VA awards $2M for surgical integration systems to Skytron LLC, impacting surgical appliance manufacturing

Contract Overview

Contract Amount: $2,024,363 ($2.0M)

Contractor: Skytron LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-31

End Date: 2027-02-02

Contract Duration: 520 days

Daily Burn Rate: $3.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PURCHASE OF SURGICAL LIGHTS, BOOMS, DISPLAYS, AND INTEGRATION SYSTEM AND INSTALL

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38105

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to SKYTRON LLC for work described as: PURCHASE OF SURGICAL LIGHTS, BOOMS, DISPLAYS, AND INTEGRATION SYSTEM AND INSTALL Key points: 1. The VA is procuring a critical surgical integration system, highlighting the need for advanced medical technology. 2. Skytron LLC is the sole awardee, raising questions about competition and potential price discovery. 3. The contract's value of $2M presents a moderate financial commitment for the VA. 4. The sector focus is on surgical appliance and supplies manufacturing, a specialized area.

Value Assessment

Rating: fair

The contract value of $2,043,628.30 for a surgical integration system appears reasonable given the specialized nature of the equipment. Benchmarking against similar complex medical system procurements would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating a lack of competition. This procurement method may limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from competitive pricing, potentially increasing the overall cost of this acquisition.

Public Impact

Veterans will benefit from upgraded surgical facilities, potentially improving patient care and surgical outcomes. The award supports a specific manufacturer in the surgical equipment sector. This investment in medical technology reflects the VA's commitment to modernizing healthcare infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for inflated pricing due to lack of competition
Limited transparency on pricing benchmarks

Positive Signals

Addresses critical need for surgical technology
Supports modernization of VA facilities

Sector Analysis

The Department of Veterans Affairs is procuring a surgical integration system, falling under the broader category of surgical appliance and supplies manufacturing. Spending in this sector is driven by healthcare needs and technological advancements in medical equipment.

Small Business Impact

The awardee, Skytron LLC, is not identified as a small business. There is no indication in the provided data that small businesses were involved in this procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The sole-source nature warrants close monitoring to ensure fair pricing and effective delivery of the integrated system.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Limited transparency on justification
Need for post-award value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to SKYTRON LLC. PURCHASE OF SURGICAL LIGHTS, BOOMS, DISPLAYS, AND INTEGRATION SYSTEM AND INSTALL

Who is the contractor on this award?

The obligated recipient is SKYTRON 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 $2.0 million.

What is the period of performance?

Start: 2025-08-31. End: 2027-02-02.

What is the justification for the sole-source award, and were alternative solutions or vendors considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. Without further documentation, it's unclear if alternatives were thoroughly explored or if specific circumstances necessitated bypassing a competitive process. This lack of competition raises concerns about potential overpayment and reduced value for taxpayer funds.

How does the pricing of this surgical integration system compare to similar systems procured competitively by other federal agencies or large healthcare systems?

Benchmarking this $2M sole-source award against competitive procurements is crucial for assessing value. Without access to comparative pricing data for similar systems, it's difficult to determine if the VA received a fair price. A lack of competitive bidding often leads to higher costs, making it imperative to understand the specific features and market conditions justifying this price point.

What are the expected improvements in surgical efficiency or patient outcomes resulting from this new integration system?

The primary goal of investing in a surgical integration system is to enhance surgical workflows, improve visualization, and potentially lead to better patient outcomes. Quantifying these improvements is key to evaluating the effectiveness of the expenditure. The VA should establish clear metrics to track the system's impact on surgical team performance and patient care post-installation.

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: 5085 CORPORATE EXCHANGE BLVD SE, GRAND RAPIDS, MI, 49512

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

Financial Breakdown

Contract Ceiling: $2,024,363

Exercised Options: $2,024,363

Current Obligation: $2,024,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline