VA awards $5.7M contract for medical gas services to VETERANS ELITE INC, with a 93-day duration

Contract Overview

Contract Amount: $5,700 ($5.7K)

Contractor: Veterans Elite Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-07

End Date: 2026-04-10

Contract Duration: 93 days

Daily Burn Rate: $61/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PM&R MEDICAL GAS, INSPECTION, CERTIFICATION, AND EMERGENCY REPAIRS

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5,700 to VETERANS ELITE INC for work described as: PM&R MEDICAL GAS, INSPECTION, CERTIFICATION, AND EMERGENCY REPAIRS Key points: 1. Contract value appears reasonable for specialized medical gas services over a short term. 2. Competition dynamics for this specific service are not detailed, impacting price discovery assessment. 3. Performance risk is moderate given the critical nature of medical gas systems. 4. The contract's short duration suggests a focus on immediate needs or a bridge to a larger procurement. 5. This contract falls within the broader healthcare services sector, specifically medical equipment maintenance. 6. The fixed-price contract type offers cost certainty for the government.

Value Assessment

Rating: good

The contract value of $5.7 million for a 93-day period for medical gas services seems within a reasonable range for specialized emergency repairs and certification. Without specific details on the scope of work or comparable contracts for similar services in the region, a precise benchmark is difficult. However, the firm fixed-price nature of the contract provides cost predictability for the Department of Veterans Affairs. The contractor, VETERANS ELITE INC, will be expected to deliver critical services, and the pricing should reflect the urgency and specialized nature of medical gas system maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically implies a less extensive competition than full and open procedures. The number of bidders and the specific method of competition are not detailed in the provided data. SAP is generally used for acquisitions below a certain dollar threshold, and while it aims for fair and reasonable pricing, it may not always yield the same level of price competition as larger, more open solicitations. Further information on the solicitation process would be needed to fully assess the competitive landscape.

Taxpayer Impact: The use of SAP suggests an effort to streamline the acquisition process for a potentially smaller or urgent need. However, the limited transparency on the number of bidders means taxpayers may not be benefiting from the most aggressive pricing achievable through broader competition.

Public Impact

Veterans receiving care at VA facilities will benefit from the reliable functioning of medical gas systems. The services include inspection, certification, and emergency repairs, ensuring patient safety and operational continuity. The geographic impact is likely focused on the VA facility or facilities served by this contract in Pennsylvania. The contract supports specialized technical roles in medical equipment maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if emergency repairs are more extensive than anticipated.
Reliance on a single contractor for critical life-support systems requires robust performance monitoring.
Limited competition under SAP could lead to less favorable pricing than a fully competed contract.

Positive Signals

Firm fixed-price contract provides cost certainty.
Short duration may indicate a well-defined, specific need.
Contractor name suggests a focus on serving veterans.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on the maintenance and repair of critical medical infrastructure. The market for medical gas systems includes specialized equipment, installation, and ongoing service. Spending in this area is driven by regulatory compliance (certification), patient safety, and the operational needs of healthcare facilities. Comparable spending benchmarks would typically involve analyzing other contracts for similar services at VA facilities or other large healthcare providers, considering factors like system complexity and geographic location.

Small Business Impact

The data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. The primary contractor, VETERANS ELITE INC, will be responsible for fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a delivery order under a larger contract vehicle (implied by 'DELIVERY ORDER'), the oversight would likely involve contract specialists and technical monitors within the VA. Accountability measures would be tied to the performance standards outlined in the contract, including timely and effective completion of inspection, certification, and emergency repair services. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly available.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Healthcare Facility Support Services
Medical Gas System Certification
Emergency Repair Services for Healthcare Infrastructure

Risk Flags

Critical Service Delivery
Short Contract Duration
Potential for Emergency Scope Variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5,700 to VETERANS ELITE INC. PM&R MEDICAL GAS, INSPECTION, CERTIFICATION, AND EMERGENCY REPAIRS

Who is the contractor on this award?

The obligated recipient is VETERANS ELITE 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 $5,700.

What is the period of performance?

Start: 2026-01-07. End: 2026-04-10.

What is the typical track record of VETERANS ELITE INC in performing similar medical gas services for the federal government?

Information regarding the specific track record of VETERANS ELITE INC in performing medical gas inspection, certification, and emergency repairs for the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar federal contracts. Without this historical data, it is difficult to gauge their experience level and reliability for this critical service. Further research into federal procurement databases and contractor performance systems would be necessary to provide a detailed answer.

How does the $5.7 million value for a 93-day contract compare to similar medical gas service contracts awarded by the VA or other agencies?

The value of $5.7 million for a 93-day contract for medical gas services represents a significant daily expenditure, approximately $61,290 per day. This high daily rate suggests the contract likely encompasses emergency response capabilities, specialized labor, and potentially the certification of complex medical gas systems. To benchmark this effectively, one would need to compare it against other contracts for similar services, considering factors such as the scope of work (routine maintenance vs. emergency repairs), the size and complexity of the medical facilities served, and the geographic location. Contracts for routine maintenance might have lower daily rates, while those including emergency response and certification for large hospital systems could approach or exceed this figure. Without specific comparable contract data, it's challenging to definitively state if this represents excellent, fair, or concerning value.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract revolve around the critical nature of medical gas systems, which are essential for patient care and safety. Potential risks include service disruptions due to contractor performance issues, delays in emergency repairs, or failures in inspection and certification processes leading to non-compliance. Given the short duration and the nature of emergency repairs, there's also a risk of unforeseen costs if the scope of emergencies is larger than anticipated. Mitigation strategies would typically involve stringent performance standards in the contract, clear communication protocols for emergency calls, defined response times, and potentially penalties for non-performance. The Department of Veterans Affairs would also likely have internal quality assurance measures to monitor the contractor's adherence to service level agreements.

What is the expected effectiveness of these services in ensuring the reliability and safety of medical gas systems at VA facilities?

The effectiveness of these services hinges on the thoroughness and timeliness of the contractor's performance in inspection, certification, and emergency repairs. Proper inspection and certification are crucial for ensuring that medical gas systems meet regulatory standards and operate safely, directly impacting patient care. Prompt and effective emergency repairs are vital to minimize downtime and prevent disruptions to medical services. If VETERANS ELITE INC performs diligently according to the contract's requirements, the services are expected to significantly enhance the reliability and safety of the medical gas systems. However, the short duration might indicate this contract is addressing a specific, immediate need rather than providing comprehensive, long-term system management.

How has federal spending on medical gas maintenance and repair services trended over the past five years, and where does this contract fit?

Analyzing the trend of federal spending on medical gas maintenance and repair services over the past five years would require access to comprehensive federal procurement data. Generally, spending in this area is expected to be relatively stable, driven by the ongoing operational needs of healthcare facilities and regulatory requirements. However, there might be fluctuations based on major infrastructure upgrades, new facility constructions, or shifts in healthcare policy. This specific $5.7 million contract for a 93-day period appears to be a targeted procurement, possibly addressing a specific need or serving as a bridge contract. Its size and duration suggest it might be for a particular facility or a set of urgent requirements, rather than representing a large portion of the overall annual federal expenditure on such services.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 VETERAN MEMORIAL DR, POINT PLEASANT BORO, NJ, 08742

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

Financial Breakdown

Contract Ceiling: $5,700

Exercised Options: $5,700

Current Obligation: $5,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24424D0095

IDV Type: IDC

Timeline