VA's February 2025 Medical Surgical Prime Vendor spending reached $21.9M with Concordance Healthcare Solutions

Contract Overview

Contract Amount: $21,882,502 ($21.9M)

Contractor: Concordance Healthcare Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-01

End Date: 2025-02-28

Contract Duration: 27 days

Daily Burn Rate: $810.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF FEBRUARY 2025

Place of Performance

Location: TIFFIN, SENECA County, OHIO, 44883

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.9 million to CONCORDANCE HEALTHCARE SOLUTIONS LLC for work described as: EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF FEBRUARY 2025 Key points: 1. Analysis focuses on a single month's expenditure, not the full contract value. 2. The contract type is Firm Fixed Price, offering cost predictability. 3. The vendor is a significant player in the medical-surgical supply chain. 4. No small business set-aside was applied to this specific order. 5. The contract was not competed, raising questions about price discovery. 6. Geographic focus is on Ohio for this reporting period.

Value Assessment

Rating: fair

This analysis covers February 2025 expenditures, totaling $21.9 million. Without a full contract value or historical data, a comprehensive value assessment is challenging. The firm fixed price structure provides some cost certainty. Benchmarking against similar prime vendor contracts would require access to broader market data and contract terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing. It is unclear if this is a new sole-source award or a continuation of a previously awarded sole-source contract.

Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market.

Public Impact

Veterans in Ohio likely benefit from timely access to medical and surgical supplies. The Department of Veterans Affairs ensures operational readiness for its healthcare facilities. Concordance Healthcare Solutions facilitates the supply chain for essential medical equipment. The contract supports the VA's mission to provide healthcare services to veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this contract limits price discovery and potential savings for taxpayers.
Monthly expenditure data alone does not provide a full picture of overall contract value or performance.
The sole-source nature of the award warrants scrutiny to ensure fair pricing and necessity.

Positive Signals

Firm Fixed Price contract type offers cost predictability for the VA.
Concordance Healthcare Solutions is an established provider in the medical-surgical supply sector.
The contract supports the critical mission of providing medical supplies to veterans.

Sector Analysis

The medical-surgical supply industry is a critical component of the healthcare sector, characterized by a wide range of products and numerous manufacturers and distributors. Prime vendor contracts, like this one, are essential for ensuring that healthcare providers have consistent access to necessary supplies. Spending in this category can fluctuate based on demand, product innovation, and contracting strategies. The VA's reliance on prime vendors highlights the importance of efficient supply chain management in government healthcare.

Small Business Impact

This specific delivery order does not indicate any small business set-aside. Analysis of subcontracting opportunities for small businesses would require a review of the broader contract terms and the vendor's subcontracting plan, which are not detailed in this express report. The absence of a set-aside on this order suggests that larger prime vendors are likely fulfilling the requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Transparency is limited by the express report format, which focuses on monthly expenditures. Accountability would be measured by the vendor's ability to meet delivery schedules and supply requirements as per the contract terms. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Medical Supplies
Prime Vendor Contracts
Surgical and Medical Instrument Manufacturing
Healthcare Supply Chain Management

Risk Flags

Sole-source award lacks competitive pricing.
Limited data provided (monthly expenditure only).
No indication of small business participation.
Geographic focus limited to Ohio in this report.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.9 million to CONCORDANCE HEALTHCARE SOLUTIONS LLC. EXPRESS REPORT: MEDICAL SURGICAL PRIME VENDOR EXPENDITURES FOR THE MONTH OF FEBRUARY 2025

Who is the contractor on this award?

The obligated recipient is CONCORDANCE HEALTHCARE SOLUTIONS LLC.

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 $21.9 million.

What is the period of performance?

Start: 2025-02-01. End: 2025-02-28.

What is the total value of the underlying prime vendor contract awarded to Concordance Healthcare Solutions?

The provided data only reflects expenditures for February 2025, totaling $21,882,502. It does not include the total contract value, award date, or period of performance for the overarching prime vendor contract. To determine the total contract value, one would need to access the contract award details from the Federal Procurement Data System (FPDS) or agency contract databases. This information is crucial for understanding the full scope of the government's commitment to Concordance Healthcare Solutions and for performing comprehensive value assessments over the life of the contract.

How does the February 2025 expenditure compare to previous months or the same month in prior years?

The provided data is limited to February 2025 expenditures. To compare this month's spending ($21.9 million) to previous periods, historical data from FPDS or agency records would be necessary. Such a comparison would help identify trends, seasonality, or significant deviations in spending patterns for medical-surgical supplies. Understanding these historical trends is vital for accurate forecasting, budget planning, and identifying potential anomalies that might warrant further investigation into contract performance or demand fluctuations.

What specific types of medical and surgical supplies were procured under this contract in February 2025?

The express report identifies the North American Industry Classification System (NAICS) code 339112, which pertains to 'Surgical and Medical Instrument Manufacturing.' However, it does not detail the specific items purchased. A breakdown of the supplies would require access to line-item data or detailed delivery orders associated with this contract. Knowing the specific items procured is essential for understanding the nature of the spending, identifying potential areas for cost savings through bulk purchasing or standardization, and assessing the contract's alignment with current medical needs.

What is the justification for this contract being awarded on a sole-source (not competed) basis?

The data explicitly states the contract was 'NOT COMPETED.' The justification for a sole-source award typically falls under specific exceptions in federal acquisition regulations, such as when only one responsible source can satisfy the requirement, or in cases of urgent and compelling need. Without further documentation, the specific reason for this sole-source award remains unknown. A thorough review of the Justification and Approval (J&A) document, if one exists, would be required to understand the rationale and assess its validity.

What is the geographic scope of this prime vendor contract, and why is the reporting focused on Ohio?

The data indicates the state of performance ('ST') is 'OH' (Ohio) and the state name ('SN') is 'OHIO'. This suggests that the reported expenditures for February 2025 are specifically for deliveries or services within Ohio. Prime vendor contracts can have broad geographic coverage, serving multiple regions or the entire country. The focus on Ohio in this report might be due to the specific reporting requirements of this express report, a regional distribution hub, or a specific operational focus for the VA during that period. Further contract details would clarify the full geographic scope.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 85 SHAFFER PARK DR, TIFFIN, OH, 44883

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,882,502

Exercised Options: $21,882,502

Current Obligation: $21,882,502

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X23D0002

IDV Type: IDC

Timeline