USDA awards $3.75M for biorepository transfer support to Merrick & Company under a sole-source contract

Contract Overview

Contract Amount: $3,751,577 ($3.8M)

Contractor: Merrick & Company

Awarding Agency: Department of Agriculture

Start Date: 2025-09-01

End Date: 2026-06-30

Contract Duration: 302 days

Daily Burn Rate: $12.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BIOREPOSITORY TRANSFER SUPPORT

Place of Performance

Location: ORIENT, SUFFOLK County, NEW YORK, 11957

State: New York Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.8 million to MERRICK & COMPANY for work described as: BIOREPOSITORY TRANSFER SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings from competition. 2. The contract duration of 302 days suggests a focused, short-term need for specialized services. 3. The firm fixed-price structure provides cost certainty for the government but may limit flexibility. 4. The service category (Testing Laboratories and Services) indicates a need for scientific or technical expertise. 5. The award is a delivery order, implying it's part of a larger, potentially pre-existing contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $3.75 million contract is challenging without more detailed service descriptions and comparable contract data. The firm fixed-price nature suggests the government has a clear understanding of the scope and associated costs. However, the absence of competition means there's no market-driven validation of the pricing. Further analysis would require comparing the unit costs or overall project cost against similar biorepository transfer projects or testing services, if available, to determine if the price is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities, qualifications, or proprietary technology required for the service. The lack of competition means there were no other bidders, and therefore, no direct price comparison or negotiation leverage derived from a competitive bidding process.

Taxpayer Impact: The absence of competition for this $3.75 million contract means taxpayers may not have benefited from the potential cost savings that can arise from a competitive bidding environment. Without multiple offers, it's harder to ensure the government secured the best possible price.

Public Impact

The primary beneficiaries are likely the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS), which requires specialized support for its biorepository. The services delivered will involve the transfer and management of biological materials within a biorepository, crucial for research, diagnostics, or regulatory functions. The geographic impact is centered in New York (NY), where the contractor is located or where the services will be performed. The contract supports specialized scientific and technical roles within the biorepository sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-sourcing could obscure potential alternatives.
Firm fixed-price contract may not allow for adjustments if unforeseen complexities arise, potentially leading to scope creep or change orders.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Delivery order structure suggests efficient utilization of an existing contract vehicle.
Specialized nature of the service implies the contractor possesses unique expertise.

Sector Analysis

The contract falls within the 'Testing Laboratories and Services' sector, specifically supporting biorepository operations. This sector is critical for scientific research, public health, and regulatory compliance across various government agencies. The market for biorepository services is specialized, often involving stringent requirements for sample integrity, storage, and chain of custody. Spending in this area can fluctuate based on research priorities, disease outbreaks, and regulatory changes. Comparable spending benchmarks would typically involve analyzing other government contracts for similar laboratory testing, sample management, and logistics services.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, there are no direct implications for small business subcontracting opportunities stemming from this specific award. The focus is on a prime contractor, Merrick & Company, which is likely a larger entity capable of handling specialized biorepository transfer support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS). As a delivery order under a potentially larger contract vehicle, oversight might be managed through established procedures for task orders. Transparency regarding the sole-source justification and performance metrics would be key accountability measures. The Inspector General's office for the Department of Agriculture would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Biorepository Management Services
Laboratory Testing and Analysis
Biological Sample Storage and Handling
Scientific Research Support Services
Government Contract Vehicles

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.8 million to MERRICK & COMPANY. BIOREPOSITORY TRANSFER SUPPORT

Who is the contractor on this award?

The obligated recipient is MERRICK & COMPANY.

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 $3.8 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-06-30.

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

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE SOURCE'. A detailed justification would typically be documented by the agency (Department of Agriculture, APHIS) outlining why only Merrick & Company could fulfill the requirement. This could be due to proprietary technology, unique expertise, critical urgency where no other vendor could respond in time, or if the requirement is a logical follow-on to a previous contract where only the original contractor could provide the necessary services without substantial duplication of cost. Without access to the agency's justification documentation, the precise reason remains unknown, but it implies a lack of readily available alternatives.

How does the $3.75 million cost compare to similar biorepository transfer support contracts?

Direct comparison of the $3.75 million cost is difficult without specific details on the scope of services, quantity of materials transferred, duration of support, and the specific types of biological samples involved. Biorepository services can range significantly in price based on complexity, security requirements, and regulatory compliance needs. To benchmark this contract, one would need to identify other federal or large-scale private sector contracts for similar biorepository transfer and management services, analyze their total value, duration, and the specific deliverables. The fact that this is a sole-source award also complicates direct price comparison, as competitive market forces were not applied.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this 'BIOREPOSITORY TRANSFER SUPPORT' contract. However, typical deliverables for such a service would likely include the successful and secure transfer of biological samples, accurate inventory management, maintenance of chain of custody, adherence to strict storage conditions (temperature, humidity, etc.), and timely reporting. KPIs might focus on the percentage of samples transferred without integrity loss, the accuracy of inventory records, compliance with all relevant regulations (e.g., HIPAA, biosafety standards), and on-time completion of transfer milestones. The agency would define these in the contract's Statement of Work (SOW).

What is Merrick & Company's track record with similar government contracts, particularly sole-source awards?

Merrick & Company has a history of performing various services for government agencies, including engineering, architecture, and construction management. Information regarding their specific track record with biorepository transfer support, especially concerning sole-source awards, would require a deeper dive into federal procurement databases like SAM.gov or FPDS. Analyzing past performance evaluations (e.g., CPARS) for similar contracts would provide insight into their reliability, quality of work, and adherence to schedule and budget. Understanding the frequency and justification of their sole-source awards in the past would also be relevant to assessing this particular contract's context.

What is the potential risk associated with a sole-source award for critical biorepository services?

The primary risk associated with a sole-source award for critical biorepository services is the potential for inflated costs due to the lack of competitive pressure. Taxpayers may end up paying more than necessary if the contractor does not have a strong incentive to offer the most competitive pricing. Additionally, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility or access to innovation. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source situations to mitigate these risks and guarantee value for money.

How does this contract align with the Department of Agriculture's broader mission and research objectives?

This contract for biorepository transfer support likely aligns with the Department of Agriculture's (USDA) mission to ensure the nation's agricultural vitality, environmental sustainability, and economic prosperity. Specifically, the Animal and Plant Health Inspection Service (APHIS) uses biorepositories for various purposes, including disease surveillance, research into agricultural pests and diseases, conservation of genetic resources, and development of countermeasures. The transfer and management of biological samples are fundamental to these activities, enabling scientific advancement, regulatory decision-making, and the protection of U.S. agriculture and ecosystems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5970 GREENWOOD PLAZA BLVD, GREENWOOD VILLAGE, CO, 80011

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

Financial Breakdown

Contract Ceiling: $3,751,577

Exercised Options: $3,751,577

Current Obligation: $3,751,577

Actual Outlays: $1,500,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12639524D0072

IDV Type: IDC

Timeline