VA Awards $2.26M Water Quality Contract to SANCO LABORATORIES INC for Caribbean Healthcare System

Contract Overview

Contract Amount: $2,264,331 ($2.3M)

Contractor: Sanco Laboratories Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-01

End Date: 2026-02-05

Contract Duration: 919 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMPREHENSIVE WATER QUALITY SAMPLING AND ANALYSIS SERVICES AT VA CARIBBEAN HEALTHCARE SYSTEM

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00921

Plain-Language Summary

Department of Veterans Affairs obligated $2.3 million to SANCO LABORATORIES INC for work described as: COMPREHENSIVE WATER QUALITY SAMPLING AND ANALYSIS SERVICES AT VA CARIBBEAN HEALTHCARE SYSTEM Key points: 1. Contract awarded to SANCO LABORATORIES INC for comprehensive water quality sampling and analysis. 2. The contract value is $2,264,331.19, with a duration of 919 days. 3. Competition was conducted under SAP (Simplified Acquisition Procedures), indicating a potentially limited competition environment. 4. The sector is Environmental Consulting Services, crucial for maintaining health standards at VA facilities.

Value Assessment

Rating: good

The contract value of $2.26M for a nearly 3-year duration appears reasonable for specialized environmental consulting services. Benchmarking against similar VA contracts for water quality analysis would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting it was likely a limited competition. While SAP can facilitate faster procurement, it may not always yield the most competitive pricing compared to full and open competition.

Taxpayer Impact: The pricing appears fair for the services rendered, but the limited competition might mean taxpayers are not receiving the absolute lowest possible price.

Public Impact

Ensures safe drinking water for veterans and staff at the VA Caribbean Healthcare System. Supports compliance with environmental regulations and public health standards. Provides critical data for identifying and mitigating potential waterborne contaminants. Contributes to the overall operational integrity and patient safety within the healthcare system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may impact price competitiveness.
Contract duration is substantial, requiring ongoing monitoring of performance.

Positive Signals

Essential service for public health and safety.
Clear scope of work for water quality analysis.
Fixed-price contract provides cost certainty.

Sector Analysis

Environmental consulting services, particularly water quality analysis, are vital for healthcare facilities to maintain safe operating conditions and comply with stringent health regulations. Spending in this sector can vary significantly based on facility size and specific environmental needs.

Small Business Impact

There is no indication that small businesses were involved in this procurement, as it was competed under SAP and awarded to a single entity. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Regular performance reviews and quality assurance checks are essential to ensure the contractor meets all service requirements and maintains high standards.

Related Government Programs

Environmental Consulting Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for higher costs due to limited competition.
Reliance on a single vendor for critical health services.
Need for strong VA oversight to ensure quality and compliance.
Contract duration requires sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.3 million to SANCO LABORATORIES INC. COMPREHENSIVE WATER QUALITY SAMPLING AND ANALYSIS SERVICES AT VA CARIBBEAN HEALTHCARE SYSTEM

Who is the contractor on this award?

The obligated recipient is SANCO LABORATORIES 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 $2.3 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-02-05.

What is the specific methodology and frequency of water quality sampling and analysis being performed under this contract?

The contract specifies comprehensive water quality sampling and analysis services. While the exact methodology and frequency are not detailed in the provided data, typical services include testing for microbiological contaminants, chemical pollutants, and physical parameters. The contract's duration and value suggest a robust sampling schedule across various points within the VA Caribbean Healthcare System to ensure consistent compliance with health and safety standards.

What are the potential risks associated with relying on a limited competition procurement for critical environmental services?

Limited competition, such as procurement under SAP, can increase the risk of higher prices and potentially less innovative solutions compared to full and open competition. There's also a risk that the chosen vendor may not be the absolute best value provider. For critical services like water quality testing, ensuring robust performance standards and oversight is paramount to mitigate these risks.

How will the effectiveness of SANCO LABORATORIES INC's services be measured to ensure optimal water quality and patient safety?

Effectiveness will be measured by the accuracy and timeliness of the analysis reports, adherence to specified sampling protocols, and the absence of any waterborne health incidents attributed to the facility's water supply during the contract period. The VA will likely conduct periodic reviews of the contractor's performance data and may perform independent verification testing to ensure the services meet all regulatory and internal quality standards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24823Q0403

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: Q3 18 LAS LOMAS RD 21, SAN JUAN, PR, 00921

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,184,867

Exercised Options: $2,314,204

Current Obligation: $2,264,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline