HHS awards $78.6K contract for lab instrument services to Formulatrix, LLC, with limited competition

Contract Overview

Contract Amount: $78,571 ($78.6K)

Contractor: Formulatrix, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-02-04

End Date: 2026-02-03

Contract Duration: 1,095 days

Daily Burn Rate: $72/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: FORMULATRIX INC:1109605 [23-001858] SERVICE CONTRACT FOR FORMULATRIX ROCKIMAGER182

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $78,570.76 to FORMULATRIX, LLC for work described as: FORMULATRIX INC:1109605 [23-001858] SERVICE CONTRACT FOR FORMULATRIX ROCKIMAGER182 Key points: 1. Contract value appears reasonable for specialized lab equipment maintenance. 2. Sole-source nature limits competitive pressure on pricing and service innovation. 3. Potential risk of vendor lock-in due to specialized equipment. 4. Contract duration of three years provides stability for NIH research. 5. Focus on analytical laboratory instruments places this within a niche sector. 6. No small business set-aside indicates a focus on specialized capabilities.

Value Assessment

Rating: fair

The contract value of $78,570.76 for three years of service for a Formulatrix RockImager182 appears to be within a reasonable range for specialized laboratory equipment maintenance. Benchmarking against similar service contracts for high-end scientific instruments is difficult without more specific data on the scope of services and the exact model of the instrument. However, the fixed-price nature of the contract provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Formulatrix, LLC, was solicited. This approach is typically used when a product or service is unique and only available from a single source, or when there is a compelling justification for not seeking competition. The lack of competition means that the government did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a higher price than if the contract had been competed. The absence of competition also limits the government's ability to explore alternative solutions or vendors that might offer better value.

Public Impact

Researchers at the National Institutes of Health (NIH) will benefit from continued access to and maintenance of the Formulatrix RockImager182. This service ensures the operational readiness of critical laboratory equipment used for scientific research. The geographic impact is localized to the NIH facilities where the instrument is deployed. The contract supports specialized technical services, potentially maintaining jobs within the scientific instrument service sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for better value.
Potential for vendor lock-in with specialized equipment maintenance.
Lack of transparency in the justification for sole-source award.

Positive Signals

Contract ensures continued operational capability of essential research equipment.
Fixed-price contract provides budget certainty for the agency.
Established relationship with the original equipment manufacturer for service.

Sector Analysis

The contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically focusing on the service and maintenance of specialized scientific equipment. This is a niche market where original equipment manufacturers (OEMs) often hold a significant advantage due to proprietary knowledge and parts. Spending in this sector is driven by the needs of research institutions, pharmaceutical companies, and diagnostic laboratories requiring high-precision instruments.

Small Business Impact

The contract was not competed and there is no indication of a small business set-aside. This suggests that the primary contractor, Formulatrix, LLC, is likely not a small business, or that the nature of the specialized service did not lend itself to a small business set-aside. There are no explicit subcontracting requirements mentioned, so the direct impact on the small business ecosystem is likely minimal.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the National Institutes of Health (NIH). As a purchase order, it is a less formal instrument than a contract, but still subject to federal procurement regulations. Transparency is limited due to the sole-source nature, and specific accountability measures would be detailed in the service agreement, which is not publicly available.

Related Government Programs

NIH Research Equipment Maintenance
Biotechnology Instrument Services
Laboratory Equipment Support Contracts
Federal Purchase Orders for Scientific Equipment

Risk Flags

Sole-source justification requires careful review.
Potential for higher costs due to lack of competition.
Dependency on a single vendor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $78,570.76 to FORMULATRIX, LLC. FORMULATRIX INC:1109605 [23-001858] SERVICE CONTRACT FOR FORMULATRIX ROCKIMAGER182

Who is the contractor on this award?

The obligated recipient is FORMULATRIX, LLC.

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 $78,570.76.

What is the period of performance?

Start: 2023-02-04. End: 2026-02-03.

What is the track record of Formulatrix, LLC in performing similar service contracts for federal agencies?

Information regarding Formulatrix, LLC's specific track record with federal agencies for service contracts is not readily available through public databases. As this is a sole-source award, it suggests that either NIH has prior experience with the company or there was a specific justification for selecting them. Further investigation into contract databases like FPDS-NG or SAM.gov might reveal past performance information, but without a competitive history, assessing their broader federal track record is challenging. The limited scope and value of this particular award suggest it may be for a specific, localized need rather than a large-scale, long-term service agreement.

How does the annual cost of this service contract compare to the initial purchase price of the Formulatrix RockImager182?

The total contract value is $78,570.76 over three years, averaging approximately $26,190 per year. The initial purchase price of a Formulatrix RockImager182 is not publicly disclosed. However, high-end laboratory instruments like this can range from tens of thousands to hundreds of thousands of dollars. If the instrument's purchase price was, for example, $200,000, then the annual service cost represents about 13% of the purchase price. This percentage is often within the typical range for service and maintenance contracts for sophisticated scientific equipment, which can run between 10-20% of the equipment's value annually.

What are the specific risks associated with a sole-source award for specialized laboratory equipment maintenance?

The primary risk of a sole-source award for specialized laboratory equipment maintenance is the potential for inflated pricing due to the lack of competition. The vendor, being the only option, may not feel pressured to offer the most competitive rates. Another significant risk is vendor lock-in; the agency becomes dependent on Formulatrix, LLC for maintenance and repairs, potentially facing difficulties or higher costs if they ever wish to switch providers or if Formulatrix changes its service terms. Furthermore, without competitive bidding, there's less assurance that the agency is receiving the absolute best value or the most innovative service solutions available in the market.

What is the expected effectiveness of this contract in supporting NIH's research objectives?

This contract is expected to be highly effective in supporting NIH's research objectives by ensuring the continuous operational availability of the Formulatrix RockImager182. This instrument is likely critical for specific research protocols, such as drug discovery, materials science, or cell-based assays, where precise imaging and analysis are required. By securing dedicated maintenance and service, NIH mitigates the risk of equipment downtime, which could otherwise lead to significant delays in research projects, loss of valuable samples, and disruption of scientific workflows. The fixed-price nature also provides budget predictability for this essential support function.

How does this contract's spending compare to overall federal spending on laboratory equipment maintenance?

This contract, valued at approximately $78.6K over three years, represents a very small fraction of overall federal spending on laboratory equipment maintenance. Federal agencies, particularly those in scientific research like NIH, HHS, DOD, and DOE, invest significantly more in maintaining a vast array of complex scientific instruments. Total federal spending on such services likely runs into the hundreds of millions or even billions of dollars annually, encompassing everything from basic lab equipment to highly specialized analytical and imaging systems. This specific award is a micro-purchase in the context of the broader federal R&D infrastructure.

Industry Classification

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

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: 75N96023Q00015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 DEANGELO DR, BEDFORD, MA, 01730

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $170,046

Exercised Options: $78,571

Current Obligation: $78,571

Actual Outlays: $78,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline