HHS awards $2.08M for Chromatography Data System, with Waters Technologies Corporation as the sole awardee

Contract Overview

Contract Amount: $2,080,076 ($2.1M)

Contractor: Waters Technologies Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-23

End Date: 2027-02-28

Contract Duration: 2,015 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CHROMATOGRAPHY DATA SYSTEM FOR OMPSLO SLEP (VARIOUS SITES)

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to WATERS TECHNOLOGIES CORPORATION for work described as: CHROMATOGRAPHY DATA SYSTEM FOR OMPSLO SLEP (VARIOUS SITES) Key points: 1. The contract value of $2.08M appears reasonable for a multi-year procurement of specialized analytical instrumentation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price delivery order, which shifts cost risk to the contractor. 4. The duration of the contract, spanning from August 2021 to February 2027, indicates a long-term need for the system. 5. The procurement falls under the Analytical Laboratory Instrument Manufacturing category, aligning with FDA's scientific needs. 6. The awardee, Waters Technologies Corporation, is a known entity in the chromatography market.

Value Assessment

Rating: good

The contract value of $2.08M for a Chromatography Data System over approximately 5.5 years suggests a moderate annual spend. Benchmarking against similar procurements for laboratory instrumentation would be necessary for a precise value assessment. However, given the specialized nature of chromatography systems and the firm-fixed-price structure, the pricing is likely competitive, assuming the competition was robust. The long-term nature of the contract also suggests a stable and potentially cost-effective solution for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data provided does not specify the number of bidders, but the use of this method generally promotes price discovery and encourages multiple vendors to offer their best pricing and technical solutions. This approach is favorable for ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition maximizes the potential for cost savings for taxpayers by fostering a competitive environment where contractors vie for the award based on price and performance.

Public Impact

The primary beneficiaries are the scientists and researchers within the Food and Drug Administration (FDA) who will utilize the chromatography data system for their analytical work. The services delivered include the provision, and likely maintenance and support, of a critical data system for laboratory analysis. The geographic impact is likely concentrated at the FDA facilities where the chromatography systems are deployed, primarily in Maryland (ST=MD). The contract supports the FDA's mission in ensuring the safety and efficacy of food and drugs through rigorous scientific testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition limits the assessment of competitive intensity.
The provided data does not include performance metrics or user feedback, making it difficult to assess the system's actual effectiveness.
Information regarding potential sustainment costs beyond the initial award period is not available.

Positive Signals

The use of firm-fixed-price contract type transfers cost overrun risk to the contractor.
The contract is awarded under full and open competition, suggesting a fair and accessible bidding process.
The long contract duration (2021-2027) indicates a sustained need and potential for long-term operational efficiency.

Sector Analysis

The procurement of a Chromatography Data System falls within the broader sector of scientific and laboratory instrumentation, a critical component of the healthcare and pharmaceutical industries. This market is characterized by specialized manufacturers and a need for high-precision equipment. The global market for laboratory instruments is substantial, driven by research and development, quality control, and regulatory compliance across various sectors, including pharmaceuticals, biotechnology, and environmental testing. This contract represents a specific, yet vital, investment within this sector for regulatory oversight.

Small Business Impact

The provided data indicates that small business participation (SB=false) was not a specific set-aside for this contract. There is no information available regarding subcontracting plans or actual performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Food and Drug Administration (FDA) contracting officers and program managers. As a federal contract, it is subject to the Federal Acquisition Regulation (FAR) and agency-specific procurement policies. Inspector General oversight may be exercised by the Department of Health and Human Services Office of Inspector General (HHS-OIG) to investigate fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

Laboratory Equipment Procurement
Analytical Instrumentation
FDA Scientific Support Contracts
Health and Human Services IT and Equipment
Chromatography Systems

Risk Flags

Potential for technical obsolescence given the contract duration.
Reliance on a single vendor for a critical system.
Lack of detailed performance metrics in the award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to WATERS TECHNOLOGIES CORPORATION. CHROMATOGRAPHY DATA SYSTEM FOR OMPSLO SLEP (VARIOUS SITES)

Who is the contractor on this award?

The obligated recipient is WATERS TECHNOLOGIES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2021-08-23. End: 2027-02-28.

What is the track record of Waters Technologies Corporation with the federal government, particularly with the FDA?

Waters Technologies Corporation is a well-established company in the field of analytical laboratory instrumentation. A review of federal procurement data would likely reveal numerous past awards to Waters Technologies Corporation across various federal agencies, including the FDA. Their history with the FDA would likely include previous contracts for chromatography systems, mass spectrometry, and related software and services. Assessing their performance on past contracts, including on-time delivery, product quality, and responsiveness to issues, would provide valuable insight into their reliability for this current award. Specific contract performance evaluations (e.g., CPARS) would offer a more detailed understanding of their past performance.

How does the $2.08M contract value compare to similar chromatography data system procurements by federal agencies?

To benchmark the $2.08M contract value, one would need to compare it against similar firm-fixed-price delivery orders for chromatography data systems awarded by federal agencies over comparable timeframes (approximately 5.5 years). Factors such as the specific capabilities of the system (e.g., throughput, software features, integration requirements), the number of users or sites supported, and the level of vendor support included would influence pricing. If this procurement involved a large number of instruments or sites, or highly specialized software, the cost might be considered standard. Conversely, if it's for a limited number of instruments or basic functionality, it could be higher than average. Without detailed specifications and comparative data, a definitive value assessment is challenging.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential technical obsolescence of the chromatography data system over its 5.5-year lifespan, performance issues with the equipment or software, and the contractor's ability to provide timely and effective support. The firm-fixed-price nature of the contract mitigates financial risk for the government regarding cost overruns. Mitigation for technical and performance risks would rely on the initial technical specifications, the contractor's reputation, and the FDA's contract management and oversight. The contract's duration also implies a need for robust vendor support, making the contractor's responsiveness a critical factor. The FDA's quality assurance and acceptance testing processes would be crucial in identifying and addressing performance deficiencies.

How effective is the 'full and open competition' strategy in ensuring the FDA obtains the best value for chromatography data systems?

The 'full and open competition' strategy is generally considered the most effective method for the government to obtain the best value, as it allows all responsible sources to compete. This broad competition encourages vendors to offer their most competitive pricing and innovative solutions to win the contract. For chromatography data systems, this means the FDA likely received proposals from multiple qualified vendors, enabling a thorough evaluation of technical capabilities, past performance, and price. The success of this strategy in achieving best value hinges on the clarity of the solicitation's requirements and the rigor of the evaluation process. If the competition was robust (i.e., multiple strong bidders), it significantly increases the likelihood of a favorable outcome for the government.

What are the historical spending patterns for chromatography data systems at the FDA or HHS?

Analyzing historical spending patterns for chromatography data systems at the FDA or HHS would involve examining procurement data over several fiscal years. This would reveal the frequency of such procurements, the typical contract values, the primary vendors awarded contracts, and the contract types used. Understanding these patterns can help identify trends, such as increasing reliance on specific technologies, shifts in vendor market share, or changes in average contract costs. For instance, consistent spending on similar systems might indicate a stable operational need, while fluctuating spending could suggest evolving technological requirements or budget constraints. This historical context is crucial for forecasting future needs and budgeting.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34 MAPLE ST, MILFORD, MA, 01757

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,080,076

Exercised Options: $2,080,076

Current Obligation: $2,080,076

Actual Outlays: $1,955,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0559X

IDV Type: FSS

Timeline