Agriculture Department awards $138K for universal testing machine, a specialized analytical instrument

Contract Overview

Contract Amount: $137,999 ($138.0K)

Contractor: Illinois Tool Works Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-09-20

End Date: 2023-12-20

Contract Duration: 91 days

Daily Burn Rate: $1.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MODEL 68TM-10 UNIVERSAL TESTING MACHINE

Plain-Language Summary

Department of Agriculture obligated $137,998.93 to ILLINOIS TOOL WORKS INC for work described as: MODEL 68TM-10 UNIVERSAL TESTING MACHINE Key points: 1. The contract value appears reasonable for a specialized piece of laboratory equipment. 2. Competition dynamics for this type of niche equipment are often limited. 3. Risk indicators are low given the short duration and firm-fixed-price nature. 4. Performance context is tied to the Agricultural Research Service's analytical needs. 5. This contract falls within the analytical laboratory instrument manufacturing sector.

Value Assessment

Rating: good

The $137,998.93 award for a universal testing machine is within the expected range for specialized scientific equipment. Benchmarking against similar analytical instruments suggests fair market value. The firm-fixed-price contract type provides cost certainty for the government, mitigating potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a full and open competition for awards below a certain threshold. While the specific number of bidders isn't detailed, SAP aims to maximize competition for smaller procurements. This approach generally leads to better price discovery and value for the government.

Taxpayer Impact: Utilizing SAP for this procurement ensures that taxpayers benefit from competitive pricing and a wider pool of potential suppliers, even for smaller contract values.

Public Impact

The primary beneficiary is the Department of Agriculture's Agricultural Research Service. The service delivered is the provision of a universal testing machine for analytical purposes. The geographic impact is likely localized to the facility where the machine is deployed. Workforce implications are minimal, primarily involving the operation and maintenance of the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm-fixed-price contract provides cost certainty.
Short contract duration limits long-term risk.
Procured via a competitive process under SAP.

Sector Analysis

The contract falls within the analytical laboratory instrument manufacturing sector, which supplies essential tools for scientific research and testing across various industries. This sector is characterized by specialized products and often requires significant R&D investment. Comparable spending benchmarks are difficult to establish without more specific details on the machine's capabilities, but the award amount is typical for a single, high-precision instrument.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award value is within the range where small businesses could potentially compete, but without specific set-aside designations, it's likely that larger manufacturers were also eligible.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Agriculture's internal procurement and financial management systems. The Agricultural Research Service would be responsible for ensuring the equipment meets specifications and is used appropriately. Transparency is facilitated by public contract databases, and Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Scientific Equipment Procurement
Department of Agriculture Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $137,998.93 to ILLINOIS TOOL WORKS INC. MODEL 68TM-10 UNIVERSAL TESTING MACHINE

Who is the contractor on this award?

The obligated recipient is ILLINOIS TOOL WORKS INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $137,998.93.

What is the period of performance?

Start: 2023-09-20. End: 2023-12-20.

What specific capabilities does the MODEL 68TM-10 UNIVERSAL TESTING MACHINE offer?

The provided data indicates the item is a 'MODEL 68TM-10 UNIVERSAL TESTING MACHINE' and falls under the Product Service Code (PSC) '334516 - Analytical Laboratory Instrument Manufacturing'. Universal testing machines are designed to perform various mechanical tests on materials, such as tensile, compression, bending, and shear tests. The specific capabilities of the '68TM-10' model would detail its load capacity, testing speed, environmental controls (if any), data acquisition features, and the types of materials it can accommodate. This information is crucial for understanding its application within the Agricultural Research Service and for accurate benchmarking against other similar equipment.

How does the $137,998.93 price compare to similar universal testing machines?

Benchmarking the $137,998.93 price requires comparing it to similar universal testing machines from other manufacturers. Prices for universal testing machines can vary significantly based on brand, capacity (e.g., maximum load), features (e.g., digital controls, extensometers, environmental chambers), and software capabilities. Entry-level machines might start in the tens of thousands of dollars, while high-capacity or specialized machines can cost several hundred thousand dollars or more. Without knowing the exact specifications of the 'MODEL 68TM-10', a precise comparison is difficult. However, the awarded amount suggests a mid-range to high-end machine, likely offering robust capabilities for its intended use within the Agricultural Research Service.

What is the typical track record of ILLINOIS TOOL WORKS INC in supplying analytical instruments to the federal government?

Illinois Tool Works Inc. (ITW) is a large, diversified manufacturing company. While ITW itself may not be primarily known as a direct supplier of analytical laboratory instruments under its corporate name, it owns numerous subsidiaries that specialize in various industrial and scientific equipment. To assess their track record for this specific contract, one would need to investigate if the subsidiary supplying this testing machine has a history of federal contracts, particularly for similar analytical equipment. Analyzing past performance, delivery timeliness, and product quality from ITW's relevant divisions would provide insight into their reliability as a government supplier for this type of specialized machinery.

What are the potential risks associated with this contract?

The risks associated with this contract appear to be relatively low. The contract is for a firm-fixed price, which caps the government's financial exposure. The duration is short (91 days), limiting the period over which issues could arise. Potential risks could include delivery delays, the machine not meeting performance specifications upon arrival, or unforeseen integration issues with existing laboratory systems. However, the competitive procurement process under SAP and the nature of acquiring a standard piece of equipment generally mitigate these risks. The Agricultural Research Service would have standard procedures for acceptance testing and warranty claims.

How does this spending align with historical federal spending on analytical laboratory instruments?

Historical federal spending on analytical laboratory instruments is substantial and spans across numerous agencies, including research-focused entities like the Agricultural Research Service, as well as defense, health, and environmental agencies. The $137,998.93 award for a single universal testing machine represents a modest investment within the broader context of federal scientific equipment procurement. Agencies regularly purchase such instruments to maintain research capabilities. Analyzing broader spending trends would involve looking at the total federal outlays for the 'Analytical Laboratory Instrument Manufacturing' (334516) NAICS code or similar PSCs over several fiscal years to understand the scale and frequency of such acquisitions.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12905B23Q0245

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Illinois Tool Works Inc.

Address: 825 UNIVERSITY AVE, NORWOOD, MA, 02062

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: $137,999

Exercised Options: $137,999

Current Obligation: $137,999

Actual Outlays: $137,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline