VA awards $8.57M for bed and mattress rental, with 3 bidders competing

Contract Overview

Contract Amount: $8,572,708 ($8.6M)

Contractor: Hill-Rom, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-01

End Date: 2025-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $4.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BED AND MATTRESS RENTAL

Place of Performance

Location: BATESVILLE, FRANKLIN County, INDIANA, 47006

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.6 million to HILL-ROM, INC. for work described as: BED AND MATTRESS RENTAL Key points: 1. Value for money appears reasonable given the 3-bidder competition and firm-fixed-price structure. 2. Competition dynamics show a moderate level of engagement for this specialized equipment rental. 3. Risk indicators are low due to the established nature of the equipment and service. 4. Performance context is within the scope of standard medical equipment leasing for healthcare facilities. 5. Sector positioning is within the broader healthcare equipment and services market.

Value Assessment

Rating: good

The contract value of $8.57 million over five years for bed and mattress rental appears to be within a reasonable range for specialized medical equipment. Benchmarking against similar contracts is challenging without more specific data on the types and quantities of beds and mattresses. However, the firm-fixed-price structure suggests that the government has locked in costs, which is generally favorable. The number of bidders (3) indicates some level of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating an expectation of full and open competition for procurements below certain thresholds. With three bidders participating, there was a reasonable level of competition, which typically helps in achieving fair market prices. The SAP process allows for broad solicitation, ensuring that multiple vendors have the opportunity to bid.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, suggests that taxpayer dollars were used efficiently by allowing multiple vendors to vie for the contract, likely driving down costs compared to a sole-source award.

Public Impact

Veterans receiving care at Department of Veterans Affairs facilities will benefit from access to necessary hospital beds and mattresses. The services delivered include the rental and leasing of essential medical equipment. The geographic impact is primarily within Indiana, where the contract is being performed. Workforce implications are minimal, likely involving delivery, setup, and maintenance personnel from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single contractor for essential medical equipment could pose a risk if service levels decline.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
Multiple bidders indicate a healthy market for this type of equipment rental.
Contract duration of five years allows for stable provision of services.

Sector Analysis

The healthcare equipment rental and leasing sector is a vital component of the healthcare industry, ensuring that medical facilities have access to necessary equipment without the burden of outright purchase and maintenance. This contract falls within the broader category of commercial and industrial machinery and equipment rental and leasing. Spending in this sector is driven by the continuous need for up-to-date medical technology and furnishings in hospitals, clinics, and long-term care facilities.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The contractor, HILL-ROM, INC., is a large entity. Further analysis would be needed to determine if small businesses were involved in the supply chain or as potential subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a purchase order, it is subject to standard procurement regulations and internal VA oversight mechanisms. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Rental
Hospital Furnishings
Healthcare Services
Veterans Affairs Procurement

Risk Flags

Potential for price escalation in future renewals.
Dependence on contractor for maintenance and timely service.
Limited competition may not yield the absolute lowest price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.6 million to HILL-ROM, INC.. BED AND MATTRESS RENTAL

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 $8.6 million.

What is the period of performance?

Start: 2020-10-01. End: 2025-09-30.

What is the historical spending pattern for bed and mattress rental by the Department of Veterans Affairs?

Analyzing historical spending for bed and mattress rental by the VA is crucial for understanding long-term trends and identifying potential cost efficiencies. Without specific historical data for this exact service, we can infer general patterns from broader medical equipment leasing. The VA, as a large healthcare provider, consistently requires significant amounts of medical equipment. Spending in this area is influenced by factors such as the number of active facilities, patient volume, equipment obsolescence rates, and the shift towards leasing over purchasing. Examining prior contract awards for similar items, their values, durations, and competitive landscapes would reveal if the current $8.57 million award over five years represents an increase, decrease, or stable expenditure compared to previous periods. This historical context is vital for assessing whether the current contract represents good value and if spending is aligned with strategic healthcare delivery goals.

How does the per-unit cost of beds and mattresses in this contract compare to market rates or similar federal contracts?

Determining the per-unit cost benchmark for beds and mattresses within this $8.57 million contract is challenging without detailed line-item information on the types, quantities, and rental periods for each item. Federal contracts often have varying pricing structures based on volume, duration, and specific equipment features. To assess value, one would ideally compare the average monthly rental cost per bed and mattress against industry benchmarks and other government contracts for comparable equipment. For instance, if the contract specifies standard hospital beds versus specialized therapeutic mattresses, the pricing would differ significantly. A thorough analysis would involve dissecting the contract's pricing schedule to isolate unit costs and then benchmarking these against publicly available data from GSA schedules, other agency solicitations, or industry reports. A lack of detailed public data makes precise per-unit comparison difficult, but the overall contract value and competitive landscape provide a general indication of market alignment.

What is the track record of HILL-ROM, INC. in fulfilling federal contracts for medical equipment?

HILL-ROM, INC. has a significant track record in providing medical equipment, including beds and mattresses, to various healthcare providers, including federal agencies. Their experience in this sector suggests a familiarity with the demands and standards required for government contracts. A review of their past performance on similar federal contracts would involve examining contract completion records, any instances of disputes or penalties, and client feedback if available through sources like the Contractor Performance Assessment Reporting System (CPARS). Generally, established companies like HILL-ROM are chosen for their proven ability to deliver reliable products and services. However, due to the proprietary nature of some performance data, a comprehensive assessment might require access to specific government performance reports. Their long-standing presence in the market implies a generally positive history, but due diligence on specific contract adherence is always warranted.

What are the potential risks associated with relying on leased medical equipment versus purchased equipment for the VA?

Relying on leased medical equipment, such as beds and mattresses, for the VA presents several potential risks compared to outright purchase. One primary risk is the long-term cost; while leasing avoids large upfront capital expenditures, cumulative rental payments over many years can exceed the purchase price of the equipment. Another risk involves service and maintenance: the VA is dependent on the lessor (HILL-ROM, INC. in this case) for timely repairs and upkeep, which could lead to disruptions in patient care if service levels are inadequate. Furthermore, lease agreements may have limitations on customization or upgrades, potentially hindering the adoption of newer technologies. There's also the risk of contract non-renewal or significant price increases upon renewal, forcing a costly transition to new equipment or a different vendor. Finally, the VA does not build equity in leased assets, unlike purchased equipment.

How does the number of bidders (3) impact the government's ability to secure the best possible pricing for this contract?

A competition involving three bidders generally provides a reasonable level of price discovery and encourages competitive pricing, although it may not be as robust as a larger number of offers. With three distinct offers, the government has a basis for comparison and can select the most advantageous proposal based on price and other factors. This number suggests that the market is sufficiently interested to participate, but it also leaves room for concern that a more open competition (e.g., 5+ bidders) might have driven prices even lower. The effectiveness of the three-bidder scenario depends heavily on the quality and competitiveness of the specific proposals received. If the bidders were all highly competitive and offered similar value propositions, the government likely secured a fair price. However, if one bidder was significantly stronger or if the market is inherently limited, the price advantage might be less pronounced than in a more crowded field.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24820Q1459

Offers Received: 3

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: $8,572,708

Exercised Options: $8,572,708

Current Obligation: $8,572,708

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline