VA awards $508K for Hamilton Robotics liquid handler maintenance, a sole-source purchase

Contract Overview

Contract Amount: $50,857 ($50.9K)

Contractor: Hamilton Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-08

End Date: 2026-09-07

Contract Duration: 729 days

Daily Burn Rate: $70/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAINTENANCE AND REPAIR OF LAB HAMILTON ROBOTICS LIQUID HANDLER AT IOWA CITY VAMC: BY + 3 OYS

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52246

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50,857 to HAMILTON COMPANY for work described as: MAINTENANCE AND REPAIR OF LAB HAMILTON ROBOTICS LIQUID HANDLER AT IOWA CITY VAMC: BY + 3 OYS Key points: 1. The contract's value is moderate, but the lack of competition raises concerns about potential overpayment. 2. Sole-source procurement limits price discovery and may not reflect market-competitive rates. 3. The duration of the contract (729 days) suggests a long-term need for this specific equipment maintenance. 4. The vendor, Hamilton Company, is the original equipment manufacturer, which can justify sole-source but also indicates a lack of alternative service providers. 5. Performance risk appears low given the specialized nature of the equipment and the OEM's likely expertise. 6. The contract is for maintenance and repair, a critical but often high-cost service for specialized lab equipment.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specialized equipment. Without competitive bids, it's difficult to ascertain if the $508,570 price reflects fair market value. Typically, sole-source contracts for OEM maintenance can be more expensive than those secured through open competition. The Department of Veterans Affairs should ensure robust internal justification for the price, potentially through independent cost analysis or comparison to similar OEM maintenance contracts for comparable equipment, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was procured on a sole-source basis. This means only one vendor, Hamilton Company, was solicited for the maintenance and repair services. While sole-source awards can be justified for unique equipment or proprietary services, they bypass the competitive process, which is designed to drive down prices and ensure the best value for the government.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for this service, as there was no opportunity for other qualified vendors to bid and potentially offer lower prices. This reduces the government's leverage in price negotiation.

Public Impact

Veterans in Iowa will benefit from reliable laboratory services at the Iowa City VAMC. The contract ensures the continued operation of a critical liquid handling system used in medical diagnostics and research. This supports the VAMC's ability to provide timely and accurate patient care. The contract directly supports the maintenance workforce at the VAMC, ensuring specialized equipment remains functional.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits opportunities for other qualified service providers.
Dependence on a single vendor for critical equipment maintenance poses a risk if that vendor experiences issues.

Positive Signals

Contract ensures continued operation of essential lab equipment.
Hamilton Company is the OEM, suggesting specialized expertise.
Fixed-price contract provides cost certainty for the VA.

Sector Analysis

The market for specialized laboratory equipment maintenance is often dominated by original equipment manufacturers (OEMs) due to proprietary knowledge and parts. While the overall market for laboratory equipment is substantial, the niche for servicing specific high-tech instruments like Hamilton Robotics liquid handlers is more limited. This contract fits within the broader 'Electronic and Precision Equipment Repair and Maintenance' sector, which is crucial for healthcare and research facilities. Benchmarking is difficult without comparable sole-source OEM contracts.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. The award is made directly to Hamilton Company, a large business. This means there are no direct benefits or opportunities for small businesses stemming from this specific procurement action.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Standard procurement regulations and contract administration processes would apply. Transparency is limited due to the sole-source nature, but contract award data is publicly available through federal procurement databases. There is no specific mention of an Inspector General (IG) investigation related to this particular award, but the VA OIG has broad jurisdiction over VA spending.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Laboratory Equipment Services
Hamilton Robotics Service Agreements
Sole-Source Procurement in Healthcare

Risk Flags

Sole-source procurement
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50,857 to HAMILTON COMPANY. MAINTENANCE AND REPAIR OF LAB HAMILTON ROBOTICS LIQUID HANDLER AT IOWA CITY VAMC: BY + 3 OYS

Who is the contractor on this award?

The obligated recipient is HAMILTON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $50,857.

What is the period of performance?

Start: 2024-09-08. End: 2026-09-07.

What is the track record of Hamilton Company in providing maintenance services to the VA or other federal agencies?

Hamilton Company is a well-established manufacturer of laboratory automation equipment, including liquid handling systems. Their track record in providing maintenance services to federal agencies, particularly the VA, would typically be reflected in past performance evaluations within federal procurement systems. Given this is a sole-source award, it suggests either a lack of prior negative performance or a specific justification based on the unique nature of their equipment. A deeper dive into their contract history with the VA and other agencies would reveal the extent and nature of their service delivery, including any past issues or commendations related to maintenance and repair.

How does the pricing of this contract compare to similar sole-source maintenance contracts for comparable laboratory equipment?

Direct comparison of pricing for sole-source contracts is inherently difficult as they bypass competitive bidding. To assess value, the VA would ideally conduct an independent cost analysis or benchmark against similar OEM maintenance contracts for comparable high-value laboratory automation systems. Factors such as the complexity of the equipment, the scope of services (preventive vs. corrective maintenance, response times), and the vendor's overhead contribute to pricing. Without access to Hamilton Company's cost breakdown or data on similar VA contracts, it's challenging to definitively state if $508,570 is competitive. However, sole-source agreements often carry a premium.

What are the specific risks associated with relying on a sole-source provider for critical laboratory equipment maintenance?

The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competition. Taxpayers may not be receiving the best possible value. Additionally, the government becomes dependent on a single vendor, which can lead to issues if the vendor experiences financial instability, changes its service offerings, or faces supply chain disruptions for parts. This dependence can also reduce leverage in negotiating service level agreements or future contract renewals. For critical equipment like a liquid handler, downtime due to maintenance issues could significantly impact research or diagnostic capabilities.

What is the expected effectiveness of this contract in ensuring the operational readiness of the Hamilton Robotics liquid handler?

The effectiveness of this contract hinges on the quality of service provided by Hamilton Company and the defined scope of work. As the original equipment manufacturer (OEM), Hamilton Company possesses the specialized knowledge, proprietary tools, and access to genuine parts necessary for optimal maintenance and repair. The contract's fixed-price nature provides cost certainty for the VA. Assuming the contract includes comprehensive preventive maintenance schedules and timely response for repairs, it should be highly effective in maintaining the liquid handler's operational readiness, thereby supporting the critical functions of the Iowa City VAMC laboratory.

What has been the historical spending by the VA on Hamilton Robotics equipment maintenance?

Analyzing historical spending by the VA on Hamilton Robotics equipment maintenance would provide context for the current $508,570 award. This would involve searching federal procurement databases (like FPDS or USASpending) for previous contracts awarded to Hamilton Company or its subsidiaries for maintenance, repair, or support of their liquid handling systems and other equipment. Understanding trends in spending, contract types (competed vs. sole-source), and average award values over several fiscal years would help determine if this current contract is an anomaly or part of a consistent spending pattern.

Are there any alternative vendors capable of servicing Hamilton Robotics liquid handlers, and why was this contract sole-sourced?

The decision to sole-source this contract implies that, according to the VA's determination, no other vendor besides Hamilton Company could adequately provide the required maintenance and repair services. This is often due to the proprietary nature of the technology, requiring specialized training, tools, and access to manufacturer-specific parts. While third-party service providers exist for some equipment, OEMs like Hamilton Company typically have the most in-depth knowledge and direct support. The justification for sole-sourcing would need to be documented by the agency, likely citing reasons such as warranty requirements, unique technical expertise, or lack of competition.

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: 36C26324Q0709

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4970 ENERGY WAY, RENO, NV, 89502

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: $130,143

Exercised Options: $50,857

Current Obligation: $50,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline