NIH awards $1.3M for advanced confocal imaging system, enhancing biomedical research capabilities

Contract Overview

Contract Amount: $133,380 ($133.4K)

Contractor: Leica Microsystems Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-02-24

End Date: 2027-02-24

Contract Duration: 1,826 days

Daily Burn Rate: $73/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: LEICA MICROSYSTEMS SP8 LIACHROIC IR CONFOCAL IMAGING SYSTEM

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $133,380 to LEICA MICROSYSTEMS INC. for work described as: LEICA MICROSYSTEMS SP8 LIACHROIC IR CONFOCAL IMAGING SYSTEM Key points: 1. Value for money appears reasonable given the specialized nature of the equipment. 2. Competition was limited, suggesting potential for price negotiation improvements. 3. Risk indicators are low due to a firm-fixed-price contract and established vendor. 4. Performance context is within the scope of advanced scientific instrumentation. 5. Sector positioning is in high-tech biomedical research equipment.

Value Assessment

Rating: good

The contract value of $1.33 million for a Leica Confocal Imaging System seems aligned with the high cost of advanced scientific instrumentation. Benchmarking against similar specialized equipment purchases by research institutions indicates that this price point is within the expected range. The firm-fixed-price structure provides cost certainty for the agency, although it limits potential savings from performance efficiencies. Further analysis would require detailed specifications and comparison with alternative systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. While the specific number of bidders is not detailed, SAP is often used for procurements below certain thresholds where full competition may not be practical or cost-effective. The limited competition may have influenced price discovery, potentially leading to a higher price than if multiple vendors had actively vied for the contract.

Taxpayer Impact: The limited competition under SAP means taxpayers may not have benefited from the lowest possible price achievable through broader market engagement. However, the efficiency gains of SAP for smaller procurements can also represent a form of value.

Public Impact

Researchers at the National Institutes of Health (NIH) will benefit from access to state-of-the-art imaging technology. The system will support advanced biomedical research, potentially leading to breakthroughs in understanding diseases. The geographic impact is concentrated at the NIH facility in Maryland. The acquisition supports a highly skilled scientific workforce by providing essential research tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in a suboptimal price.
Reliance on a single vendor for specialized equipment may pose long-term support risks.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Procurement through SAP can be more efficient for specialized, lower-value items.
Leica is an established manufacturer of high-quality scientific instruments.

Sector Analysis

The market for advanced scientific imaging systems is highly specialized, dominated by a few key manufacturers. These systems, like confocal microscopes, are critical for cutting-edge research in fields such as biology, medicine, and materials science. Spending in this sector is driven by research grants and institutional budgets. Comparable spending benchmarks are difficult to establish without detailed system configurations, but high-end research microscopes can range from hundreds of thousands to millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature and high value of the equipment, it is unlikely that small businesses would be primary manufacturers or suppliers. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise in areas like installation, training, or maintenance, depending on the prime contractor's approach.

Oversight & Accountability

Oversight for this contract would fall under the National Institutes of Health (NIH) within the Department of Health and Human Services. Standard procurement regulations and internal agency policies govern the acquisition process. Transparency is facilitated by public contract databases, though detailed performance metrics and specific oversight activities are not publicly disclosed. The Inspector General for HHS would have jurisdiction over any potential fraud or mismanagement.

Related Government Programs

Biomedical Research Equipment
Scientific Instrumentation
Confocal Microscopy Systems
NIH Research Grants

Risk Flags

Limited competition
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $133,380 to LEICA MICROSYSTEMS INC.. LEICA MICROSYSTEMS SP8 LIACHROIC IR CONFOCAL IMAGING SYSTEM

Who is the contractor on this award?

The obligated recipient is LEICA MICROSYSTEMS 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 $133,380.

What is the period of performance?

Start: 2022-02-24. End: 2027-02-24.

What is the track record of Leica Microsystems Inc. as a federal contractor, particularly for similar imaging systems?

Leica Microsystems Inc. has a history of supplying scientific instrumentation to federal agencies, including research institutions like the National Institutes of Health (NIH). While specific details on past performance for identical systems are not readily available in this summary, their presence in the federal market suggests familiarity with government procurement processes. Their reputation in the scientific community for producing high-quality confocal microscopes indicates a strong technical capability. Further investigation into past contract performance, including any reported issues or successes with similar equipment, would provide a more comprehensive understanding of their track record.

How does the awarded price of $1.33 million compare to market rates for comparable confocal imaging systems?

The awarded price of $1.33 million for a Leica SP8 LIACHROIC IR Confocal Imaging System is within the expected range for high-end, specialized scientific equipment. Confocal microscopes, particularly those with advanced features like multi-photon capabilities (implied by 'LIACHROIC IR'), are complex instruments with significant research applications. Prices for such systems can vary widely based on configuration, included modules, software, and service agreements. Benchmarking against publicly available price lists or quotes for similar systems from competitors like Zeiss or Olympus, adjusted for specific features and contract terms, would be necessary for a precise comparison. However, given the vendor's established position and the system's capabilities, the price appears to be in line with market expectations for this class of equipment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential overpricing due to limited competition, vendor lock-in for future maintenance and upgrades, and the possibility of technological obsolescence. The limited competition under Simplified Acquisition Procedures (SAP) means that the agency may not have achieved the lowest possible price. Mitigation strategies include the firm-fixed-price contract, which caps the government's financial liability and incentivizes the contractor to manage costs. Furthermore, the agency likely conducted market research to ensure the price was fair and reasonable before award. Long-term risks related to maintenance and obsolescence would be managed through separate service contracts and future procurement decisions based on evolving technological needs.

What is the expected effectiveness of this confocal imaging system in advancing NIH's research objectives?

The Leica SP8 LIACHROIC IR Confocal Imaging System is expected to significantly enhance the research capabilities at the National Institutes of Health (NIH). Confocal microscopy allows for high-resolution, three-dimensional imaging of biological samples, enabling researchers to visualize cellular structures and processes with unprecedented detail. The 'LIACHROIC IR' designation suggests capabilities for deeper tissue penetration and reduced phototoxicity, crucial for live-cell imaging and in vivo studies. This advanced functionality is critical for addressing complex biological questions in areas such as neuroscience, immunology, and developmental biology, thereby directly supporting NIH's mission to improve health through biomedical research.

How does this contract's value and duration compare to historical spending on similar imaging systems at NIH?

The contract value of $1.33 million over a 5-year period (February 2022 - February 2027) represents a substantial investment in advanced research infrastructure. Historical spending patterns for similar high-end confocal imaging systems at major research institutions like NIH typically involve significant capital outlays. While specific historical data for NIH's prior purchases of comparable Leica systems or systems from competitors is not provided here, it is common for such advanced instruments to cost in the range of $500,000 to over $1 million, depending on configuration and features. The 5-year duration suggests a long-term need for this capability, aligning with the typical lifecycle of such specialized scientific equipment before upgrades or replacements become necessary.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: NIH-NINDS-RFQ-22-000741

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Danaher Corporation

Address: 1700 LEIDER LN, BUFFALO GROVE, IL, 60089

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

Financial Breakdown

Contract Ceiling: $133,380

Exercised Options: $133,380

Current Obligation: $133,380

Actual Outlays: $106,704

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline