HHS Awards $733K for Microscope Maintenance to Carl Zeiss Microscopy, LLC

Contract Overview

Contract Amount: $73,357 ($73.4K)

Contractor: Carl Zeiss Microscopy, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-05-26

End Date: 2027-05-25

Contract Duration: 364 days

Daily Burn Rate: $202/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS ACQUISITION IS FOR A FIRM-FIXED-PRICE PURCHASE ORDER FOR PREVENTATIVE MAINTENANCE, REPAIR SERVICES, SOFTWARE UPDATES, AND REPLACEMENT PARTS FOR THE NATIONAL INSTITUTE ON AGING'S ZEISS LSM 980 AND CELLDISCOVERER 7 MICROSCOPE SYSTEMS. THE PER

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $73,357.2 to CARL ZEISS MICROSCOPY, LLC for work described as: THIS ACQUISITION IS FOR A FIRM-FIXED-PRICE PURCHASE ORDER FOR PREVENTATIVE MAINTENANCE, REPAIR SERVICES, SOFTWARE UPDATES, AND REPLACEMENT PARTS FOR THE NATIONAL INSTITUTE ON AGING'S ZEISS LSM 980 AND CELLDISCOVERER 7 MICROSCOPE SYSTEMS. THE PER Key points: 1. The contract focuses on essential maintenance and software updates for specialized microscopy systems. 2. Competition was limited, with the award going to the original equipment manufacturer. 3. Potential risks include vendor lock-in and lack of competitive pricing pressure. 4. The sector is scientific equipment maintenance, crucial for research institutions.

Value Assessment

Rating: fair

The $733,572 price for a 364-day contract appears reasonable for specialized microscope maintenance, but without competitive bids, it's difficult to definitively assess value against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under simplified acquisition procedures, suggesting a limited competition approach, likely due to the specialized nature of the equipment. This limits price discovery and potentially increases costs.

Taxpayer Impact: Taxpayer funds are used for essential research equipment upkeep, ensuring continued scientific progress, but the lack of competition may lead to higher than optimal spending.

Public Impact

Ensures continuity of critical research at the National Institute on Aging. Supports advanced scientific imaging capabilities for health research. Potential for higher costs due to limited competition on specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Sole-source potential
High cost of specialized parts/service

Positive Signals

Essential service for research continuity
Maintains critical scientific infrastructure

Sector Analysis

This spending falls within the scientific and medical equipment maintenance sector. Benchmarks for similar specialized equipment maintenance contracts are highly variable, but typically represent a small fraction of the equipment's initial cost.

Small Business Impact

The award went to Carl Zeiss Microscopy, LLC, a large business. There is no indication of small business participation in this specific contract, which is common for specialized OEM maintenance services.

Oversight & Accountability

The contract was awarded via purchase order, suggesting it may have bypassed some standard oversight processes. Further review of the justification for limited competition is warranted.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition may result in inflated pricing.
Potential for vendor lock-in.
Lack of transparency in price discovery.
Reliance on a single manufacturer for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $73,357.2 to CARL ZEISS MICROSCOPY, LLC. THIS ACQUISITION IS FOR A FIRM-FIXED-PRICE PURCHASE ORDER FOR PREVENTATIVE MAINTENANCE, REPAIR SERVICES, SOFTWARE UPDATES, AND REPLACEMENT PARTS FOR THE NATIONAL INSTITUTE ON AGING'S ZEISS LSM 980 AND CELLDISCOVERER 7 MICROSCOPE SYSTEMS. THE PER

Who is the contractor on this award?

The obligated recipient is CARL ZEISS MICROSCOPY, 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 $73,357.2.

What is the period of performance?

Start: 2026-05-26. End: 2027-05-25.

What is the justification for not competing this maintenance contract, especially given the significant cost?

The justification for limited competition likely stems from the specialized nature of Zeiss LSM 980 and CellDiscoverer 7 microscope systems, requiring manufacturer-specific expertise, parts, and software. However, a thorough review should confirm if alternative service providers or competitive bidding were explored, even for specialized services, to ensure the best value.

What is the risk of vendor lock-in and its potential impact on future spending?

There is a significant risk of vendor lock-in as Carl Zeiss Microscopy, LLC is the original equipment manufacturer. This can lead to inflated prices for maintenance, parts, and future upgrades, as the agency may have limited options for alternative service providers. This necessitates careful negotiation and consideration of long-term service agreements.

How effectively does this contract ensure the long-term operational readiness and value of the microscopy systems?

The contract aims to ensure operational readiness through preventative maintenance and software updates. However, its effectiveness in securing long-term value is contingent on the pricing fairness and the agency's ability to manage the vendor relationship to mitigate the risks associated with limited competition and potential price escalations 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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 N BROADWAY STE 1501, WHITE PLAINS, NY, 10601

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: $226,740

Exercised Options: $73,357

Current Obligation: $73,357

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline