NIH awards $38.5K for SARTORIUS instrument maintenance, raising questions about competition and value

Contract Overview

Contract Amount: $38,485 ($38.5K)

Contractor: Sartorius Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2026-06-01

End Date: 2027-05-31

Contract Duration: 364 days

Daily Burn Rate: $106/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE CONTRACTOR SHALL PROVIDE THE NIA WITH MAINTENANCE AND REPAIR SUPPORT FOR THE FOLLOWING SARTORIUS INSTRUMENTS: INCUCYTE S3 CO2 INCUBATOR SERIAL NO: IC51362 AND INCUCYTE SX5 CO2 INCUBATOR SERIAL NO: IC70351.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $38,484.5 to SARTORIUS CORPORATION for work described as: THE CONTRACTOR SHALL PROVIDE THE NIA WITH MAINTENANCE AND REPAIR SUPPORT FOR THE FOLLOWING SARTORIUS INSTRUMENTS: INCUCYTE S3 CO2 INCUBATOR SERIAL NO: IC51362 AND INCUCYTE SX5 CO2 INCUBATOR SERIAL NO: IC70351. Key points: 1. Contract awarded for maintenance of two specific SARTORIUS CO2 incubators. 2. Limited competition raises concerns about potential overpayment and lack of market price discovery. 3. Contract duration of one year with a firm-fixed-price structure. 4. Geographic location of service is Maryland. 5. The contract value is relatively small, suggesting a focus on specific equipment support.

Value Assessment

Rating: questionable

The contract value of $38,484.50 for one year of maintenance on two SARTORIUS incubators appears high given the limited scope. Without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition suggests that NIH may not be achieving the best possible value for this service, as there was no opportunity for multiple vendors to offer competitive quotes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. The specific details of how this limited competition was conducted are not provided, but it suggests that NIH did not solicit offers from a broad range of potential vendors. This limited approach may restrict price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Limited competition means taxpayers may not be receiving the most cost-effective service, as the government did not leverage a competitive environment to drive down prices.

Public Impact

The National Institutes of Health (NIH) benefits from continued operational support for critical laboratory equipment. Maintenance and repair services for two SARTORIUS Incucyte CO2 incubators are delivered. Services are geographically focused within Maryland. The contract supports the ongoing research activities at NIH facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition may lead to suboptimal pricing.
Limited details on the justification for limited competition.
Potential for higher costs due to absence of market price discovery.

Positive Signals

Contract ensures continued functionality of essential research equipment.
Firm-fixed-price structure provides cost certainty for the government.
Specific equipment maintenance addresses a clear operational need.

Sector Analysis

This contract falls within the broader sector of scientific and medical equipment maintenance and repair. The market for such services is often specialized, with original equipment manufacturers (OEMs) or authorized service providers holding significant influence. While the overall market for laboratory equipment is substantial, contracts for the maintenance of specific, high-value instruments like SARTORIUS Incucyte systems represent a niche within this sector. Benchmarking spending in this area is challenging without more data on comparable service agreements.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of maintaining SARTORIUS instruments, it is possible that only a limited number of vendors, potentially including larger firms or authorized service partners, can provide the required expertise. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.

Oversight & Accountability

The contract is a purchase order issued by the Department of Health and Human Services, National Institutes of Health. Oversight would typically be managed by the contracting officer and program officials responsible for the laboratory equipment. Transparency is limited due to the lack of detailed justification for the limited competition. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NIH Equipment Maintenance Contracts
SARTORIUS Instrument Service Agreements
Laboratory Equipment Repair Services

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $38,484.5 to SARTORIUS CORPORATION. THE CONTRACTOR SHALL PROVIDE THE NIA WITH MAINTENANCE AND REPAIR SUPPORT FOR THE FOLLOWING SARTORIUS INSTRUMENTS: INCUCYTE S3 CO2 INCUBATOR SERIAL NO: IC51362 AND INCUCYTE SX5 CO2 INCUBATOR SERIAL NO: IC70351.

Who is the contractor on this award?

The obligated recipient is SARTORIUS 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 $38,484.5.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the track record of SARTORIUS CORPORATION in providing maintenance services to federal agencies?

SARTORIUS CORPORATION is a well-established manufacturer of laboratory instruments and equipment. Their track record in providing maintenance services to federal agencies, particularly for their Incucyte line, is likely strong given their OEM status. However, the specific performance history for this particular contract or similar maintenance agreements with NIH would require a deeper dive into contract databases and performance reports. Without specific data on past performance metrics, it's difficult to definitively assess their track record beyond their general reputation as an equipment provider. Federal agencies often rely on OEMs for specialized maintenance due to proprietary knowledge and parts access, which can influence the decision-making process even when competition is limited.

How does the awarded amount compare to market rates for similar instrument maintenance services?

Benchmarking the $38,484.50 award for one year of maintenance on two SARTORIUS Incucyte CO2 incubators against market rates is challenging without more specific information. The value is influenced by factors such as the specific models of the incubators, the scope of the maintenance agreement (e.g., preventative vs. on-demand, parts included), and the geographic location. Typically, OEM maintenance contracts for sophisticated laboratory equipment can be substantial. However, the absence of competitive bidding makes it difficult to ascertain if this price represents fair market value or if a more competitive process could have yielded a lower cost. A comparative analysis with similar contracts awarded through competitive processes for comparable equipment would be necessary for a robust assessment.

What are the primary risks associated with this limited competition contract?

The primary risks associated with this limited competition contract are financial and operational. Financially, the lack of competition increases the risk of paying a premium price for the maintenance services, as there was no opportunity for market forces to drive down costs. Operationally, if SARTORIUS CORPORATION is the sole provider of authorized maintenance and parts, NIH is dependent on their availability and service quality. Any disruptions in service could impact critical research activities. Furthermore, the limited competition approach itself poses a risk to the perception of fiscal responsibility and efficient use of taxpayer funds, as it bypasses standard procurement practices designed to ensure best value.

How effective is the current maintenance plan in ensuring the long-term operational readiness of the SARTORIUS instruments?

The effectiveness of the current maintenance plan in ensuring long-term operational readiness hinges on the comprehensiveness of the services provided under the $38,484.50 contract and the quality of execution by SARTORIUS CORPORATION. As a firm-fixed-price contract for one year, it likely covers scheduled preventative maintenance and potentially some level of repair support. However, the plan's long-term effectiveness depends on whether it adequately addresses potential component failures, technological obsolescence, and the evolving needs of the research conducted using these incubators. Without detailed service level agreements and performance metrics, it's difficult to definitively assess its long-term efficacy. Continued monitoring of equipment uptime and repair turnaround times would be crucial indicators.

What is the historical spending pattern for SARTORIUS instrument maintenance at NIH?

Analyzing historical spending patterns for SARTORIUS instrument maintenance at NIH is crucial for context. This specific $38,484.50 award represents a single year of service for two units. To understand the pattern, one would need to examine previous contracts for the maintenance of these specific Incucyte S3 and SX5 models, or similar SARTORIUS equipment, over several years. This would reveal trends in contract values, duration, competition levels, and the frequency of maintenance needs. A significant increase or decrease in spending, or a consistent reliance on limited competition for such services, would provide valuable insights into NIH's procurement strategies and the overall cost of maintaining this type of equipment within the agency.

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

Parent Company: Sartorius Aktiengesellschaft

Address: 545 JOHNSON AVE STE 1, BOHEMIA, NY, 11716

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $38,485

Exercised Options: $38,485

Current Obligation: $38,485

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline