VA awards $32,000 for RHODOLED XL, a single-unit purchase order with a short duration

Contract Overview

Contract Amount: $32,000 ($32.0K)

Contractor: Biofrontera Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-05-08

Contract Duration: 29 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: RHODOLED XL

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32,000 to BIOFRONTERA INC for work described as: RHODOLED XL Key points: 1. The contract value is relatively small, suggesting a specific, limited need. 2. The purchase order was not competed, raising questions about potential cost savings. 3. The short performance period indicates a time-bound requirement. 4. The product category, Surgical and Medical Instrument Manufacturing, is a critical area for healthcare delivery. 5. The award was made to a single contractor, BIOFRONTERA INC.

Value Assessment

Rating: questionable

Given the lack of competition and the small award amount, it is difficult to benchmark the value for money. The price of $32,000 for a single unit of RHODOLED XL cannot be assessed without knowing the specific features and capabilities of the device. Without comparative pricing data or a competitive bidding process, it's hard to determine if this represents a fair market price. Further investigation into the necessity and justification for this specific procurement is warranted.

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. The Department of Veterans Affairs did not solicit bids from multiple vendors. This approach limits the opportunity for price discovery and may result in a higher cost to the government compared to a fully competed procurement. The rationale for the sole-source award would need to be examined to understand why other vendors were not considered.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, potentially leading to less efficient use of federal funds.

Public Impact

Veterans receiving medical care will benefit from the use of the RHODOLED XL. The contract supports the provision of advanced medical instruments within the VA healthcare system. The geographic impact is likely localized to the VA facility where the instrument is deployed. The contract does not appear to have significant direct workforce implications beyond the immediate use of the device.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs.
Limited transparency in the procurement process.
Short duration could indicate a pilot or urgent need without long-term planning.

Positive Signals

Procurement supports critical medical equipment for veterans.
Award to a single vendor simplifies contract management for this specific item.

Sector Analysis

The market for surgical and medical instruments is highly specialized, with significant research and development investment. Companies in this sector often rely on direct sales to healthcare providers, including government agencies like the VA. Benchmarking this contract is challenging without more information on the specific device, but the overall medical device market is substantial, with government contracts forming a notable segment.

Small Business Impact

This contract does not appear to involve a small business set-aside. There is no indication of subcontracting opportunities for small businesses. The award to BIOFRONTERA INC. does not suggest a direct impact on the broader small business ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would fall under the Department of Veterans Affairs' internal procurement regulations and the VA Office of Inspector General. Transparency is limited due to the sole-source nature of the award. Accountability would be measured by the successful delivery and performance of the RHODOLED XL as per the purchase order terms.

Related Government Programs

Medical Equipment Procurement
Department of Veterans Affairs Contracts
Surgical Instruments

Risk Flags

Sole-source award
Lack of competition
Limited performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32,000 to BIOFRONTERA INC. RHODOLED XL

Who is the contractor on this award?

The obligated recipient is BIOFRONTERA 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 $32,000.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-08.

What is the specific function and intended use of the RHODOLED XL?

The RHODOLED XL is a medical device manufactured by BIOFRONTERA INC. While the specific details of its function are not provided in the contract data, its classification under NAICS code 339112 (Surgical and Medical Instrument Manufacturing) suggests it is used in surgical procedures or for diagnostic purposes within a healthcare setting. Further research into BIOFRONTERA INC.'s product catalog would be necessary to ascertain the precise application, such as its role in photodynamic therapy, diagnostics, or surgical assistance. The short duration of the contract (29 days) might imply a specific, time-sensitive application or a trial period for the device within the VA system.

What is the typical price range for similar surgical and medical instruments?

The price range for surgical and medical instruments varies dramatically based on complexity, intended use, and technological sophistication. Basic instruments might cost a few hundred dollars, while advanced diagnostic equipment or robotic surgical systems can run into hundreds of thousands or even millions of dollars. Without knowing the specific type of instrument the RHODOLED XL is, a direct price comparison is not feasible. However, for a single unit purchase order of $32,000, it suggests a moderately complex or specialized device, rather than a high-volume, low-cost item or an extremely high-end capital expenditure.

What are the risks associated with a sole-source procurement for medical equipment?

Sole-source procurements for medical equipment carry several risks. Primarily, the absence of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures that multiple bidders would create. This can result in a lower value for money. Additionally, sole-source awards can limit access to potentially superior or more cost-effective alternatives from other manufacturers. There's also a risk of vendor lock-in, where the agency becomes dependent on a single supplier, potentially hindering future flexibility. Transparency is reduced, making it harder to justify the expenditure to taxpayers. Finally, it raises concerns about whether the sole-source justification was truly warranted or if it was used to circumvent a more competitive process.

How does the Department of Veterans Affairs typically procure surgical and medical instruments?

The Department of Veterans Affairs (VA) procures surgical and medical instruments through various methods, prioritizing competition whenever feasible to ensure best value for taxpayer dollars. Common methods include competitive solicitations (e.g., Requests for Proposals, Invitations for Bids) for larger quantities or complex equipment, and utilizing government-wide acquisition contracts (GWACs) or Federal Supply Schedules (FSS) for established product lines. For urgent or specific needs, they may also use other transaction authorities or sole-source justifications when appropriate and legally permissible. The VA aims to leverage its purchasing power through strategic sourcing and contract vehicles to obtain favorable pricing and terms for the medical supplies essential to veteran care.

What is the track record of BIOFRONTERA INC. in supplying medical instruments to the federal government?

Information regarding BIOFRONTERA INC.'s specific track record in supplying medical instruments to the federal government is not detailed within the provided contract data. This single purchase order represents a limited engagement. To assess their broader track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract performance reviews, and any reported issues or successes. Understanding their history with other government agencies, the types of products previously supplied, and their performance ratings would provide a more comprehensive view of their reliability and capabilities as a federal contractor.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument 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: 660 MAIN ST, WOBURN, MA, 01801

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

Financial Breakdown

Contract Ceiling: $32,500

Exercised Options: $32,500

Current Obligation: $32,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline