USDA's $792K Contract for Hitachi HPLC Maintenance Awarded to Hitachi High-Tech America

Contract Overview

Contract Amount: $79,260 ($79.3K)

Contractor: Hitachi High-Tech America, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-05-06

End Date: 2027-05-05

Contract Duration: 1,094 days

Daily Burn Rate: $72/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRM FIXED PRICE PREVENTATIVE MAINTENANCE SERVICES CONTRACT FOR HITACHI HPLC SYSTEMS.

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $79,259.52 to HITACHI HIGH-TECH AMERICA, INC. for work described as: FIRM FIXED PRICE PREVENTATIVE MAINTENANCE SERVICES CONTRACT FOR HITACHI HPLC SYSTEMS. Key points: 1. Contract value is $792,595.20 over three years. 2. Sole-source award to Hitachi High-Tech America, Inc. 3. Risk of higher pricing due to lack of competition. 4. Sector: Electronic and Precision Equipment Repair and Maintenance.

Value Assessment

Rating: questionable

The contract is firm fixed price, which provides cost certainty. However, without competition, it's difficult to assess if the price is optimal compared to market rates for similar maintenance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure on the vendor.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these preventative maintenance services, impacting taxpayer funds.

Public Impact

Ensures continued operation of critical Hitachi HPLC systems for the Animal and Plant Health Inspection Service. Supports USDA's mission by maintaining equipment used for testing and analysis. Potential for increased costs due to sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for overpayment without competitive benchmarking.
No small business participation noted.

Positive Signals

Firm fixed price contract provides cost certainty.
Long-term contract ensures continuity of service.

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector. Spending in this area is crucial for government agencies relying on specialized scientific and analytical equipment.

Small Business Impact

The data indicates that this contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. Further review of justification for sole-source procurement is recommended.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Agriculture Contracting
Animal and Plant Health Inspection Service Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $79,259.52 to HITACHI HIGH-TECH AMERICA, INC.. FIRM FIXED PRICE PREVENTATIVE MAINTENANCE SERVICES CONTRACT FOR HITACHI HPLC SYSTEMS.

Who is the contractor on this award?

The obligated recipient is HITACHI HIGH-TECH AMERICA, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $79,259.52.

What is the period of performance?

Start: 2024-05-06. End: 2027-05-05.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources. Without this information, it's difficult to fully assess the necessity and fairness of the procurement method. Agencies must provide detailed documentation supporting sole-source decisions to ensure accountability and prevent potential misuse of taxpayer funds.

How does the pricing compare to industry benchmarks for similar HPLC system maintenance contracts?

Benchmarking the pricing against similar contracts is challenging due to the sole-source nature of this award. A thorough market research analysis would be needed to determine if the firm fixed price of $792,595.20 is competitive. Without competitive bids, there's a risk the government is paying above market rates, impacting overall value for money.

What is the potential impact on research and testing capabilities if this maintenance contract is not effectively managed?

Failure to effectively manage this maintenance contract could lead to downtime of critical Hitachi HPLC systems. This would directly impact the Animal and Plant Health Inspection Service's ability to conduct necessary testing and analysis, potentially delaying research, compromising data integrity, and hindering the agency's mission to protect animal and plant health.

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

Solicitation ID: 12639524Q0139

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1375 N 28TH AVE, DALLAS, TX, 75261

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

Financial Breakdown

Contract Ceiling: $132,703

Exercised Options: $79,260

Current Obligation: $79,260

Actual Outlays: $52,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline