VA awards $30.2M for electronic equipment repair, a sole-source purchase order with a short duration

Contract Overview

Contract Amount: $30,203 ($30.2K)

Contractor: Midmark Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-01

End Date: 2026-04-11

Contract Duration: 41 days

Daily Burn Rate: $737/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MARCH 2026 POS FOR SERVICES UNDER 36C24925D0089

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37212

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30,202.5 to MIDMARK CORPORATION for work described as: EXPRESS REPORT: MARCH 2026 POS FOR SERVICES UNDER 36C24925D0089 Key points: 1. Value for money is difficult to assess due to the sole-source nature and short performance period. 2. Competition dynamics are absent, as the contract was not competed. 3. Risk indicators include the lack of competition and a short performance window, potentially limiting oversight. 4. Performance context is limited to a single month of service delivery. 5. Sector positioning is within the broader electronic equipment repair and maintenance industry.

Value Assessment

Rating: questionable

The contract value of $30.2 million for a single month of service appears high, especially given the lack of competition. Without benchmark data for similar sole-source procurements or detailed service descriptions, it's challenging to definitively assess value for money. The short duration also limits the ability to establish a consistent performance baseline for cost evaluation.

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 a specific need that they believed only Midmark Corporation could fulfill, or that the circumstances did not allow for a competitive process. The lack of bidders means there was no market pressure to drive down prices.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is diminished when only one vendor is considered.

Public Impact

Veterans will benefit from the continued availability of repaired electronic and precision equipment. Essential medical and operational equipment for VA facilities will remain functional. The contract supports the maintenance of critical infrastructure within VA healthcare settings. Workforce implications are minimal, as this is a service contract rather than a direct hiring initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
Short performance period may indicate an urgent, unplanned need or a limited scope of services.
Sole-source award requires strong justification to ensure fair and reasonable pricing.
Limited transparency into the justification for sole-source award.

Positive Signals

Ensures continued operational readiness of critical electronic equipment for the VA.
Award to a single vendor may indicate specialized expertise required for the equipment.
Fixed-price contract type provides cost certainty for the government.

Sector Analysis

The electronic and precision equipment repair and maintenance sector is vital for government operations, particularly in healthcare. This contract falls under NAICS code 811210. While specific market size data for VA-specific repair services is not readily available, the federal government consistently spends billions annually on maintenance and repair services across various sectors. This contract represents a significant, albeit short-term, investment within this category.

Small Business Impact

This contract was awarded as a sole-source purchase order and does not indicate any small business set-aside provisions. There is no information provided regarding subcontracting opportunities for small businesses. The focus appears to be on fulfilling a specific requirement with a single vendor, potentially bypassing opportunities for small business participation.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. Given the sole-source nature and short duration, specific Inspector General (IG) involvement might be triggered by a formal audit or investigation request related to the procurement process or pricing. Transparency is limited by the lack of a competitive process and public justification details.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Federal Electronic Equipment Repair Services
Sole-Source Procurement Awards

Risk Flags

Sole-source award without clear justification
High value for a short-duration service contract
Lack of competitive bidding process

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30,202.5 to MIDMARK CORPORATION. EXPRESS REPORT: MARCH 2026 POS FOR SERVICES UNDER 36C24925D0089

Who is the contractor on this award?

The obligated recipient is MIDMARK CORPORATION.

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 $30,202.5.

What is the period of performance?

Start: 2026-03-01. End: 2026-04-11.

What is the specific justification for awarding this contract on a sole-source basis to Midmark Corporation?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. For a contract of this value and duration, the Department of Veterans Affairs would need to document why a competitive process was not feasible or advantageous. This could involve unique technical capabilities, proprietary technology, or a critical, time-sensitive requirement that precluded market research and solicitation.

How does the $30.2 million cost compare to similar electronic equipment repair services procured by the VA or other federal agencies?

Direct comparison is difficult without knowing the exact scope of services and the specific types of electronic equipment being repaired. However, $30.2 million for a single month of service is substantial. Federal procurement data often shows a wide range for repair services, influenced by factors like equipment complexity, urgency, and the vendor's specialized knowledge. A sole-source award, especially at this price point and short duration, warrants scrutiny to ensure it represents fair and reasonable pricing compared to what might be achieved through competition or alternative service providers.

What are the primary risks associated with a sole-source award of this magnitude and short duration?

The primary risks include potential overpricing due to the lack of competitive pressure, limited assurance of best value, and reduced transparency in the procurement process. For the government, there's a risk of not identifying more cost-effective solutions or innovative approaches that a competitive bidding process might uncover. The short duration could also indicate an emergency or a poorly planned requirement, both of which can introduce execution risks and potentially higher costs to expedite services.

What is the expected performance outcome or impact of these services for the Department of Veterans Affairs?

The expected outcome is the continued operational readiness and functionality of critical electronic and precision equipment within VA facilities. This directly supports the delivery of healthcare services to veterans by ensuring that essential medical devices and operational systems are properly maintained and repaired. The contract aims to prevent downtime and ensure the reliability of equipment that veterans depend on for their treatment and care.

What has been Midmark Corporation's track record with the Department of Veterans Affairs or other federal agencies for similar services?

The provided data does not include Midmark Corporation's historical performance record with the VA or other federal agencies. A comprehensive analysis would require reviewing past contracts, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Understanding their past performance is crucial for assessing the reliability and quality of services they are likely to provide under this new award.

Are there any planned future procurements or extensions related to this contract?

The data indicates a short performance period (41 days) for this purchase order, ending in April 2026. This suggests it is likely a short-term solution or an immediate need fulfillment. Whether there are plans for future procurements, extensions, or a more comprehensive contract would depend on the VA's long-term strategy for electronic equipment maintenance and repair. Without further information, it's impossible to determine future procurement intentions.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

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: 60 VISTA DR, VERSAILLES, OH, 45380

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

Financial Breakdown

Contract Ceiling: $30,203

Exercised Options: $30,203

Current Obligation: $30,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline