VA awards $6.48M sole-source contract for surgical implants to RNJJ MED, LLC

Contract Overview

Contract Amount: $64,800 ($64.8K)

Contractor: Rnjj MED, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2027-05-06

Contract Duration: 394 days

Daily Burn Rate: $164/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IMPLANT

Place of Performance

Location: PALM HARBOR, PINELLAS County, FLORIDA, 34683

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $64,800 to RNJJ MED, LLC for work described as: IMPLANT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings from competition. 2. The contract duration of 394 days suggests a need for ongoing supply of these critical medical devices. 3. The fixed-price nature of the award provides cost certainty for the government. 4. The award to a single vendor may limit opportunities for smaller businesses to participate in this segment. 5. Performance will be monitored by the Department of Veterans Affairs, ensuring delivery of necessary supplies.

Value Assessment

Rating: fair

Without competitive bidding, it is difficult to benchmark the value for money. The contract's value of $6.48 million for surgical implants over approximately 13 months suggests a significant need. However, without comparable contract data or market analysis, assessing whether this price is optimal is challenging. The fixed-price structure offers predictability, but the lack of competition means potential savings from a bidding process are foregone.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services. The absence of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without bids from multiple suppliers, the government cannot be assured it received the best possible price for these essential surgical implants.

Public Impact

Veterans will benefit from the consistent availability of necessary surgical implants. The contract ensures the supply chain for critical medical devices used in surgical procedures. The primary geographic impact is within Florida, where the contractor is located and likely services VA facilities. The contract supports the operational needs of VA healthcare facilities requiring these specialized supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in if this is a recurring need.

Positive Signals

Ensures a critical supply of surgical implants for veterans.
Fixed-price contract provides cost certainty.
Award to a specific LLC indicates a focused supplier for this need.

Sector Analysis

The surgical appliance and supplies manufacturing sector is a critical component of the healthcare industry, providing essential medical devices. This contract falls within the broader healthcare procurement landscape, where the Department of Veterans Affairs is a significant purchaser of medical supplies. Benchmarking this contract's value is difficult without specific data on implant types and volumes, but it represents a substantial investment in patient care.

Small Business Impact

This contract was not set aside for small businesses, nor is there an 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. Without a competitive bidding process or explicit small business provisions, the impact on the small business ecosystem for this particular contract is likely minimal.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a purchase order, it falls under standard procurement regulations. Transparency regarding the justification for the sole-source award would be crucial for assessing accountability. Inspector General oversight would typically apply to investigations of fraud, waste, or abuse related to federal contracts.

Related Government Programs

Medical Supplies Procurement
Veterans Health Administration Contracts
Surgical Equipment
Sole Source Procurements

Risk Flags

Sole-source award may result in higher costs.
Lack of competitive bidding limits price discovery.
Limited information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $64,800 to RNJJ MED, LLC. 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 $64,800.

What is the period of performance?

Start: 2026-04-07. End: 2027-05-06.

What specific types of surgical implants are covered under this contract?

The provided data indicates the contract is for 'Surgical Appliance and Supplies Manufacturing' (NAICS 339113) and has a value of $6.48 million. However, the specific types of surgical implants are not detailed in the provided information. This category can encompass a wide range of products, from orthopedic implants like artificial joints to cardiovascular devices or general surgical tools and dressings. A more granular breakdown of the product list would be necessary to fully understand the scope and nature of the supplies being procured and to conduct a more precise value analysis.

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

The data explicitly states the contract type as 'NOT COMPETED,' which in this context implies a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. Without further documentation from the Department of Veterans Affairs, the precise justification for deeming RNJJ MED, LLC the sole source for these surgical implants remains unspecified. This lack of competition raises concerns about potential overpayment and limits the government's ability to secure the best possible pricing.

How does the contract value of $6.48 million compare to historical spending on similar surgical implants by the VA?

The provided data shows a single award of $6.48 million for surgical implants with an end date of May 6, 2027. To compare this to historical spending, one would need access to historical VA procurement data for similar items. Without that comparative data, it's impossible to determine if this contract represents an increase, decrease, or stable level of spending. Analyzing past contracts for the same or comparable surgical implants, considering inflation and volume changes, would be essential for a robust historical comparison and value assessment.

What are the potential risks associated with a sole-source contract for medical supplies?

Sole-source contracts for medical supplies carry several risks. Firstly, the absence of competition can lead to inflated prices, as the vendor faces no pressure to offer the most competitive rate. Secondly, it can create vendor dependency, making it difficult to switch suppliers if performance issues arise or if better alternatives become available. Thirdly, it limits opportunities for other qualified vendors, including small businesses, to enter the market and provide their services. Finally, without competitive benchmarking, it is harder to ensure the government is receiving optimal value for its investment, potentially impacting the overall budget allocated for healthcare supplies.

What is the track record of RNJJ MED, LLC in fulfilling federal contracts, particularly for the VA?

The provided data identifies RNJJ MED, LLC as the contractor for this $6.48 million purchase order. However, it does not offer any information regarding the company's past performance, contract history, or track record with the Department of Veterans Affairs or other federal agencies. To assess the contractor's reliability and past performance, a review of federal procurement databases (like SAM.gov) and past performance evaluations would be necessary. This information is critical for understanding the potential risks associated with awarding a significant contract to this entity.

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

Solicitation Procedures: ONLY ONE SOURCE

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $64,800

Exercised Options: $64,800

Current Obligation: $64,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline