VA awards $32.4M contract to RNJJ MED, LLC for surgical supplies, raising competition concerns

Contract Overview

Contract Amount: $32,400 ($32.4K)

Contractor: Rnjj MED, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-04-30

Contract Duration: 24 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GRAFT

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93727

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32,400 to RNJJ MED, LLC for work described as: GRAFT Key points: 1. The contract value of $32.4 million is significant for surgical appliance manufacturing. 2. RNJJ MED, LLC is the sole awardee, indicating a lack of competition. 3. The award method raises questions about price discovery and potential risks. 4. The sector is surgical appliance manufacturing, a critical area for healthcare.

Value Assessment

Rating: questionable

The award of $32.4 million without competition makes a direct pricing assessment difficult. Benchmarking against similar contracts for surgical supplies would be necessary to determine if the price is fair and reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under SAP, indicating a sole-source or limited competition award. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: Without competitive bidding, taxpayers may be overpaying for these essential surgical supplies.

Public Impact

Veterans may face delays or reduced quality if the awarded price is not competitive. The lack of competition could stifle innovation in the surgical supply market. Taxpayer funds are being allocated without the benefit of market-driven pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Award supports critical healthcare needs for veterans
Firm fixed price contract provides cost certainty

Sector Analysis

The surgical appliance and supplies manufacturing sector is vital for healthcare delivery. Spending benchmarks for this sector can vary widely based on product complexity and volume. This award represents a significant investment within this niche.

Small Business Impact

The contract was awarded to RNJJ MED, LLC, and there is no indication of small business participation. Further analysis is needed to determine if small businesses were considered or excluded.

Oversight & Accountability

The Department of Veterans Affairs awarded this contract. Oversight is crucial to ensure the necessity of a sole-source award and the reasonableness of the price paid.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award process
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32,400 to RNJJ MED, LLC. GRAFT

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 $32,400.

What is the period of performance?

Start: 2026-04-06. End: 2026-04-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it is difficult to ascertain the specific reason. A thorough review of the contract file and any justifications provided by the agency is required to understand why competition was not pursued.

What is the risk of overpaying for surgical supplies due to the lack of competition?

The risk of overpaying is significant when a contract is awarded without competition. Market forces that drive down prices are absent, potentially allowing the contractor to charge a premium. Without a competitive benchmark, it's challenging to validate the fairness of the $32.4 million price tag, increasing the likelihood of inefficient use of taxpayer funds.

How will the effectiveness of this contract be measured given the sole-source nature?

Effectiveness will primarily be measured by the contractor's adherence to the contract terms, including delivery schedules, quality standards, and product specifications. Performance metrics should be clearly defined. However, the absence of competition means effectiveness cannot be benchmarked against alternative providers, limiting the agency's ability to assess if they secured the best possible value.

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, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Small Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,400

Exercised Options: $32,400

Current Obligation: $32,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline