NOAA Spends $1,499 on TGM Analyzer Maintenance, Awarded Sole-Source to LECO Corp
Contract Overview
Contract Amount: $14,990 ($15.0K)
Contractor: Leco Corp
Awarding Agency: Department of Commerce
Start Date: 2026-04-02
End Date: 2026-07-01
Contract Duration: 90 days
Daily Burn Rate: $167/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THERMOGRAVIMETRIC MOISTURE ANALYZER (TGM) MAINTENANCE AND REPAIR ON-SITE AT THE AUKE BAY LAB IN JUNEAU, ALASKA
Place of Performance
Location: SAINT JOSEPH, BERRIEN County, MICHIGAN, 49085
State: Michigan Government Spending
Plain-Language Summary
Department of Commerce obligated $14,990 to LECO CORP for work described as: THERMOGRAVIMETRIC MOISTURE ANALYZER (TGM) MAINTENANCE AND REPAIR ON-SITE AT THE AUKE BAY LAB IN JUNEAU, ALASKA Key points: 1. The contract is for essential maintenance and repair of a Thermogravimetric Moisture Analyzer (TGM). 2. LECO Corp is the original equipment manufacturer, suggesting potential sole-source justification. 3. The award value is relatively low, indicating a minor expenditure. 4. The service is critical for operations at the Auke Bay Lab in Juneau, Alaska.
Value Assessment
Rating: fair
The $1,499 price for a 90-day maintenance contract appears reasonable for specialized equipment repair. Benchmarking is difficult without specific service details, but it's unlikely to be significantly overpriced for a single, critical piece of equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded sole-source. This limits price discovery and competition, relying heavily on the justification that LECO Corp is the only capable provider.
Taxpayer Impact: Taxpayer funds are used for this specialized maintenance. While the amount is small, the lack of competition means potential savings may have been forgone.
Public Impact
Ensures continued operation of critical scientific equipment at NOAA's Auke Bay Lab. Supports research and monitoring activities conducted at the Juneau facility. Maintains the functionality of a specialized analyzer used for sample analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price transparency.
- Lack of clear justification for sole-source award.
- Short contract duration may lead to frequent sole-source renewals.
Positive Signals
- Essential maintenance for critical scientific equipment.
- Low contract value minimizes financial risk.
- Specific location requirement (on-site) may necessitate specialized vendor.
Sector Analysis
This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector. Spending in this sector is often driven by the need to maintain specialized scientific and operational equipment, with repair costs varying significantly based on equipment complexity and manufacturer exclusivity.
Small Business Impact
This contract was not competed, and the award was made to LECO Corp, the likely original equipment manufacturer. There is no indication that small businesses were considered or had an opportunity to compete for this service.
Oversight & Accountability
The award was made via a purchase order, which is a standard procurement instrument. Oversight would involve ensuring the service was performed as contracted and that the sole-source justification was adequately documented and approved.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for increased costs due to lack of competition.
- Reliance on a single vendor for critical equipment maintenance.
- Lack of transparency in the procurement process.
Tags
electronic-and-precision-equipment-repai, department-of-commerce, mi, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $14,990 to LECO CORP. THERMOGRAVIMETRIC MOISTURE ANALYZER (TGM) MAINTENANCE AND REPAIR ON-SITE AT THE AUKE BAY LAB IN JUNEAU, ALASKA
Who is the contractor on this award?
The obligated recipient is LECO CORP.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $14,990.
What is the period of performance?
Start: 2026-04-02. End: 2026-07-01.
What is the specific justification for awarding this contract sole-source to LECO Corp, and was it adequately documented?
The justification for a sole-source award typically rests on the unique capabilities or proprietary nature of the product or service. For LECO Corp to service their TGM analyzer, it's likely they possess the proprietary technical data, specialized tooling, and trained personnel required. Adequate documentation would include a formal Justification for Other than Full and Open Competition (JOFOC) detailing why other sources cannot be used.
What is the long-term strategy for maintaining this TGM analyzer, and will future maintenance also be sole-sourced?
The long-term strategy is unclear from this single award. If LECO Corp remains the only viable option, future maintenance will likely continue to be sole-sourced, potentially increasing costs over time. NOAA should explore options for developing in-house expertise or identifying alternative qualified service providers if feasible to foster competition and manage costs.
How does the cost of this maintenance compare to similar specialized equipment maintenance contracts within NOAA or other federal agencies?
Benchmarking this specific $1,499 contract is challenging due to its low value and specialized nature. However, for critical scientific equipment, maintenance costs can range from 5-15% of the equipment's acquisition cost annually. Without knowing the TGM analyzer's value and the specific services included, a direct comparison is difficult, but the price appears reasonable for a single, short-term service event.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3000 LAKEVIEW AVE, SAINT JOSEPH, MI, 49085
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,990
Exercised Options: $14,990
Current Obligation: $14,990
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-02
Current End Date: 2026-07-01
Potential End Date: 2026-07-01 00:00:00
Last Modified: 2026-04-02
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