Commerce Dept. Awards $6.65M for Focused Ion Beam Microscopes to FEI Company
Contract Overview
Contract Amount: $6,652,281 ($6.7M)
Contractor: FEI Company
Awarding Agency: Department of Commerce
Start Date: 2023-09-15
End Date: 2027-09-19
Contract Duration: 1,465 days
Daily Burn Rate: $4.5K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: FOCUSED ION BEAM SCANNING ELECTRON MICROSCOPES
Plain-Language Summary
Department of Commerce obligated $6.7 million to FEI COMPANY for work described as: FOCUSED ION BEAM SCANNING ELECTRON MICROSCOPES Key points: 1. High-value equipment purchase for advanced research. 2. Single awardee, FEI Company, suggests potential market concentration. 3. Risk of vendor lock-in and limited future competition. 4. Sector: Analytical Laboratory Instrument Manufacturing.
Value Assessment
Rating: fair
The award of $6.65M for focused ion beam scanning electron microscopes appears to be a significant investment. Benchmarking against similar high-end analytical instruments is difficult without more detailed specifications, but the price seems within a plausible range for specialized scientific equipment of this caliber.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating a belief that the price would be below the threshold for full and open competition. However, the single award to FEI Company raises questions about whether broader competition was fully explored or if market conditions limited options.
Taxpayer Impact: Taxpayer funds are being used for advanced scientific instrumentation. The effectiveness of competition under SAP will determine if the best possible price was achieved.
Public Impact
Enables advanced materials research and analysis at NIST. Supports scientific innovation and technological development. Potential for breakthroughs in various scientific fields.
Waste & Efficiency Indicators
Waste Risk Score: 45 / 10
Warning Flags
- Limited competition may lead to higher prices.
- Reliance on a single vendor for critical equipment.
- Potential for obsolescence if technology advances rapidly.
Positive Signals
- Acquisition of state-of-the-art scientific equipment.
- Supports critical research missions of NIST.
Sector Analysis
The purchase falls within the Analytical Laboratory Instrument Manufacturing sector, characterized by high R&D costs and specialized technological requirements. Spending in this sector often involves significant capital outlays for advanced equipment.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract award.
Oversight & Accountability
Oversight will be crucial to ensure the equipment is utilized effectively and maintained properly, maximizing the return on investment for the government. NIST's internal processes should provide accountability for this significant expenditure.
Related Government Programs
- Analytical Laboratory Instrument Manufacturing
- Department of Commerce Contracting
- National Institute of Standards and Technology Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Vendor lock-in
- Technological obsolescence risk
Tags
analytical-laboratory-instrument-manufac, department-of-commerce, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $6.7 million to FEI COMPANY. FOCUSED ION BEAM SCANNING ELECTRON MICROSCOPES
Who is the contractor on this award?
The obligated recipient is FEI COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Institute of Standards and Technology).
What is the total obligated amount?
The obligated amount is $6.7 million.
What is the period of performance?
Start: 2023-09-15. End: 2027-09-19.
What specific technical capabilities justify the $6.65M price point for these microscopes?
The high cost is likely driven by advanced features such as high resolution, precise beam control, in-situ analysis capabilities, and sophisticated software for data acquisition and processing. These capabilities are essential for cutting-edge research in materials science, nanotechnology, and semiconductor analysis, justifying the investment for specialized scientific applications.
What steps were taken to ensure fair pricing given the limited competition under SAP?
While SAP aims for efficiency, agencies must still conduct market research to ensure fair and reasonable pricing. This could involve reviewing historical pricing, obtaining quotes from multiple sources even if not formally solicited, or referencing commercial price lists. The agency should have documented these efforts to justify the price paid.
How will the effectiveness of this investment be measured by NIST?
Effectiveness will likely be measured by the scientific output generated using the microscopes, such as publications in peer-reviewed journals, patents, and contributions to NIST's research goals. Tracking usage rates, maintenance costs, and the successful completion of research projects will also provide insights into the value derived from this significant capital investment.
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: NB1000002300586
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Thermo Fisher Scientific Inc.
Address: 5350, NORTH EAST DAWSON CREEK DRIVE, HILLSBORO, OR, 97124
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: $7,383,900
Exercised Options: $6,652,281
Current Obligation: $6,652,281
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-09-15
Current End Date: 2027-09-19
Potential End Date: 2030-09-19 00:00:00
Last Modified: 2026-01-23
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