VA awards $2M contract for ceiling lifts, with 5 bids received under full and open competition

Contract Overview

Contract Amount: $2,007,486 ($2.0M)

Contractor: Handicare USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-15

End Date: 2025-11-30

Contract Duration: 594 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CEILING LIFTS

Place of Performance

Location: MARYLAND HEIGHTS, SAINT LOUIS County, MISSOURI, 63043

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to HANDICARE USA LLC for work described as: CEILING LIFTS Key points: 1. Contract value appears reasonable given the product type and duration. 2. Full and open competition suggests a healthy market for these devices. 3. The definitive contract type indicates a need for ongoing supply. 4. Performance period extends into late 2025, ensuring continued availability. 5. The North American Industry Classification System (NAICS) code points to a specialized manufacturing sector.

Value Assessment

Rating: good

The contract value of approximately $2 million for ceiling lifts over a 594-day period appears to be within a reasonable range for specialized medical equipment. Benchmarking against similar contracts for patient mobility devices would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. Without specific per-unit pricing or detailed scope of work, a definitive value assessment is challenging, but the overall award size seems proportionate to the likely need for such equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, but specific sources were excluded for defined reasons, which is a less common but permissible competition type. Five bids were received, suggesting a competitive market for ceiling lifts. The level of competition is adequate to promote price discovery and encourage reasonable pricing from the awarded contractor.

Taxpayer Impact: The receipt of multiple bids under a competitive process is beneficial for taxpayers, as it helps ensure that the government is not overpaying for essential medical equipment and that a fair market price is achieved.

Public Impact

Patients requiring assistance with mobility, particularly in healthcare settings, will benefit from the availability of these ceiling lifts. The contract supports the provision of essential medical equipment for the Department of Veterans Affairs (VA). The contract is geographically focused on Missouri (MO), indicating a specific regional need. The contract supports the medical device manufacturing sector, potentially impacting jobs in that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if exclusion of sources was overly broad.
Dependence on a single contractor for supply during the contract period.
Risk of price increases in future contract renewals if competition diminishes.

Positive Signals

Awarded under a competitive process, indicating market availability.
Firm fixed-price contract limits cost uncertainty for the government.
Contract duration ensures sustained availability of critical equipment.

Sector Analysis

The medical instrument manufacturing sector is characterized by specialized production and stringent regulatory requirements. This contract for ceiling lifts falls within the broader healthcare equipment market, which is substantial and driven by demand from hospitals, clinics, and long-term care facilities. Spending in this area is often influenced by patient demographics, technological advancements, and healthcare policy. Comparable spending benchmarks would typically be found within the VA's own historical procurement data for similar mobility aids.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to HANDICARE USA LLC, a specific manufacturer, suggests the primary focus was on obtaining the required product. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if HANDICARE USA LLC utilizes smaller suppliers for components or related services.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and quality assurance checks to ensure the delivered equipment meets specifications. Transparency is generally maintained through public contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Equipment Procurement
Patient Mobility Aids
Veterans Health Administration Contracts
Surgical and Medical Instrument Manufacturing Contracts

Risk Flags

Contract awarded under 'Full and Open Competition After Exclusion of Sources' requires careful review of exclusion rationale.
Limited contract duration (594 days) may necessitate future procurements, impacting long-term planning and potential price stability.
Lack of detailed performance data or unit cost benchmarks makes definitive value assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to HANDICARE USA LLC. CEILING LIFTS

Who is the contractor on this award?

The obligated recipient is HANDICARE USA 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 $2.0 million.

What is the period of performance?

Start: 2024-04-15. End: 2025-11-30.

What is the specific type and model of ceiling lift being procured, and what are its key features and intended use cases within VA facilities?

The provided data does not specify the exact model or detailed features of the ceiling lifts. However, NAICS code 339112, 'Surgical and Medical Instrument Manufacturing,' indicates these are likely specialized devices designed for patient transfer and mobility assistance in clinical settings. Ceiling lifts typically consist of a track system installed on the room's ceiling and a portable or fixed hoist unit. They are crucial for safely moving patients with limited mobility, reducing the risk of injury to both patients and caregivers. Use cases within VA facilities would likely include patient rooms, therapy areas, and bathrooms, supporting daily living activities and medical procedures.

How does the per-unit cost or total contract value compare to similar ceiling lift procurements by other federal agencies or within the VA's historical spending?

A direct per-unit cost comparison is not possible with the provided data. The total contract value is $2,007,486.30 for 594 days (approximately 1.6 years). To benchmark this, one would need to analyze historical VA contracts for similar ceiling lift systems, considering factors like quantity, model complexity, installation requirements, and warranty periods. Comparing this to other agencies' procurements of comparable equipment would also be informative. Given the 'full and open competition' and five bids, the price is likely competitive, but a detailed analysis of unit pricing against market rates or past performance would be necessary for a definitive value assessment.

What are the specific criteria used to exclude certain sources in this 'Full and Open Competition After Exclusion of Sources' award, and what is the potential impact on competition?

The data indicates the contract type as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while the solicitation was broadly advertised, specific potential bidders were excluded based on predefined criteria outlined in the solicitation documents. These exclusions could be due to factors such as past performance issues, inability to meet specific technical requirements, or other documented reasons. The impact on competition depends heavily on the number and significance of the excluded sources. If only a few non-essential bidders were excluded, competition might remain robust. However, if significant market players were excluded, it could limit the diversity of bids and potentially lead to less competitive pricing.

What is the track record of HANDICARE USA LLC in fulfilling federal contracts, particularly for medical equipment, and have there been any performance issues or disputes?

The provided data does not include information on HANDICARE USA LLC's specific track record with federal contracts, including past performance ratings, dispute history, or previous contract values. A thorough assessment would require accessing the Federal Awardee Performance and Integrity Information System (FAPIIS) or similar databases to review their performance history. Understanding their experience with similar medical equipment procurements, their ability to meet delivery schedules, and the quality of their products in previous government engagements is crucial for evaluating the risk associated with this award.

What is the expected lifespan and maintenance plan for these ceiling lifts, and are there provisions for ongoing support or replacement parts beyond the contract's end date?

The provided data does not detail the expected lifespan, maintenance plan, or provisions for support beyond the contract's end date of November 30, 2025. Typically, contracts for durable medical equipment may include warranty periods and options for service contracts or the availability of spare parts. The VA would need to ensure that the procured lifts are durable and that a plan is in place for their long-term maintenance and potential replacement. Information regarding warranties, service agreements, and the availability of replacement parts would usually be specified in the contract's statement of work or associated technical specifications.

How does the $2 million award fit into the VA's overall spending on patient mobility and assistive devices, and what are the trends in this spending category?

The $2 million award represents a specific procurement for ceiling lifts within the VA's broader spending on patient mobility and assistive devices. To understand its context, one would need to analyze the VA's total budget allocation and actual expenditures for categories such as wheelchairs, walkers, transfer aids, and other assistive technologies over several fiscal years. Trends in this spending could be influenced by factors like an aging veteran population, advancements in assistive technology, and shifts in healthcare delivery models. This particular contract's value should be compared against historical VA spending on similar items to identify any significant deviations or patterns.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24724Q0394

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10888 METRO CT, MARYLAND HEIGHTS, MO, 63043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,007,486

Exercised Options: $2,007,486

Current Obligation: $2,007,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline