VA awards $602K for Hemodialysis Flow Systems to Transonic Systems Inc

Contract Overview

Contract Amount: $60,240 ($60.2K)

Contractor: Transonic Systems Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-05-15

Contract Duration: 35 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TRANSONIC SYSTEMS HEMODIALYSIS FLOW SYSTEMS (2)

Place of Performance

Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02908

State: Rhode Island Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $60,240 to TRANSONIC SYSTEMS INC. for work described as: TRANSONIC SYSTEMS HEMODIALYSIS FLOW SYSTEMS (2) Key points: 1. Sole-source award to Transonic Systems Inc. for critical medical equipment. 2. Limited competition raises questions about price discovery and potential overpayment. 3. High-value contract for specialized electromedical apparatus. 4. Sector: Healthcare/Medical Devices.

Value Assessment

Rating: questionable

The contract value of $602,400 for 35 days of service appears high, especially given the lack of competition. Benchmarking against similar contracts for hemodialysis equipment is difficult without more data, but the sole-source nature suggests potential for inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to Transonic Systems Inc. This significantly limits price discovery and may lead to less favorable terms for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding on this $602,400 contract.

Public Impact

Ensures continued access to essential hemodialysis equipment for veterans. Potential for higher costs impacts the VA's budget for other critical services. Lack of competition may stifle innovation and market competition in the long run.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Limited competition
Short contract duration
High contract value

Positive Signals

Essential medical equipment
Dedicated supplier

Sector Analysis

The Department of Veterans Affairs is procuring electromedical apparatus for healthcare services. Spending in this sector is substantial, with a focus on reliable and specialized equipment for patient care. Benchmarks for similar sole-source contracts are often higher than competed ones.

Small Business Impact

This contract was awarded to Transonic Systems Inc. and does not indicate any specific set-aside for small businesses. The lack of competition suggests larger, established firms are likely the primary suppliers in this niche.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value. Documentation justifying the lack of competition and the reasonableness of the price is crucial for accountability.

Related Government Programs

Electromedical and Electrotherapeutic Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Short contract duration may indicate an urgent, unplanned need.
High contract value warrants scrutiny.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $60,240 to TRANSONIC SYSTEMS INC.. TRANSONIC SYSTEMS HEMODIALYSIS FLOW SYSTEMS (2)

Who is the contractor on this award?

The obligated recipient is TRANSONIC SYSTEMS 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 $60,240.

What is the period of performance?

Start: 2026-04-10. End: 2026-05-15.

What is the justification for the sole-source award, and was a market research conducted to confirm no other viable suppliers exist?

The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This often occurs when a product is proprietary or requires unique expertise. A thorough market research should have been conducted to validate this claim and explore potential alternatives before proceeding with a sole-source procurement, ensuring the government's best interest is served.

How does the per-unit cost of these hemodialysis flow systems compare to industry benchmarks or previously competed contracts?

Without specific per-unit cost data and access to industry benchmarks or historical competed contract prices for similar hemodialysis flow systems, a direct comparison is challenging. However, given the sole-source nature of this award, it is reasonable to suspect that the pricing may be higher than what could be achieved through a competitive bidding process. Further analysis would require access to detailed pricing breakdowns and market data.

What is the long-term strategy for acquiring these critical hemodialysis systems to ensure competitive pricing and supply chain resilience?

The long-term strategy should focus on moving away from sole-source awards for critical equipment. This could involve actively seeking out and qualifying multiple suppliers, encouraging market competition through phased procurements, or exploring opportunities for bulk purchasing agreements. Developing a robust supply chain that is not dependent on a single vendor is essential for both cost-effectiveness and uninterrupted service delivery.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24126Q0352

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34 DUTCH MILL RD, ITHACA, NY, 14850

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

Financial Breakdown

Contract Ceiling: $61,425

Exercised Options: $61,425

Current Obligation: $60,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline