VA awards $83,837 contract for medical gas system maintenance to VETERANS ELITE INC

Contract Overview

Contract Amount: $83,838 ($83.8K)

Contractor: Veterans Elite Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-04-13

End Date: 2027-04-12

Contract Duration: 1,825 days

Daily Burn Rate: $46/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAINTENANCE, TESTING AND INSPECTION OF MEDICAL GAS SYSTEM

Place of Performance

Location: POINT PLEASANT BORO, OCEAN County, NEW JERSEY, 08742

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $83,837.63 to VETERANS ELITE INC for work described as: MAINTENANCE, TESTING AND INSPECTION OF MEDICAL GAS SYSTEM Key points: 1. Contract value appears reasonable for specialized maintenance services. 2. Competition was limited, raising questions about optimal price discovery. 3. Potential risk associated with a single award for critical infrastructure. 4. Performance context is essential to evaluate the long-term value of this maintenance. 5. This contract falls within the broader category of facility maintenance and repair. 6. The duration of the contract suggests a need for ongoing, reliable service.

Value Assessment

Rating: good

The contract value of $83,837 for a 5-year period for medical gas system maintenance is modest. Benchmarking against similar contracts for specialized facility maintenance is difficult without more granular data on the scope of services. However, the price per year is approximately $16,767, which seems within a reasonable range for maintaining critical life-support systems in a healthcare setting. The firm fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. While the specific number of bidders is not provided, the 'competed under SAP' designation suggests a streamlined process that may not have attracted the widest possible pool of vendors. This can sometimes lead to less competitive pricing compared to broader solicitations.

Taxpayer Impact: Limited competition under SAP may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process.

Public Impact

Veterans receiving care at the facility benefit from the assurance of safe and functional medical gas systems. The services delivered include essential maintenance and testing to ensure system reliability. The geographic impact is localized to the New Jersey facility where the services are performed. The contract supports specialized technical jobs in the maintenance and repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
Reliance on a single vendor for critical medical gas system maintenance poses a risk if the vendor fails to perform.
The specific scope of 'maintenance, testing, and inspection' needs clear definition to ensure comprehensive service delivery.

Positive Signals

The firm fixed-price contract type provides cost certainty for the VA.
The 5-year duration indicates a stable, long-term need for these essential services.
The award to VETERANS ELITE INC. supports a business potentially focused on serving veteran needs.

Sector Analysis

This contract falls within the broader healthcare support services sector, specifically focusing on the maintenance and repair of critical infrastructure within medical facilities. The market for specialized medical gas system maintenance is niche, often requiring certified technicians and adherence to strict healthcare regulations. Comparable spending benchmarks would typically be found within facility operations and maintenance budgets of federal healthcare providers like the VA, where such services are essential for patient safety and operational continuity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While VETERANS ELITE INC. may be a small business, the contract itself was competed under SAP, which does not inherently guarantee small business participation or subcontracting opportunities. Further analysis would be needed to determine if subcontracting plans were required or if small businesses were involved in the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and facility management. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VA Medical Facility Maintenance
Medical Equipment Maintenance Contracts
Healthcare Infrastructure Support
Facility Operations and Maintenance Services

Risk Flags

Limited Competition
Potential for Price Inflation
Vendor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $83,837.63 to VETERANS ELITE INC. MAINTENANCE, TESTING AND INSPECTION OF MEDICAL GAS SYSTEM

Who is the contractor on this award?

The obligated recipient is VETERANS ELITE 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 $83,837.63.

What is the period of performance?

Start: 2022-04-13. End: 2027-04-12.

What is the track record of VETERANS ELITE INC. in performing similar medical gas system maintenance contracts?

Information regarding the specific track record of VETERANS ELITE INC. in performing medical gas system maintenance is not detailed in the provided data. A thorough review would require examining past performance evaluations, any prior contracts of a similar nature awarded to this vendor, and client references. Without this, it's difficult to assess their experience and reliability for this critical service. The award itself suggests they met minimum requirements, but deeper due diligence is often necessary for specialized services impacting patient safety.

How does the annual cost of this contract compare to industry benchmarks for medical gas system maintenance?

The annual cost for this contract is approximately $16,767 ($83,837 total contract value / 5 years). Benchmarking this against industry standards is challenging without specific details on the scope of services (e.g., number of inspections, types of tests, response times for emergencies, size of the facility's medical gas system). However, for a 5-year contract covering essential maintenance and testing of critical life-support systems, this annual figure appears to be within a reasonable range, assuming it covers standard preventative maintenance and routine testing protocols. More detailed service level agreements would be needed for a precise comparison.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks include potential vendor underperformance, failure to adhere to strict medical gas system standards, and the possibility of price increases if the contract were to be re-competed under different circumstances. Mitigation strategies include the firm fixed-price structure, which caps costs, and the VA's oversight mechanisms to monitor performance. The 5-year duration also implies a level of trust in the vendor's capability. However, the limited competition aspect could pose a risk if the vendor's performance declines, as finding alternatives might be difficult or costly.

How effective is the current maintenance regime likely to be in ensuring the long-term reliability of the medical gas system?

The effectiveness hinges on the detailed scope of work within the contract and the quality of execution by VETERANS ELITE INC. Regular testing and inspection are crucial for identifying potential failures before they occur, thus ensuring reliability. The 5-year term suggests the VA anticipates consistent performance. However, the true measure of effectiveness will be observed through the system's uptime, adherence to safety standards, and the absence of critical failures during the contract period. Post-award performance reviews and system audits would provide better insights.

What has been the historical spending pattern for medical gas system maintenance at this VA facility or similar facilities?

Historical spending data for this specific contract or facility is not provided. To assess historical patterns, one would need to examine prior contracts for medical gas system maintenance at this VA location or comparable VA medical centers. Analyzing trends in contract values, durations, and awarded vendors over several years would reveal whether spending has been consistent, increasing, or decreasing, and whether competition levels have changed. This context is vital for understanding if the current $83,837 award represents a typical investment.

What is the potential impact of limited competition on the overall value for taxpayers?

Limited competition, especially under Simplified Acquisition Procedures (SAP), can potentially lead to higher costs for taxpayers compared to a scenario with robust, open competition. When fewer vendors participate, the pressure to offer the most competitive pricing is reduced. This can result in the government paying more than it might have otherwise. While SAP is designed for efficiency in acquiring goods and services below certain thresholds, it's crucial to ensure that even within SAP, adequate outreach is conducted to maximize potential bidder interest and foster price discovery.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 VETERAN MEMORIAL DR STE 2, POINT PLEASANT BEACH, NJ, 08742

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $83,838

Exercised Options: $83,838

Current Obligation: $83,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline