, indicating a less formal procurement process. 2. The contract is for electronic and precision equipment repair and maintenance. 3. The duration of the contract is approximately two years. 4. The award was made to BECTON, DICKINSON AND COMPANY. 5. The contract was not competed, raising potential value-for-money concerns. 6. The primary place of performance is Maryland.

Value Assessment

Rating: questionable

The contract value of $804,166.80 for a two-year period for electronic and precision equipment repair and maintenance appears to be on the higher end, especially given the lack of competition. Without comparable contract data or detailed service breakdowns, it is difficult to definitively benchmark the value. The firm fixed-price structure provides some cost certainty, but the absence of competitive bidding limits the ability to assess if the government secured the best possible pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited competition procurement. The specific justification for not competing the award is not provided in the data. This approach bypasses the standard competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The lack of multiple bidders means there was no direct comparison of offers to determine the most advantageous.

Taxpayer Impact: When contracts are not competed, taxpayers may not benefit from the cost savings that competitive bidding can generate. This can lead to higher overall spending for the same goods or services.

Public Impact

The National Institutes of Health (NIH) benefits from this contract by ensuring the continued operation and maintenance of critical electronic and precision equipment. Services include repair and maintenance, crucial for the functioning of research and laboratory equipment. The primary geographic impact is in Maryland, where the place of performance is located. The contract supports the workforce of BECTON, DICKINSON AND COMPANY, providing employment for technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Absence of competitive bidding limits transparency in pricing.
Potential for vendor lock-in if this is a specialized service.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract is for essential equipment maintenance, supporting critical operations.
Award to an established company, BECTON, DICKINSON AND COMPANY, may indicate reliability.

Sector Analysis

The contract falls within the broader sector of professional, scientific, and technical services, specifically focusing on the maintenance and repair of electronic and precision equipment. This niche market often involves specialized knowledge and skills. While specific market size data for this exact service is not readily available, the federal government is a significant consumer of such maintenance services across various agencies, particularly those involved in research and development like NIH.

Small Business Impact

The data indicates that this contract was not competed and there is no indication of small business set-asides or subcontracting plans. Therefore, this specific award does not appear to directly benefit small businesses through set-aside provisions. The impact on the broader small business ecosystem is likely minimal for this particular contract, as it was awarded directly to a larger entity without a competitive process that might involve teaming or subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH) contracting officers and program managers. As a purchase order, it may have less formal oversight than a larger, more complex contract. Accountability is established through the firm fixed-price terms and the delivery of specified maintenance services. Transparency is limited due to the non-competitive nature of the award; details regarding the justification for the sole-source award and the evaluation process are not publicly detailed.

Related Government Programs

Federal IT Equipment Maintenance Contracts
Medical Equipment Repair Services
Scientific Instrument Maintenance Agreements

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $80,416.8 to BECTON, DICKINSON AND COMPANY. SERVICE AGREEMENT SYMPHONY A3 AND LASERS

Who is the contractor on this award?

The obligated recipient is BECTON, DICKINSON AND COMPANY.

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 $80,416.8.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What is the track record of BECTON, DICKINSON AND COMPANY with federal contracts, particularly for similar maintenance services?

BECTON, DICKINSON AND COMPANY (BD) is a well-established entity that has secured numerous federal contracts over the years, primarily within the healthcare and life sciences sectors. While specific details on their track record for electronic and precision equipment repair and maintenance services for the federal government are not fully detailed in this data snippet, BD is known for its extensive work in medical devices, diagnostics, and laboratory solutions. Their federal contract history often involves supply of equipment and related services. A deeper dive into federal procurement databases would reveal the volume and nature of their past performance in maintenance and repair, including any prior awards from NIH or other agencies for similar services. This would help assess their experience and reliability in fulfilling such requirements.

How does the awarded price of $804,166.80 compare to similar federal contracts for electronic equipment maintenance?

Benchmarking the $804,166.80 award for electronic and precision equipment repair and maintenance against similar federal contracts is challenging without more specific details on the scope of services, equipment types, and contract duration. However, given the two-year term, this equates to approximately $402,083 per year. Federal contracts for specialized equipment maintenance can vary significantly in price based on the complexity and criticality of the equipment. Contracts awarded through full and open competition for similar services might offer a lower per-year cost due to competitive pressures. The lack of competition for this award means a direct, robust comparison is difficult, but the annual cost suggests a need for careful justification and oversight to ensure value.

What are the primary risks associated with awarding this contract on a non-competitive basis?

The primary risks associated with awarding this contract on a non-competitive basis include potential overpayment due to the absence of price competition, reduced incentive for the contractor to offer the most cost-effective solutions, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Furthermore, it could set a precedent for future non-competitive awards if not adequately justified. There's also a risk that alternative, potentially more innovative or cost-efficient solutions from other vendors are overlooked. The government might also miss opportunities to foster broader market participation and competition.

How effective is the firm fixed-price (FFP) contract type in managing costs for this type of service?

The Firm Fixed-Price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and unlikely to change significantly. For electronic and precision equipment repair and maintenance, FFP provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to control their costs efficiently to maximize profit. However, the effectiveness of FFP in this specific case is somewhat diminished by the non-competitive award. While the price is fixed, the initial price itself might be higher than it would be under competitive conditions. The government still needs robust performance monitoring to ensure the contractor is meeting all contractual obligations.

What is the historical spending pattern for electronic and precision equipment maintenance at NIH?

Analyzing historical spending patterns for electronic and precision equipment maintenance at the National Institutes of Health (NIH) would require access to comprehensive federal procurement data beyond this single award. Generally, agencies like NIH, heavily involved in research and development, have substantial and ongoing needs for maintenance and repair of sophisticated scientific and laboratory equipment. Spending in this category can fluctuate based on equipment lifecycles, new technology adoption, and research priorities. Without specific historical data for NIH's spending on this particular NAICS code (811210) or similar maintenance services, it's difficult to determine if this $804K award represents an increase, decrease, or is consistent with past trends. Such analysis is crucial for budget planning and identifying potential cost efficiencies.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N92025Q00037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 2350 QUME DR, SAN JOSE, CA, 95131

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: $201,042

Exercised Options: $80,417

Current Obligation: $80,417

Actual Outlays: $30,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline