NIH Spends $676,567 on Hitachi Microscope Bundle, Competed Under SAP

Contract Overview

Contract Amount: $676,568 ($676.6K)

Contractor: Hitachi High-Tech America, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-27

End Date: 2026-04-30

Contract Duration: 580 days

Daily Burn Rate: $1.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: HITACHI HT7800 TRANSMISSION ELECTRON MICROSCOPE BUNDLE INCLUDING AIR-COOLED WATER RECIRCULATOR, SYSTEM INSTALLATION AND BASIC OPERATIONAL TRAINING, PRE-INSTALLATION ONSITE ROOM SURVEY, ADVANCED APPLICATIONS TRAINING, HIGH RESOLUTION IMAGING CAMERA, S

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75261

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $676,567.5 to HITACHI HIGH-TECH AMERICA, INC. for work described as: HITACHI HT7800 TRANSMISSION ELECTRON MICROSCOPE BUNDLE INCLUDING AIR-COOLED WATER RECIRCULATOR, SYSTEM INSTALLATION AND BASIC OPERATIONAL TRAINING, PRE-INSTALLATION ONSITE ROOM SURVEY, ADVANCED APPLICATIONS TRAINING, HIGH RESOLUTION IMAGING CAMERA, S Key points: 1. The purchase includes a high-resolution transmission electron microscope with essential accessories and training. 2. Competition was achieved through Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for this price range. 3. The primary risk is potential vendor lock-in if specialized maintenance or future upgrades are required from Hitachi. 4. This expenditure falls within the Analytical Laboratory Instrument Manufacturing sector.

Value Assessment

Rating: good

The total award of $676,567.50 for a sophisticated microscope bundle appears reasonable given the inclusion of installation, training, and advanced features. Benchmarking against similar high-end analytical instruments suggests competitive pricing for the capabilities offered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, indicating a limited competition approach likely due to the acquisition value falling within SAP thresholds. This method can expedite procurement but may limit the breadth of potential bidders compared to full and open competition.

Taxpayer Impact: Taxpayer funds are utilized efficiently through SAP, balancing the need for specialized equipment with cost-effective procurement practices.

Public Impact

Enhances NIH's research capabilities in analytical laboratory sciences. Supports advanced imaging for critical health research projects. Potential for breakthroughs in understanding biological structures and disease mechanisms. Training component ensures effective utilization of the advanced technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited future competition on service/maintenance contracts.
Reliance on a single vendor for specialized equipment.

Positive Signals

Acquisition of advanced scientific instrumentation.
Includes comprehensive training and installation.
Competed under SAP for efficiency.

Sector Analysis

This purchase is within the Analytical Laboratory Instrument Manufacturing sector, characterized by high-value, specialized equipment for scientific research. Spending benchmarks in this sector often involve significant capital investment for cutting-edge technology.

Small Business Impact

The data does not indicate specific participation or set-asides for small businesses in this procurement. The value and nature of the equipment may lend themselves to larger, specialized manufacturers.

Oversight & Accountability

The use of SAP suggests a streamlined oversight process. Accountability is maintained through the purchase order and the defined contract period, with performance expected to align with the specifications.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for high long-term maintenance costs.
Risk of technological obsolescence impacting research competitiveness.
Limited competition may not have yielded the absolute lowest price.
Dependence on a single vendor for critical components and support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $676,567.5 to HITACHI HIGH-TECH AMERICA, INC.. HITACHI HT7800 TRANSMISSION ELECTRON MICROSCOPE BUNDLE INCLUDING AIR-COOLED WATER RECIRCULATOR, SYSTEM INSTALLATION AND BASIC OPERATIONAL TRAINING, PRE-INSTALLATION ONSITE ROOM SURVEY, ADVANCED APPLICATIONS TRAINING, HIGH RESOLUTION IMAGING CAMERA, S

Who is the contractor on this award?

The obligated recipient is HITACHI HIGH-TECH AMERICA, 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 $676,567.5.

What is the period of performance?

Start: 2024-09-27. End: 2026-04-30.

What is the expected lifespan and technological obsolescence risk of this microscope model?

The expected lifespan of high-end transmission electron microscopes can range from 10-15 years with proper maintenance. However, technological obsolescence is a constant risk in this field. The NIH should have a plan for periodic technology assessments and potential upgrades to ensure they remain at the forefront of research capabilities.

Are there established benchmarks for the cost of service and maintenance contracts for this specific Hitachi model?

Establishing benchmarks for service and maintenance contracts is crucial. While the initial purchase price is competitive, long-term operational costs can escalate. The NIH should research industry standards for similar high-resolution microscopes to ensure future service agreements are also cost-effective and provide adequate coverage.

How will the data generated by this microscope be integrated into existing NIH research data infrastructure?

Effective integration of data generated by this advanced microscope is key to maximizing research value. The NIH should ensure compatibility with their existing data storage, analysis platforms, and cybersecurity protocols. Clear data management plans and protocols will facilitate collaboration and accelerate scientific discovery.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: RFQ-NIAID-24-2228449

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1375 N 28TH AVE, DALLAS, TX, 75261

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

Financial Breakdown

Contract Ceiling: $676,568

Exercised Options: $676,568

Current Obligation: $676,568

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline