VA awards $17M ceiling lift contract to T F HerceG, INC. for surgical supplies

Contract Overview

Contract Amount: $16,991 ($17.0K)

Contractor: T F Herceg, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-09-30

Contract Duration: 173 days

Daily Burn Rate: $98/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CEILING LIFT

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16504

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,990.74 to T F HERCEG, INC for work described as: CEILING LIFT Key points: 1. Contract value appears reasonable given the scope of surgical appliance and supply manufacturing. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The contract duration is relatively short, spanning just over 5 months. 6. The North American Industry Classification System (NAICS) code 339113 points to a specialized manufacturing sector.

Value Assessment

Rating: good

The contract's ceiling value of $16,990.74 for surgical appliance and supply manufacturing is within a reasonable range for specialized medical equipment. Without specific details on the exact items or quantities, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the contractor has assessed the risks and costs associated with production and delivery, aiming for a profit margin within the stated ceiling. The award to T F HerceG, INC. indicates they were deemed capable of meeting the VA's requirements at a competitive price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This typically leads to a more robust selection of qualified contractors and potentially better pricing for the government. The number of bidders is not specified, but the use of full and open competition suggests that multiple entities likely vied for this contract, fostering price discovery and innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value from a wide pool of potential suppliers.

Public Impact

Veterans will benefit from access to necessary surgical appliances and supplies. The contract ensures the availability of critical medical equipment for VA facilities. The geographic impact is primarily within the United States, supporting domestic manufacturing and supply chains. The contract supports jobs within the surgical appliance and supply manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality of specialized surgical supplies over the contract period.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm fixed-price contract shifts cost risk to the contractor.
Contractor has been selected by the VA, implying a level of trust and capability.

Sector Analysis

The surgical appliance and supplies manufacturing sector (NAICS 339113) is a specialized segment of the broader healthcare manufacturing industry. This sector produces a wide range of medical devices, from simple bandages to complex surgical instruments and implants. The market is characterized by stringent regulatory requirements, technological innovation, and a significant portion of government spending, particularly through agencies like the Department of Veterans Affairs and the Department of Defense, which require a steady supply of these critical items.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses is likely limited unless T F HerceG, INC. utilizes small businesses as subcontractors. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem within this sector.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs, likely through contract officers and program managers responsible for ensuring timely delivery and adherence to specifications. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment and Supplies
Veterans Health Administration Contracts
Surgical Instruments Manufacturing
Federal Supply Schedule (FSS) Contracts

Risk Flags

Potential for supply chain vulnerabilities
Ensuring consistent product quality for medical supplies

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,990.74 to T F HERCEG, INC. CEILING LIFT

Who is the contractor on this award?

The obligated recipient is T F HERCEG, 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 $16,990.74.

What is the period of performance?

Start: 2026-04-10. End: 2026-09-30.

What is the track record of T F HerceG, INC. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data indicates that T F HerceG, INC. has a history of receiving federal contracts. To provide a comprehensive assessment of their track record, a detailed analysis of their past performance, including contract values, types of goods/services provided, on-time delivery rates, and any past performance issues or awards, would be necessary. Specifically examining their history with the Department of Veterans Affairs would reveal their experience in meeting the unique needs and compliance requirements of this agency. Without access to a granular database of their contract history, it's difficult to definitively state their overall reliability and performance quality.

How does the ceiling value of this contract compare to similar contracts for surgical appliances and supplies awarded by the VA or other federal agencies?

Benchmarking the $16,990.74 ceiling value requires comparing it against contracts for similar surgical appliances and supplies, considering factors like quantity, specific product types, and contract duration. Given that this is a delivery order with a ceiling, the actual obligated amount may be lower. If this ceiling represents a relatively small quantity or a specific set of items, it might be considered standard. However, if it's for a broad range of supplies or a significant volume, it could be higher or lower than comparable contracts. A detailed analysis would involve querying databases for contracts with the same NAICS code (339113) and similar product descriptions, looking at both ceiling values and awarded amounts to establish a fair market comparison.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential supply chain disruptions affecting the availability of raw materials or finished goods, quality control issues with specialized surgical supplies, and delivery delays impacting the VA's operational needs. Since it's a firm fixed-price contract, the primary risk of cost overruns lies with the contractor, T F HerceG, INC. Mitigation strategies typically involve the VA's oversight, including performance monitoring, quality assurance checks, and potentially penalties for non-compliance or delays. The contractor's own risk mitigation would involve robust inventory management, quality control processes, and contingency planning for logistical challenges.

How effective is the full and open competition process in ensuring value for money for this specific contract?

The full and open competition process is generally considered effective in ensuring value for money as it allows a broad range of qualified vendors to bid, fostering competition that can drive down prices and improve quality. For this contract, the effectiveness hinges on the number of bids received and the technical and price proposals submitted. If multiple strong bids were received, it suggests the process likely yielded competitive pricing. However, the true measure of value for money is realized over the contract's performance period, assessing whether the delivered goods meet specifications at the agreed-upon price without compromising quality or leading to unexpected costs for the government.

What is the historical spending pattern for surgical appliances and supplies by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently spends significant amounts on medical equipment and supplies, including surgical appliances and supplies, to support its network of healthcare facilities. Historical spending data would reveal trends in demand, fluctuations based on healthcare needs, and the types of contracts utilized (e.g., IDIQ, fixed-price). Analyzing this pattern over several fiscal years would provide context for the current contract's value and duration, highlighting whether spending in this category is increasing, decreasing, or remaining stable. This historical perspective is crucial for understanding the strategic importance and budget allocation for such procurements.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this delivery order?

While the provided data does not explicitly list performance metrics or KPIs for this specific delivery order, standard practice for VA contracts of this nature typically includes requirements related to on-time delivery, product quality and compliance with specifications (e.g., FDA approval, sterility), and accurate invoicing. The contract type (firm fixed-price) implies that meeting these requirements is crucial for the contractor to achieve profitability. The VA's contract administration team would monitor adherence to these implicit or explicit KPIs, with potential consequences for non-performance ranging from corrective actions to contract termination.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 982 COUNTY ROUTE 1, PINE ISLAND, NY, 10969

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,991

Exercised Options: $16,991

Current Obligation: $16,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0171

IDV Type: FSS

Timeline