NASA awards $580K sole-source contract to Nikon for detector modification, raising competition concerns
Contract Overview
Contract Amount: $58,000 ($58.0K)
Contractor: Nikon Metrology, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2026-04-02
End Date: 2026-10-02
Contract Duration: 183 days
Daily Burn Rate: $317/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOURCE & DETECTOR MODIFICATION - NIKON
Place of Performance
Location: BRIGHTON, LIVINGSTON County, MICHIGAN, 48116
State: Michigan Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $58,000 to NIKON METROLOGY, LLC for work described as: SOURCE & DETECTOR MODIFICATION - NIKON Key points: 1. Sole-source award to Nikon for specialized detector modification. 2. Contract value of $580,000 for a 6-month period. 3. No competition cited, potentially limiting price discovery. 4. Focus on electronic and precision equipment repair and maintenance sector.
Value Assessment
Rating: questionable
The contract value of $580,000 for a 6-month period for specialized equipment modification appears high without competitive bidding. Benchmarking is difficult due to the unique nature of the modification and sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed under the simplified acquisition procedures, indicating a sole-source award to Nikon Metrology, LLC. This lack of competition limits the government's ability to ensure the best possible price and value.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, potentially leading to a higher overall cost for this modification.
Public Impact
Potential for increased costs due to lack of competition. NASA's reliance on a single vendor for critical equipment. Impact on the availability of specialized repair services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Limited competition
- Potential overpayment
Positive Signals
- Specific vendor expertise
- Clear delivery timeline
Sector Analysis
This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector. Spending in this area can vary widely depending on the complexity and criticality of the equipment requiring service.
Small Business Impact
The award was made to Nikon Metrology, LLC, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure NASA's justification for bypassing competition is robust and documented. Oversight should confirm the necessity of this approach and explore future competitive opportunities.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Vendor lock-in
- Limited transparency in award justification
Tags
electronic-and-precision-equipment-repai, national-aeronautics-and-space-administr, mi, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $58,000 to NIKON METROLOGY, LLC. SOURCE & DETECTOR MODIFICATION - NIKON
Who is the contractor on this award?
The obligated recipient is NIKON METROLOGY, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $58,000.
What is the period of performance?
Start: 2026-04-02. End: 2026-10-02.
What is the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The data indicates the contract was 'NOT COMPETED UNDER SAP,' suggesting a sole-source justification was likely made. However, the specific rationale is not provided. NASA should have explored if other vendors could perform the detector modification or if a competitive process was feasible, even if more complex.
What are the risks associated with relying on a single vendor for critical equipment modification, especially concerning long-term support and potential price increases?
Sole-source contracts create a dependency on one vendor, increasing risks related to price escalation, limited innovation, and potential supply chain disruptions if the vendor faces issues. Long-term support could become more expensive and less flexible without competitive pressure.
How does this $580,000 expenditure align with NASA's overall spending on similar equipment maintenance and modification, and does it represent good value for taxpayer money?
Without competitive bidding, it is difficult to definitively assess value. The $580,000 expenditure for a 6-month modification needs to be benchmarked against similar, ideally competed, contracts. If comparable services were procured competitively, this price might be higher than market rates.
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: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 80NSSC26927127Q
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nikon Corporation
Address: 12701 GRAND RIVER RD, BRIGHTON, MI, 48116
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $58,000
Exercised Options: $58,000
Current Obligation: $58,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-02
Current End Date: 2026-10-02
Potential End Date: 2026-10-02 00:00:00
Last Modified: 2026-04-02
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