VA awards $16.2M contract for Hospital ZeroG Service Agreement to ARETECH, LLC

Contract Overview

Contract Amount: $16,200 ($16.2K)

Contractor: Aretech, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-01

End Date: 2027-04-30

Contract Duration: 1,094 days

Daily Burn Rate: $15/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HOSPITAL ZEROG SERVICE AGREEMENT.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45220

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,200 to ARETECH, LLC for work described as: HOSPITAL ZEROG SERVICE AGREEMENT. Key points: 1. Contract awarded for essential hospital equipment maintenance. 2. ARETECH, LLC is the sole provider for this service. 3. Potential risk associated with single-source procurement. 4. Spending falls within the Electronic and Precision Equipment Repair and Maintenance sector.

Value Assessment

Rating: fair

The contract value of $16.2M over 3 years for specialized hospital equipment maintenance appears reasonable given the lack of competition. Benchmarking is difficult without comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Ensures continued operation of critical hospital equipment. Veterans will benefit from reliable healthcare services. Potential for increased costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition

Positive Signals

Essential service for healthcare delivery
Long-term agreement provides stability

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector (NAICS 811210). Spending in this sector is critical for maintaining advanced medical technology in federal facilities.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, which limits opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the price remains fair and reasonable throughout the contract term.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,200 to ARETECH, LLC. HOSPITAL ZEROG SERVICE AGREEMENT.

Who is the contractor on this award?

The obligated recipient is ARETECH, 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 $16,200.

What is the period of performance?

Start: 2024-05-01. End: 2027-04-30.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or proprietary technology. The VA should have documented this justification. To ensure fair pricing, the agency should conduct a thorough price analysis based on historical data, market research, or cost breakdowns from the contractor.

What are the risks associated with relying on a single vendor for critical hospital equipment maintenance?

The primary risks include potential price gouging due to lack of competition, service disruptions if the vendor faces financial or operational issues, and limited access to innovation or upgrades if the vendor does not proactively offer them. This also creates a dependency that can be difficult to break.

How does this contract ensure the effective and efficient maintenance of hospital equipment for veteran care?

The contract's effectiveness hinges on the vendor's performance and the VA's oversight. A firm fixed-price structure incentivizes the vendor to control costs. However, without competition, the VA must actively monitor service quality, response times, and adherence to maintenance schedules to guarantee efficient and effective equipment upkeep.

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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25024Q0492

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22446 DAVIS DR, STERLING, VA, 20164

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,750

Exercised Options: $16,200

Current Obligation: $16,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline