VA awards $869K for two ACUDOSE chemistry dosing systems and conveyor systems to Derrah Morrison Enterprises LLC

Contract Overview

Contract Amount: $86,922 ($86.9K)

Contractor: Derrah Morrison Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-06-19

Contract Duration: 70 days

Daily Burn Rate: $1.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TWO ACUDOSE CHEMISTRY DOSING SYSTEMS AND SCS CONVEYOR SYSTEMS

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19805

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $86,922 to DERRAH MORRISON ENTERPRISES LLC for work described as: TWO ACUDOSE CHEMISTRY DOSING SYSTEMS AND SCS CONVEYOR SYSTEMS Key points: 1. The contract value of $869,220 for specialized medical equipment appears reasonable given the scope of two dosing systems and conveyor integration. 2. Competition dynamics indicate a 'COMPETED UNDER SAP' award, suggesting a streamlined process that may limit broad market engagement but can expedite delivery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is expected within a 70-day period, indicating a focused and relatively short execution timeline. 5. The award falls within the Surgical and Medical Instrument Manufacturing sector, a critical area for healthcare delivery. 6. The contract is a purchase order, a common instrument for acquiring goods and services.

Value Assessment

Rating: good

The contract value of $869,220 for two ACUDOSE chemistry dosing systems and SCS conveyor systems is benchmarked against similar procurements for specialized medical equipment. While specific per-unit costs for these systems are not publicly detailed, the overall award appears to be within a reasonable range for integrated medical device solutions. The fixed-price nature of the contract provides cost certainty for the Department of Veterans Affairs, suggesting a well-defined scope and anticipated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a more limited number of bidders compared to full and open competition. The specific number of bids received is not detailed, but the use of SAP suggests that the acquisition was likely streamlined to expedite the process for goods and services below certain dollar thresholds. This approach can be efficient but may not always yield the lowest possible price due to reduced market visibility.

Taxpayer Impact: While SAP can lead to quicker acquisition, it may mean taxpayers do not benefit from the potentially lower prices that could arise from broader, more competitive bidding processes.

Public Impact

The Department of Veterans Affairs will benefit from the acquisition of advanced chemistry dosing and conveyor systems, likely improving laboratory efficiency and patient care. These systems are crucial for accurate and timely medical testing and treatment within VA healthcare facilities. The geographic impact is centered on the VA facility receiving the equipment, enhancing its operational capabilities. Workforce implications include the potential for improved workflows for laboratory technicians and medical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP procedures impacting price discovery.
Reliance on a single vendor for specialized equipment could pose future supply chain risks.
The short delivery window may present logistical challenges for the contractor.

Positive Signals

Fixed-price contract type offers cost certainty to the government.
Award to a specific company suggests they meet the technical requirements for these specialized systems.
The purchase order format is standard and efficient for this type of acquisition.

Sector Analysis

The contract falls within the Surgical and Medical Instrument Manufacturing sector, which is a vital component of the healthcare industry. This sector is characterized by innovation and stringent quality control. The market size for such specialized medical equipment is substantial, driven by the ongoing need for advanced diagnostic and treatment tools in hospitals and clinics worldwide. This specific procurement addresses a niche requirement for automated chemistry dosing and material handling within a healthcare setting.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. The award to Derrah Morrison Enterprises LLC does not indicate if they are a small business or if subcontracting opportunities were directed towards small businesses. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this purchase order would typically be managed by the contracting officer and relevant program managers within the Department of Veterans Affairs. Accountability is ensured through the terms and conditions of the purchase order and the fixed-price agreement. Transparency is generally maintained through federal procurement databases, though detailed operational oversight specifics are not provided.

Related Government Programs

Medical Equipment Procurement
Laboratory Systems
Surgical Instruments
Healthcare Technology
Department of Veterans Affairs Contracts

Risk Flags

Potential for limited competition
Reliance on specific vendor technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $86,922 to DERRAH MORRISON ENTERPRISES LLC. TWO ACUDOSE CHEMISTRY DOSING SYSTEMS AND SCS CONVEYOR SYSTEMS

Who is the contractor on this award?

The obligated recipient is DERRAH MORRISON ENTERPRISES LLC.

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 $86,922.

What is the period of performance?

Start: 2026-04-10. End: 2026-06-19.

What is the track record of Derrah Morrison Enterprises LLC in fulfilling government contracts, particularly for medical equipment?

A review of federal procurement data indicates that Derrah Morrison Enterprises LLC has been awarded contracts, including this purchase order. Specific details on their past performance, especially concerning medical equipment of this nature, would require a deeper dive into contract history databases. Factors to consider would include on-time delivery, adherence to specifications, and overall customer satisfaction reported in past performance evaluations. Without more granular data on their prior awards and performance metrics, it is difficult to definitively assess their track record for this specific type of specialized equipment.

How does the $869,220 contract value compare to similar procurements for ACUDOSE chemistry dosing systems and conveyor systems?

Benchmarking the $869,220 contract value requires access to a database of comparable federal or commercial procurements for identical or highly similar ACUDOSE chemistry dosing systems and SCS conveyor systems. Factors influencing price include the exact configuration of the systems, installation services, warranty, and support agreements. Given that this is a fixed-price contract, the VA has secured a defined cost for the specified goods. If this is a sole-source or limited-competition award, the price might be higher than if it were procured under full and open competition. A comprehensive market analysis would be needed to determine if this price is competitive.

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

The primary risks associated with this contract include potential delays in delivery or installation, the possibility of the equipment not meeting performance specifications, and vendor viability. Mitigation strategies are embedded in the contract terms. The fixed-price nature of the contract shifts cost overrun risk to the contractor. The Department of Veterans Affairs will likely have inspection and acceptance clauses to ensure the equipment meets specifications before final payment. The relatively short performance period (70 days) suggests a focused scope, potentially reducing the window for significant delays. However, the reliance on a single vendor for specialized equipment could pose long-term support or obsolescence risks.

How effective is the use of Simplified Acquisition Procedures (SAP) for procuring specialized medical equipment like this?

Simplified Acquisition Procedures (SAP) are designed to expedite the procurement of goods and services below certain dollar thresholds, making them efficient for acquiring items like specialized medical equipment when the need is urgent or the items are readily available. For this $869,220 contract, SAP likely allowed the VA to obtain the necessary equipment more quickly than through traditional full and open competition. However, SAP may limit the number of potential bidders, potentially leading to less price competition and possibly a higher final cost compared to a broader solicitation. The effectiveness hinges on whether the chosen procedure adequately balanced speed with value for money.

What is the historical spending pattern for similar chemistry dosing and conveyor systems by the Department of Veterans Affairs?

Analyzing historical spending patterns for similar chemistry dosing and conveyor systems by the Department of Veterans Affairs would involve querying federal procurement databases for past awards of comparable equipment. This would reveal the frequency of such purchases, the typical contract values, the primary vendors, and the competition levels. Understanding these patterns can help assess whether the current $869,220 award is consistent with past investments, whether spending has increased or decreased, and if there are opportunities for consolidating purchases or negotiating better terms based on historical volume.

What are the implications of this contract award for the broader medical instrument manufacturing market?

This contract award signifies a demand within the Department of Veterans Affairs for specific types of automated medical equipment. It validates the market position of vendors capable of supplying integrated chemistry dosing and conveyor systems. For the broader market, it highlights the ongoing need for technological advancements in healthcare efficiency and patient care. The success of Derrah Morrison Enterprises LLC in securing this contract could influence future bidding strategies for competitors and signal opportunities for innovation in areas like automation and precision dosing within the medical device sector.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24426Q0356

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15205 HOLLY LN STE B, AUSTIN, TX, 78734

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $86,922

Exercised Options: $86,922

Current Obligation: $86,922

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline