VA awards $4.8M equipment maintenance contract to Bioniquest Lab Services, Inc. for 364 days

Contract Overview

Contract Amount: $4,800 ($4.8K)

Contractor: Bioniquest LAB Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $13/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EQUIPMENT MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20422

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4,800 to BIONIQUEST LAB SERVICES, INC for work described as: EQUIPMENT MAINTENANCE Key points: 1. Contract value of $4.8M for one year of equipment maintenance. 2. Awarded via purchase order, indicating a streamlined procurement process. 3. Fixed-price contract type suggests predictable costs for the VA. 4. Maintenance services for electronic and precision equipment are critical for VA operations. 5. The contract is for a duration of 364 days. 6. The contractor, Bioniquest Lab Services, Inc., is the sole awardee.

Value Assessment

Rating: fair

The contract value of $4.8 million for one year of equipment maintenance appears to be within a reasonable range for specialized services. However, without specific details on the types and volume of equipment maintained, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for electronic and precision equipment maintenance across federal agencies would provide a clearer picture of whether this pricing is competitive. The fixed-price nature of the contract offers cost certainty to the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when specific capabilities or circumstances justify bypassing full and open competition. The lack of competition means the VA did not benefit from a bidding process that could have potentially driven down prices or offered a wider range of solutions. The rationale for the sole-source award needs to be clearly documented to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing, potentially leading to higher costs than if multiple vendors had competed for the contract.

Public Impact

Veterans will benefit from the reliable functioning of critical medical equipment maintained under this contract. The Department of Veterans Affairs will ensure continuity of essential healthcare services. Services are delivered within the District of Columbia. The contract supports specialized maintenance jobs within the repair and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Lack of detailed performance metrics makes it difficult to assess contractor efficiency.
Reliance on a single vendor could pose a risk if the contractor fails to perform.

Positive Signals

Fixed-price contract provides cost predictability for the agency.
Contract duration of one year allows for consistent service delivery.
Focus on essential equipment maintenance ensures operational readiness.

Sector Analysis

The market for electronic and precision equipment repair and maintenance is a specialized segment within the broader professional services industry. This contract falls under the North American Industry Classification System (NAICS) code 811210. The federal government is a significant consumer of these services, particularly within agencies like the Department of Veterans Affairs that rely heavily on sophisticated medical and operational equipment. Benchmarking this contract's value against the overall federal spending in this category would require analyzing a broader dataset of similar maintenance contracts.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award to Bioniquest Lab Services, Inc. does not appear to directly support the small business ecosystem through set-asides or mandated subcontracting. Further analysis would be needed to determine if Bioniquest itself is a small business or if there are indirect impacts on small businesses within its supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Veterans Affairs. As a purchase order, it may have less formal oversight than a larger, more complex contract. Transparency regarding the justification for the sole-source award and performance metrics would be key to ensuring accountability. The Inspector General's office for the VA may review such contracts as part of broader audits of agency spending and operations.

Related Government Programs

Medical Equipment Maintenance Contracts
Department of Veterans Affairs Procurement
Electronic Equipment Repair Services
Precision Equipment Maintenance

Risk Flags

Sole-source award
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4,800 to BIONIQUEST LAB SERVICES, INC. EQUIPMENT MAINTENANCE

Who is the contractor on this award?

The obligated recipient is BIONIQUEST LAB SERVICES, 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 $4,800.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is the track record of Bioniquest Lab Services, Inc. with the federal government?

Information regarding Bioniquest Lab Services, Inc.'s specific track record with the federal government is not detailed in the provided data. A comprehensive review would involve searching federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance evaluations (e.g., CPARS), and any reported disputes or terminations. Understanding their history of performance, on-time delivery, and adherence to contract terms for similar services would be crucial for assessing their reliability and capability in fulfilling this new contract. Without this historical data, the assessment of risk associated with the contractor is incomplete.

How does the $4.8M contract value compare to similar federal equipment maintenance contracts?

A direct comparison of the $4.8 million contract value for one year of service is difficult without knowing the specific types and volume of equipment being maintained. However, federal spending on equipment maintenance is substantial across various agencies. For instance, contracts for maintaining complex medical equipment in the VA or IT infrastructure in other departments can range from hundreds of thousands to tens of millions of dollars annually. The 'fair' rating suggests it's not exceptionally high or low, but a more precise benchmark would require analyzing contracts with similar scope, duration, and equipment complexity, ideally within the same geographic region or agency.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the lack of competition, which can lead to suboptimal pricing and reduced incentive for the contractor to innovate or provide exceptional service. If Bioniquest Lab Services, Inc. is the only entity capable of performing this specific maintenance, the VA has limited leverage. Other risks include potential vendor lock-in, where switching providers in the future could be costly and disruptive. Furthermore, without competitive pressure, there's a risk that the quality of service might not be as high as it could be under a competitive environment. Ensuring robust performance monitoring and clear contract terms is critical to mitigate these risks.

How effective is the fixed-price contract type for ensuring program effectiveness?

The fixed-price contract type is generally effective for ensuring program effectiveness when the scope of work is well-defined and unlikely to change significantly. For equipment maintenance, where the tasks are often routine and predictable, a fixed price provides cost certainty to the agency and incentivizes the contractor to perform efficiently to maximize profit. This structure helps prevent cost overruns and makes budgeting more straightforward. However, if unforeseen issues arise that require significant deviation from the original scope, a fixed-price contract can become problematic, potentially leading to change orders or disputes if not managed carefully. For routine maintenance, it's a suitable choice for cost control.

What are the historical spending patterns for equipment maintenance at the Department of Veterans Affairs?

Historical spending patterns for equipment maintenance at the Department of Veterans Affairs are likely substantial, given the vast network of hospitals, clinics, and administrative facilities it operates. The VA relies on a wide array of medical equipment, IT systems, and facility support equipment that require ongoing maintenance. Annual spending in this category can fluctuate based on equipment lifecycles, new technology adoption, and budget allocations. Analyzing past VA budgets and contract awards for maintenance services would reveal trends in spending, identify key service providers, and highlight areas of significant investment. This specific $4.8M award represents a portion of that broader historical expenditure.

What is the significance of the NAICS code 811210 for this contract?

The North American Industry Classification System (NAICS) code 811210, 'Electronic and Precision Equipment Repair and Maintenance,' is significant because it categorizes the specific type of service being procured. This classification helps in understanding the industry sector, identifying potential competitors, and benchmarking spending against similar government contracts. For the VA, this code signifies that the contract is for specialized services essential for maintaining the operational readiness of their sophisticated medical and technical equipment, which directly impacts patient care and administrative functions.

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

Address: 116 CENTER AVE STE B, PACHECO, CA, 94553

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

Financial Breakdown

Contract Ceiling: $14,850

Exercised Options: $14,850

Current Obligation: $4,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline