VA Awards $2.28M for Wheelchair Van Transport to Virgo Medical Services Inc

Contract Overview

Contract Amount: $2,278,226 ($2.3M)

Contractor: Virgo Medical Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2026-02-28

Contract Duration: 242 days

Daily Burn Rate: $9.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WHEELCHAIR VAN TRANSPORTATION

Place of Performance

Location: EAST ORANGE, ESSEX County, NEW JERSEY, 07018

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to VIRGO MEDICAL SERVICES INC for work described as: WHEELCHAIR VAN TRANSPORTATION Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The service is specialized, indicating a potentially niche market. 3. Fixed-price contract offers cost certainty but may limit flexibility. 4. The award is a delivery order against an unspecified contract. 5. Spending is concentrated within the Department of Veterans Affairs.

Value Assessment

Rating: fair

The contract's value of $2.28 million over 242 days suggests a daily rate of approximately $9,414. Benchmarking this against similar specialized transportation contracts is difficult without more detail on service scope and volume.

Cost Per Unit: $9,414/day (estimated)

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED,' indicating a limited competition approach. This method may lead to higher prices than a fully competed contract, as it bypasses broader market solicitation.

Taxpayer Impact: Limited competition could result in taxpayers paying more than necessary for these essential transportation services.

Public Impact

Ensures critical transportation for veterans with special needs. Supports mobility and access to healthcare appointments. Potential for service disruptions if vendor performance is poor. Geographic focus on New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for price inflation due to sole-source award
Delivery order against an unspecified contract

Positive Signals

Addresses a critical need for veterans
Fixed-price contract provides cost predictability

Sector Analysis

This contract falls under specialized transportation services, often characterized by specific equipment and trained personnel requirements. Benchmarks are highly variable based on service intensity and geographic area.

Small Business Impact

No information is available regarding small business participation in this contract award.

Oversight & Accountability

The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for limited competition was sound and that fair market prices were obtained.

Related Government Programs

Special Needs Transportation
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on contract justification
Unspecified base contract for delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to VIRGO MEDICAL SERVICES INC. WHEELCHAIR VAN TRANSPORTATION

Who is the contractor on this award?

The obligated recipient is VIRGO MEDICAL SERVICES 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 $2.3 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-02-28.

What was the specific justification for not competing this contract, and was a market research report conducted to validate the limited source selection?

The provided data indicates the contract was 'NOT COMPETED.' A thorough review would require access to the contract file to ascertain the specific justification, such as an urgent need or the unavailability of other qualified sources. Market research is crucial in such cases to ensure the government explored all viable options and obtained a fair and reasonable price.

How does the per-unit cost of $9,414 per day compare to industry benchmarks for specialized wheelchair van transportation services in New Jersey?

The estimated daily rate of $9,414 is a significant figure. Without detailed service level agreements, including number of trips, mileage, and specific patient needs, direct benchmarking is challenging. However, this rate appears high and warrants comparison against publicly available data for similar VA or other government contracts, as well as private sector rates for comparable services.

What performance metrics and quality assurance measures are in place to ensure the effectiveness and reliability of Virgo Medical Services Inc.'s transportation?

The contract details do not specify performance metrics or quality assurance measures. Effective oversight would necessitate clear deliverables, service standards, and a robust inspection system to monitor vendor performance, patient satisfaction, and adherence to safety protocols. Regular performance reviews are essential to ensure the VA receives value and that veterans' needs are met reliably.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › Special Needs Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 290 SANFORD ST, EAST ORANGE, NJ, 07018

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,278,226

Exercised Options: $2,278,226

Current Obligation: $2,278,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24425D0093

IDV Type: IDC

Timeline