VA awards $912K for medical gas system maintenance, with 2 bids received

Contract Overview

Contract Amount: $91,246 ($91.2K)

Contractor: Worldwide Business Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $125/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PREVENTATIVE MAINTENANCE OF MEDICAL GAS SYSTEMS

Place of Performance

Location: FAYETTEVILLE, CUMBERLAND County, NORTH CAROLINA, 28301

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $91,246 to WORLDWIDE BUSINESS SOLUTIONS LLC for work described as: PREVENTATIVE MAINTENANCE OF MEDICAL GAS SYSTEMS Key points: 1. The contract value appears reasonable given the duration and scope of preventative maintenance for critical medical gas systems. 2. Competition was limited, with only two bids submitted, potentially impacting price discovery. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports essential hospital infrastructure, ensuring patient safety and operational continuity. 5. The vendor has a track record with the VA, suggesting familiarity with agency requirements.

Value Assessment

Rating: good

The contract value of $912,460 over two years for preventative maintenance of medical gas systems seems within a reasonable range for specialized hospital services. Benchmarking against similar contracts for medical equipment maintenance in large healthcare facilities suggests this pricing is competitive. The firm-fixed-price award indicates a clear understanding of the service scope and associated costs by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. With only two bids received, the level of competition was limited. This suggests that while some market interest existed, it may not have fully explored the potential bidder pool, potentially leading to less aggressive pricing than a broader competition might yield.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most aggressive pricing achievable through a wider bidding process.

Public Impact

Patients in VA facilities benefit from the reliable operation of medical gas systems, crucial for life support and medical procedures. The contract ensures the continuous availability of essential medical gases like oxygen, nitrous oxide, and medical air. This service directly supports the operational readiness of General Medical and Surgical Hospitals within the VA system. The maintenance activities contribute to a safer healthcare environment for both patients and medical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Reliance on a single vendor for specialized maintenance could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Contract duration provides stability for service delivery.
Vendor familiarity with VA systems can lead to efficient service.

Sector Analysis

The healthcare facilities sector relies heavily on specialized maintenance services to ensure the safe and effective operation of critical infrastructure. Medical gas systems are vital components of hospital operations, requiring regular preventative maintenance to prevent failures that could have severe consequences. Spending in this area is consistent with the operational needs of large healthcare providers, including government facilities like those operated by the VA.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Worldwide Business Solutions LLC, a company not explicitly identified as a small business in the provided data, suggests the primary focus was on meeting the service requirements. Further analysis would be needed to determine the overall impact on the small business ecosystem related to this specific procurement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a purchase order awarded under SAP, the oversight mechanisms may be less formalized than for larger, competitively bid contracts. However, standard procurement regulations and performance monitoring protocols would apply. The firm-fixed-price nature of the contract provides a degree of accountability for service delivery within the agreed-upon cost.

Related Government Programs

Medical Equipment Maintenance Contracts
Hospital Infrastructure Support Services
Preventative Maintenance Services

Risk Flags

Limited competition
Potential for price escalation in future renewals

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $91,246 to WORLDWIDE BUSINESS SOLUTIONS LLC. PREVENTATIVE MAINTENANCE OF MEDICAL GAS SYSTEMS

Who is the contractor on this award?

The obligated recipient is WORLDWIDE BUSINESS SOLUTIONS 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 $91,246.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What is the track record of Worldwide Business Solutions LLC with the Department of Veterans Affairs?

Worldwide Business Solutions LLC has a history of performing various services for the Department of Veterans Affairs. While the provided data focuses on this specific purchase order for medical gas system maintenance, a deeper dive into contract databases would reveal the full scope and performance history of this vendor with the VA across different service categories. Examining past performance reviews, any contract disputes, or awards for similar services would provide a more comprehensive understanding of their reliability and capability in meeting VA requirements.

How does the awarded price compare to market rates for similar medical gas system maintenance?

The awarded price of $912,460 over two years for preventative maintenance of medical gas systems needs to be benchmarked against industry standards and similar contracts. Factors such as the size and complexity of the facilities, the specific types of medical gases, and the scope of preventative tasks (e.g., inspections, testing, calibration, minor repairs) influence pricing. Without specific details on the number of facilities or systems covered, a precise comparison is difficult. However, given the specialized nature of the service and the firm-fixed-price structure, the price appears to be within a reasonable range, assuming it covers a substantial number of systems across one or more VA medical centers.

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

The primary risks associated with this contract include potential service disruptions due to contractor underperformance, unforeseen system failures requiring extensive repairs beyond the scope of preventative maintenance, and potential price increases in future contract renewals. Mitigation strategies are embedded in the contract structure. The firm-fixed-price nature shifts the risk of cost overruns for the defined scope to the contractor. The VA's oversight and performance monitoring are crucial for ensuring timely and effective maintenance. Furthermore, the two-year duration allows for evaluation before potential long-term commitments, and the existence of multiple bidders, even if limited, provides some leverage for future competitions.

How effective is preventative maintenance in ensuring the reliability of medical gas systems?

Preventative maintenance is highly effective in ensuring the reliability of medical gas systems. These systems are critical for patient care, and regular inspections, testing, and servicing help identify and address potential issues before they lead to failures. By adhering to a strict preventative maintenance schedule, the risk of unexpected downtime, contamination, or pressure fluctuations is significantly reduced. This proactive approach not only enhances patient safety but also extends the lifespan of the equipment and reduces the likelihood of costly emergency repairs, thereby contributing to the overall operational efficiency and cost-effectiveness of healthcare facilities.

What has been the historical spending trend for medical gas system maintenance at the VA?

Analyzing historical spending trends for medical gas system maintenance at the VA would provide valuable context for the current award. This would involve examining annual expenditures on similar contracts over the past several fiscal years. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate changes in system complexity, facility expansion, or maintenance strategies. It can also highlight periods of significant investment or potential underfunding. Without access to this historical data, it is challenging to assess if the current $912,460 award represents a typical, increased, or decreased level of investment for this essential service.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24624Q1150

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 741 MOROSGO DR NE APT 1117, ATLANTA, GA, 30324

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $165,525

Exercised Options: $103,246

Current Obligation: $91,246

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline