HHS awards $21.6K for electronic temperature monitoring, raising questions about competition and value

Contract Overview

Contract Amount: $21,593 ($21.6K)

Contractor: Rees Scientific Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-24

End Date: 2027-04-23

Contract Duration: 364 days

Daily Burn Rate: $59/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REES SCIENTIFIC ELECTRONIC TEMPERATURE MONITORING SYSTEM SERVICE REES SCIENTIFIC:1106674 [26-003181]

Place of Performance

Location: EWING, MERCER County, NEW JERSEY, 08638

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21,593.43 to REES SCIENTIFIC CORPORATION for work described as: REES SCIENTIFIC ELECTRONIC TEMPERATURE MONITORING SYSTEM SERVICE REES SCIENTIFIC:1106674 [26-003181] Key points: 1. Contract awarded to REES SCIENTIFIC CORPORATION for temperature monitoring services. 2. The contract duration is 364 days, with a total value of $21,593.43. 3. Awarded by the National Institutes of Health (NIH), part of HHS. 4. The contract type is Firm Fixed Price. 5. The Product Service Code (PSC) is not specified, hindering detailed analysis. 6. The North American Industry Classification System (NAICS) code is 339998 (All Other Miscellaneous General Purpose Machinery Manufacturing).

Value Assessment

Rating: questionable

The contract value of $21,593.43 for a one-year service contract appears relatively low for federal standards. Without specific details on the scope of services, it's difficult to benchmark against similar contracts. However, the lack of competition and the nature of the service (electronic temperature monitoring) suggest that pricing could potentially be higher than if it were competitively bid. Further investigation into the specific equipment and service level agreements is needed to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition award. The data explicitly states 'NOT COMPETED UNDER SAP'. This lack of open competition means that potential alternative vendors were not considered, which can lead to higher prices and less innovation. The government did not solicit bids from multiple sources, limiting the opportunity for price discovery and potentially overlooking more cost-effective solutions.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price, potentially leading to inefficient use of federal funds.

Public Impact

The National Institutes of Health (NIH) will benefit from the continued operation of its electronic temperature monitoring systems. This service ensures the integrity and proper storage conditions for sensitive materials, likely including research samples and pharmaceuticals. The geographic impact is localized to the NIH facilities in New Jersey, where REES SCIENTIFIC CORPORATION is based. The contract supports specialized technical services related to maintaining critical infrastructure for scientific research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value.
Absence of a specified Product Service Code (PSC) hinders a thorough understanding of the services procured.
The contract's sole-source nature limits opportunities for small businesses to compete for this service.

Positive Signals

The contract ensures continuity of essential temperature monitoring services for NIH.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, REES SCIENTIFIC CORPORATION, is based in New Jersey, potentially supporting local economic activity.

Sector Analysis

The contract falls under the broader manufacturing sector, specifically related to general purpose machinery. Within the federal procurement landscape, contracts for specialized monitoring and control systems are common across various agencies, particularly those involved in research, healthcare, and logistics. The market for electronic temperature monitoring systems is competitive, with numerous providers offering solutions ranging from basic data loggers to sophisticated networked systems. Benchmarking this specific contract's value is challenging without more detailed service specifications, but the lack of competition suggests it may not reflect the best market pricing.

Small Business Impact

This contract was not competed under SAP and does not indicate any small business set-aside provisions (ss: false, sb: false). Therefore, it does not appear to directly benefit small businesses through a set-aside. There is no information provided regarding subcontracting plans. The lack of competition means small businesses were not given an opportunity to bid on this specific requirement, potentially limiting their access to this particular federal contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officers and program managers within the National Institutes of Health (NIH). As a purchase order, it is likely managed through standard procurement procedures. Transparency is limited due to the sole-source nature and lack of detailed public information. There is no specific mention of an Inspector General (IG) being involved at this stage, but the HHS IG could investigate if specific concerns or allegations of impropriety arise.

Related Government Programs

Federal Supply Schedule (FSS) contracts for scientific equipment and services
General Services Administration (GSA) procurement vehicles
Contracts for laboratory equipment maintenance
Healthcare technology procurement
Research infrastructure support

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21,593.43 to REES SCIENTIFIC CORPORATION. REES SCIENTIFIC ELECTRONIC TEMPERATURE MONITORING SYSTEM SERVICE REES SCIENTIFIC:1106674 [26-003181]

Who is the contractor on this award?

The obligated recipient is REES SCIENTIFIC 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 $21,593.43.

What is the period of performance?

Start: 2026-04-24. End: 2027-04-23.

What is the specific scope of services provided under this contract for electronic temperature monitoring?

The provided data does not detail the specific scope of services. It is identified as 'REES SCIENTIFIC ELECTRONIC TEMPERATURE MONITORING SYSTEM SERVICE'. This likely includes the maintenance, calibration, and potentially the supply or upgrade of electronic temperature monitoring devices and associated software. Given the award is to REES SCIENTIFIC CORPORATION, it may involve their proprietary systems. A more detailed statement of work (SOW) would be required to fully understand the service deliverables, including the number of units monitored, the type of monitoring (e.g., real-time, data logging), reporting requirements, and any service level agreements (SLAs) for response times or system uptime.

How does the $21,593.43 contract value compare to similar temperature monitoring services procured by the federal government?

Direct comparison is difficult without knowing the exact scope, duration, and number of units monitored. However, $21,593.43 for a 364-day service contract is on the lower end for comprehensive federal IT or equipment maintenance contracts. Many federal agencies procure temperature monitoring solutions, often as part of larger laboratory or facility management contracts. These can range from tens of thousands to millions of dollars depending on scale. The value here suggests a localized or limited deployment, possibly for a specific lab or a small set of equipment. The lack of competition, however, prevents a definitive assessment of whether this price represents good value compared to what could be achieved through competitive bidding.

What are the primary risks associated with a sole-source award for electronic temperature monitoring systems?

The primary risks associated with a sole-source award include potential overpricing, reduced quality, and lack of innovation. Without competition, REES SCIENTIFIC CORPORATION faces less pressure to offer the most cost-effective solution or to continuously improve its service offerings. There's also a risk that the chosen system may not be the best fit for NIH's evolving needs if alternatives were not explored. Furthermore, a sole-source award can create a perception of favoritism or inefficiency, even if the contractor is performing adequately. The government misses the opportunity to discover potentially superior or more economical solutions available in the market.

What is the track record of REES SCIENTIFIC CORPORATION in fulfilling federal contracts?

The provided data indicates this is a purchase order awarded to REES SCIENTIFIC CORPORATION. To assess their track record, one would need to examine their past performance on federal contracts, including contract values, durations, agencies served, and any performance reviews or past performance evaluations available in federal procurement databases like SAM.gov or FPDS. Without this historical data, it's challenging to gauge their reliability, experience, and success in delivering similar services to the government. A review of their contract history would reveal if they have a pattern of successful awards or any past performance issues.

How does the NAICS code 339998 (All Other Miscellaneous General Purpose Machinery Manufacturing) align with electronic temperature monitoring services?

The NAICS code 339998, 'All Other Miscellaneous General Purpose Machinery Manufacturing,' is somewhat broad and may not perfectly capture the service aspect of electronic temperature monitoring. This code typically relates to the manufacturing of machinery not classified elsewhere, which could include components or systems used in temperature monitoring. However, the contract is for 'SERVICE,' suggesting it might be more accurately classified under a maintenance, repair, or professional services category if such codes were available or prioritized. The selection of a manufacturing code for a service contract could indicate an administrative classification choice or a focus on the system's hardware origin rather than its ongoing operational support.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › All Other Miscellaneous General Purpose Machinery Manufacturing

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: 1007 WHITEHEAD ROAD EXT, EWING, NJ, 08638

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

Financial Breakdown

Contract Ceiling: $21,593

Exercised Options: $21,593

Current Obligation: $21,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline