USDA awards $210K for Waters LC/MS repair, highlighting need for specialized instrument maintenance

Contract Overview

Contract Amount: $21,027 ($21.0K)

Contractor: Waters Technologies Corporation

Awarding Agency: Department of Agriculture

Start Date: 2024-09-13

End Date: 2024-12-12

Contract Duration: 90 days

Daily Burn Rate: $234/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICE CONTRACT FOR WATERS TQD LC-MS/MS (SERIAL NUMBER QBA365) TO PERFORM REPAIR DIAGNOSIS, ACQUIRE REPLACEMENT PARTS, AND THEN INSTALL, SETUP, AND ADJUST ANY NEW PARTS.

Place of Performance

Location: MILFORD, WORCESTER County, MASSACHUSETTS, 01757

State: Massachusetts Government Spending

Plain-Language Summary

Department of Agriculture obligated $21,027 to WATERS TECHNOLOGIES CORPORATION for work described as: SERVICE CONTRACT FOR WATERS TQD LC-MS/MS (SERIAL NUMBER QBA365) TO PERFORM REPAIR DIAGNOSIS, ACQUIRE REPLACEMENT PARTS, AND THEN INSTALL, SETUP, AND ADJUST ANY NEW PARTS. Key points: 1. The contract addresses critical repair and maintenance for analytical laboratory instruments, essential for food safety. 2. A single-source award suggests potential limitations in competitive sourcing for this specific instrument service. 3. The short duration (90 days) indicates a focus on immediate repair needs rather than long-term service agreements. 4. The firm-fixed-price structure aims to control costs for the repair and parts acquisition. 5. This spending supports the operational readiness of the Food Safety and Inspection Service's analytical capabilities.

Value Assessment

Rating: fair

The contract value of $210,270 for a 90-day repair and parts acquisition appears reasonable for specialized analytical instrument services. However, without direct comparisons to similar repair contracts for Waters LC/MS/MS systems or detailed breakdowns of parts and labor costs, a definitive value-for-money assessment is challenging. The firm-fixed-price nature provides cost certainty, but the lack of competition limits the opportunity for price discovery and potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating a sole-source award to Waters Technologies Corporation. This approach is often taken when a specific manufacturer's proprietary equipment requires specialized knowledge, parts, or tools only available from the original equipment manufacturer. The lack of competition means that the government did not explore alternative vendors or potentially more cost-effective solutions that might have emerged from a competitive bidding process.

Taxpayer Impact: For taxpayers, a sole-source award can mean paying a premium for services and parts, as there is no competitive pressure to drive down prices. This can lead to less efficient use of public funds compared to a competed contract.

Public Impact

The primary beneficiaries are the Department of Agriculture's Food Safety and Inspection Service (FSIS), ensuring their analytical laboratories can continue to operate effectively. The services delivered include diagnosis, parts acquisition, installation, setup, and adjustment of a Waters TQD LC/MS/MS instrument. The geographic impact is localized to the facility where the instrument is located, likely within Massachusetts given the state code. The contract supports specialized technical roles related to the maintenance and repair of advanced scientific instrumentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings for taxpayers.
Lack of detailed cost breakdown makes it difficult to assess the reasonableness of parts and labor charges.
Short contract duration may indicate a reactive approach to maintenance rather than proactive, long-term service planning.

Positive Signals

Addresses a critical need for specialized repair of essential food safety analytical equipment.
Firm-fixed-price contract provides cost certainty for the defined scope of work.
Award to the original equipment manufacturer ensures use of genuine parts and manufacturer-specific expertise.

Sector Analysis

The market for analytical laboratory instruments, particularly mass spectrometry (LC/MS/MS), is highly specialized. Companies like Waters Technologies Corporation dominate the manufacturing and servicing of their proprietary equipment. Federal agencies rely on these instruments for critical functions such as food safety testing, environmental monitoring, and scientific research. Spending in this sector often involves high-value equipment and requires ongoing maintenance and repair contracts, which can be dominated by original equipment manufacturers due to the need for specialized knowledge and parts.

Small Business Impact

This contract was awarded directly to Waters Technologies Corporation, the original equipment manufacturer, and there is no indication of a small business set-aside. Given the specialized nature of the equipment and the sole-source award, it is unlikely that small businesses would be directly involved as prime contractors for this specific repair. Subcontracting opportunities for small businesses are not explicitly mentioned but could potentially arise if Waters utilizes external suppliers for certain components or services, though this is not guaranteed.

Oversight & Accountability

The contract is a purchase order issued by the Department of Agriculture, specifically the Food Safety and Inspection Service. Oversight would typically involve contract officers and program managers within FSIS responsible for ensuring the work is performed according to the terms and conditions of the purchase order. Transparency is limited due to the sole-source nature and the lack of public competition details. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

Analytical Laboratory Services
Scientific Instrument Maintenance
Food Safety Testing Equipment
Mass Spectrometry Services
Department of Agriculture Procurement

Risk Flags

Sole-source award may limit cost savings.
Lack of competition could impact price discovery.
Potential for higher costs due to lack of competitive bidding.
Dependence on a single vendor for critical repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $21,027 to WATERS TECHNOLOGIES CORPORATION. SERVICE CONTRACT FOR WATERS TQD LC-MS/MS (SERIAL NUMBER QBA365) TO PERFORM REPAIR DIAGNOSIS, ACQUIRE REPLACEMENT PARTS, AND THEN INSTALL, SETUP, AND ADJUST ANY NEW PARTS.

Who is the contractor on this award?

The obligated recipient is WATERS TECHNOLOGIES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $21,027.

What is the period of performance?

Start: 2024-09-13. End: 2024-12-12.

What is the track record of Waters Technologies Corporation in providing repair services for LC/MS/MS instruments to federal agencies?

Waters Technologies Corporation is a leading manufacturer of analytical instruments, including Liquid Chromatography-Mass Spectrometry (LC/MS/MS) systems. They have a well-established reputation for providing high-quality instruments and associated services, including maintenance, repair, and training, to various sectors, including government agencies. Federal agencies, such as those within the Department of Agriculture, Health and Human Services, and the Environmental Protection Agency, frequently utilize Waters' equipment for critical testing and research. While specific contract performance data for every repair is not publicly aggregated, Waters' continued presence as a sole-source provider for many agencies suggests a generally satisfactory track record in delivering necessary technical support and spare parts for their complex instrumentation.

How does the $210,270 contract value compare to typical repair costs for similar analytical instruments?

The contract value of $210,270 for a 90-day repair, parts acquisition, installation, and setup of a Waters TQD LC/MS/MS system is substantial but not necessarily outside the expected range for specialized analytical instrument services. These instruments are complex, high-precision equipment requiring expert technicians and often proprietary replacement parts. A single repair event, especially if it involves significant component replacement or extensive diagnostic work, can easily run into tens or even hundreds of thousands of dollars. Without a detailed breakdown of the costs (e.g., labor hours, specific parts replaced, diagnostic fees), it's difficult to benchmark precisely. However, compared to routine maintenance contracts or simpler equipment repairs, this figure reflects the high-value, specialized nature of the service.

What are the primary risks associated with a sole-source award for critical laboratory equipment repair?

The primary risks associated with a sole-source award for critical laboratory equipment repair include a lack of price competition, which can lead to higher costs for the government compared to a competitively bid contract. There's also a potential risk of reduced service quality or responsiveness if the sole provider faces no competitive pressure to maintain high standards. Furthermore, reliance on a single vendor can create vulnerabilities if that vendor experiences financial difficulties, supply chain disruptions, or decides to discontinue support for older models. For critical equipment like LC/MS/MS systems used in food safety, any disruption in service or parts availability due to vendor issues could have significant operational and public health implications.

How does this contract contribute to the overall effectiveness of the Food Safety and Inspection Service (FSIS)?

This contract directly contributes to the operational effectiveness of the FSIS by ensuring that essential analytical laboratory instruments, specifically the Waters TQD LC/MS/MS system, are functional and capable of performing their intended tasks. These instruments are crucial for detecting contaminants, pathogens, and other substances in food products, which is fundamental to FSIS's mission of protecting public health. By addressing repair needs, acquiring necessary parts, and ensuring proper installation and setup, the contract helps maintain the integrity and reliability of the FSIS's testing capabilities, thereby supporting informed regulatory decisions and safeguarding the nation's food supply.

What are the historical spending patterns for analytical instrument maintenance within the Department of Agriculture?

Historical spending patterns for analytical instrument maintenance within the Department of Agriculture (USDA) generally show consistent investment in laboratory equipment upkeep, reflecting the agency's reliance on advanced scientific tools for its various missions, including food safety, agricultural research, and environmental monitoring. Spending often involves a mix of original equipment manufacturer (OEM) service contracts, ad-hoc repair services, and the purchase of spare parts. Agencies like the Food Safety and Inspection Service (FSIS) and the Agricultural Research Service (ARS) are significant spenders in this category. While specific figures fluctuate based on equipment lifecycles and repair needs, the overall trend indicates a sustained requirement for specialized maintenance to ensure the accuracy and reliability of critical testing and analytical processes.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument 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: 34 MAPLE ST, MILFORD, MA, 01757

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

Financial Breakdown

Contract Ceiling: $21,027

Exercised Options: $21,027

Current Obligation: $21,027

Actual Outlays: $21,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline