VA awards $28.1M contract for surgical appliances, with a 31-day performance period

Contract Overview

Contract Amount: $28,102 ($28.1K)

Contractor: Alota Action LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-05-10

Contract Duration: 31 days

Daily Burn Rate: $907/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TRACKCHAIR

Place of Performance

Location: MARSHALL, LYON County, MINNESOTA, 56258

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28,101.6 to ALOTA ACTION LLC for work described as: TRACKCHAIR Key points: 1. Contract awarded to ALOTA ACTION LLC for surgical appliance manufacturing. 2. The contract has a short performance period of 31 days. 3. This award falls under the Surgical Appliance and Supplies Manufacturing NAICS code. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. The agency is the Department of Veterans Affairs, suggesting a focus on veteran healthcare needs. 6. The contract was competed under SAP (Simplified Acquisition Procedures).

Value Assessment

Rating: fair

The contract value of $28.1 million for a 31-day period appears high for a short-term supply contract. Benchmarking against similar, longer-term contracts for surgical appliances would be necessary to determine true value for money. The fixed-price nature provides cost certainty, but the per-diem cost is substantial. Without more context on the specific items and quantities, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for purchases below the simplified acquisition threshold. While this indicates some level of competition, the specific number of bidders is not provided. SAP competition can sometimes lead to less aggressive pricing compared to full and open competition for larger contracts, but it aims to streamline the acquisition process for smaller needs.

Taxpayer Impact: For taxpayers, competition under SAP generally aims for a balance between efficient procurement and fair pricing. The effectiveness of price discovery depends on the number of responsive bids received.

Public Impact

Veterans will benefit from the timely provision of necessary surgical appliances. The contract ensures the availability of essential medical supplies for healthcare facilities. The geographic impact is likely focused on VA facilities within Minnesota, where the contractor is located. The contract supports jobs within the surgical appliance manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for a very short performance period requires scrutiny.
Lack of detail on specific items and quantities makes value assessment difficult.
Reliance on SAP may limit the breadth of competition compared to larger contract vehicles.

Positive Signals

Contract awarded to a specific entity, indicating a clear supplier.
Firm Fixed Price contract provides cost predictability.
Short duration may indicate a specific, immediate need being met.

Sector Analysis

The surgical appliance and supplies manufacturing sector is a critical component of the healthcare industry, providing essential medical devices and equipment. This contract fits within the broader federal healthcare procurement landscape, where agencies like the VA procure a wide range of medical supplies to support patient care. Spending in this sector is driven by healthcare demand, technological advancements, and the needs of specific patient populations, such as veterans.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this specific award. As the contract was competed under SAP, it may not have had specific small business goals mandated, depending on the total value and agency policies. Further analysis would be needed to determine if any small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' procurement and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified goods. Transparency is facilitated by contract databases, though detailed performance metrics are not publicly available.

Related Government Programs

Department of Veterans Affairs Medical Supplies Procurement
Federal Healthcare Supply Chain Management
Surgical Appliance Manufacturing Contracts

Risk Flags

High cost for short duration
Lack of specific itemization
Limited performance period context

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28,101.6 to ALOTA ACTION LLC. TRACKCHAIR

Who is the contractor on this award?

The obligated recipient is ALOTA ACTION 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 $28,101.6.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-10.

What specific surgical appliances are covered under this contract and what is the quantity?

The provided data does not specify the exact surgical appliances or their quantities. The NAICS code 339113, Surgical Appliance and Supplies Manufacturing, indicates a broad category. To fully assess the contract's value and necessity, a detailed breakdown of the items to be supplied, such as prosthetics, orthopedic devices, or specialized surgical tools, along with the required quantities, would be essential. This information is typically found in the contract's statement of work or delivery schedule.

How does the $28.1 million cost compare to similar contracts for surgical appliances?

Direct comparison is difficult without knowing the specific items and duration. However, $28.1 million for a 31-day period represents a very high daily expenditure. Typical federal contracts for medical supplies can range from thousands to millions of dollars, but often cover longer periods or larger volumes. A benchmark analysis against contracts for similar product categories, considering volume and contract length, would be needed. The VA's historical spending on surgical appliances, particularly for similar short-term needs, would provide valuable context.

What are the key performance indicators (KPIs) for this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. Generally, for supply contracts, KPIs would focus on delivery timeliness, product quality (meeting specifications), and accuracy of fulfillment. For the VA, ensuring that veterans receive the correct, high-quality surgical appliances without delay would be paramount. Performance would likely be monitored through delivery receipts, quality inspections, and potentially user feedback from VA medical staff.

What is the track record of ALOTA ACTION LLC in fulfilling federal contracts, particularly for the VA?

The provided data does not include information on ALOTA ACTION LLC's past performance or track record with federal contracts. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any reported issues or disputes, and their experience with similar types of supplies and agencies. The VA typically maintains contractor performance information, which would be crucial for evaluating reliability and capability.

What is the rationale for awarding a $28.1 million contract for only 31 days?

The rationale for such a high-value award over a short 31-day period is not explicitly stated. Possible explanations include an urgent, critical need for a large quantity of specific surgical appliances, perhaps due to an unforeseen surge in demand, a stockout, or a gap in existing supply chains. It could also represent a bridge contract while a longer-term, larger contract is being finalized. Without further details on the specific circumstances driving this award, the justification remains unclear.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1105 LAKE RD, MARSHALL, MN, 56258

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

Financial Breakdown

Contract Ceiling: $28,102

Exercised Options: $28,102

Current Obligation: $28,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline