HHS awards $222K for wire shelving, with VWR International securing the contract

Contract Overview

Contract Amount: $22,239 ($22.2K)

Contractor: VWR International, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2013-09-18

End Date: 2014-01-31

Contract Duration: 135 days

Daily Burn Rate: $165/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIRE SHELVING UNITS

Place of Performance

Location: WAYNE, DELAWARE County, PENNSYLVANIA, 19087

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22,239 to VWR INTERNATIONAL, LLC for work described as: WIRE SHELVING UNITS Key points: 1. The contract value appears modest, suggesting a focus on specific needs rather than large-scale procurement. 2. Competition dynamics for this contract were favorable, indicating potential for competitive pricing. 3. The short performance period suggests a time-sensitive requirement or a pilot program. 4. The fixed-price contract type offers cost certainty for the government. 5. The product category, while specific, is essential for laboratory or storage operations.

Value Assessment

Rating: good

The contract value of $222,390 for wire shelving units is relatively small in the context of federal procurement. Benchmarking against similar contracts for laboratory or storage equipment would be necessary for a precise value-for-money assessment. However, given the full and open competition, it is likely that the pricing was competitive. The fixed-price nature of the award provides cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the designation suggests a robust competitive process. This level of competition generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price for the required goods, ensuring that federal funds are used efficiently.

Public Impact

The Food and Drug Administration (FDA) is the primary beneficiary, likely using the shelving for laboratory or storage purposes. The services delivered include the provision of essential wire shelving units. The geographic impact is localized to the FDA facility in Pennsylvania where the shelving will be deployed. There are no significant workforce implications directly tied to this specific contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a fair and accessible process.
Firm fixed-price contract type provides cost certainty.
The contracting agency is a key federal health regulator, suggesting a need for reliable supplies.

Sector Analysis

The procurement of wire shelving units falls under the broader category of general supplies and equipment manufacturing. This specific contract is a small component within the vast federal acquisition landscape. Comparable spending benchmarks for laboratory or storage equipment can vary widely depending on specifications, quantity, and vendor. The market for such items is generally competitive, with numerous manufacturers and distributors.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, VWR International, LLC, is a large corporation. Therefore, this specific award does not directly contribute to the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Drug Administration's contracting officers and program managers. Accountability is ensured through the terms of the firm fixed-price contract, requiring delivery of specified goods by a certain date. Transparency is facilitated by the public availability of contract award data.

Related Government Programs

Laboratory Equipment Procurement
General Services Administration (GSA) Schedules
Federal Supply Schedule (FSS) Contracts

Risk Flags

Potential NAICS code misclassification.
Limited detail on number of bidders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22,239 to VWR INTERNATIONAL, LLC. WIRE SHELVING UNITS

Who is the contractor on this award?

The obligated recipient is VWR INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $22,239.

What is the period of performance?

Start: 2013-09-18. End: 2014-01-31.

What is the typical lifespan and durability of wire shelving units procured by federal agencies?

The typical lifespan and durability of wire shelving units can vary significantly based on the material, gauge of the wire, coating (e.g., chrome, epoxy, stainless steel), and the environment in which they are used. For federal agencies, especially those in laboratory settings like the FDA, durability and resistance to corrosion or contamination are often key considerations. High-quality stainless steel or epoxy-coated units can last for many years, often exceeding a decade, under normal use. Factors such as weight load, frequency of use, exposure to chemicals or moisture, and cleaning protocols all influence longevity. Agencies often specify materials and construction standards to ensure units meet demanding operational requirements and provide a long-term return on investment, even if the initial purchase price is higher.

How does the $222,390 contract value compare to other federal spending on similar shelving or storage solutions?

The $222,390 contract value for wire shelving units is relatively modest within the broader scope of federal spending on storage and equipment. Federal agencies procure a vast array of storage solutions, ranging from basic shelving to highly specialized, climate-controlled storage systems for sensitive materials. Contracts for large-scale warehouse shelving, mobile storage systems, or specialized laboratory casework can easily run into millions of dollars. This particular award suggests a need for a specific quantity of standard wire shelving, likely for a particular laboratory, office, or storage area within the FDA. When compared to the total federal expenditure on facilities and equipment, this contract represents a small, targeted purchase.

What are the potential risks associated with a firm fixed-price contract for physical goods like wire shelving?

Firm fixed-price (FFP) contracts are generally preferred for their cost certainty, but they do carry certain risks. For the government, the primary risk is that the contractor may deliver substandard quality to maximize profit, especially if oversight is lax. If the contractor underestimates costs or encounters unforeseen production issues, they bear the financial loss, which could potentially lead to delays or even contract termination if the contractor becomes insolvent. For the contractor, the risk lies in accurately estimating all costs, including materials, labor, overhead, and profit. Unexpected increases in raw material prices or manufacturing difficulties can erode profit margins or lead to losses. However, for standardized items like wire shelving, where material costs and manufacturing processes are well-understood, the risks are generally manageable.

What does the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' NAICS code indicate about this procurement?

The NAICS code 335999, 'All Other Miscellaneous Electrical Equipment and Component Manufacturing,' appears to be a misclassification for a contract primarily for wire shelving units. Wire shelving is typically classified under manufacturing of metal shelving (e.g., NAICS 332420 - Metal Tank and Boiler (Heavy-Duty) Manufacturing, or more broadly under fabricated metal product manufacturing). Electrical equipment manufacturing involves the production of items like wires, cables, circuit breakers, switches, and lighting fixtures. It is possible that the shelving units have some minor electrical components, or that the classification was applied incorrectly during data entry or reporting. This discrepancy warrants further investigation to ensure accurate categorization of federal spending and to understand the true nature of the goods procured.

What is VWR International, LLC's track record with federal contracts, particularly for laboratory supplies?

VWR International, LLC (now part of Avantor) has a significant history of contracting with U.S. federal agencies, particularly for laboratory supplies, equipment, and services. They are a major distributor and manufacturer in the life sciences and advanced technologies sectors. Their federal contract portfolio often includes large, complex agreements, as well as smaller, more specific orders like this one. VWR frequently utilizes government-wide acquisition contracts (GWACs) and indefinite-delivery/indefinite-quantity (IDIQ) vehicles, as well as participating in competitive solicitations. Their extensive product catalog and established distribution network make them a common awardee for federal needs related to research, development, and testing across agencies like HHS, NIH, and DOD. Past performance reviews and contract compliance are typically assessed during the federal procurement process.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Avantor, Inc.

Address: 2039 CENTER SQUARE RD, BRIDGEPORT, NJ, 08014

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,239

Exercised Options: $22,239

Current Obligation: $22,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS24F1341C

IDV Type: FSS

Timeline