VA Awards $4.5M for USP 797/800 Lab Testing Services to Pure Air UV Inc

Contract Overview

Contract Amount: $45,466 ($45.5K)

Contractor: Pure AIR UV Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-24

End Date: 2026-09-23

Contract Duration: 364 days

Daily Burn Rate: $125/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: USP 797/800 GFT / LAB TESTING SERVICES

Place of Performance

Location: PALMYRA, MONTGOMERY County, TENNESSEE, 37142

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $45,466 to PURE AIR UV INC. for work described as: USP 797/800 GFT / LAB TESTING SERVICES Key points: 1. Contract awarded to Pure Air UV Inc. for essential laboratory testing services. 2. The contract is valued at $4.5 million over a 364-day period. 3. Competition method was 'Competed under SAP', indicating a potentially limited but structured process. 4. The sector is Healthcare, specifically Medical Laboratories, crucial for patient safety and compliance.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar lab testing service contracts would be beneficial to confirm optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value procurements. While this can lead to efficiency, it may limit the pool of potential bidders and the extent of price discovery compared to full and open competition.

Taxpayer Impact: The use of SAP aims for efficient procurement, potentially saving administrative costs. However, ensuring robust competition within SAP is key to maximizing taxpayer value.

Public Impact

Ensures compliance with USP 797/800 standards for sterile compounding environments. Supports patient safety by verifying the quality and safety of pharmaceutical preparations. Provides critical data for healthcare facilities to maintain operational integrity and regulatory adherence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for price escalation if market conditions change significantly.

Positive Signals

Firm fixed price contract provides budget predictability.
Specific focus on critical USP standards.

Sector Analysis

This contract falls within the Healthcare sector, specifically Medical Laboratories (NAICS 621511). Spending in this area is vital for regulatory compliance and patient safety, with benchmarks often driven by specialized equipment and expertise requirements.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The firm fixed price contract and defined delivery order structure provide a framework for accountability.

Related Government Programs

Medical Laboratories
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for price increases in future contract periods
Reliance on contractor's quality control
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $45,466 to PURE AIR UV INC.. USP 797/800 GFT / LAB TESTING SERVICES

Who is the contractor on this award?

The obligated recipient is PURE AIR UV 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 $45,466.

What is the period of performance?

Start: 2025-09-24. End: 2026-09-23.

What is the typical cost range for similar USP 797/800 lab testing services in the federal market?

The typical cost range for similar USP 797/800 lab testing services can vary significantly based on the scope of work, frequency of testing, and geographic location. However, contracts of this nature often fall within the range of several hundred thousand to a few million dollars annually, depending on the specific services required and the size of the facility being serviced.

What are the primary risks associated with a limited competition procurement under SAP for critical lab services?

The primary risks of limited competition under SAP for critical lab services include potentially higher prices due to reduced bidder engagement, a narrower selection of qualified vendors, and a diminished incentive for vendors to offer their most competitive pricing. This can also limit the government's ability to leverage market competition to drive innovation and cost savings.

How effectively does this contract ensure the ongoing quality and safety of pharmaceutical compounding environments for the VA?

This contract aims to ensure ongoing quality and safety by mandating adherence to USP 797/800 standards through dedicated lab testing services. The firm fixed price structure incentivizes the contractor to perform the required tests diligently. However, effectiveness hinges on the VA's robust quality assurance and monitoring of the contractor's performance and reported results.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Medical Laboratories

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 631 BLUFF VIEW DR, PEGRAM, TN, 37143

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $45,466

Exercised Options: $45,466

Current Obligation: $45,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24425D0124

IDV Type: IDC

Timeline