VA awards $2.5M contract for in-home hospital beds, highlighting need for durable medical equipment

Contract Overview

Contract Amount: $2,500 ($2.5K)

Contractor: Disorb Systems Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-23

End Date: 2027-06-22

Contract Duration: 364 days

Daily Burn Rate: $7/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MINIMUM GUARANTEE DELIVERY ORDER - IN-HOME HOSPITAL BEDS AND ACCESSORIES

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19132

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2,500 to DISORB SYSTEMS INC for work described as: MINIMUM GUARANTEE DELIVERY ORDER - IN-HOME HOSPITAL BEDS AND ACCESSORIES Key points: 1. Contract focuses on providing essential durable medical equipment for home use. 2. The award signifies a commitment to patient care outside traditional hospital settings. 3. Competition was conducted under a full and open process, suggesting a robust market. 4. The fixed-price structure aims to control costs and provide predictable spending. 5. This contract addresses a specific need within the VA's healthcare delivery model. 6. Performance will be monitored to ensure timely delivery and quality of goods.

Value Assessment

Rating: good

The contract value of $2.5 million for in-home hospital beds and accessories appears reasonable given the scope of providing essential medical equipment. Benchmarking against similar VA or other federal contracts for durable medical equipment would provide a clearer picture of value for money. The firm fixed-price nature of the award suggests an effort to manage costs effectively, but the ultimate value will depend on the quality and reliability of the delivered products and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' process. This indicates that the VA actively sought bids from all responsible sources after initially excluding certain ones, suggesting a deliberate effort to ensure broad market participation. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive environment that should lead to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially driving down costs and increasing the likelihood of receiving high-quality equipment.

Public Impact

Veterans will benefit from enhanced home healthcare capabilities, improving their quality of life and recovery. The contract will ensure the availability of critical medical equipment, such as hospital beds and related accessories, for in-home use. The geographic impact is likely nationwide, supporting veterans across various locations. This contract supports the healthcare services sector and potentially the medical equipment manufacturing and distribution workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting timely delivery of essential equipment.
Ensuring consistent quality and maintenance of durable medical equipment over the contract period.
Managing the logistics of delivery and setup for in-home hospital beds across diverse veteran locations.

Positive Signals

The firm fixed-price contract provides cost certainty for the VA.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract duration allows for sustained provision of necessary medical equipment.

Sector Analysis

The healthcare sector, particularly the durable medical equipment (DME) sub-sector, is a critical component of patient care. This contract fits within the broader federal strategy to support veterans' health needs, including enabling care outside of traditional clinical settings. Spending in this area is influenced by factors such as veteran population demographics, healthcare policy, and technological advancements in medical equipment. Comparable spending benchmarks would typically involve analyzing the average cost of similar equipment leases or purchases by other government agencies or large healthcare providers.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses participated, but their specific role or the overall impact on the small business ecosystem is not detailed. Further analysis would be needed to determine if small businesses were significantly involved or if there are opportunities for them within the supply chain for these hospital beds and accessories.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures will include monitoring delivery schedules, product quality, and adherence to contract terms. Transparency is generally facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

VA Medical Equipment Procurement
Durable Medical Equipment Services
Home Healthcare Services
Veterans Health Administration Programs

Risk Flags

Potential for supply chain disruptions
Ensuring consistent equipment quality and maintenance
Logistical challenges in delivery and setup

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2,500 to DISORB SYSTEMS INC. MINIMUM GUARANTEE DELIVERY ORDER - IN-HOME HOSPITAL BEDS AND ACCESSORIES

Who is the contractor on this award?

The obligated recipient is DISORB SYSTEMS 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 $2,500.

What is the period of performance?

Start: 2026-06-23. End: 2027-06-22.

What is the typical lifespan and maintenance schedule for the hospital beds and accessories being procured under this contract?

The provided data does not specify the exact model or technical specifications of the hospital beds and accessories. Therefore, a precise lifespan and maintenance schedule cannot be determined from the information given. Typically, durable medical equipment like hospital beds are designed for extended use, often with lifespans ranging from 5 to 10 years or more, depending on usage and build quality. Maintenance schedules are usually dictated by the manufacturer's recommendations and the terms of the contract, often involving periodic inspections, cleaning, and repair services to ensure functionality and safety. The VA would likely have specific requirements outlined in the contract's statement of work regarding expected product durability and required maintenance protocols to ensure the equipment remains in good working order throughout the contract period and beyond.

How does the $2.5 million contract value compare to historical VA spending on similar in-home hospital bed solutions?

To accurately compare the $2.5 million contract value to historical VA spending, access to historical procurement data for similar in-home hospital beds and accessories would be necessary. This would involve searching federal procurement databases (like FPDS or USASpending.gov) for contracts awarded by the VA for 'in-home hospital beds,' 'durable medical equipment,' or related terms over previous fiscal years. Analyzing the total dollar amounts, contract types (e.g., fixed-price, cost-plus), durations, and quantities procured in those historical contracts would allow for a meaningful benchmark. Without this specific historical data, it's challenging to definitively state whether $2.5 million represents an increase, decrease, or stable level of investment. However, the current award suggests a continued or potentially growing need for these services.

What are the key performance indicators (KPIs) that will be used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for this contract would typically be detailed in the Performance Work Statement (PWS) or Statement of Work (SOW) section of the contract. Common KPIs for durable medical equipment supply contracts include on-time delivery rates, order accuracy, equipment functionality upon delivery, response times for service requests or repairs, and customer satisfaction (in this case, veteran satisfaction). The VA would likely track metrics such as the percentage of orders delivered within the specified timeframe, the number of defective units reported, and the average time taken to resolve reported issues. Meeting or exceeding these KPIs would be crucial for the contractor to maintain a positive performance record and potentially secure future contracts.

What is the potential impact of this contract on the broader market for durable medical equipment suppliers?

This $2.5 million contract awarded to DISORB SYSTEMS INC under full and open competition could have several impacts on the broader market for durable medical equipment suppliers. Firstly, it signals a significant demand from a major federal agency (the VA) for in-home hospital beds and accessories, potentially encouraging other suppliers to enhance their offerings or bid on future VA solicitations. Secondly, the 'full and open' competition suggests that the market is perceived as sufficiently robust to support multiple capable vendors, fostering a competitive environment. This competition can drive innovation, improve service quality, and potentially lead to more competitive pricing across the industry. For DISORB SYSTEMS INC, this award represents a substantial business opportunity and a validation of their capabilities, potentially enhancing their reputation and market position.

Are there any specific risks associated with the 'full and open competition after exclusion of sources' contracting method used for this award?

The contracting method 'full and open competition after exclusion of sources' is a specific type of full and open competition. It implies that the agency initially excluded certain sources (perhaps due to specific requirements or prior issues) but then opened the competition broadly to all other responsible sources. The primary risk associated with any full and open competition is ensuring that the evaluation process is fair, objective, and effectively identifies the best value offer. Risks specific to this variation might include ensuring that the initial exclusion of sources was justified and did not unduly limit competition. However, generally, this method aims to maximize competition while ensuring specific criteria are met. The main risks for the government are ensuring the selected contractor can perform, deliver quality goods on time, and at a fair price, which are standard risks for any procurement.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 W INDIANA AVE, PHILADELPHIA, PA, 19132

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,500

Exercised Options: $2,500

Current Obligation: $2,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G26D0002

IDV Type: IDC

Timeline