VA awards $258.5M contract to SWISSLOG for manufacturing services, with a 364-day duration

Contract Overview

Contract Amount: $258,528 ($258.5K)

Contractor: Translogic Corp.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $710/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SWISSLOG

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $258,528 to TRANSLOGIC CORP. for work described as: SWISSLOG Key points: 1. The contract's value of $258.5 million represents a significant investment in manufacturing capabilities for the VA. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The contract duration of 364 days indicates a need for ongoing manufacturing support. 5. The specific manufacturing services provided under this contract are not detailed, making direct performance benchmarking difficult. 6. The absence of small business set-aside suggests larger prime contractors are expected to perform the work.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the manufacturing services provided. The $258.5 million award over approximately one year suggests a substantial per-day cost. Comparing this to similar large-scale manufacturing contracts within the federal government would be necessary to assess value for money. The firm-fixed-price structure is a positive indicator for cost control, but the overall value is contingent on the efficiency and quality of the manufacturing output.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the use of full and open competition suggests a deliberate effort to maximize the pool of potential offerors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not limited to a single provider, potentially driving down costs through market forces.

Public Impact

Veterans will benefit from improved access to necessary medical equipment and supplies manufactured under this contract. The contract supports the Department of Veterans Affairs' mission to provide comprehensive healthcare services. Manufacturing activities may have implications for the domestic industrial base and supply chain resilience. The contract could support jobs within the manufacturing sector, potentially in Maryland where the awardee is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the manufactured goods makes it difficult to assess quality control and potential defects.
The significant contract value raises questions about the efficiency and cost-effectiveness of the manufacturing process over the contract term.
Reliance on a single awardee for a large sum could pose supply chain risks if the contractor faces production issues.

Positive Signals

The use of firm-fixed-price contract type provides cost predictability for the VA.
Awarding under full and open competition suggests a robust process to select the best value offeror.
The contract duration indicates a sustained commitment to ensuring the availability of essential manufactured items.

Sector Analysis

The manufacturing sector is a critical component of the federal supply chain, providing a wide range of goods from medical equipment to defense matériel. This contract falls within the broader 'All Other Miscellaneous Manufacturing' category, suggesting specialized production. Federal spending in manufacturing is often driven by the needs of agencies like the VA, which require a steady supply of goods to support their operations and beneficiaries. Benchmarking this contract's value would require comparing it to other large-scale manufacturing procurements within the federal government, particularly those serving healthcare or logistical needs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and nature of the manufacturing services required are likely beyond the typical capacity or specialization of small businesses, or that the prime contractor is expected to manage subcontracting opportunities. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem is unclear, though it implies that larger firms will be the primary performers.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs' contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of financial oversight by establishing a set cost. Transparency regarding the specific manufactured goods and performance metrics would be crucial for effective accountability. The contract does not explicitly mention Inspector General jurisdiction, but IG oversight is a standard component of federal contract management.

Related Government Programs

VA Medical Equipment Procurement
Federal Manufacturing Contracts
Department of Veterans Affairs Supply Chain Management
Miscellaneous Manufacturing Services

Risk Flags

Lack of specific service details
Potential supply chain dependency
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $258,528 to TRANSLOGIC CORP.. SWISSLOG

Who is the contractor on this award?

The obligated recipient is TRANSLOGIC CORP..

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 $258,528.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What specific types of manufactured goods or services are covered under this $258.5 million contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 339999, which corresponds to 'All Other Miscellaneous Manufacturing.' This broad category encompasses establishments primarily engaged in manufacturing products not classified elsewhere, such as ammunition, sporting and athletic goods, dolls, toys, games, and other miscellaneous manufactured products. However, without further details from the contract award itself, it is impossible to ascertain the precise nature of the goods or services SWISSLOG will provide to the Department of Veterans Affairs. This lack of specificity makes it challenging to assess the contract's direct impact or to benchmark its value against comparable procurements.

How does the $258.5 million award compare to historical VA spending on similar manufacturing services?

To compare this $258.5 million award to historical VA spending on similar manufacturing services, one would need to analyze past contracts awarded under NAICS code 339999 or related manufacturing codes by the VA. This would involve searching federal procurement databases (like FPDS or USASpending) for contracts with similar scopes of work and durations. Given that this is a single award for a 364-day period, it represents a substantial annual investment. Without access to detailed historical data specific to the VA's needs within 'All Other Miscellaneous Manufacturing,' it's difficult to definitively state whether this award is higher or lower than average. However, the significant dollar amount suggests a critical need for these unspecified manufacturing capabilities.

What are the potential risks associated with a single award of this magnitude for manufacturing services?

A single award of $258.5 million for manufacturing services carries several potential risks. Firstly, there's a risk of supply chain disruption if the sole contractor, SWISSLOG, experiences production issues, labor shortages, or financial instability. Secondly, the lack of competition for this specific award (beyond the initial full and open competition phase) means the VA has limited leverage for price adjustments or alternative sourcing if performance falters. Thirdly, if the manufactured goods are critical for veteran care, any delays or quality issues could directly impact patient outcomes. Finally, the concentration of such a large contract with one entity might limit opportunities for other manufacturers to enter the federal market or demonstrate their capabilities.

What is the track record of TRANSLOGIC CORP. (SWISSLOG) in performing federal contracts, particularly with the VA?

Information regarding TRANSLOGIC CORP.'s (SWISSLOG) track record with federal contracts, especially with the VA, is not provided in the initial data. A thorough assessment would require examining their contract history, including past performance evaluations, any reported disputes or terminations, and the types and values of previous awards. Understanding their experience with similar manufacturing requirements and their ability to meet delivery schedules and quality standards is crucial for evaluating the reliability of this current award. Without this historical context, it's difficult to gauge their proven capability to execute a contract of this magnitude effectively.

How does the firm-fixed-price contract type influence the government's risk and potential for cost savings in this manufacturing award?

The firm-fixed-price (FFP) contract type shifts the majority of the cost risk from the government to the contractor, TRANSLOGIC CORP. (SWISSLOG). This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the VA, this provides significant cost certainty, making budgeting more predictable. It incentivizes the contractor to manage their costs efficiently to maximize profit. However, if the contractor underestimates costs or encounters unforeseen difficulties, they bear the loss. For the government, the primary risk with FFP is that the contractor may cut corners on quality to protect their profit margin, necessitating robust quality assurance measures.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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

Parent Company: Midea Group CO., Ltd.

Address: 11325 MAIN ST, BROOMFIELD, CO, 80020

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $292,640

Exercised Options: $258,528

Current Obligation: $258,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMS24D003G

IDV Type: FSS

Timeline