VA awards $57.9M contract to Spectrum Dynamics for medical equipment repair and maintenance

Contract Overview

Contract Amount: $57,909 ($57.9K)

Contractor: Spectrum Dynamics Medical, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $159/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SERVICE CONTRACT SPECTRUM DYNAMIC

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $57,909 to SPECTRUM DYNAMICS MEDICAL, INC. for work described as: SERVICE CONTRACT SPECTRUM DYNAMIC Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price efficiencies and market engagement. 3. A single award purchase order suggests a specific need or a limited vendor pool. 4. The duration of 364 days aligns with typical service contract lengths for specialized equipment. 5. The North American Industry Classification System (NAICS) code 811210 points to a specialized repair and maintenance market. 6. The contract is managed by the Department of Veterans Affairs, highlighting its focus on supporting veteran healthcare infrastructure.

Value Assessment

Rating: fair

This contract's value of $57.9 million for medical equipment repair and maintenance requires careful benchmarking. Without comparative data on similar contracts for the same equipment or service scope, assessing value for money is challenging. The firm-fixed-price structure provides cost certainty, but the lack of competition may have prevented potentially lower pricing through a more robust bidding process. Further analysis would involve comparing the proposed service rates against industry standards and historical VA spending on similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited competition procurement. The specific reasons for this approach are not detailed in the provided data, but it typically suggests that only one vendor was deemed capable of meeting the requirement, or that the procurement was justified under specific exceptions to full and open competition. The absence of multiple bidders means there was no direct price comparison from the market, potentially impacting the government's ability to secure the most competitive pricing.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from the potential cost savings that can arise from a competitive bidding process. This could lead to higher overall expenditure for the services rendered.

Public Impact

Veterans will benefit from the continued availability and proper functioning of essential medical equipment. The Department of Veterans Affairs will ensure operational readiness of its healthcare facilities. Services delivered include repair and maintenance of electronic and precision medical equipment. The contract's geographic impact is likely concentrated around VA facilities where the equipment is deployed, primarily within Maryland (MD) based on the provided data. Workforce implications may include the need for specialized technicians employed by Spectrum Dynamics Medical, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if specialized knowledge is required.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Focus on essential medical equipment maintenance ensures continuity of care for veterans.
Award to a single, potentially specialized vendor could indicate a focus on quality and expertise.

Sector Analysis

The medical equipment repair and maintenance sector is a critical component of the healthcare industry, ensuring the functionality and longevity of diagnostic, therapeutic, and monitoring devices. This contract falls within the broader category of specialized technical services. The market is characterized by a need for highly skilled technicians, adherence to strict regulatory standards, and often, manufacturer-specific expertise. Comparable spending benchmarks would typically involve analyzing the total contract value against the number of facilities served or the types of equipment maintained.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (ss: false) and does not appear to have a small business set-aside component (sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a large-scale service provider, and the absence of small business considerations suggests the requirement may necessitate capabilities beyond the typical scope of small business set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon cost. Transparency is limited by the sole-source nature of the award; further details on the justification and performance metrics would be needed for a comprehensive assessment. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Federal Healthcare Services Procurement
Electronic and Precision Equipment Repair
Sole-Source Service Contracts
Department of Veterans Affairs IT and Equipment Support

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public information on justification for non-competition.
Potential for higher costs due to lack of market comparison.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $57,909 to SPECTRUM DYNAMICS MEDICAL, INC.. SERVICE CONTRACT SPECTRUM DYNAMIC

Who is the contractor on this award?

The obligated recipient is SPECTRUM DYNAMICS MEDICAL, 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 $57,909.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the historical spending pattern for Spectrum Dynamics Medical, Inc. with the Department of Veterans Affairs?

Analyzing historical spending patterns for Spectrum Dynamics Medical, Inc. with the Department of Veterans Affairs is crucial for understanding their track record and the government's reliance on their services. Without access to specific historical contract data, it's difficult to provide exact figures. However, the current award of $57.9 million suggests a significant, potentially long-term relationship. A deeper dive would involve reviewing past awards, contract types (e.g., competitive vs. sole-source), and performance reviews to ascertain if this represents an increase, decrease, or consistent level of spending. This context helps evaluate if the current award is a continuation of established business or a new, substantial engagement.

How does the $57.9 million contract value compare to similar medical equipment maintenance contracts awarded by the VA or other federal agencies?

Benchmarking the $57.9 million contract value against similar medical equipment maintenance contracts is essential for assessing value for money. This figure represents a substantial investment. To provide a meaningful comparison, one would need to identify contracts with comparable scope, duration, and types of equipment serviced, ideally within the Department of Veterans Affairs or other agencies like the Department of Defense. Factors such as the number of facilities supported, the criticality of the equipment, and the specific maintenance services included (e.g., preventative, corrective, calibration) would influence the benchmark. A higher value for a similar scope could indicate overpricing, while a lower value might suggest better negotiation or a different service level.

What are the specific risks associated with a sole-source award for critical medical equipment maintenance?

A sole-source award for critical medical equipment maintenance carries several risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no direct market pressure to offer the most cost-effective solution. Secondly, it limits the government's ability to leverage market dynamics for better terms or innovative service approaches. Thirdly, there's a potential for vendor lock-in, where the agency becomes overly reliant on a single provider, making it difficult and costly to switch vendors in the future, even if performance issues arise. Finally, the justification for a sole-source award must be robust to ensure it aligns with procurement regulations and serves the government's best interest.

What is the expected impact of this contract on the operational effectiveness of VA healthcare facilities?

This contract is expected to have a positive impact on the operational effectiveness of VA healthcare facilities by ensuring that essential medical equipment is properly maintained and functional. Reliable equipment is critical for accurate diagnostics, effective treatments, and patient safety. By securing dedicated maintenance services, the VA can minimize equipment downtime, reduce the risk of critical failures during patient care, and ensure that medical staff have access to the tools they need. This contributes directly to the quality and efficiency of healthcare services provided to veterans.

Are there any performance metrics or service level agreements (SLAs) associated with this contract that are publicly available?

The provided data does not include specific performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, such details are outlined in the contract's statement of work (SOW) or performance work statement (PWS). For a firm-fixed-price contract, performance is often measured against the successful completion of defined tasks and adherence to delivery schedules. While not publicly detailed here, the Department of Veterans Affairs would likely have internal mechanisms to monitor Spectrum Dynamics Medical, Inc.'s performance, including response times for repairs, quality of service, and adherence to maintenance schedules, to ensure contract objectives are met.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Biosensors International Group, Ltd.

Address: 301 N CATTLEMEN RD, SARASOTA, FL, 34232

Business Categories: Category Business, Foreign Owned, International Organization, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $57,909

Exercised Options: $57,909

Current Obligation: $57,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline