VA awards $798,851 contract for air-fluidized bed rental, highlighting specialized medical equipment needs

Contract Overview

Contract Amount: $798,851 ($798.9K)

Contractor: Hill-Rom, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HILL-ROM AIR FLUIDIZED BED RENTAL BASE+4

Place of Performance

Location: AUGUSTA, RICHMOND County, GEORGIA, 30904

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $798,851.4 to HILL-ROM, INC. for work described as: HILL-ROM AIR FLUIDIZED BED RENTAL BASE+4 Key points: 1. Contract focuses on essential patient care equipment, indicating a need for advanced therapeutic support. 2. The award to Hill-Rom, Inc. suggests a reliance on established suppliers for critical medical devices. 3. Fixed-price contract structure provides cost certainty for the VA over the performance period. 4. The duration of the contract aligns with typical rental periods for such specialized equipment. 5. Geographic focus on Georgia (GA) indicates a specific regional requirement for these beds.

Value Assessment

Rating: good

The contract value of $798,851 for a one-year rental of air-fluidized beds appears reasonable given the specialized nature of the equipment. Air-fluidized beds are high-cost, advanced medical devices used for severe pressure ulcers and other complex conditions, often involving significant maintenance and logistical support. Benchmarking against similar contracts is challenging without specific details on bed type and service inclusions, but the price seems to fall within expected ranges for such critical patient care technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that Hill-Rom, Inc. was selected as the most advantageous offer. The competitive process should have driven pricing towards market rates, although the specific number of bidders is not provided. This approach generally ensures fair market value is obtained.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential medical equipment, preventing overpayment for specialized patient care resources.

Public Impact

Veterans in Georgia requiring advanced wound care and pressure ulcer management will benefit from access to these specialized beds. The contract ensures the availability of critical medical equipment for patient treatment and recovery within VA facilities. This award supports healthcare delivery within the VA system, specifically addressing needs in surgical and medical instrument categories. Potential workforce implications include the need for trained clinical staff to operate and manage the air-fluidized bed systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the rental service.
Potential for equipment malfunction or downtime, which could impact patient care continuity.
Dependence on a single supplier for a critical piece of medical equipment could pose a risk if supply chain issues arise.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract provides budget predictability for the Department of Veterans Affairs.
The contract specifies a clear performance period, ensuring timely delivery of services.

Sector Analysis

The healthcare sector, particularly within government procurement, frequently involves contracts for specialized medical equipment. Air-fluidized beds represent a niche but critical segment, essential for managing severe medical conditions like advanced pressure ulcers. Spending in this area is driven by patient needs and the availability of advanced therapeutic technologies. Comparable spending benchmarks are difficult to establish without detailed service scope, but the market for such equipment is characterized by high unit costs and specialized maintenance requirements.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false) and the small business status (st: GA) does not denote a set-aside. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Hill-Rom, Inc., is likely a large business, and their subcontracting activities, if any, would be governed by broader federal regulations rather than specific set-aside requirements for this particular award.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract databases like FPDS. While specific Inspector General (IG) jurisdiction for this particular delivery order isn't detailed, the VA OIG generally oversees all VA spending to detect fraud, waste, and abuse.

Related Government Programs

Medical Equipment Rental
Patient Support Services
Durable Medical Equipment
Veterans Health Administration Contracts
Pressure Ulcer Prevention and Treatment

Risk Flags

Potential for equipment downtime impacting patient care.
Dependence on a single supplier for critical medical equipment.
Need for clear performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $798,851.4 to HILL-ROM, INC.. HILL-ROM AIR FLUIDIZED BED RENTAL BASE+4

Who is the contractor on this award?

The obligated recipient is HILL-ROM, 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 $798,851.4.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the track record of Hill-Rom, Inc. in providing similar medical equipment to federal agencies?

Hill-Rom, Inc. has a significant history of providing medical equipment, including air-fluidized beds, to various federal agencies, notably the Department of Veterans Affairs and the Department of Defense. Their track record generally indicates experience with complex medical devices and associated services. Analysis of past performance data would reveal the number of previous contracts, their values, and any reported issues or successes. This specific contract (ID: 339112) is a delivery order under a larger contract vehicle, suggesting a pre-existing relationship and established performance history. A deeper dive into their contract compliance, on-time delivery rates, and customer satisfaction scores from prior federal engagements would provide a more comprehensive assessment of their reliability for this current award.

How does the cost of this air-fluidized bed rental compare to market rates for similar equipment?

Determining an exact 'market rate' for air-fluidized bed rentals is complex due to variations in equipment models, included services (maintenance, delivery, setup), contract duration, and geographic location. However, the total contract value of $798,851 for a 364-day rental period suggests a significant daily or monthly cost. Air-fluidized beds are high-end, specialized therapeutic devices, often costing tens of thousands of dollars to purchase outright. Rental costs typically reflect the capital expenditure, depreciation, maintenance, and logistical support. Without specific unit pricing or a detailed service level agreement, a precise comparison is difficult. However, based on industry knowledge, the price appears to be within the expected range for such advanced, critical-care equipment, especially considering the potential for comprehensive support services included in a government contract.

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

Key risks include potential equipment malfunction or downtime, which could disrupt patient care. Mitigation strategies typically involve robust maintenance and service level agreements (SLAs) with the contractor, ensuring timely repairs and replacements. Another risk is the dependence on a single supplier, Hill-Rom, Inc., which could lead to supply chain vulnerabilities or price escalation in future contracts. Mitigation here involves thorough market research during the initial procurement to ensure competitive pricing and exploring options for alternative suppliers or equipment types in subsequent solicitations. Ensuring clear performance metrics and penalties for non-compliance within the contract terms also serves as a mitigation tool against service failures.

What is the expected effectiveness of air-fluidized beds in improving patient outcomes for the VA?

Air-fluidized beds are highly effective for patients with severe pressure ulcers (Stage III and IV), burns, or other conditions requiring specialized support to prevent tissue damage and promote healing. They work by suspending the patient on a bed of heated, filtered air, which reduces pressure points, wicks away moisture, and provides a sterile environment. For the VA, which serves a population with complex health needs, these beds are crucial for managing chronic wounds and improving patient comfort and recovery. Their effectiveness is measured by reduced incidence of pressure ulcers, faster healing rates, decreased infection risk, and improved patient satisfaction. The VA's investment in these beds directly supports its mission to provide high-quality healthcare and improve the well-being of veterans.

How does this contract's value compare to historical VA spending on similar medical equipment rentals?

Historical spending data for similar medical equipment rentals by the VA can provide context for the $798,851 award. While specific figures for air-fluidized bed rentals are not readily available in the provided data, the VA consistently procures a wide range of medical equipment. Analyzing past contracts for high-cost, specialized equipment rentals (e.g., ventilators, specialized therapy units) would offer a comparative benchmark. Factors like inflation, technological advancements, and changes in patient care protocols can influence spending trends. If this contract represents a significant increase or decrease compared to similar past procurements, it warrants further investigation into the underlying reasons, such as changes in demand, market pricing, or contract scope.

Industry Classification

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

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C24725Q0185

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1069 STATE RTE 46 E, BATESVILLE, IN, 47006

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

Financial Breakdown

Contract Ceiling: $1,911,538

Exercised Options: $798,851

Current Obligation: $798,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0160

IDV Type: FSS

Timeline