VA awards $62.7M for mechanical ventilators, with delivery orders expected to extend through May 2026

Contract Overview

Contract Amount: $62,684 ($62.7K)

Contractor: First Nation Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-31

Contract Duration: 60 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MECHANICAL VENTILATORS FOR MEDICAL SERVICE

Place of Performance

Location: NICEVILLE, OKALOOSA County, FLORIDA, 32578

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $62,684.04 to FIRST NATION GROUP LLC for work described as: MECHANICAL VENTILATORS FOR MEDICAL SERVICE Key points: 1. Contract awarded to FIRST NATION GROUP LLC for essential medical equipment. 2. The contract utilizes a firm-fixed-price structure, providing cost certainty. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract duration is 60 days, with specific delivery dates. 5. The North American Industry Classification System (NAICS) code is 339112, indicating surgical and medical instrument manufacturing. 6. This award falls under the Department of Veterans Affairs' procurement activities.

Value Assessment

Rating: good

The total award amount of $62.7 million for mechanical ventilators appears reasonable given the scope of medical equipment procurement. Benchmarking against similar contracts for advanced medical devices would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps manage cost risks for the government. Further analysis of the specific quantities and features of the ventilators would allow for a more granular comparison to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider selection of offerings, but two bids still provide a basis for price discovery and selection.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and ensure the government receives the best value for its investment.

Public Impact

Veterans will benefit from access to necessary mechanical ventilators for medical services. The contract ensures the availability of critical medical equipment for VA facilities. Services are likely to be delivered within VA healthcare systems across Florida, indicated by the state code 'FL'. The contract supports the healthcare workforce by providing essential tools for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market demand for ventilators increases significantly.
Ensuring timely delivery and quality control of the mechanical ventilators is crucial.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust bidding process.
Award to a single contractor streamlines delivery and management.

Sector Analysis

The market for medical devices, particularly respiratory equipment like mechanical ventilators, is a significant segment within the broader healthcare industry. This contract falls under the Surgical and Medical Instrument Manufacturing (NAICS 339112) sector. The Department of Veterans Affairs is a major purchaser of medical supplies and equipment, and spending in this area is often driven by the need to maintain readiness and provide high-quality care to service members and veterans. Comparable spending benchmarks would involve analyzing other large-scale procurements of similar medical equipment by federal agencies or large healthcare systems.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor, FIRST NATION GROUP LLC, may engage small businesses as subcontractors, which would indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through federal procurement databases where contract awards are reported. While no specific Inspector General jurisdiction is mentioned, the VA Office of Inspector General typically oversees VA procurements for fraud, waste, and abuse.

Related Government Programs

Medical Equipment Procurement
Veterans Health Administration Services
Surgical and Medical Instruments
Emergency Medical Supplies

Risk Flags

Potential for supply chain disruptions
Ensuring product quality and reliability
Price competitiveness in a dynamic market

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $62,684.04 to FIRST NATION GROUP LLC. MECHANICAL VENTILATORS FOR MEDICAL SERVICE

Who is the contractor on this award?

The obligated recipient is FIRST NATION GROUP 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 $62,684.04.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-31.

What is the track record of FIRST NATION GROUP LLC in supplying mechanical ventilators to federal agencies?

A review of federal procurement data would be necessary to fully assess FIRST NATION GROUP LLC's track record in supplying mechanical ventilators. Without specific historical contract data for this particular product category, it is difficult to ascertain their experience level and past performance. However, the award of this contract by the Department of Veterans Affairs suggests they met the agency's requirements and demonstrated capability. Further investigation into their past performance ratings on similar contracts, if available, would provide a more comprehensive understanding of their reliability and expertise in this specialized area of medical equipment supply.

How does the awarded price compare to market rates for similar mechanical ventilators?

To compare the awarded price of $62.7 million to market rates, detailed specifications of the mechanical ventilators procured are needed. Factors such as the type of ventilator (e.g., invasive, non-invasive, transport), specific features (e.g., monitoring capabilities, ventilation modes), and quantity are crucial for an accurate benchmark. If the contract details include unit pricing or a breakdown of costs, this could be compared against publicly available pricing from medical equipment suppliers or data from similar government contracts. The firm-fixed-price nature of the contract suggests the government has negotiated a set price, but its competitiveness relative to the broader market requires specific product information for validation.

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

The primary risks associated with this contract include potential supply chain disruptions affecting the availability of mechanical ventilators, quality control issues with the delivered equipment, and the possibility of the price being uncompetitive if market conditions change unfavorably. Mitigation strategies are inherent in the contract structure. The firm-fixed-price agreement shifts cost overrun risk to the contractor. The Department of Veterans Affairs will likely implement quality assurance surveillance plans to monitor product quality and delivery schedules. Furthermore, the full and open competition process aims to secure the best possible price at the time of award. Contingency planning for supply chain issues would also be a standard practice for the contractor.

How effective is the Department of Veterans Affairs in procuring essential medical equipment like ventilators?

The Department of Veterans Affairs' effectiveness in procuring essential medical equipment like ventilators can be assessed through several lenses. The successful award of this $62.7 million contract indicates a functional procurement process capable of meeting significant equipment needs. The use of full and open competition suggests an effort to achieve value for money. However, effectiveness can also be measured by the timeliness of delivery, the quality of the equipment provided, and the overall cost compared to other federal agencies or large healthcare systems. Analyzing past performance data, user feedback from VA medical facilities, and any audit reports from the VA Office of Inspector General would provide a more comprehensive evaluation of their procurement effectiveness in this domain.

What are the historical spending patterns for mechanical ventilators by the Department of Veterans Affairs?

To determine historical spending patterns for mechanical ventilators by the Department of Veterans Affairs, a review of past contract awards would be necessary. This would involve searching federal procurement databases for contracts with similar product descriptions (e.g., 'mechanical ventilators,' 'respiratory devices') awarded by the VA over several fiscal years. Analyzing the total dollar amounts, contract types, awardees, and competition levels over time would reveal trends in spending, identify key suppliers, and indicate whether spending has increased or decreased. Such analysis could also highlight any significant shifts in procurement strategies or market dynamics affecting ventilator acquisition.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4566 E HIGHWAY 20, NICEVILLE, FL, 32578

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $62,684

Exercised Options: $62,684

Current Obligation: $62,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79719D0027

IDV Type: FSS

Timeline