VA awards $282K for Draeger Apollo Service Contract to Draeger Inc

Contract Overview

Contract Amount: $282,605 ($282.6K)

Contractor: Draeger Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-08

End Date: 2027-02-28

Contract Duration: 1,087 days

Daily Burn Rate: $260/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DRAEGER APOLLO SERVICE CONTRACT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $282,604.9 to DRAEGER INC for work described as: DRAEGER APOLLO SERVICE CONTRACT Key points: 1. Contract awarded to incumbent supplier Draeger Inc. 2. Service contract for electronic and precision equipment repair and maintenance. 3. Potential for higher costs due to lack of competition. 4. Long-term contract duration of 36 months.

Value Assessment

Rating: fair

The contract is a firm-fixed-price purchase order. Without competitive bidding, it's difficult to assess if the $282,604.90 price is optimal compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there is no market pressure to reduce prices.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for these services, impacting taxpayer funds.

Public Impact

Veterans may experience service disruptions if equipment maintenance is not performed efficiently or cost-effectively. The Department of Veterans Affairs relies on this service for critical equipment. Lack of transparency in pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Long contract duration without review

Positive Signals

Firm fixed price contract type
Clear contract scope

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector. Spending in this area is crucial for maintaining operational readiness of specialized equipment within government agencies.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of Veterans Affairs awarded this contract. Oversight should focus on ensuring the services provided meet the required standards and that future procurements are competed where possible.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $282,604.9 to DRAEGER INC. DRAEGER APOLLO SERVICE CONTRACT

Who is the contractor on this award?

The obligated recipient is DRAEGER 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 $282,604.9.

What is the period of performance?

Start: 2024-03-08. End: 2027-02-28.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is critical for understanding why competition was not pursued. Agencies typically cite reasons such as unique capabilities of the contractor, urgent needs, or lack of available alternatives. Without this justification, it's difficult to assess the necessity of bypassing the competitive process and the potential impact on value for money.

What are the risks associated with a sole-source contract for equipment maintenance?

Sole-source contracts carry risks of inflated pricing due to the absence of competitive pressure. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting flexibility and innovation. Furthermore, without market comparisons, it's harder to ensure the quality of service meets expectations or that the provider is operating efficiently.

How will the VA ensure the effectiveness of the Draeger Apollo service despite the lack of competition?

The VA can ensure effectiveness through robust performance management. This includes clearly defined service level agreements (SLAs), regular performance reviews, and user feedback mechanisms. Establishing key performance indicators (KPIs) and monitoring them closely will help hold Draeger Inc. accountable for service quality and responsiveness, even in a sole-source scenario.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3135 QUARRY RD, TELFORD, PA, 18969

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

Financial Breakdown

Contract Ceiling: $282,605

Exercised Options: $282,605

Current Obligation: $282,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline