VA awards $397K emergency purchase order for surgical microscope replacement to SurgicalOne Inc

Contract Overview

Contract Amount: $39,722 ($39.7K)

Contractor: Surgicalone Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-05-21

Contract Duration: 44 days

Daily Burn Rate: $903/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THIS IS AN EMERGENCY CONTRACT FOR THE REPLACEMENT OF THE LEICA ARVEO SURGICAL MICROSCOPE.

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13210

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $39,722 to SURGICALONE INC for work described as: THIS IS AN EMERGENCY CONTRACT FOR THE REPLACEMENT OF THE LEICA ARVEO SURGICAL MICROSCOPE. Key points: 1. This contract addresses an urgent need for a critical medical device, indicating potential equipment lifecycle management gaps. 2. The sole-source nature of this award warrants scrutiny regarding the justification for not pursuing competitive bidding. 3. A short performance period suggests a focused, immediate requirement rather than a long-term service agreement. 4. The award to a single vendor may limit opportunities for price negotiation and broader market engagement. 5. Understanding the specific failure of the previous microscope is key to assessing the necessity of this emergency procurement.

Value Assessment

Rating: fair

The award amount of $397,222 for a surgical microscope replacement appears to be within a reasonable range for specialized medical equipment. However, without specific details on the model and its features, a direct comparison to similar contracts is difficult. The lack of competition makes it challenging to benchmark the pricing against market rates or identify potential cost savings that might have been achieved through a competitive process. The urgency of the replacement is a significant factor influencing the value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is likely due to the emergency nature of the requirement for replacing a critical surgical microscope. Without a competitive bidding process, it is impossible to determine the number of potential bidders or the level of market interest. This limits the agency's ability to ensure it received the best possible price and terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competition, as the vendor was not incentivized by market pressures to offer their lowest price. The emergency justification needs to be robust to ensure funds are used efficiently.

Public Impact

Veterans in New York will benefit from the continued availability of essential surgical services. The contract ensures the Department of Veterans Affairs can maintain its surgical capabilities without interruption. This procurement directly supports the healthcare operations at a VA facility in New York. The availability of functioning surgical equipment is crucial for patient outcomes and the efficiency of surgical teams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and missed opportunities for better value.
Emergency procurement may indicate insufficient proactive equipment maintenance or replacement planning.
The sole-source award limits transparency and accountability in the procurement process.

Positive Signals

Addresses an immediate and critical need for patient care continuity.
Ensures essential surgical services remain available to veterans.
The contract is for a specific, necessary piece of medical equipment.

Sector Analysis

The market for surgical microscopes is specialized, involving a limited number of manufacturers and distributors. This contract falls within the broader healthcare equipment and medical device sector. Spending in this area is driven by technological advancements, clinical needs, and the operational requirements of healthcare facilities. Benchmarking this specific purchase requires comparison against similar high-precision surgical instruments, considering factors like brand, model, and included accessories.

Small Business Impact

This contract does not appear to involve a small business set-aside, nor is there information suggesting subcontracting opportunities for small businesses. The focus is on acquiring a specialized piece of equipment from a specific vendor, likely a larger entity within the medical device industry. The impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' internal procurement and financial management systems. Given it's a purchase order, standard financial controls and auditing processes would apply. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would be engaged if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration Medical Equipment Procurement
Department of Veterans Affairs Surgical Services
Emergency Medical Equipment Replenishment

Risk Flags

Sole-source award lacks transparency.
Emergency procurement may indicate planning deficiencies.
Potential for overpayment due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $39,722 to SURGICALONE INC. THIS IS AN EMERGENCY CONTRACT FOR THE REPLACEMENT OF THE LEICA ARVEO SURGICAL MICROSCOPE.

Who is the contractor on this award?

The obligated recipient is SURGICALONE 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 $39,722.

What is the period of performance?

Start: 2026-04-07. End: 2026-05-21.

What is the specific model of the Leica Arveo surgical microscope being replaced, and what were its performance issues?

The provided data indicates the contract is for the replacement of a Leica Arveo surgical microscope due to an emergency. However, the specific model number or configuration is not detailed. Furthermore, the exact nature of the failure or performance issues that necessitated this emergency replacement is not specified in the available information. Understanding these details would be crucial for assessing whether the replacement is appropriate and if the previous equipment was adequately maintained or if there are underlying issues with equipment lifecycle management within the VA facility.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The contract is designated as 'NOT COMPETED' and awarded as a sole-source purchase order. The data explicitly states 'THIS IS AN EMERGENCY CONTRACT FOR THE REPLACEMENT OF THE LEICA ARVEO SURGICAL MICROSCOPE.' This suggests the justification for sole-sourcing is based on urgency and the critical nature of the equipment for ongoing surgical operations. Agencies can sole-source under specific circumstances, such as when only one responsible source can provide the required supply or service, or when there is a compelling urgency that prevents competition. A detailed justification document would typically accompany such an award, outlining why competition was not feasible.

How does the $397,222 award amount compare to the typical market price for a Leica Arveo surgical microscope?

The award amount of $397,222 for a Leica Arveo surgical microscope replacement is a significant figure. While the exact configuration and included accessories can vary widely, this price point suggests a high-end, potentially fully equipped system. Benchmarking this against market rates is challenging without knowing the precise specifications and any associated service contracts or training included. However, for specialized surgical equipment, prices can range from tens of thousands to several hundred thousand dollars. The lack of competitive bidding makes it difficult to ascertain if this represents a fair market price or if potential savings were forgone.

What is the expected lifespan and maintenance plan for the newly purchased surgical microscope?

The provided data specifies a short performance period for this contract, with a start date of 2026-04-07 and an end date of 2026-05-21, totaling 44 days. This duration likely pertains to the delivery and installation of the microscope, not its entire operational lifespan or maintenance schedule. Information regarding the expected lifespan and any associated maintenance plans or service agreements for the new Leica Arveo surgical microscope is not included in the data. Typically, such details would be part of the broader equipment management strategy for the VA facility.

Are there any performance metrics or service level agreements associated with this purchase order?

The data indicates this is a 'PURCHASE ORDER' with a 'FIRM FIXED PRICE' contract type and a duration of 44 days. Purchase orders, especially for equipment acquisition, may not always include detailed performance metrics or service level agreements (SLAs) in the same way a service contract would. The primary focus is on the successful delivery and installation of the specified equipment. While the vendor is obligated to deliver the correct item, explicit performance metrics related to its ongoing use or uptime are not evident from the provided information. Any such agreements would likely be documented separately or within the vendor's standard terms.

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

Solicitation ID: NONE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23030 E INDUSTRIAL DR, SAINT CLAIR SHORES, MI, 48080

Business Categories: Category Business, Corporate Entity Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,722

Exercised Options: $39,722

Current Obligation: $39,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline