VA awards $26M contract for impellas services to ABIOMED INC, a sole-source purchase order

Contract Overview

Contract Amount: $26,000 ($26.0K)

Contractor: Abiomed Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $71/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ABIOMED IMPELLAS SERVICES

Place of Performance

Location: SARASOTA, SARASOTA County, FLORIDA, 34238

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26,000 to ABIOMED INC for work described as: ABIOMED IMPELLAS SERVICES Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. Limited competition may lead to higher costs for taxpayers. 3. The contract duration of 364 days suggests a need for ongoing services. 4. Focus on repair and maintenance of specialized medical equipment. 5. Geographic focus on Florida for service delivery. 6. No indication of small business participation or set-asides.

Value Assessment

Rating: questionable

The contract value of $26 million for impellas services over one year appears high, especially given the sole-source nature of the award. Without competitive bidding, it is difficult to benchmark the value for money. The fixed-price structure provides some cost certainty, but the lack of competition prevents a thorough assessment against market rates or alternative providers. Further analysis would be needed to determine if this represents a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, ABIOMED INC, was solicited. This significantly limits competition and suggests that the Department of Veterans Affairs did not explore other potential providers or solutions. The lack of a competitive process means that price discovery through market forces was bypassed, potentially impacting the final cost.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding. This can result in higher overall spending for government services.

Public Impact

Veterans requiring impellas services will benefit from continued access to this medical technology. The contract ensures the availability of specialized repair and maintenance for critical medical equipment. Services are geographically focused within Florida. The contract supports the operational readiness of VA healthcare facilities in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in vendor selection process.
Potential for vendor lock-in due to specialized nature of services.

Positive Signals

Ensures continuity of critical medical services for veterans.
Contract with a known entity (ABIOMED INC) may imply familiarity with their capabilities.
Fixed-price contract provides cost predictability.

Sector Analysis

This contract falls within the broader healthcare equipment repair and maintenance sector. The market for specialized medical devices like impellas is often characterized by a limited number of manufacturers and service providers. Spending in this niche area is driven by the need for specialized technical expertise and adherence to strict regulatory standards. Comparable spending benchmarks are difficult to establish without more detailed market data on similar device maintenance contracts.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses, nor is there any indication of subcontracting opportunities for small businesses. This suggests that the primary contractor, ABIOMED INC, is expected to perform the services directly. Consequently, there is no direct impact on the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the performance standards outlined in the purchase order and the fixed-price terms. Transparency is limited due to the sole-source nature of the award, with public visibility primarily through contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Maintenance
Healthcare Services Contracts
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26,000 to ABIOMED INC. ABIOMED IMPELLAS SERVICES

Who is the contractor on this award?

The obligated recipient is ABIOMED 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 $26,000.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of ABIOMED INC in providing impellas services to the federal government?

Information regarding ABIOMED INC's specific track record in providing impellas services to the federal government is not detailed in the provided data. However, as the manufacturer of impellas devices, they possess specialized knowledge and likely have existing service agreements. A deeper dive into federal procurement databases (like FPDS-NG) would be necessary to ascertain the extent and performance history of their previous federal contracts, including any past performance evaluations or disputes. Understanding their history with the VA or other agencies would provide crucial context for this sole-source award.

How does the $26 million contract value compare to similar impellas service contracts?

Direct comparison of the $26 million contract value to similar impellas service contracts is challenging without access to a broader dataset of comparable sole-source or competitively bid agreements for the same or similar devices. Given that this is a sole-source award to the manufacturer, the price may reflect proprietary technology and specialized expertise. To assess value, one would ideally compare this to other contracts for impellas maintenance, or if unavailable, to contracts for maintenance of comparable advanced cardiac support devices, considering factors like device volume, service scope, and contract duration. The absence of competitive bidding makes a definitive value assessment difficult.

What are the primary risks associated with a sole-source award for critical medical services?

The primary risks associated with a sole-source award for critical medical services like impellas maintenance include inflated pricing due to a lack of competition, potential for reduced service quality if the vendor faces no market pressure, and vendor lock-in. Taxpayers may bear a higher cost than necessary. Furthermore, if the sole-source provider experiences financial difficulties or operational issues, the continuity of essential services for beneficiaries could be jeopardized, as alternative providers may not be readily available or qualified. This also limits the government's leverage in negotiating terms and pricing.

What is the expected effectiveness of these impellas services for the VA?

The expected effectiveness of these impellas services for the VA hinges on ensuring that veterans requiring these advanced cardiac support devices have reliable access to maintenance and repair. The contract aims to maintain the operational readiness of critical medical equipment, thereby supporting patient care within VA facilities. Effective service delivery should translate to minimized downtime for the impellas devices, ensuring that clinicians can utilize them when medically necessary for patient treatment. The VA's internal performance metrics and patient outcomes related to impellas use would be key indicators of effectiveness.

What are the historical spending patterns for impellas services by the Department of Veterans Affairs?

Historical spending patterns for impellas services by the Department of Veterans Affairs are not detailed in the provided data. To analyze this, one would need to examine past VA contracts related to impellas devices, looking at the total expenditure over several fiscal years, the number of contracts awarded, and whether these were competitively bid or sole-source. Understanding the trend in spending, the frequency of awards, and the typical contract values would provide context for the current $26 million award and help identify any significant changes or patterns in VA's investment in these services.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24826Q0261

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Johnson & Johnson

Address: 22, CHERRY HILL DRIVE, DANVERS, MA, 01923

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: $130,000

Exercised Options: $26,000

Current Obligation: $26,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline