VA awards $1.56M purchase order for medical equipment maintenance to CareFusion Solutions, LLC

Contract Overview

Contract Amount: $156,600 ($156.6K)

Contractor: Carefusion Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $430/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BD PYXIS, BD LOGISTICS, AND BD IV PREP SYSTEMS, INCIDENTAL SUPPLIES.

Place of Performance

Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02908

State: Rhode Island Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $156,600 to CAREFUSION SOLUTIONS, LLC for work described as: BD PYXIS, BD LOGISTICS, AND BD IV PREP SYSTEMS, INCIDENTAL SUPPLIES. Key points: 1. Value for money appears fair given the firm-fixed-price structure and 3-year duration. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are moderate, with a focus on essential medical equipment. 4. Performance context is within the Department of Veterans Affairs' need for equipment upkeep. 5. Sector positioning is in healthcare equipment maintenance, a critical support service.

Value Assessment

Rating: fair

The award of $1.56 million for a 364-day base period with options for a 3-year duration is a significant investment. Without comparable contract data for similar medical equipment maintenance services, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be a positive indicator. The pricing should be benchmarked against industry standards for similar equipment maintenance contracts to ensure it aligns with market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means that the Department of Veterans Affairs did not benefit from multiple bids, which could have led to lower prices through a competitive bidding process. The justification for a sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates careful review of the awarded price to ensure it is fair and reasonable.

Public Impact

Veterans will benefit from the continued availability and maintenance of essential medical equipment. Services delivered include maintenance and repair for BD Pyxis, BD Logistics, and BD IV Prep Systems. Geographic impact is primarily within facilities served by the Department of Veterans Affairs, likely nationwide. Workforce implications include the potential for skilled technicians to perform maintenance and repair services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification requires further scrutiny.
Dependence on a single contractor for critical medical equipment maintenance poses a supply chain risk.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Long-term contract (up to 3 years) provides stability for essential medical equipment support.
Award to an established entity (CareFusion Solutions, LLC) suggests familiarity with VA systems.

Sector Analysis

The healthcare equipment maintenance sector is a vital component of the healthcare industry, ensuring the operational readiness of critical medical devices. This contract falls within the broader category of medical equipment repair and maintenance services, with a specific focus on automated medication management and IV preparation systems. The market for such services is driven by the need for reliable and efficient healthcare delivery, with spending benchmarks often tied to the volume and complexity of equipment maintained.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. The award to a single, likely larger, entity suggests that small businesses may not have been considered or were not capable of fulfilling this specific sole-source requirement.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' contracting and procurement oversight mechanisms. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature of the award; however, contract award data is generally made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Maintenance Services
Veterans Health Administration Contracts
Automated Dispensing Cabinets
IV Preparation Systems Maintenance

Risk Flags

Sole-source award may limit price competition.
Potential for higher costs due to lack of competition.
Dependency on a single contractor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $156,600 to CAREFUSION SOLUTIONS, LLC. BD PYXIS, BD LOGISTICS, AND BD IV PREP SYSTEMS, INCIDENTAL SUPPLIES.

Who is the contractor on this award?

The obligated recipient is CAREFUSION 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 $156,600.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of CareFusion Solutions, LLC in providing similar medical equipment maintenance services to the federal government?

CareFusion Solutions, LLC, now part of Becton Dickinson (BD), has a history of providing medical devices and related services. Information on their specific track record for maintenance of BD Pyxis, BD Logistics, and BD IV Prep Systems to the federal government, particularly the VA, would require a deeper dive into federal procurement databases like SAM.gov or FPDS. This would involve analyzing past contract awards, performance evaluations (if available), and any reported issues or successes. A positive track record would indicate reliability and expertise, while a negative one might raise concerns about the current award's risk.

How does the awarded price of $1.56 million for 364 days compare to market rates for similar maintenance contracts?

Benchmarking the $1.56 million award against market rates for similar maintenance contracts is crucial for assessing value for money. This would involve researching industry pricing for the maintenance of BD Pyxis, BD Logistics, and BD IV Prep Systems. Factors influencing market rates include the number of units, service level agreements (e.g., response times, preventative maintenance schedules), and geographic coverage. Without specific details on the number of systems covered and the scope of services, a precise comparison is difficult. However, a general market survey of third-party maintenance providers or original equipment manufacturer (OEM) service contracts for comparable equipment would provide a baseline for evaluation.

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

A sole-source award for critical medical equipment maintenance carries several risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most competitive bid. This can result in a lower value for taxpayer money. Secondly, it can reduce the incentive for the contractor to innovate or provide superior service, as there are no competitors to attract customers. Lastly, it creates a dependency on a single vendor, which can be problematic if the vendor experiences financial difficulties, quality control issues, or decides to discontinue the product line or service. This dependency also limits the government's flexibility in switching providers if a better option emerges.

What is the expected effectiveness of this contract in ensuring the operational readiness of the specified medical equipment?

The effectiveness of this contract in ensuring operational readiness hinges on the quality of services provided by CareFusion Solutions, LLC and the terms of the firm-fixed-price agreement. A well-defined scope of work, including preventative maintenance schedules, response times for repairs, and availability of spare parts, is critical. The firm-fixed-price structure incentivizes the contractor to perform efficiently. However, the sole-source nature means the VA relies heavily on the contractor's commitment and capability. Regular performance monitoring and adherence to service level agreements will be key indicators of the contract's effectiveness in maintaining the uptime and functionality of vital medical equipment.

What has been the historical spending pattern for similar medical equipment maintenance at the VA?

Analyzing historical spending patterns for similar medical equipment maintenance at the VA is essential for context. This would involve examining past contracts for the maintenance of BD Pyxis, BD Logistics, and BD IV Prep Systems, or comparable automated medication management and IV preparation systems. Understanding the volume of spending, the number of contracts awarded (competed vs. sole-source), and the average contract values over previous years can reveal trends. For instance, a consistent increase in spending might indicate growing equipment needs or rising service costs, while a shift towards sole-source awards could signal changes in procurement strategy or market dynamics. This historical data provides a baseline against which the current $1.56 million award can be evaluated.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: N/A

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 3750 TORREY VIEW CT, SAN DIEGO, CA, 92130

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $156,600

Exercised Options: $156,600

Current Obligation: $156,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline