VA awards $2.46M sole-source contract for Pyxis support to CareFusion Solutions, LLC

Contract Overview

Contract Amount: $246,156 ($246.2K)

Contractor: Carefusion Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $676/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PYXIS SUPPORT

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33125

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $246,156 to CAREFUSION SOLUTIONS, LLC for work described as: PYXIS SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. Firm fixed-price contract type suggests predictable costs for the government. 3. Contract duration of 364 days indicates a short-term need for support. 4. The award is for surgical and medical instrument manufacturing support. 5. Awarded by the Department of Veterans Affairs, serving healthcare needs. 6. The contract value is approximately $2.46 million over its term.

Value Assessment

Rating: fair

The contract value of $2.46 million for Pyxis support over one year appears to be within a reasonable range for specialized medical equipment maintenance and support. Benchmarking against similar sole-source contracts for medical device support is challenging due to the lack of publicly available detailed pricing. However, the firm fixed-price structure provides cost certainty. Further analysis would require understanding the specific services included and comparing them to industry standards for similar equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, CareFusion Solutions, LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less price discovery and potentially higher costs for the government compared to fully competed contracts. The absence of competition means taxpayers do not benefit from potential cost savings driven by market forces.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competition. This means taxpayers may not be receiving the most cost-effective solution available in the market.

Public Impact

Veterans will benefit from the continued availability and support of Pyxis systems, crucial for medication management in VA healthcare facilities. The contract ensures the operational readiness of essential medical equipment, directly impacting patient care quality. Services are likely to be delivered within VA healthcare facilities in Florida, where the contractor is located. The contract supports specialized technical roles related to medical instrument manufacturing and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source justification needs to be robust to ensure necessity.
Limited transparency into the vendor selection process due to sole-source nature.

Positive Signals

Firm fixed-price contract provides cost predictability.
Award to an established vendor may ensure continuity of service.
Contract supports critical healthcare infrastructure for veterans.

Sector Analysis

The healthcare sector relies heavily on specialized medical equipment and the support services that ensure their functionality. Contracts for such equipment, like the Pyxis system, are critical for efficient patient care and medication management. The market for medical device support is often characterized by proprietary technology, leading to situations where original equipment manufacturers or their authorized partners are the sole viable providers. This contract fits within the broader category of medical equipment maintenance and support services, a significant segment of federal healthcare spending.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to CareFusion Solutions, LLC, it is unlikely to involve subcontracting opportunities for small businesses unless explicitly mandated or initiated by the prime contractor. The absence of a set-aside or subcontracting plan suggests a minimal direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a purchase order, it falls under the agency's procurement regulations and contract administration processes. Transparency is limited due to the sole-source nature, but the VA is responsible for ensuring the contractor meets the terms and conditions of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Surgical and Medical Instrument Maintenance Contracts
Healthcare Technology Support Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for higher costs due to lack of competition.
Limited transparency in vendor selection process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $246,156 to CAREFUSION SOLUTIONS, LLC. PYXIS SUPPORT

Who is the contractor on this award?

The obligated recipient is CAREFUSION SOLUTIONS, 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 $246,156.

What is the period of performance?

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

What is the track record of CareFusion Solutions, LLC with the Department of Veterans Affairs?

CareFusion Solutions, LLC, has a history of contracts with the Department of Veterans Affairs. While specific details of past performance are not provided in this data, the VA's continued engagement with the company suggests a level of satisfaction with their services. A deeper dive into contract history, performance reviews, and any past disputes or commendations would be necessary for a comprehensive assessment of their track record. The current sole-source award implies that the VA may have found CareFusion Solutions to be the most suitable or only capable provider for this specific need, potentially based on prior positive experiences or unique qualifications.

How does the value of this contract compare to similar Pyxis support contracts?

Direct comparison of this $2.46 million contract for Pyxis support is difficult without access to detailed pricing data for similar contracts, especially given its sole-source nature. Typically, sole-source awards may not reflect the most competitive pricing. However, the firm fixed-price structure provides cost certainty for the VA. To benchmark effectively, one would need to analyze the scope of services (e.g., maintenance, software updates, technical support) and compare the per-unit or per-service costs against industry averages or historical VA contracts for comparable equipment and support levels, adjusting for contract duration and specific requirements.

What are the primary risks associated with this sole-source award?

The primary risk associated with this sole-source award is the potential for inflated pricing due to the lack of competition. Without multiple bidders vying for the contract, CareFusion Solutions, LLC, may not be incentivized to offer the lowest possible price. Another risk is the potential for vendor lock-in, where the VA becomes dependent on a single provider, limiting future flexibility and potentially increasing long-term costs. Ensuring the necessity and justification for the sole-source award is critical to mitigate the risk of awarding a contract that could have been obtained at a better value through a competitive process.

How effective is the Pyxis system in improving medication management within VA facilities?

The Pyxis system is a widely recognized automated dispensing cabinet designed to improve medication management by enhancing security, accuracy, and efficiency. Within VA facilities, its implementation is expected to reduce medication errors, improve inventory control, and streamline the dispensing process, ultimately contributing to better patient safety and care. The effectiveness is largely dependent on proper integration with existing pharmacy and electronic health record systems, adequate staff training, and ongoing technical support, which this contract aims to ensure. Data on medication error rates and inventory management efficiency before and after Pyxis implementation would provide quantitative measures of its effectiveness.

What is the historical spending pattern for Pyxis support by the Department of Veterans Affairs?

Historical spending patterns for Pyxis support by the Department of Veterans Affairs would likely show a recurring need for maintenance, software updates, and technical assistance for these critical medication dispensing systems. Given the specialized nature of the Pyxis system, it is plausible that VA has historically awarded contracts to the original equipment manufacturer or authorized service providers, potentially including sole-source or limited competition awards. Analyzing past contract awards, their values, durations, and competitive nature would reveal trends in VA's investment in Pyxis support and identify any shifts in procurement strategies over time.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 3750 TORREY VIEW CT, SAN DIEGO, CA, 92130

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $246,156

Exercised Options: $246,156

Current Obligation: $246,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline