NIMH awards $6.2M contract for reverse osmosis water systems to support animal research facilities

Contract Overview

Contract Amount: $62,310 ($62.3K)

Contractor: Neu-Ion, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-07

End Date: 2027-04-06

Contract Duration: 364 days

Daily Burn Rate: $171/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE NATIONAL INSTITUTE OF MENTAL HEALTH REQUIRES A CENTRAL REVERSE OSMOSIS SYSTEM THAT PROVIDES AND DELIVERS RO WATER TO THE CENTRAL ANIMAL FACILITY (CAF) AND ALL THE MULTI-IC LABORATORIES THROUGHOUT BUILDING 49.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $62,310 to NEU-ION, INC. for work described as: THE NATIONAL INSTITUTE OF MENTAL HEALTH REQUIRES A CENTRAL REVERSE OSMOSIS SYSTEM THAT PROVIDES AND DELIVERS RO WATER TO THE CENTRAL ANIMAL FACILITY (CAF) AND ALL THE MULTI-IC LABORATORIES THROUGHOUT BUILDING 49. Key points: 1. The contract aims to ensure a reliable supply of purified water for critical research operations. 2. The chosen solution addresses the specific needs of animal facilities and multi-IC laboratories. 3. The duration of the contract suggests a long-term commitment to maintaining research infrastructure. 4. The fixed-price nature of the award provides cost certainty for the agency. 5. The procurement method indicates potential limitations in competitive bidding for this specialized requirement.

Value Assessment

Rating: fair

The contract value of $6.2 million for a reverse osmosis system over one year appears to be within a reasonable range for specialized laboratory equipment and maintenance. Benchmarking against similar large-scale water purification systems for research facilities is challenging without more detailed specifications. However, the cost should be evaluated against the system's capacity, purity levels, and expected lifespan to ensure value for money. The absence of competitive bidding makes a direct price comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), suggesting it was likely procured through a sole-source or limited competition process due to specialized requirements. The lack of open competition means that the government may not have received the benefit of the lowest possible price achievable through a broader bidding process. Further details on the justification for not competing are needed to fully assess the procurement strategy.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure to drive down costs. The absence of multiple bids limits transparency in price discovery.

Public Impact

The National Institute of Mental Health (NIMH) benefits from a reliable water supply for its research. Researchers and animal care staff in Building 49 will have access to purified water essential for experiments. The contract supports critical biomedical research, potentially leading to advancements in mental health understanding. The geographic impact is localized to the National Institutes of Health campus in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Potential for vendor lock-in if specialized maintenance is required.
Limited transparency in the procurement process due to sole-source award.

Positive Signals

Addresses a critical need for specialized research infrastructure.
Ensures continuity of essential research operations.
Fixed-price contract provides budget predictability.

Sector Analysis

The market for industrial water purification systems, particularly those meeting stringent laboratory standards, is specialized. This contract falls within the broader industrial machinery and equipment sector. Companies operating in this space often provide integrated solutions including installation, maintenance, and ongoing supply of consumables. The value of this contract is significant for a single system, indicating a substantial requirement for high-purity water in a research setting.

Small Business Impact

The data indicates this contract was not competed under SAP and does not specify small business set-asides or subcontracting plans. Without further information, it is difficult to assess the impact on small businesses. Typically, sole-source awards for specialized equipment may not offer significant opportunities for small business participation unless the prime contractor actively engages them for subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH) and the Department of Health and Human Services (HHS). The contract is a Purchase Order, which generally has defined terms and conditions. Accountability will be measured by the contractor's adherence to the delivery and performance requirements outlined in the order. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

NIH Research Infrastructure Support
Laboratory Equipment Procurement
Water Treatment Systems
Animal Research Facility Operations

Risk Flags

Sole-source procurement limits price competition.
Potential for vendor lock-in on specialized equipment maintenance.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $62,310 to NEU-ION, INC.. THE NATIONAL INSTITUTE OF MENTAL HEALTH REQUIRES A CENTRAL REVERSE OSMOSIS SYSTEM THAT PROVIDES AND DELIVERS RO WATER TO THE CENTRAL ANIMAL FACILITY (CAF) AND ALL THE MULTI-IC LABORATORIES THROUGHOUT BUILDING 49.

Who is the contractor on this award?

The obligated recipient is NEU-ION, 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 $62,310.

What is the period of performance?

Start: 2026-04-07. End: 2027-04-06.

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

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' which often implies a sole-source or limited competition justification. For a contract of this value and nature, the justification likely stems from the highly specialized technical requirements of a reverse osmosis system capable of delivering purified water to specific research laboratories and animal facilities. This could include unique purity standards, flow rates, integration with existing building infrastructure, or specific maintenance needs that only one vendor, Neu-Ion, Inc., can meet. A formal Justification for Other Than Full and Open Competition (JOFOC) would typically be required and documented by the agency to support such a sole-source award, detailing why full and open competition was not feasible or not in the government's best interest.

How does the $6.2 million cost compare to similar reverse osmosis systems for research facilities?

Benchmarking the $6.2 million cost for this reverse osmosis system is challenging without detailed specifications and market data for comparable systems. However, for a system designed to serve an entire facility with multiple laboratories and animal housing, this figure could be reasonable, especially if it includes installation, initial setup, and a comprehensive maintenance plan for the contract duration. Typically, large-scale, high-purity water systems for research environments can range from hundreds of thousands to several million dollars, depending on capacity, redundancy, water quality standards (e.g., USP, ASTM), and service agreements. The lack of competitive bidding makes a direct price-to-value assessment difficult, but the agency should have internal benchmarks or have sought pricing information to ensure the cost is fair and reasonable.

What are the potential risks associated with a sole-source award for this critical infrastructure?

A primary risk of a sole-source award is the potential for inflated pricing, as the contractor faces no direct competition to offer the most cost-effective solution. Another significant risk is vendor lock-in; if Neu-Ion, Inc. is the only provider capable of servicing and maintaining this specific system, the government may be dependent on them for future repairs, parts, and upgrades, potentially at non-competitive rates. This dependency could also extend to the availability of critical components or specialized technical support. Furthermore, the lack of a competitive process reduces transparency and limits the government's ability to explore alternative technologies or solutions that might emerge in the market.

What is the expected performance and reliability of the system over its contract life?

The contract is for a one-year period with a total value of $6.2 million, suggesting a significant investment. While the specific performance metrics are not detailed, the system is expected to reliably provide purified reverse osmosis water to the Central Animal Facility (CAF) and all multi-IC laboratories throughout Building 49. Reliability is paramount in research settings to prevent experimental disruptions and ensure animal welfare. The contract likely includes service level agreements (SLAs) or performance standards that Neu-Ion, Inc. must meet, covering aspects like water purity levels, system uptime, and response times for maintenance or repairs. The fixed-price nature implies the contractor bears the risk of cost overruns related to meeting these performance expectations.

How does this spending compare to historical investments in similar research support infrastructure at NIH?

Without access to historical NIH spending data specifically for reverse osmosis systems or comparable laboratory support infrastructure, a direct comparison is difficult. However, $6.2 million for a single, critical system over one year represents a substantial investment. NIH, as a leading biomedical research agency, consistently invests in state-of-the-art facilities and equipment. This expenditure should be viewed within the context of the agency's overall budget for facilities maintenance and research support. It is likely that NIH procures various specialized systems annually, and the cost reflects the complexity and essential nature of providing high-purity water for sensitive research operations, including animal care.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) 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: 2555 LORD BALTIMORE DR STE D, BALTIMORE, MD, 21244

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Manufacturer of Goods, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $62,310

Exercised Options: $62,310

Current Obligation: $62,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline