VA awards $1.84M for Olympus equipment repair, raising competition concerns

Contract Overview

Contract Amount: $1,843,890 ($1.8M)

Contractor: Olympus America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-24

End Date: 2027-01-23

Contract Duration: 729 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OLYMPUS AGREEMENT

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.8 million to OLYMPUS AMERICA INC for work described as: OLYMPUS AGREEMENT Key points: 1. The Department of Veterans Affairs (VA) awarded a $1.84 million contract to Olympus America Inc. for electronic and precision equipment repair and maintenance. 2. The contract was not competed, raising questions about potential price discovery and value for taxpayer dollars. 3. The duration of the contract is 729 days, with a firm fixed price. 4. The NAICS code 811210 indicates a focus on repair and maintenance services for electronic and precision equipment.

Value Assessment

Rating: questionable

The contract's value of $1.84 million for a 729-day repair and maintenance service needs further benchmarking against similar contracts for Olympus equipment or comparable services. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may have hindered the government's ability to secure the best possible pricing through a robust price discovery process.

Taxpayer Impact: The absence of competition could lead to higher costs for taxpayers if alternative vendors could have offered comparable services at a lower price.

Public Impact

Veterans may experience disruptions in essential medical equipment maintenance if the chosen vendor cannot perform adequately. The significant contract value could be a missed opportunity for small businesses specializing in equipment repair. Transparency in the procurement process is crucial to ensure public trust and accountability in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to non-competitive award
Limited visibility into pricing benchmarks

Positive Signals

Firm fixed price contract provides cost certainty
Contract duration aligns with expected service needs

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on the repair and maintenance of electronic and precision equipment. Benchmarks for similar repair contracts can vary widely based on equipment type, complexity, and service level agreements.

Small Business Impact

The contract was not awarded to a small business, and the lack of competition means there was no specific set-aside for small businesses. This represents a missed opportunity to support small business participation in government contracting.

Oversight & Accountability

Oversight is needed to ensure the VA is receiving adequate service for the $1.84 million awarded and to scrutinize the justification for not competing this contract. Regular performance reviews and cost analysis are essential.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in procurement
Missed opportunity for small business engagement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.8 million to OLYMPUS AMERICA INC. OLYMPUS AGREEMENT

Who is the contractor on this award?

The obligated recipient is OLYMPUS AMERICA 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 $1.8 million.

What is the period of performance?

Start: 2025-01-24. End: 2027-01-23.

What was the justification for not competing this contract, and were alternative vendors considered?

The justification for not competing this contract is not provided in the data. Typically, non-competitive awards are made when only one source can provide the required service or when urgency dictates. A thorough review should confirm the validity of this justification and explore if any market research was conducted to identify potential competitors.

How does the per-unit cost of repair for Olympus equipment under this contract compare to industry averages or previous contracts?

Without specific details on the services rendered and their associated costs, a direct per-unit cost comparison is challenging. However, the overall contract value of $1.84 million for 729 days of service should be benchmarked against historical VA contracts for similar Olympus equipment maintenance or against pricing from other federal agencies if available.

What mechanisms are in place to ensure the effectiveness and quality of the repair services provided by Olympus America Inc. under this contract?

The contract is a Purchase Order with a Firm Fixed Price, suggesting that the scope of work and deliverables are clearly defined. The VA should have performance metrics and quality assurance surveillance plans in place to monitor the effectiveness and quality of the repair services, ensuring they meet the required standards.

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: 36C25025Q0179

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3500 CORPORATE PKWY, CENTER VALLEY, PA, 18034

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,549,655

Exercised Options: $1,843,890

Current Obligation: $1,843,890

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline