CDC Spends $7.2M on Maintenance Agreement with Life Technologies Corporation

Contract Overview

Contract Amount: $7,209,054 ($7.2M)

Contractor: Life Technologies Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2019-07-01

End Date: 2024-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CDC WIDE MAINTENANCE AGREEMENT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.2 million to LIFE TECHNOLOGIES CORPORATION for work described as: CDC WIDE MAINTENANCE AGREEMENT Key points: 1. The CDC awarded a $7.2M maintenance agreement to Life Technologies Corporation. 2. This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' category. 3. The contract was not competed, raising potential concerns about price discovery. 4. The duration of the contract is 5 years, ending June 30, 2024.

Value Assessment

Rating: questionable

The contract value of $7.2M for a 5-year maintenance agreement for electronic equipment is difficult to benchmark without specific details on the equipment covered and the scope of services. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This method bypasses competitive bidding, potentially leading to higher prices and reduced value for taxpayers.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competitive bidding. The CDC's reliance on a single vendor for critical maintenance could pose a risk if the vendor fails to perform or significantly increases prices. Transparency in government spending is reduced when contracts are not openly competed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Definitive contract awarded
Firm fixed price contract type

Sector Analysis

This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' sector. Benchmarking spending in this niche area is challenging without more specific data on the equipment and services provided.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded to a single, likely large, corporation.

Oversight & Accountability

The non-competed nature of this award warrants further oversight to ensure the CDC received fair value and that the sole-source justification was robust.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Sole-source award
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.2 million to LIFE TECHNOLOGIES CORPORATION. CDC WIDE MAINTENANCE AGREEMENT

Who is the contractor on this award?

The obligated recipient is LIFE TECHNOLOGIES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

Start: 2019-07-01. End: 2024-06-30.

What specific equipment and services are covered under this maintenance agreement, and how was the $7.2M price determined without competition?

The specific equipment and services are not detailed in the provided data. The price of $7.2M was likely determined through direct negotiation with Life Technologies Corporation, as the contract was not competed. Without a competitive bidding process, it is difficult to ascertain if this price represents fair market value or if it includes a premium due to the lack of alternatives presented to the CDC.

What are the risks associated with a sole-source maintenance agreement for critical CDC equipment?

A sole-source agreement carries risks such as potential price escalation over the contract term, reduced incentive for the vendor to innovate or provide superior service, and vulnerability if the vendor experiences financial difficulties or decides to discontinue support. The CDC is also dependent on a single entity, which could lead to operational disruptions if the vendor fails to meet its obligations.

How effective is this contract in ensuring the operational readiness of CDC's electronic and precision equipment?

The effectiveness of the contract in ensuring operational readiness cannot be fully assessed without knowing the specific equipment, the service level agreements, and the vendor's performance history. While a firm fixed price contract can provide cost certainty, the lack of competition raises questions about whether the most effective and cost-efficient maintenance solution was secured for the CDC's critical assets.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other 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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D30119R67905

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thermo Fisher Scientific Inc.

Address: 5781 VAN ALLEN WAY, CARLSBAD, CA, 92008

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: $7,461,111

Exercised Options: $7,461,111

Current Obligation: $7,209,054

Actual Outlays: $4,434,321

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline