VA awards $116,890 for surgical implants, highlighting potential value concerns due to sole-source nature

Contract Overview

Contract Amount: $116,890 ($116.9K)

Contractor: Rnjj MED, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-05-06

Contract Duration: 30 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SURGICAL IMPLANT

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32608

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $116,890 to RNJJ MED, LLC for work described as: SURGICAL IMPLANT Key points: 1. The contract's value, while specific to a short duration, warrants scrutiny for potential overpayment given the lack of competition. 2. Sole-source procurement limits price discovery and may indicate a missed opportunity for competitive bidding to secure better terms. 3. The short performance period suggests a need for immediate supply, but the absence of competition raises questions about urgency versus cost-effectiveness. 4. The specific nature of surgical implants requires specialized products, but the market may offer alternatives that were not explored. 5. Performance context is limited by the short duration and lack of competitive benchmarking. 6. Sector positioning within medical supplies is broad; specific implant needs can vary significantly in market dynamics.

Value Assessment

Rating: questionable

The contract value of $116,890 for a 30-day period for surgical implants appears high when considering the lack of competitive bidding. Without comparable contracts or market benchmarks for similar implants under competitive conditions, it is difficult to definitively assess value for money. The sole-source nature prevents a direct comparison to potentially lower prices achievable through open competition. The fixed price nature provides some cost certainty, but the overall price level remains a concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This indicates that the Department of Veterans Affairs identified RNJJ MED, LLC as the only responsible source capable of meeting the requirement. The lack of competition means that potential bidders were not given an opportunity to offer their products or pricing, which can lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these surgical implants due to the absence of competitive pressure. The government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Public Impact

Veterans receiving care within the VA system will benefit from the availability of necessary surgical implants. The services delivered are the provision of specific surgical implant devices. The geographic impact is primarily within Florida, where the contractor is located and presumably where the supplies will be delivered or utilized. Workforce implications are minimal, primarily related to the logistics and administration of receiving and distributing the implants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises questions about the thoroughness of market research.
Short contract duration could indicate a reactive procurement rather than strategic planning.

Positive Signals

Ensures timely availability of critical surgical supplies for veterans.
Contract is for a firm fixed price, providing cost certainty for the awarded amount.
The contractor is identified, allowing for direct accountability.

Sector Analysis

The market for surgical implants is a specialized segment within the broader healthcare and medical device industry. It is characterized by high research and development costs, stringent regulatory requirements, and a need for specialized manufacturing capabilities. The size of the market is substantial, with numerous players ranging from large multinational corporations to smaller, niche suppliers. This contract fits within the 'Surgical Appliance and Supplies Manufacturing' category, indicating a focus on devices used in surgical procedures. Comparable spending benchmarks are difficult to establish without knowing the specific type of implant, but the overall sector is known for significant government procurement.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. While RNJJ MED, LLC may be a small business, the lack of a set-aside or subcontracting plan means this contract does not directly contribute to the broader small business ecosystem in this sector.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' procurement oversight mechanisms. Accountability rests with the contracting officer and the program officials responsible for the requirement. Transparency is limited due to the sole-source nature and the lack of a competitive process, which typically involves public solicitations and bid disclosures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Supplies
Surgical Equipment
Veterans Health Administration Procurement
Sole Source Contracts
Medical Device Manufacturing

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to absence of price competition.
Limited transparency in procurement process.
Short performance period may indicate reactive procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $116,890 to RNJJ MED, LLC. SURGICAL IMPLANT

Who is the contractor on this award?

The obligated recipient is RNJJ MED, 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 $116,890.

What is the period of performance?

Start: 2026-04-06. End: 2026-05-06.

What is the specific type of surgical implant being procured, and what is its intended use?

The data indicates the North American Industry Classification System (NAICS) code is 339113, which corresponds to 'Surgical Appliance and Supplies Manufacturing.' This broad category encompasses a wide range of products, including but not limited to artificial joints, pacemakers, surgical dressings, and other devices used during or after surgical procedures. Without more specific product details, it is challenging to ascertain the exact nature of the implant. The intended use is critical for understanding the market dynamics, potential alternatives, and the justification for a sole-source award. For instance, a highly specialized or custom implant might have fewer viable sources than a more standardized item.

What market research was conducted to justify the sole-source award to RNJJ MED, LLC?

Justifying a sole-source award requires robust market research to demonstrate that only one responsible source can meet the government's needs. This typically involves searching databases, industry days, and consulting with technical experts to identify potential sources. The Department of Veterans Affairs would need to document why other manufacturers or suppliers of surgical implants were unable to meet the requirement, whether due to unique technical capabilities, proprietary technology, or urgent and compelling circumstances. The absence of this documentation in the provided data makes it impossible to assess the adequacy of the market research.

How does the price of $116,890 for a 30-day supply of surgical implants compare to industry benchmarks or previous VA procurements of similar items?

Direct price comparison is challenging without knowing the specific implant and its unit cost. However, a total expenditure of $116,890 for a single month's supply suggests a potentially high unit cost or a significant quantity of implants. Industry benchmarks for surgical implants vary dramatically based on complexity and type (e.g., orthopedic implants vs. cardiovascular devices). Previous VA procurements for similar items, if available and competitively sourced, would provide a more relevant benchmark. The sole-source nature of this award inherently prevents a direct, apples-to-apples comparison with competitively bid prices, raising concerns about whether the VA secured the best possible price.

What is RNJJ MED, LLC's track record with federal contracts, particularly with the Department of Veterans Affairs?

The provided data indicates that RNJJ MED, LLC is the contractor for this specific purchase order. To assess their track record, one would need to examine historical contract data. This would involve searching federal procurement databases (like SAM.gov or FPDS) for previous awards to RNJJ MED, LLC, noting the agencies involved, the types of goods or services procured, the contract values, and performance history. A history of successful, on-time deliveries and satisfactory performance would be positive indicators. Conversely, a record of contract issues, disputes, or poor performance would raise concerns about their reliability for this current requirement.

What are the potential risks associated with a sole-source award for critical medical supplies like surgical implants?

The primary risk associated with a sole-source award for critical medical supplies is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may overpay for the supplies. Another risk is reduced innovation and quality, as the sole provider may face less pressure to improve products or services. Furthermore, sole-source awards can create dependency on a single supplier, which can be problematic if that supplier experiences production issues, financial instability, or decides to discontinue the product. This dependency can also limit the government's flexibility in adapting to changing medical needs or technological advancements.

Given the short 30-day performance period, was this a pre-planned sole-source procurement or an emergency requirement?

The short 30-day performance period (April 6, 2026, to May 6, 2026) for this surgical implant purchase order could indicate either a planned short-term need or an urgent, unforeseen requirement. If it was planned, the justification for not competing it becomes more critical. If it was an emergency, the sole-source award might be more understandable, provided the urgency was genuine and documented. Without further context on the program's planning cycle and the specific circumstances leading to this award, it's difficult to definitively categorize it. However, even in emergencies, agencies are expected to conduct some level of market research to ensure the chosen source is the best available option under the circumstances.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1445 MARINELLA DR, PALM HARBOR, FL, 34683

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $116,890

Exercised Options: $116,890

Current Obligation: $116,890

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline