DOJ's $20.2M contract for wound therapy systems awarded to Progressive Medical USA, Inc

Contract Overview

Contract Amount: $20,228 ($20.2K)

Contractor: Progressive Medical USA, Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-06-30

Contract Duration: 272 days

Daily Burn Rate: $74/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROGRESSIVE: NEGATIVE PRESSURE WOUND THERAPY SYSTEM EQUIPMENT & SUPPLIES. DOS: OCTOBER 1, 2025 THRU JUNE 30, 2026-- OPTION YEAR 3 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED.

Place of Performance

Location: NAPLES, COLLIER County, FLORIDA, 34102

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $20,228.02 to PROGRESSIVE MEDICAL USA, INC for work described as: PROGRESSIVE: NEGATIVE PRESSURE WOUND THERAPY SYSTEM EQUIPMENT & SUPPLIES. DOS: OCTOBER 1, 2025 THRU JUNE 30, 2026-- OPTION YEAR 3 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED. Key points: 1. Contract value of $20.2M for wound therapy equipment and supplies over 272 days. 2. Awarded through a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 3. The contract is Firm Fixed Price, providing cost certainty for the government. 4. This is Option Year 3, suggesting a continuation of services and a positive performance history. 5. The contract is for the Federal Prison System, highlighting a specific institutional need. 6. The North American Industry Classification System (NAICS) code 339112 points to Surgical and Medical Instrument Manufacturing. 7. The contract is not set aside for small businesses, indicating a larger market approach.

Value Assessment

Rating: good

The contract value of $20.2M for a 272-day period (Option Year 3) for wound therapy systems appears reasonable given the specialized nature of medical equipment and supplies for institutional settings. Benchmarking against similar contracts for wound care in federal correctional facilities would provide a more precise value-for-money assessment. The Firm Fixed Price structure helps manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of solutions. As this is a BPA Call, it implies that the initial competition for the BPA itself was robust.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and ensures the government receives the best value by considering a broad market.

Public Impact

Inmates within the Federal Prison System will benefit from advanced wound therapy treatments. The contract ensures the availability of essential medical equipment and supplies for wound care. Services are primarily delivered within federal correctional facilities located in Florida. This contract supports the healthcare workforce within the Bureau of Prisons by providing necessary tools for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future option years if not carefully managed.
Dependence on a single contractor for critical medical supplies could pose a supply chain risk.
Ensuring consistent quality and availability of specialized wound therapy equipment across all facilities.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type provides cost certainty.
Continuation of services through Option Year 3 suggests satisfactory performance in previous years.
BPA Call award mechanism implies a pre-established framework agreement, potentially streamlining future procurements.

Sector Analysis

The market for surgical and medical instrument manufacturing (NAICS 339112) is substantial, encompassing a wide range of products from basic instruments to advanced therapeutic systems. Federal agencies, particularly those with healthcare responsibilities like the Bureau of Prisons, represent a significant customer base. Contracts for specialized medical equipment, such as negative pressure wound therapy systems, are crucial for patient care within these institutions. Benchmarking this contract's value against similar procurements for medical devices in institutional settings would offer further insight into its market competitiveness.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb': false parameter. This suggests that the procurement was open to all qualified vendors, including large businesses. There is no explicit information regarding subcontracting plans for small businesses within this specific BPA Call. Future analysis could explore if the prime contractor has a history of engaging small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and program management officials. The Firm Fixed Price nature of the contract simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases. Specific performance monitoring and quality assurance processes would be managed internally by the agency to ensure the equipment and supplies meet the required standards.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Medical Equipment Procurement
Department of Justice Healthcare Contracts
Negative Pressure Wound Therapy Systems Procurement

Risk Flags

Potential for supply chain disruption
Risk of technological obsolescence
Contractor performance variability over time
Price escalation in future renewals
Ensuring consistent quality across multiple facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,228.02 to PROGRESSIVE MEDICAL USA, INC. PROGRESSIVE: NEGATIVE PRESSURE WOUND THERAPY SYSTEM EQUIPMENT & SUPPLIES. DOS: OCTOBER 1, 2025 THRU JUNE 30, 2026-- OPTION YEAR 3 FUNDS WILL BE OBLIGATED THROUGH A MOD UPON THE OFFICIAL ANNOUNCEMENT OF THE CR DATE AND/OR WHEN THE BUDGET IS PASSED.

Who is the contractor on this award?

The obligated recipient is PROGRESSIVE MEDICAL USA, INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $20,228.02.

What is the period of performance?

Start: 2025-10-01. End: 2026-06-30.

What is the historical spending trend for negative pressure wound therapy systems by the Federal Prison System?

Analyzing historical spending on negative pressure wound therapy (NPWT) systems by the Federal Prison System (FPS) is crucial for understanding budget allocation and identifying potential trends. While specific historical data for NPWT systems alone is not directly available in this snippet, the current contract for Option Year 3, valued at $20.2M, suggests a sustained need. To provide a comprehensive trend, one would need to examine contract awards for similar NPWT equipment and supplies over the past 5-10 years. This would involve searching federal procurement databases (like FPDS or SAM.gov) for contracts with keywords related to 'wound therapy,' 'negative pressure,' and 'medical equipment' awarded to the Bureau of Prisons or its facilities. Comparing the annual spending, the number of awarded contracts, and the average contract values would reveal whether spending has increased, decreased, or remained stable. It would also highlight if there's been a shift towards different types of wound care solutions or a consolidation of vendors. Understanding these historical patterns is vital for future budget planning and ensuring cost-effectiveness.

How does the per-unit cost of the wound therapy systems compare to commercial market rates?

A detailed comparison of the per-unit cost for the negative pressure wound therapy (NPWT) systems under this contract against commercial market rates is essential for assessing value for money. Without specific unit pricing data from the contract award, a direct comparison is challenging. However, one can infer potential cost differences by researching the average retail or wholesale prices of comparable NPWT devices and disposable supplies from medical supply distributors. Federal agencies often leverage bulk purchasing power and negotiated discounts through mechanisms like Blanket Purchase Agreements (BPAs) to achieve lower prices than typically available in the commercial sector. If the contract is Firm Fixed Price, the government has locked in a specific price. To conduct a thorough analysis, one would need to identify the specific models of NPWT devices and the types of supplies included in the contract and then compare their prices from major commercial medical equipment vendors. A significant deviation from commercial pricing, either higher or lower, would warrant further investigation into the contract's terms, the scope of services, and the competitive landscape.

What is the track record of Progressive Medical USA, Inc. in fulfilling federal contracts, particularly for medical equipment?

Progressive Medical USA, Inc.'s track record in fulfilling federal contracts, especially for medical equipment, is a key indicator of their reliability and performance. As this contract represents Option Year 3, it strongly suggests a history of satisfactory performance in previous years. To gain a more comprehensive understanding, a review of their contract history within federal databases (e.g., FPDS, SAM.gov) would be beneficial. This review should focus on the number of contracts awarded, their values, the agencies served, and any performance evaluations or past performance questionnaires associated with those contracts. Specifically, looking for any instances of contract terminations, disputes, or significant performance issues would be important. A consistent record of on-time delivery, quality product provision, and adherence to contract terms would indicate a low risk associated with this current award. Conversely, any red flags in their past performance would necessitate closer scrutiny of the current contract's oversight and risk mitigation strategies.

What are the potential risks associated with the long-term supply of specialized wound therapy equipment to federal prisons?

Several potential risks are associated with the long-term supply of specialized wound therapy equipment to federal prisons. Firstly, supply chain disruptions, whether due to manufacturing issues, natural disasters, or geopolitical events, could impact the availability of critical equipment and supplies, potentially affecting inmate care. Secondly, technological obsolescence is a risk; as newer, more effective wound care technologies emerge, the current equipment may become outdated, requiring significant reinvestment. Thirdly, contractor performance risk exists; even with a good track record, a contractor could face financial difficulties or operational challenges that affect their ability to deliver. Fourthly, there's a risk of price escalation in future contract renewals, especially if competition diminishes or market demand increases. Finally, ensuring consistent quality and compliance with evolving healthcare standards across numerous geographically dispersed facilities presents an ongoing management challenge. Robust oversight, contingency planning, and regular market analysis are crucial to mitigate these risks.

How does the use of a Blanket Purchase Agreement (BPA) Call impact the efficiency and cost-effectiveness of this procurement?

The use of a Blanket Purchase Agreement (BPA) Call for this procurement of negative pressure wound therapy systems likely enhances both efficiency and cost-effectiveness. A BPA is a simplified acquisition method where a government agency establishes pre-negotiated terms and conditions with one or more vendors for supplies or services over a period of time. A BPA Call is then used to place specific orders against that BPA. This approach streamlines the ordering process, reducing the administrative burden and lead time typically associated with individual contract awards. For cost-effectiveness, the initial competition to establish the BPA likely secured favorable pricing, and subsequent calls benefit from these pre-negotiated rates. Furthermore, it allows the agency to respond quickly to evolving needs, such as those within the dynamic environment of federal prisons. The Firm Fixed Price nature of the call provides cost certainty for each order placed. This method is particularly useful for recurring needs like medical supplies, ensuring consistent availability while maintaining competitive pricing.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: 365 5TH AVE S, NAPLES, FL, 34102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $20,228

Exercised Options: $20,228

Current Obligation: $20,228

Actual Outlays: $2,666

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15B10622A00000501

IDV Type: BPA

Timeline