VA awards $683K contract for medical gas services to Veterans Elite Inc

Contract Overview

Contract Amount: $68,327 ($68.3K)

Contractor: Veterans Elite Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-23

End Date: 2026-08-31

Contract Duration: 220 days

Daily Burn Rate: $311/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 $68,327 to VETERANS ELITE INC for work described as: PM&R MEDICAL GAS, INSPECTION, CERTIFICATION, AND EMERGENCY REPAIRS Key points: 1. Contract value is $683,270 for medical gas services. 2. Competition method was 'COMPETED UNDER SAP', indicating potential for limited competition. 3. Risk is moderate due to the specialized nature of medical gas systems. 4. The sector is primarily healthcare support services.

Value Assessment

Rating: fair

The contract value of $683,270 for a 220-day period seems reasonable for specialized medical gas services. Benchmarking against similar contracts for inspection, certification, and emergency repairs is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for limited competition among small businesses or specific vendors. This method may not achieve the best possible price discovery compared to full and open competition.

Taxpayer Impact: Taxpayer impact is contained within the awarded contract value, but the efficiency of the procurement process could be improved to ensure maximum value for money.

Public Impact

Ensures critical medical gas systems in VA facilities are operational and safe. Supports patient care by maintaining essential healthcare infrastructure. Provides specialized technical services to a government agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for price escalation if emergency repairs are frequent

Positive Signals

Addresses a critical healthcare need
Fixed-price contract limits cost overrun risk

Sector Analysis

This contract falls within the healthcare support services sector, specifically focusing on the maintenance and repair of critical medical infrastructure. Spending benchmarks for similar specialized services can vary significantly based on facility size and system complexity.

Small Business Impact

The contract was competed under SAP, which often favors small businesses. However, the data does not explicitly state if Veterans Elite Inc. is a small business or if small business set-asides were utilized.

Oversight & Accountability

Oversight by the Department of Veterans Affairs is expected to ensure contract compliance and service quality. The fixed-price nature of the contract provides a degree of accountability for the contractor.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Reliance on a single vendor for critical services.
Potential for unforeseen high costs due to emergency repair needs.
Lack of detailed performance history provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $68,327 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 $68,327.

What is the period of performance?

Start: 2026-01-23. End: 2026-08-31.

What is the historical performance of Veterans Elite Inc. on similar government contracts?

Assessing the contractor's past performance is crucial for understanding their reliability and quality of service. Reviewing past contract awards, performance evaluations, and any documented issues or successes would provide insight into their capabilities and potential risks associated with this new contract.

How does the pricing compare to industry standards for medical gas inspection and repair services?

A detailed cost analysis comparing the per-unit costs for inspection, certification, and estimated emergency repair rates against industry benchmarks is necessary. This comparison will determine if the $683,270 award represents fair and reasonable pricing for the scope of work and duration.

What is the potential impact of system failures or the need for extensive emergency repairs on the contract's total cost?

While the contract is firm fixed-price, the frequency and severity of emergency repairs could significantly increase the effective cost to the government if not properly managed or if the initial pricing did not adequately account for potential issues. Understanding the typical failure rates and repair needs for VA facilities is key.

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: $68,327

Exercised Options: $68,327

Current Obligation: $68,327

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24424D0095

IDV Type: IDC

Timeline