VA awards $5.34M sole-source contract for XR modality upgrade in Cincinnati, OH

Contract Overview

Contract Amount: $53,442 ($53.4K)

Contractor: BK Medical Holding Company, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-08-31

Contract Duration: 143 days

Daily Burn Rate: $374/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR US PO# 539B60009 STATION# CINCINNATI, OH REQ: SOLE SOURCE UPGRADE

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $53,442 to BK MEDICAL HOLDING COMPANY, INC. for work described as: MODALITY: XR US PO# 539B60009 STATION# CINCINNATI, OH REQ: SOLE SOURCE UPGRADE Key points: 1. Contract awarded to BK Medical Holding Company, Inc. for an XR modality upgrade. 2. The contract is a sole-source award, raising questions about competition and potential cost savings. 3. The duration of the contract is 143 days, indicating a focused scope of work. 4. The award is a delivery order under a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 334517 suggests a focus on manufacturing irradiation apparatus. 6. The contract is firm-fixed-price, providing cost certainty for the government.

Value Assessment

Rating: questionable

As a sole-source award, direct comparison to similar contracts is difficult. The fixed-price nature provides cost certainty, but the lack of competition may have led to a higher price than if multiple vendors had bid. Benchmarking value would require access to pricing data for comparable sole-source upgrades or competitive bids for similar equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, BK Medical Holding Company, Inc., was solicited. This approach bypasses the standard competitive bidding process. The limited competition means there was no opportunity for price discovery through multiple offers, potentially impacting the final price.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding environment. The government did not leverage market forces to drive down costs.

Public Impact

Veterans in Cincinnati, OH, will benefit from an upgraded XR modality, potentially leading to improved diagnostic imaging and treatment. The contract supports the Department of Veterans Affairs' mission to provide healthcare services to veterans. The upgrade is expected to enhance the capabilities of the medical facility at the Cincinnati station. The contract has implications for the medical technology sector, specifically for manufacturers of irradiation apparatus.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in if this is a proprietary system.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a specific vendor may indicate a strategic decision for system standardization or compatibility.
Delivery order structure suggests it's part of a larger, potentially pre-vetted, procurement vehicle.

Sector Analysis

The contract falls within the medical equipment manufacturing sector, specifically related to irradiation apparatus. This sector is characterized by high technological innovation and significant R&D investment. Comparable spending benchmarks would involve analyzing other sole-source or competitive awards for similar advanced medical imaging equipment across federal agencies.

Small Business Impact

As a sole-source award, there is no direct small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless BK Medical Holding Company, Inc. actively engages small businesses for subcontracting roles.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified goods by a certain date. Transparency is limited due to the sole-source nature of the award, with further details likely residing within internal VA procurement justifications.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Advanced Imaging Technology Contracts
Sole-Source Healthcare Equipment Awards

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $53,442 to BK MEDICAL HOLDING COMPANY, INC.. MODALITY: XR US PO# 539B60009 STATION# CINCINNATI, OH REQ: SOLE SOURCE UPGRADE

Who is the contractor on this award?

The obligated recipient is BK MEDICAL HOLDING COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $53,442.

What is the period of performance?

Start: 2026-04-10. End: 2026-08-31.

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

The provided data indicates a sole-source award, but the specific justification is not detailed. Typically, sole-source contracts are awarded when only one responsible source is available, or when there is a compelling justification for urgency, unique capability, or compatibility with existing systems. For this contract, the VA would have had to document why BK Medical Holding Company, Inc. was the only viable option. This could be due to proprietary technology, existing infrastructure integration requirements, or a lack of competitive alternatives that meet the specific technical specifications for the XR modality upgrade at the Cincinnati station. Without the official justification document, the precise reasons remain speculative.

How does the $5.34 million cost compare to similar XR modality upgrades in the federal healthcare system?

Direct cost comparison is challenging without knowing the exact specifications of the XR modality and the scope of the upgrade. However, $5.34 million for a significant medical equipment upgrade, especially a sole-source award, warrants scrutiny. Competitive procurements for similar advanced imaging systems can range widely, from a few hundred thousand to several million dollars, depending on the technology's sophistication and the vendor. The absence of competition in this sole-source award means there's no benchmark from multiple bids to assess if this price represents fair market value. Further analysis would require comparing it to other sole-source awards for similar equipment or to the pricing of comparable systems procured competitively by other federal agencies or large healthcare systems.

What are the potential risks associated with a sole-source award for critical medical equipment?

Sole-source awards for critical medical equipment carry several risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures of a bidding process. There's also a risk of reduced innovation, as vendors may have less incentive to offer cutting-edge solutions if they are the only option. Furthermore, sole-source contracts can sometimes indicate a lack of strategic long-term planning or market analysis by the procuring agency. For the VA, relying on a single vendor for a specific modality could also create vendor lock-in, making future upgrades or replacements more complex and potentially more expensive if the vendor's technology becomes obsolete or their pricing increases significantly.

What is the track record of BK Medical Holding Company, Inc. with the Department of Veterans Affairs?

Information on BK Medical Holding Company, Inc.'s specific track record with the Department of Veterans Affairs is not detailed in the provided data. However, the fact that this is a sole-source award suggests a pre-existing relationship or a specific capability that the VA identified. To assess their track record thoroughly, one would need to examine past VA contracts awarded to BK Medical Holding Company, Inc., including performance reviews, any disputes or contract modifications, and the types of equipment or services previously provided. Understanding their history with the VA would offer insights into their reliability, quality of products, and adherence to contract terms.

How does this contract align with the VA's overall spending on medical equipment and technology upgrades?

This $5.34 million contract represents a specific investment in upgrading XR modality capabilities at a single VA station. To understand its alignment with overall VA spending, one would need to analyze the VA's total budget allocated for medical equipment procurement and technology modernization over several fiscal years. The VA typically invests billions annually in healthcare infrastructure and technology. This contract, while significant for the specific station, would be a fraction of the agency's total capital expenditures. Its alignment depends on whether it fits into a broader strategic plan for technology refresh, addresses critical equipment needs across multiple facilities, or represents a pilot for new technologies.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus 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

Solicitation ID: SOLE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25 CORPORATE DR., STE. 230, BURLINGTON, MA, 01803

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

Financial Breakdown

Contract Ceiling: $53,442

Exercised Options: $53,442

Current Obligation: $53,442

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36H79719D0011

IDV Type: IDC

Timeline