VA awards $360K for hospital bed rental, with Hill-Rom Inc. securing the delivery order

Contract Overview

Contract Amount: $360,404 ($360.4K)

Contractor: Hill-Rom, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $990/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OPTION YEAR 2 HOSPITAL BED RENTAL

Place of Performance

Location: BATESVILLE, FRANKLIN County, INDIANA, 47006

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $360,403.5 to HILL-ROM, INC. for work described as: OPTION YEAR 2 HOSPITAL BED RENTAL Key points: 1. The contract represents a single delivery order for hospital bed rental services. 2. The fixed-price nature of the contract provides cost certainty for the government. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is one year, aligning with typical operational needs. 5. The specific service relates to surgical and medical instrument manufacturing, indicating specialized equipment needs.

Value Assessment

Rating: good

This contract for hospital bed rental is a single delivery order with a firm fixed price, providing a clear cost structure. Benchmarking against similar contracts is challenging without more specific details on the type and features of the beds. However, the price of $360,403.50 for a year's rental appears reasonable for specialized medical equipment, especially considering the potential costs of outright purchase and maintenance. The value is further supported by the competitive award process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment where multiple vendors likely vied for the contract. The presence of competition is generally a positive sign for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Veterans receiving care at VA facilities will benefit from the availability of necessary hospital beds. The contract ensures the provision of essential medical equipment for patient care. The services are geographically focused within Indiana, supporting local VA healthcare operations. The contract supports the healthcare workforce by providing them with the tools needed for patient treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed specifications for the hospital beds rented could lead to variations in quality or suitability.
The contract is a single delivery order, which might not reflect the full scope of the VA's long-term bed rental needs.
Reliance on a single vendor for a critical need like hospital beds could pose a risk if the vendor faces operational issues.

Positive Signals

The award was made under full and open competition, indicating a competitive market for these services.
The firm fixed-price contract provides budget certainty for the Department of Veterans Affairs.
The contract duration of one year allows for regular review and potential re-competition.

Sector Analysis

The healthcare equipment rental market is a significant segment within the broader medical device industry. This contract for hospital beds falls under the category of durable medical equipment. Spending in this sector is driven by the demand for patient care services, particularly in hospitals and long-term care facilities. Comparable spending benchmarks would depend on the specific type and quantity of beds required, but the $360K award for a year's rental is a moderate expenditure for a government agency.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of hospital bed rental, it is possible that larger, specialized medical equipment providers are the primary participants in this market. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for the oversight of this contract. As a delivery order under a larger contract vehicle, it is subject to the VA's standard procurement regulations and contract management processes. Transparency is generally maintained through public contract databases. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Rental
Hospital Supplies
Surgical Instruments
Veterans Health Administration Contracts

Risk Flags

Potential for unstated service level agreements
Limited detail on specific equipment features
Single delivery order may not reflect total need

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $360,403.5 to HILL-ROM, INC.. OPTION YEAR 2 HOSPITAL BED 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 $360,403.5.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What specific types and features of hospital beds are being rented under this contract?

The provided data does not specify the exact types or features of the hospital beds being rented. The North American Industry Classification System (NAICS) code 339112, 'Surgical and Medical Instrument Manufacturing,' suggests the beds are specialized medical equipment. However, without access to the full contract details or statement of work, it's impossible to determine if they are standard, bariatric, ICU, or other specialized beds. This information is crucial for a precise value assessment and comparison to market rates.

How does the rental cost compare to purchasing similar hospital beds outright, considering maintenance and lifecycle costs?

A direct comparison between rental and purchase costs is difficult without knowing the specific bed models and their purchase prices, as well as the rental terms. However, for a one-year rental at $360,403.50, the implied monthly cost is approximately $30,033.63. If these are high-end, specialized beds, renting might be cost-effective for the VA if their need is temporary or if they wish to avoid the capital expenditure and long-term maintenance responsibilities associated with ownership. Conversely, for long-term, consistent needs, purchasing could be more economical.

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

Hill-Rom, Inc. is a well-established manufacturer and supplier of medical equipment, including hospital beds. They have a significant presence in both the commercial healthcare market and have historically secured contracts with government agencies, including the Department of Veterans Affairs and the Department of Defense. Their track record generally indicates experience in delivering such products and services. However, a detailed review of their past performance on similar VA contracts, including any past performance issues or successes, would provide a more comprehensive understanding.

What is the potential impact of this contract on the availability of hospital beds for other healthcare providers in Indiana?

The impact of this specific contract on the broader availability of hospital beds for other healthcare providers in Indiana is likely minimal. This contract is for a specific delivery order, implying a defined quantity of beds rented for a defined period. While Hill-Rom, Inc. is a major supplier, the rental market for hospital beds is substantial. Unless this contract represents a very large portion of Hill-Rom's available rental inventory in Indiana, it is unlikely to significantly constrain supply for other providers. The VA's needs are typically met through dedicated procurement channels.

Are there any performance metrics or service level agreements (SLAs) associated with this hospital bed rental contract?

The provided data does not include information on specific performance metrics or service level agreements (SLAs) for this contract. Typically, government contracts for equipment rental include clauses related to delivery timelines, maintenance, repair response times, and equipment condition. The absence of this detail in the summary data means we cannot assess the specific quality assurance measures in place. However, it is standard practice for the VA to include such requirements in their detailed contract documents to ensure service quality.

How does the $360,403.50 award compare to historical VA spending on hospital bed rentals?

To compare this $360,403.50 award to historical VA spending on hospital bed rentals, one would need access to historical VA procurement data. This single delivery order represents a specific need for one year. The VA likely has ongoing needs for hospital beds across its network. Without historical data, it's impossible to say if this amount is higher or lower than average, or if it represents an increase or decrease in spending trends for this specific service category within the VA. Analyzing multiple years of spending on similar NAICS codes would be necessary for a trend analysis.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $360,404

Exercised Options: $360,404

Current Obligation: $360,404

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0160

IDV Type: FSS

Timeline