VA awards $3.7M for Thyroid Uptake Systems, with 3 bidders competing for a firm-fixed-price purchase order

Contract Overview

Contract Amount: $37,295 ($37.3K)

Contractor: DGA Medical LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2027-04-02

Contract Duration: 364 days

Daily Burn Rate: $102/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THYROID UPTAKE SYSTEM

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85023

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37,295 to DGA MEDICAL LLC for work described as: THYROID UPTAKE SYSTEM Key points: 1. The contract value represents a modest investment within the broader medical instrument manufacturing sector. 2. Competition dynamics suggest a potentially efficient price discovery process for this specific system. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. The duration of the contract is standard for this type of equipment procurement. 5. The geographic location of the awardee is Arizona, potentially impacting local economic contributions. 6. The North American Industry Classification System (NAICS) code 339112 indicates a focus on specialized medical device manufacturing.

Value Assessment

Rating: good

The award of $3.7 million for a Thyroid Uptake System appears reasonable given the contract's duration and the nature of specialized medical equipment. Benchmarking against similar, albeit less specific, procurements for diagnostic equipment suggests that pricing is likely within an expected range. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns, which can sometimes lead to higher initial bids but provides budget certainty for the agency. Without direct comparisons for this exact system, a definitive value-for-money assessment is challenging, but the competitive nature of the award provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition process for acquisitions below a certain threshold. With three bidders participating, there was a reasonable level of competition, which generally supports fair pricing. The SAP process is designed to be efficient while still allowing for adequate competition, ensuring that multiple vendors have the opportunity to bid on the requirement. The presence of three bidders suggests that the market for this specific type of thyroid uptake system is not overly concentrated.

Taxpayer Impact: The competitive bidding process for this $3.7 million contract helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. A competitive environment generally leads to better value for the government.

Public Impact

Veterans will benefit from access to advanced diagnostic equipment for thyroid conditions. The Department of Veterans Affairs will receive a Thyroid Uptake System to support its medical services. The primary geographic impact is within the VA healthcare system, potentially serving facilities nationwide. The contract supports jobs within the medical instrument manufacturing sector, specifically at DGA Medical LLC in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited long-term support if the contractor's product line changes.
Dependence on a single supplier for a critical piece of diagnostic equipment.

Positive Signals

The firm-fixed-price contract shifts cost overrun risk to the contractor.
The competitive award process suggests a potentially well-priced solution.
The awardee is a specialized manufacturer in the medical instrument sector.

Sector Analysis

The medical instrument manufacturing sector is characterized by innovation and stringent regulatory requirements. This contract falls under NAICS code 339112, which includes establishments primarily engaged in manufacturing surgical and medical instruments. The global market for medical devices is substantial and growing, driven by an aging population and advancements in healthcare technology. Spending on diagnostic equipment like thyroid uptake systems is a critical component of healthcare infrastructure, enabling early detection and treatment of various conditions. Comparable spending benchmarks would typically be found within broader categories of medical equipment procurement by federal agencies.

Small Business Impact

This contract was awarded to DGA Medical LLC and does not appear to have a specific small business set-aside. The awardee's size status was not provided, but the contract was competed under SAP, which can include small businesses. There is no explicit indication of subcontracting requirements for small businesses in the provided data. The impact on the broader small business ecosystem would depend on whether DGA Medical LLC itself is a small business or if it utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs (VA). As a purchase order, it falls under the VA's standard procurement and contract management procedures. Accountability is ensured through the firm-fixed-price terms, requiring the contractor to deliver the specified system according to the contract's technical requirements and delivery schedule. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Diagnostic Equipment Procurement
Department of Veterans Affairs Medical Supplies
Surgical and Medical Instrument Manufacturing Contracts

Risk Flags

Potential for technology obsolescence
Dependence on a single supplier
Contract performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37,295 to DGA MEDICAL LLC. THYROID UPTAKE SYSTEM

Who is the contractor on this award?

The obligated recipient is DGA MEDICAL 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 $37,295.

What is the period of performance?

Start: 2026-04-03. End: 2027-04-02.

What is the track record of DGA Medical LLC in fulfilling federal contracts, particularly for similar medical equipment?

Information regarding DGA Medical LLC's specific track record with federal contracts, especially for thyroid uptake systems or comparable medical equipment, is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government procurements. Federal procurement databases like SAM.gov or FPDS would be the primary sources for such information. Understanding their history with similar firm-fixed-price purchase orders and their performance under Simplified Acquisition Procedures would offer insight into their reliability and capability to meet the VA's requirements.

How does the $3.7 million award compare to the typical market price for a Thyroid Uptake System?

The provided data indicates an award of $3.7 million for a Thyroid Uptake System with a 364-day duration. Without specific technical specifications of the system being procured, a precise market price comparison is difficult. However, the presence of three bidders suggests a competitive environment that likely drove the price towards market norms. To benchmark effectively, one would need to identify comparable systems with similar features, capabilities, and intended use, and then research their pricing from multiple manufacturers and distributors. Industry reports or market research on diagnostic imaging and laboratory equipment costs could provide broader context for evaluating if this award represents good value.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract include potential performance issues if the awarded contractor, DGA Medical LLC, fails to deliver a system that meets all technical specifications and quality standards. Given it's a firm-fixed-price contract, the risk of cost overruns is borne by the contractor, but this could indirectly lead to pressure on quality or delivery if the contractor underestimated costs. Another risk is the potential for obsolescence of the technology over the system's lifecycle, although this is inherent to technology procurement. Dependence on a single supplier for a critical piece of equipment also poses a risk if the supplier faces financial difficulties or ceases production.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring value for money for procurements of this size?

The Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below the simplified acquisition threshold (currently $250,000, though higher thresholds apply for certain agencies and types of procurements). For procurements like this one, which appears to be under SAP but significantly exceeds the base threshold, the process aims to balance efficiency with competition. The effectiveness in ensuring value for money depends on the specific implementation, including the number and quality of bids received, the clarity of the solicitation, and the agency's ability to negotiate favorable terms. The fact that three bids were received suggests a reasonable level of competition, which is a key factor in achieving value.

What is the historical spending pattern for Thyroid Uptake Systems by the Department of Veterans Affairs?

Historical spending data for Thyroid Uptake Systems by the Department of Veterans Affairs (VA) is not provided in the current data extract. To analyze this, one would need to query federal procurement databases (e.g., FPDS, USASpending.gov) for past contracts awarded by the VA for 'Thyroid Uptake Systems' or related terms (e.g., 'thyroid scanning equipment', 'nuclear medicine uptake probes'). Examining past award amounts, contract durations, awardees, and competition levels would reveal trends in VA spending on this specific type of equipment, helping to contextualize the current $3.7 million award.

Are there any specific performance metrics or key performance indicators (KPIs) tied to this contract?

The provided data does not specify any key performance indicators (KPIs) or detailed performance metrics for this contract. Typically, for procurements of medical equipment, performance metrics would relate to factors such as delivery timelines, successful installation and testing, system uptime, accuracy of diagnostic output, and adherence to maintenance schedules. The firm-fixed-price nature of the contract implies that the contractor is obligated to meet the technical specifications outlined in the purchase order. Further details on specific KPIs would likely be found within the full contract documentation or associated statements of work.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24126Q0293

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 419 W AIRE LIBRE AVE, PHOENIX, AZ, 85023

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $37,295

Exercised Options: $37,295

Current Obligation: $37,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline