VA awards $1.94M contract for surgical appliances to Skytron LLC, highlighting a need for specialized medical supplies

Contract Overview

Contract Amount: $194,366 ($194.4K)

Contractor: Skytron LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-09-30

Contract Duration: 175 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OR BOOM AND LIGHT

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48267

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $194,366.1 to SKYTRON LLC for work described as: OR BOOM AND LIGHT Key points: 1. The contract value of $1.94 million for surgical appliances suggests a significant demand for these essential medical items. 2. Skytron LLC, the awardee, operates within the Surgical Appliance and Supplies Manufacturing sector, indicating specialized expertise. 3. The relatively short performance period of approximately 5 months may indicate a need for immediate or short-term supply. 4. The contract was awarded under full and open competition, suggesting a robust market for these supplies. 5. The firm fixed-price contract type aims to provide cost certainty for the government. 6. The North American Industry Classification System (NAICS) code 339113 points to a specific niche within medical manufacturing.

Value Assessment

Rating: good

The contract value of $1.94 million for surgical appliances appears reasonable given the specialized nature of the products. Benchmarking against similar contracts for surgical supplies is challenging without more specific product details. However, the award to a single entity suggests a competitive bidding process likely yielded a fair market price. The firm fixed-price structure further supports value for money by capping potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The presence of four bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensures the government receives offers from various qualified suppliers.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation among bidders, leading to better value for public funds.

Public Impact

Veterans Affairs (VA) medical facilities will receive essential surgical appliances, directly benefiting patient care. The contract supports the delivery of critical medical supplies to ensure the smooth operation of surgical procedures. The geographic impact is primarily within the regions served by the Department of Veterans Affairs medical centers. The contract supports jobs within the surgical appliance manufacturing sector, contributing to the broader healthcare industry workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period could indicate urgent need or potential for follow-on contracts.
Lack of specific product details makes detailed value assessment difficult.
Reliance on a single awardee for a critical supply chain component warrants monitoring.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm fixed-price contract provides cost predictability.
Awardee operates within a specialized manufacturing sector, suggesting relevant expertise.

Sector Analysis

The surgical appliance and supplies manufacturing sector is a critical component of the broader healthcare industry, encompassing a wide range of products used in medical procedures. This contract falls under NAICS code 339113. Spending in this sector is driven by healthcare demand, technological advancements, and government procurement for military and veteran healthcare. Comparable spending benchmarks would depend on the specific types and quantities of surgical appliances procured.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Skytron LLC engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include contract performance monitoring, quality assurance checks, and financial audits. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this procurement.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration
Surgical Supplies
Healthcare Services Contracts

Risk Flags

Short contract duration may indicate a need for ongoing procurement.
Limited public information on specific product details.
Potential for supply chain vulnerabilities in specialized medical goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $194,366.1 to SKYTRON LLC. OR BOOM AND LIGHT

Who is the contractor on this award?

The obligated recipient is SKYTRON 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 $194,366.1.

What is the period of performance?

Start: 2026-04-08. End: 2026-09-30.

What is the track record of Skytron LLC in fulfilling government contracts, particularly with the Department of Veterans Affairs?

A review of Skytron LLC's contract history with the federal government, particularly the Department of Veterans Affairs, would be necessary to assess their track record. This would involve examining past performance evaluations, any instances of contract disputes or terminations, and their history of on-time delivery and quality compliance. Without specific data on their past performance, it is difficult to definitively assess their reliability for this current contract. However, the award itself suggests they met the minimum qualifications and were deemed capable of fulfilling the requirement based on the competitive evaluation.

How does the awarded price of $1.94 million compare to market rates for similar surgical appliances?

To compare the awarded price to market rates, one would need to identify the specific types and quantities of surgical appliances included in the $1.94 million contract. Benchmarking would then involve researching prices from other manufacturers and distributors for comparable items, considering factors like volume discounts, quality certifications, and delivery terms. Publicly available data on similar VA or Department of Defense contracts for surgical supplies could also serve as a reference point. The firm fixed-price nature of this contract suggests the price was determined to be fair and reasonable at the time of award, but ongoing market analysis would be beneficial.

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

Potential risks for this contract include supply chain disruptions affecting the availability of surgical appliances, quality control issues with the delivered products, and potential delays in delivery impacting patient care. Mitigation strategies likely involve the VA's contract management processes, which include performance monitoring, quality assurance inspections, and clear communication channels with Skytron LLC. The firm fixed-price contract also mitigates financial risk for the government. Furthermore, the competitive award process suggests a pool of qualified vendors, reducing reliance on a single source in case of unforeseen issues.

How effective is the Department of Veterans Affairs in procuring specialized medical supplies like surgical appliances?

The effectiveness of the VA in procuring specialized medical supplies can be assessed by examining factors such as the timeliness of awards, the competitiveness of the bidding process, the quality of goods received, and the overall cost efficiency. The award of this contract under full and open competition with multiple bids suggests a generally effective procurement process for this specific need. However, a comprehensive assessment would require analyzing a broader portfolio of VA medical supply contracts, looking for trends in performance, cost savings, and responsiveness to evolving medical needs.

What has been the historical spending pattern for surgical appliances by the Department of Veterans Affairs?

Analyzing historical spending patterns for surgical appliances by the VA would involve reviewing procurement data over several fiscal years. This would reveal trends in contract values, awardees, types of appliances purchased, and the procurement methods used (e.g., full and open competition vs. sole source). Understanding these patterns can help identify fluctuations in demand, potential areas for cost savings through bulk purchasing or long-term agreements, and the stability of the supplier market. The current $1.94 million award should be viewed in the context of this historical spending to gauge its significance.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24126Q0261

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5085 CORPORATE EXCHANGE BLVD SE, GRAND RAPIDS, MI, 49512

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

Financial Breakdown

Contract Ceiling: $194,366

Exercised Options: $194,366

Current Obligation: $194,366

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline