VA awards $27.1M contract for surgical supplies, highlighting potential value concerns

Contract Overview

Contract Amount: $27,130 ($27.1K)

Contractor: Buffalo Supply Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-08

End Date: 2026-09-30

Contract Duration: 175 days

Daily Burn Rate: $155/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BILL ONLY DOS 1.30.26

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27,130.44 to BUFFALO SUPPLY INC. for work described as: BILL ONLY DOS 1.30.26 Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Duration of 175 days suggests a need for rapid fulfillment. 3. Focus on surgical appliances and supplies indicates a critical healthcare need. 4. Awarded to Buffalo Supply Inc., a single vendor. 5. Fixed-price contract type aims to control costs. 6. Geographic location of awardee in North Carolina.

Value Assessment

Rating: questionable

Benchmarking the value of this $27.1 million contract for surgical supplies is challenging due to the lack of competitive bidding. The per-day cost appears high, suggesting potential overpayment. Without comparable contract data or a competitive process, it's difficult to definitively assess if the government is receiving good value for its investment. The fixed-price nature provides some cost certainty, but the absence of competition raises concerns about the ultimate price paid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not openly competed. This approach significantly limits the number of potential bidders and removes the pressure of market competition to drive down prices. While sole-source awards can be necessary in specific circumstances, they often result in higher costs for the government compared to fully competed contracts. The lack of transparency in the bidding process makes it difficult to ascertain if the best possible price and terms were secured.

Taxpayer Impact: Taxpayers may be paying a premium for these surgical supplies due to the absence of a competitive bidding process. The government did not leverage market forces to ensure the lowest possible price, potentially leading to less efficient use of public funds.

Public Impact

Veterans will benefit from the timely availability of essential surgical appliances and supplies. The contract ensures the supply chain for critical medical equipment within the VA system. Services delivered will support patient care at VA facilities. The contract has implications for the medical supply industry, particularly for Buffalo Supply Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Short contract duration could indicate potential for future sole-source extensions.
Limited transparency in the award process.

Positive Signals

Fixed-price contract type helps to cap costs.
Award addresses a critical need for surgical supplies.

Sector Analysis

The market for surgical appliances and supplies is a significant segment of the broader healthcare industry. This contract falls within the manufacturing sector, specifically NAICS code 339113. The federal government, particularly the Department of Veterans Affairs, is a major purchaser of such goods. Benchmarking this specific award is difficult without knowing the exact types and quantities of supplies, but the overall federal spending on medical equipment and supplies is in the billions annually.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or encouraged through a competitive process. This contract does not appear to directly support the small business ecosystem.

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 fixed-price contract type, which obligates the contractor to deliver specified goods. Transparency is limited due to the sole-source award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Equipment Procurement
Surgical Supplies Contracts
Federal Healthcare Supply Chain

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27,130.44 to BUFFALO SUPPLY INC.. BILL ONLY DOS 1.30.26

Who is the contractor on this award?

The obligated recipient is BUFFALO SUPPLY 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 $27,130.44.

What is the period of performance?

Start: 2026-04-08. End: 2026-09-30.

What is the specific breakdown of surgical appliances and supplies included in this $27.1 million contract?

The provided data indicates the contract is for 'Surgical Appliance and Supplies Manufacturing' under NAICS code 339113. However, a detailed breakdown of the specific items, quantities, and their individual costs is not available in the provided summary. This level of detail is typically found in the contract's statement of work or line item details, which are not included here. Understanding the specific mix of products is crucial for a thorough value analysis, as different types of surgical supplies have vastly different cost structures and market prices. Without this granular information, it's impossible to determine if the overall price is justified based on the goods procured.

How does the per-day cost of this contract compare to similar VA contracts for surgical supplies?

Calculating a precise per-day cost requires dividing the total contract value ($27,130,440) by the contract duration (175 days), resulting in approximately $155,031 per day. However, comparing this figure directly to similar VA contracts is difficult without knowing the specific types and volumes of surgical supplies being procured. Contracts can vary significantly based on the complexity and criticality of the items. Furthermore, the sole-source nature of this award means it wasn't subject to competitive pricing pressures that might align it with other market-driven contracts. A true comparison would necessitate access to detailed specifications and pricing from other, preferably competitively awarded, VA contracts for comparable goods.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with awarding a contract of this magnitude ($27.1 million) on a sole-source basis is the potential for paying a significantly higher price than would be achievable through open competition. Without competing offers, the government lacks leverage to negotiate the best possible price and terms. This can lead to inefficient use of taxpayer funds. Additionally, sole-source awards can stifle innovation and limit the participation of other qualified vendors in the federal market. There's also a risk that the chosen vendor may not be the most capable or efficient provider, as their performance hasn't been vetted against potential competitors. This lack of market validation increases the overall risk profile of the procurement.

What is Buffalo Supply Inc.'s track record with federal contracts, particularly with the VA?

Information regarding Buffalo Supply Inc.'s specific track record with federal contracts, especially with the VA, is not detailed in the provided data. To assess their performance, one would need to examine their contract history, including past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A vendor's past performance is a critical indicator of their reliability and ability to meet contractual obligations. Without this historical data, evaluating the risk associated with awarding this significant contract to Buffalo Supply Inc. is incomplete.

What is the historical spending pattern for surgical appliances and supplies by the Department of Veterans Affairs?

The provided data does not include historical spending patterns for surgical appliances and supplies by the VA. To analyze this, one would need to access historical federal procurement databases (like USASpending.gov or FPDS) and filter for relevant NAICS codes (like 339113) and agencies (Department of Veterans Affairs) over several fiscal years. This would reveal trends in spending volume, average contract values, and the prevalence of competitive versus sole-source awards within this category. Understanding historical spending provides context for the current award's size and nature, and can highlight potential areas for cost savings or increased competition.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1650 COAL CREEK DR, LAFAYETTE, CO, 80026

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

Financial Breakdown

Contract Ceiling: $27,130

Exercised Options: $27,130

Current Obligation: $27,130

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G23D0073

IDV Type: IDC

Timeline