NICHD awards $13.9M for lab equipment maintenance, with Newport Corp. securing the contract

Contract Overview

Contract Amount: $13,936 ($13.9K)

Contractor: Newport Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2025-08-24

End Date: 2026-08-23

Contract Duration: 364 days

Daily Burn Rate: $38/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: NICHD SERVICES: LAB EQUIPMENT MAINTENANCE SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13,935.52 to NEWPORT CORP for work described as: NICHD SERVICES: LAB EQUIPMENT MAINTENANCE SERVICES Key points: 1. The contract value of $13.9 million over one year represents a significant investment in maintaining critical research infrastructure. 2. Competition dynamics for this contract are noted as 'COMPETED UNDER SAP,' suggesting a streamlined process for smaller procurements. 3. Risk indicators are moderate, given the reliance on a single vendor for specialized equipment maintenance. 4. Performance context is crucial, as uninterrupted equipment function is vital for ongoing scientific research at NIH. 5. The sector positioning is within scientific research support services, a key enabler for health advancements.

Value Assessment

Rating: good

Benchmarking this contract's value against similar lab equipment maintenance agreements is challenging without more specific service details. However, the firm fixed-price structure suggests a predictable cost for the government. The duration of one year with a total value of $13.9 million implies an average annual cost of $13.9 million, which appears reasonable for specialized maintenance services supporting complex laboratory equipment at a major research institution like NIH.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating that it was likely advertised broadly to eligible vendors, allowing for a competitive bidding process. While the specific number of bidders is not provided, the use of SAP generally aims to foster competition for procurements below certain dollar thresholds. This approach helps ensure fair pricing and access to a range of qualified service providers.

Taxpayer Impact: Competing this contract under SAP likely resulted in competitive pricing, benefiting taxpayers by ensuring the government receives value for its investment in essential lab equipment maintenance.

Public Impact

Researchers and scientists at the National Institutes of Health (NIH) benefit from the reliable functioning of their laboratory equipment. Essential services include maintenance and repair for a variety of electronic and precision laboratory instruments. The geographic impact is concentrated in Maryland, where the NIH facilities are located. Workforce implications include the potential for skilled technicians employed by Newport Corp. to support NIH's research mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly proprietary.
Dependence on a single contractor for critical equipment uptime.
Risk of price increases in future contract renewals if competition is not maintained.

Positive Signals

Firm fixed-price contract provides cost certainty.
Use of SAP suggests an effort to leverage competitive market forces.
Contract duration of one year allows for periodic re-evaluation of needs and vendor performance.

Sector Analysis

The market for electronic and precision equipment repair and maintenance is a specialized segment within the broader industrial services sector. This contract falls under the North American Industry Classification System (NAICS) code 811210. The demand for such services is driven by the need to maintain the operational integrity of sophisticated scientific and medical equipment, particularly within government research institutions, universities, and private sector R&D facilities. Comparable spending benchmarks would depend on the specific types and volume of equipment serviced.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Newport Corp., is likely a larger entity. There is no explicit information on subcontracting requirements for small businesses within this award. The impact on the small business ecosystem would be minimal unless subcontracting opportunities are actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the National Institutes of Health (NIH) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying that services meet the required standards. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NIH Research Support Services
Federal Laboratory Equipment Maintenance
Scientific Instrument Repair Contracts
Health and Human Services IT and Equipment Support

Risk Flags

Potential for service disruption if contractor faces operational issues.
Reliance on a single vendor for critical maintenance needs.
Need for ongoing performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13,935.52 to NEWPORT CORP. NICHD SERVICES: LAB EQUIPMENT MAINTENANCE SERVICES

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 $13,935.52.

What is the period of performance?

Start: 2025-08-24. End: 2026-08-23.

What is Newport Corp.'s track record with federal contracts, particularly for similar maintenance services?

Newport Corp. has a history of receiving federal contracts. Analyzing their past performance on similar maintenance services for electronic and precision equipment, especially within agencies like Health and Human Services or other research-focused bodies, would provide insight into their reliability and expertise. A review of their contract history would reveal the number and value of previous awards, any performance issues or disputes, and their success rate in competitive bidding. This information is crucial for assessing their capability to fulfill the current NICHD contract effectively and efficiently, ensuring the continued operation of vital research equipment.

How does the annual cost of this contract compare to industry benchmarks for similar lab equipment maintenance?

Determining precise industry benchmarks for lab equipment maintenance is complex due to the wide variety of equipment types, service levels, and contract structures. However, the annual cost of approximately $13.9 million for this contract can be assessed by considering the scale and criticality of NIH's research operations. If this figure represents maintenance for a large portfolio of highly specialized and sensitive instruments, it may align with or even be below market rates. Conversely, if it covers a more limited scope, it could indicate a higher per-unit cost. A detailed analysis would require comparing the scope of services, equipment types, and service level agreements against data from other federal agencies or large research institutions.

What are the primary risks associated with relying on a single contractor for critical lab equipment maintenance?

The primary risks associated with relying on a single contractor, such as Newport Corp. for this NICHD contract, include potential vendor lock-in, service disruptions, and price escalation. Vendor lock-in can occur if the contractor possesses unique knowledge or proprietary tools essential for maintaining specific equipment, making it difficult and costly to switch providers. Service disruptions could arise from the contractor's financial instability, labor disputes, or unforeseen operational issues, directly impacting research timelines and outcomes. Furthermore, without sustained competition, there's a risk that the contractor might increase prices in future renewals, leading to higher costs for the government over the long term. Robust performance monitoring and contingency planning are essential to mitigate these risks.

How effective are the Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for contracts of this nature?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below certain dollar thresholds, aiming to increase efficiency and foster competition among a broader range of vendors, including small businesses. For contracts like this NICHD award, which falls within SAP limits, the effectiveness in ensuring competitive pricing depends on how well the solicitation is structured and advertised. When SAP is used appropriately, it can lead to fair and reasonable prices by encouraging multiple bids. However, if the process is not managed diligently, or if the market for the specific service is limited, the competition achieved might be less robust than intended, potentially impacting price discovery and overall value for the taxpayer.

What is the historical spending pattern for lab equipment maintenance services at NIH?

Analyzing historical spending patterns for lab equipment maintenance at NIH is crucial for understanding trends, identifying potential cost efficiencies, and assessing the long-term investment in research infrastructure. Examining past contracts, including their values, durations, and awarded vendors, can reveal whether spending has been consistent, increasing, or fluctuating. This historical data can also highlight any shifts in the types of equipment being maintained or the service providers utilized. Understanding these patterns provides context for the current $13.9 million award, allowing for a more informed evaluation of its reasonableness and alignment with NIH's strategic research support needs over time.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $13,936

Exercised Options: $13,936

Current Obligation: $13,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline