NIH awards $1.5M preventative maintenance contract for biomérieux instrumentation, raising questions on competition

Contract Overview

Contract Amount: $15,204 ($15.2K)

Contractor: Biomerieux Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-03-31

End Date: 2027-03-30

Contract Duration: 364 days

Daily Burn Rate: $42/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ESTABLISHMENT OF PREVENTATIVE MAINTENANCE AGREEMENT FOR BIOMRIEUX, INC. INSTRUMENTATION IN THE DLMBIOMERIEUX, INC.:1487585 [26-003629]

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,204 to BIOMERIEUX INC for work described as: ESTABLISHMENT OF PREVENTATIVE MAINTENANCE AGREEMENT FOR BIOMRIEUX, INC. INSTRUMENTATION IN THE DLMBIOMERIEUX, INC.:1487585 [26-003629] Key points: 1. Value for money appears fair given the specialized nature of the equipment and the firm-fixed-price structure. 2. Competition dynamics are limited, as the contract was not competed under standard acquisition procedures. 3. Risk indicators include potential overpricing due to lack of competition and reliance on a single vendor. 4. Performance context is a preventative maintenance agreement, crucial for ensuring the operational status of critical lab instruments. 5. Sector positioning is within the analytical laboratory instrument manufacturing market, a niche requiring specialized service.

Value Assessment

Rating: fair

The contract value of $1.52 million for a one-year preventative maintenance agreement for biomérieux instrumentation seems within a reasonable range for specialized medical equipment. However, without a competitive bidding process, it is difficult to definitively benchmark the value against market rates or alternative service providers. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition limits the potential for cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), indicating a sole-source or limited competition award. The lack of a competitive process means that multiple vendors were not solicited, potentially leading to higher prices than if a broader competition had been conducted. The government did not leverage the benefits of a competitive market to drive down costs or improve service offerings.

Taxpayer Impact: Taxpayers may be paying a premium for this service due to the absence of competitive pressure. The government missed an opportunity to explore cost-saving measures through open bidding.

Public Impact

The National Institutes of Health (NIH) benefits from uninterrupted operation of critical biomérieux laboratory instruments. Services delivered include preventative maintenance, ensuring the reliability and accuracy of diagnostic and research equipment. The geographic impact is primarily within Utah, where the services are likely performed. Workforce implications are minimal, as this contract focuses on maintenance services rather than direct employment creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Reliance on a single vendor for critical maintenance could pose supply chain risks.
Limited transparency in the procurement process due to sole-source award.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Specialized nature of equipment necessitates vendor-specific expertise.
Preventative maintenance ensures operational continuity of essential research tools.

Sector Analysis

The contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically focusing on maintenance services for specialized equipment. This is a niche market where original equipment manufacturers (OEMs) often hold a significant advantage due to proprietary knowledge and parts. Comparable spending benchmarks are difficult to establish without more data on similar maintenance agreements for biomérieux instruments across federal agencies.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb': false. There is no explicit mention of subcontracting opportunities for small businesses. The focus on specialized OEM maintenance typically limits the direct involvement of small businesses in the primary service delivery.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program office within the National Institutes of Health. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the vendor to perform services as specified. Transparency is limited due to the sole-source nature of the award, with less public visibility into the justification for not competing.

Related Government Programs

Biomérieux Instrument Maintenance Contracts
NIH Laboratory Equipment Services
Federal Preventative Maintenance Agreements

Risk Flags

Sole-source award limits competition and potentially increases cost.
Lack of detailed justification for sole-source award.
Potential for vendor lock-in due to specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,204 to BIOMERIEUX INC. ESTABLISHMENT OF PREVENTATIVE MAINTENANCE AGREEMENT FOR BIOMRIEUX, INC. INSTRUMENTATION IN THE DLMBIOMERIEUX, INC.:1487585 [26-003629]

Who is the contractor on this award?

The obligated recipient is BIOMERIEUX INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $15,204.

What is the period of performance?

Start: 2026-03-31. End: 2027-03-30.

What is the historical spending by NIH on biomérieux instrument maintenance?

Historical spending data for NIH on biomérieux instrument maintenance is not directly available in the provided snippet. However, the current award of $1.52 million for a one-year agreement suggests a significant ongoing investment in maintaining this type of equipment. To assess historical patterns, one would need to query federal procurement databases for previous contracts awarded to biomérieux or its authorized service providers by NIH or other relevant agencies. Analyzing trends in contract value, duration, and competition over time would provide a clearer picture of NIH's commitment and spending in this area.

What specific biomérieux instruments are covered by this maintenance agreement?

The provided data does not specify the exact models or types of biomérieux instruments covered by this preventative maintenance agreement. The description broadly refers to 'biomérieux, inc. instrumentation.' To identify the specific instruments, one would need to consult the detailed contract statement of work (SOW) or associated documentation. This information is crucial for understanding the criticality of the equipment, the complexity of the maintenance required, and for benchmarking the contract's value against similar specialized service agreements.

What is the justification for awarding this contract on a sole-source basis?

The justification for awarding this contract on a sole-source basis ('NOT COMPETED UNDER SAP') is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the government's needs. For specialized instrumentation like that from biomérieux, this could be due to proprietary technology, unique service requirements, or the need for manufacturer-certified technicians and parts. A formal Justification for Other Than Full and Open Competition (JOFOC) would normally be required and publicly accessible for such awards, outlining the specific reasons and demonstrating that competition was not feasible or would not be in the government's best interest.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail performance metrics or Service Level Agreements (SLAs) for this contract. However, as a preventative maintenance agreement, it is expected to include terms related to response times for service calls, uptime guarantees for the instruments, and the scope of maintenance tasks to be performed. The firm-fixed-price nature suggests that the contractor is obligated to deliver the specified maintenance services. A thorough review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise performance standards and remedies for non-performance.

What is the track record of biomérieux Inc. as a federal contractor?

Biomérieux Inc. has a history of contracting with the federal government, primarily for the provision of their specialized laboratory instruments and related services, including maintenance and reagents. While the provided data snippet focuses on a single contract, a broader analysis of their federal contracting history would involve examining past awards, contract values, performance reviews, and any reported issues or disputes. Their track record as a sole-source provider for maintenance suggests a recognized capability in servicing their own equipment, which is common for highly specialized scientific and medical technology vendors.

Industry Classification

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

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: 515 S COLOROW DR, SALT LAKE CITY, UT, 84108

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: $15,204

Exercised Options: $15,204

Current Obligation: $15,204

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline