NIH awards $678K for alarm system maintenance, with Rees Scientific Corporation securing the contract

Contract Overview

Contract Amount: $67,883 ($67.9K)

Contractor: Rees Scientific Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-12

End Date: 2027-05-11

Contract Duration: 1,460 days

Daily Burn Rate: $46/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE, VALIDATION, AND CALIBRATION FOR ALARM MONITORING SYSTEM

Place of Performance

Location: EWING, MERCER County, NEW JERSEY, 08638

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $67,882.53 to REES SCIENTIFIC CORPORATION for work described as: MAINTENANCE, VALIDATION, AND CALIBRATION FOR ALARM MONITORING SYSTEM Key points: 1. The contract value appears reasonable for specialized equipment maintenance over a multi-year period. 2. Competition dynamics for this specific type of maintenance service may be limited due to specialized expertise required. 3. Risk indicators are low, given the nature of the service and the established contractor. 4. Performance context suggests a focus on ensuring the reliability of critical alarm monitoring systems. 5. This contract fits within the broader sector of facility and equipment maintenance for government institutions.

Value Assessment

Rating: good

The award of $678,825.53 for a 4-year period for maintenance, validation, and calibration of an alarm monitoring system seems to be within a reasonable range for specialized technical services. Benchmarking against similar contracts for critical infrastructure maintenance would provide a more precise value assessment. However, the firm fixed-price structure suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process for acquisitions below a certain threshold. While the specific number of bidders is not provided, the use of SAP generally encourages multiple offers. This level of competition, even if limited to a few bidders, should contribute to fair pricing.

Taxpayer Impact: Competing under SAP helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs for essential services.

Public Impact

The National Institutes of Health (NIH) benefits from the reliable operation of its alarm monitoring systems. Services delivered include essential maintenance, validation, and calibration to ensure system functionality. The geographic impact is primarily within New Jersey, where the contractor is based. Workforce implications are likely minimal, involving specialized technicians for the maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Contract awarded to a single entity, Rees Scientific Corporation, suggesting specialized expertise.
Firm Fixed Price contract type provides cost predictability.
Contract duration of 4 years allows for sustained service delivery.
Service is critical for maintaining safety and security infrastructure.

Sector Analysis

The contract falls within the broader Information Technology and Professional Services sector, specifically focusing on the maintenance and support of specialized electronic equipment. The market for alarm monitoring system maintenance is characterized by a need for certified technicians and adherence to strict regulatory standards. Comparable spending benchmarks would typically be found in contracts for facilities management and critical infrastructure upkeep within federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Rees Scientific Corporation, is likely a specialized firm that may or may not qualify as a small business itself, but the contract award itself does not mandate small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the National Institutes of Health. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Facilities Maintenance and Operations
Critical Infrastructure Security Systems
Electronic Equipment Maintenance Services

Risk Flags

Potential for system downtime if maintenance is inadequate.
Dependence on a single contractor for critical infrastructure support.
Risk of cost overruns if scope changes or unforeseen issues arise (mitigated by FFP).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67,882.53 to REES SCIENTIFIC CORPORATION. MAINTENANCE, VALIDATION, AND CALIBRATION FOR ALARM MONITORING SYSTEM

Who is the contractor on this award?

The obligated recipient is REES SCIENTIFIC CORPORATION.

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 $67,882.53.

What is the period of performance?

Start: 2023-05-12. End: 2027-05-11.

What is the track record of Rees Scientific Corporation with federal contracts?

Rees Scientific Corporation has a history of performing maintenance and calibration services for alarm monitoring systems within federal agencies. While specific details on past performance metrics are not provided in this data snippet, their selection for this contract suggests they meet the necessary qualifications and have likely demonstrated satisfactory performance on previous engagements. Further investigation into their contract history, including any past performance reviews or awards/debarments, would provide a more comprehensive understanding of their reliability and expertise in fulfilling government requirements.

How does the per-unit cost of this contract compare to market rates for similar services?

The provided data does not include a detailed breakdown of per-unit costs for specific maintenance tasks or components. The total award of $678,825.53 over 1460 days averages to approximately $464.95 per day. Without knowing the exact scope of services performed daily (e.g., number of systems serviced, types of validation, complexity of calibration), it is difficult to benchmark against market rates. Typically, such comparisons would involve analyzing industry reports, consulting with subject matter experts, or reviewing pricing data from similar government contracts for specialized electronic system maintenance.

What are the primary risks associated with this alarm monitoring system maintenance contract?

The primary risks associated with this contract are related to the potential for system failure or malfunction if maintenance is not performed adequately, which could compromise security and safety. Another risk is contractor performance issues, such as delays or substandard work, although the firm fixed-price nature of the contract incentivizes timely completion. Dependence on a single contractor for specialized maintenance could also pose a risk if the contractor experiences financial difficulties or ceases operations. However, the contract duration and the nature of the service suggest these risks are being actively managed.

How effective is the current maintenance strategy for the NIH's alarm monitoring systems?

The effectiveness of the current maintenance strategy is directly tied to the successful execution of this contract by Rees Scientific Corporation. The contract's objective is to ensure the ongoing functionality, validation, and calibration of the alarm monitoring systems, which are critical for NIH's operational security and safety. The multi-year duration and firm fixed-price structure suggest a commitment to a consistent and reliable maintenance schedule. The ultimate measure of effectiveness will be the system's uptime, accuracy, and responsiveness during the contract period, as well as the absence of security breaches or safety incidents attributable to system failures.

What are the historical spending patterns for alarm monitoring system maintenance at NIH?

Historical spending patterns for alarm monitoring system maintenance at NIH are not detailed in the provided data. To assess this, one would need to examine past contract awards for similar services over several fiscal years. This would involve looking at the total amount spent, the number of contracts awarded, the duration of those contracts, and the contractors involved. Understanding historical spending can help identify trends, potential cost savings, and the consistency of vendor relationships, providing context for the current $678,825.53 award.

What is the potential impact of this contract on the broader market for alarm monitoring services?

This contract represents a specific award to Rees Scientific Corporation for services at the NIH. Its impact on the broader market for alarm monitoring services is likely to be localized and dependent on the size and scope of the NIH's system. While it demonstrates a demand for such specialized maintenance, it is unlikely to significantly alter overall market dynamics unless NIH represents a substantial portion of the total market for these services or if Rees Scientific is a dominant player. The competitive bidding process, even under SAP, suggests that other firms are capable of providing these services, contributing to a generally competitive landscape.

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

Solicitation ID: 75N95023Q00116

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1007 WHITEHEAD ROAD EXT, EWING, NJ, 08638

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: $85,710

Exercised Options: $67,883

Current Obligation: $67,883

Actual Outlays: $50,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline