NIH awards $27.5M for microscopy software, bypassing competition for a sole-source purchase order

Contract Overview

Contract Amount: $27,521 ($27.5K)

Contractor: Andor Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $76/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IMARIS MICROSCOPY IMAGE ANALYSIS SOFTWARE LICENSES AND ASSOCIATED MAINTENANCE AND TECHNICAL SUPPORT

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 $27,521.28 to ANDOR TECHNOLOGY, INC. for work described as: IMARIS MICROSCOPY IMAGE ANALYSIS SOFTWARE LICENSES AND ASSOCIATED MAINTENANCE AND TECHNICAL SUPPORT Key points: 1. The contract value of $27.5M for software licenses and support represents a significant investment in advanced imaging capabilities. 2. The sole-source nature of this award warrants scrutiny regarding potential price inflation and lack of market-driven cost optimization. 3. The duration of the contract (364 days) suggests a need for ongoing access to this specific software solution. 4. The absence of competition raises questions about the availability of alternative solutions and potential vendor lock-in. 5. The fixed-price contract type provides cost certainty for the government, but the lack of competition limits negotiation leverage. 6. The award to Andor Technology, Inc. indicates a reliance on their specialized product for critical research functions.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature, which prevents direct comparison with competitive bids. The $27.5M price tag for software licenses and maintenance over one year appears substantial. Without competitive data, it's difficult to definitively assess if this represents fair market value or if the government could have secured better pricing through a competitive process. The lack of transparency in pricing negotiations for sole-source awards is a common concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific product or service is only available from a single source, or in cases of urgent need where competition is not feasible. The lack of competition means that multiple vendors were not given the opportunity to bid, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for this software due to the absence of competitive bidding. The government's ability to negotiate favorable terms is diminished when there are no alternative providers considered.

Public Impact

Researchers at the National Institutes of Health (NIH) will benefit from access to advanced microscopy image analysis software. The software is crucial for analyzing complex biological and medical imaging data, supporting various research endeavors. This contract supports scientific advancement within the biomedical research community, potentially leading to breakthroughs in health and medicine. The availability of this specialized software can enhance the productivity and capabilities of NIH's scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may result in higher costs.
Lack of competitive bidding raises concerns about vendor lock-in and limited alternative options.
The substantial contract value warrants thorough justification for the sole-source procurement method.

Positive Signals

The contract ensures continued access to critical, specialized software for NIH research.
The firm fixed-price contract provides budget certainty for the duration of the award.
The award supports advanced scientific research capabilities within a leading health agency.

Sector Analysis

The market for scientific imaging and analysis software is specialized, with a few key players offering advanced solutions. This contract falls within the broader IT services sector, specifically focusing on specialized software for research and development. Comparable spending benchmarks are difficult to establish without knowing the specific features and capabilities of the Imaris software and its market position. However, significant investments in such tools are common within large federal research institutions like NIH.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there information suggesting subcontracting opportunities for small businesses. The award is made directly to Andor Technology, Inc., a company that may or may not be a small business itself. The focus on specialized software procurement often involves larger, established vendors, potentially limiting direct participation by small businesses in this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the National Institutes of Health. Standard procurement regulations and contract management processes would apply. Transparency regarding the justification for the sole-source award and the pricing structure would be key areas for oversight. The Inspector General's office could investigate if any improprieties are suspected.

Related Government Programs

NIH Research Grants
Biomedical Research Equipment Procurement
Scientific Software Licenses
Advanced Imaging Technology Contracts

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Risk of vendor lock-in for critical research software.
Limited transparency in pricing and negotiation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27,521.28 to ANDOR TECHNOLOGY, INC.. IMARIS MICROSCOPY IMAGE ANALYSIS SOFTWARE LICENSES AND ASSOCIATED MAINTENANCE AND TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is ANDOR TECHNOLOGY, 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 $27,521.28.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the specific justification provided by NIH for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For this contract, NIH would need to document why alternative vendors or competitive bidding were not feasible or appropriate for the acquisition of IMARIS MICROSCOPY IMAGE ANALYSIS SOFTWARE LICENSES AND ASSOCIATED MAINTENANCE AND TECHNICAL SUPPORT. This justification is crucial for ensuring fair and transparent government spending.

How does the $27.5M contract value compare to previous spending on similar microscopy software at NIH or other federal agencies?

Without historical spending data for this specific software or comparable advanced microscopy solutions at NIH or other federal agencies, a direct comparison is not possible. The $27.5M figure represents a significant investment. To assess value, one would need to analyze the scope of licenses, the duration of maintenance and support, and the specific functionalities offered by IMARIS. Benchmarking against similar sole-source awards for specialized scientific software, if available, could provide some context, but competitive procurements for similar capabilities would offer a more robust comparison point for value for money.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with the maintenance and technical support included in this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for the maintenance and technical support. However, for a contract of this nature and value, it is expected that NIH would have established clear SLAs related to response times for technical issues, software update schedules, availability of support personnel, and potentially uptime guarantees for the software. These metrics are critical for ensuring the contractor, Andor Technology, Inc., meets the performance expectations and that the government receives the full value of the support services.

What is the track record of Andor Technology, Inc. in fulfilling federal contracts, particularly for software licenses and support?

The provided data indicates the award is to 'ANDOR TECHNOLOGY, INC.' However, it does not offer details on their past performance or track record with federal contracts. A comprehensive assessment would require reviewing contract databases for previous awards to this vendor, examining past performance evaluations, and understanding their history of delivering software and support services to government entities. This information is vital for assessing the risk associated with this sole-source award and ensuring the contractor's reliability.

Are there any known risks associated with relying on a single vendor for critical microscopy image analysis software, such as vendor lock-in or future price increases?

Yes, there are inherent risks associated with relying on a single vendor for critical software. Vendor lock-in is a significant concern, as it can make it difficult and costly to switch to alternative solutions in the future, potentially limiting flexibility and innovation. Furthermore, sole-source contracts can reduce competitive pressure, potentially leading to higher prices for renewals or future upgrades. The government's negotiating power is diminished, making it crucial to ensure the initial contract terms are favorable and that ongoing monitoring is in place.

What is the anticipated impact of this software on the efficiency and effectiveness of NIH's research activities?

The IMARIS MICROSCOPY IMAGE ANALYSIS SOFTWARE is expected to significantly enhance the efficiency and effectiveness of NIH's research activities by providing advanced capabilities for analyzing complex microscopy images. This can lead to faster data processing, more accurate interpretations, and the ability to extract deeper insights from experimental results. By streamlining image analysis, researchers can potentially accelerate the pace of discovery, improve the reproducibility of their findings, and ultimately contribute more effectively to advancements in health and medicine. The software's specialized functions are likely tailored to address specific challenges in biological and medical imaging.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 BAKER AVE STE 150, CONCORD, MA, 01742

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: $27,521

Exercised Options: $27,521

Current Obligation: $27,521

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline