VA awards $3.89M contract for medical gas system inspections to MGI, Inc

Contract Overview

Contract Amount: $3,885 ($3.9K)

Contractor: MGI, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $11/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MED-GAS & VACUUM SYSTEM INSPECTIONS

Place of Performance

Location: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37129

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3,885 to MGI, INC. for work described as: MED-GAS & VACUUM SYSTEM INSPECTIONS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm-fixed-price contract type suggests predictable costs for the government. 3. Contract duration of 364 days aligns with standard service periods. 4. Awarded by the Department of Veterans Affairs, indicating a focus on healthcare infrastructure. 5. The North American Industry Classification System (NAICS) code 339112 points to medical equipment manufacturing, though the service is inspection-based. 6. No indication of small business set-aside or subcontracting plans.

Value Assessment

Rating: fair

The contract value of $3.89 million for medical gas and vacuum system inspections appears to be a reasonable estimate for a year-long service contract. However, without comparable contract data for similar inspection services or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the lack of competition may have led to a higher price than could have been achieved through a competitive bidding process. Benchmarking against industry standards for such specialized inspections would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific justification for this approach is not provided, but it means there was no opportunity for multiple vendors to bid on the service. This lack of competition limits the government's ability to leverage market forces to secure the best possible price and service terms. It is unclear if MGI, Inc. is the only qualified provider or if other factors led to this procurement method.

Taxpayer Impact: Sole-source awards generally mean taxpayers may not be receiving the most competitive pricing available in the market. The absence of competition prevents price discovery and potentially inflates the cost of services.

Public Impact

Veterans receiving care at VA facilities will benefit from ensured safety and functionality of critical medical gas and vacuum systems. The contract ensures the proper inspection and maintenance of essential healthcare infrastructure. Services are likely to be delivered across VA facilities within Tennessee, given the state code 'TN'. The contract supports specialized technical services, potentially requiring skilled technicians in the medical equipment maintenance field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited vendor options.
Absence of small business participation noted, potentially missing opportunities to support smaller enterprises.
The specific nature of 'medical gas and vacuum system inspections' requires specialized expertise, and the sole-source award might indicate a lack of readily available alternatives.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
The contract ensures the continued operational integrity of critical medical infrastructure for veteran healthcare.
Awarding to a single vendor may streamline management and oversight if that vendor has a proven track record with the agency.

Sector Analysis

The medical equipment manufacturing sector (NAICS 339112) encompasses a broad range of products. However, this contract falls into the service category of specialized equipment inspection and maintenance. The market for such services is often niche, with a limited number of providers possessing the necessary certifications and expertise. Comparable spending benchmarks are difficult to establish without more specific details on the scope and complexity of the systems being inspected. The total award of $3.89 million over one year suggests a significant operational requirement.

Small Business Impact

There is no indication that this contract included a small business set-aside. Furthermore, the 'sb' field is marked as false, suggesting no specific subcontracting goals for small businesses were mandated. This means opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, were likely limited or non-existent. The impact on the small business ecosystem is therefore minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it may be subject to internal agency review processes. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Healthcare Facility Infrastructure Support
Medical Gas Systems Maintenance
Specialized Technical Services Procurement

Risk Flags

Sole-source award limits competition and potential for cost savings.
Lack of transparency regarding justification for sole-source procurement.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3,885 to MGI, INC.. MED-GAS & VACUUM SYSTEM INSPECTIONS

Who is the contractor on this award?

The obligated recipient is MGI, 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 $3,885.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the specific justification for awarding this contract on a sole-source basis to MGI, Inc.?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), which often implies a sole-source award. The specific justification for not competing the requirement is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required service, or in cases of urgent and compelling need. Without further documentation from the Department of Veterans Affairs, the precise reason for this sole-source designation remains unknown. This lack of competition limits the government's ability to ensure it is obtaining the best value through market forces.

How does the $3.89 million contract value compare to historical spending on similar medical gas system inspections by the VA?

The provided data does not include historical spending information for similar contracts, making a direct comparison impossible. The $3.89 million award for a 364-day period represents a significant investment in maintaining critical medical infrastructure. To assess value, one would need to analyze past VA expenditures on comparable inspection services, factoring in inflation, contract scope changes, and vendor performance. Without this historical context, it is difficult to determine if this award represents an increase, decrease, or stable level of spending for these essential services.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, contracts for critical infrastructure maintenance, such as medical gas and vacuum systems, would include detailed performance metrics. These might cover aspects like inspection frequency, response times for issues, adherence to safety standards, and reporting timeliness. The absence of this information in the summary data suggests it is not readily available or was not a primary focus of the data extract. These KPIs are crucial for ensuring the contractor meets the required standards and for evaluating their performance.

What is the track record of MGI, Inc. with the Department of Veterans Affairs or similar federal agencies?

The provided data does not contain information regarding MGI, Inc.'s specific track record with the Department of Veterans Affairs or other federal agencies. To assess their performance history, one would need to consult contract databases, past performance reviews, and any available CPARS (Contractor Performance Assessment Reporting System) reports. A positive track record with the agency for similar services would lend confidence to the sole-source award. Conversely, a history of performance issues could raise concerns about the value and reliability of the service provided under this contract.

What specific types of medical gas and vacuum systems are covered under this contract?

The data specifies 'MED-GAS & VACUUM SYSTEM INSPECTIONS' but does not detail the specific types of systems covered. Medical facilities utilize various gases (e.g., oxygen, nitrous oxide, medical air, nitrogen) and vacuum systems, each with unique inspection and maintenance requirements. The scope could range from routine functional checks and pressure monitoring to detailed certification of purity and alarm systems. Understanding the specific systems is crucial for evaluating the complexity of the service, the required expertise of the contractor, and the potential risks associated with system failures.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Air and Gas Compressor Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: N/A

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MGI Inc.

Address: 3557 E OVERLAND RD, MERIDIAN, ID, 83642

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,475

Exercised Options: $20,475

Current Obligation: $3,885

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline