VA awards $6.18M for robotic carver systems, a sole-source purchase order to Epica Applied Technologies

Contract Overview

Contract Amount: $61,812 ($61.8K)

Contractor: Epica Applied Technologies LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2027-05-31

Contract Duration: 729 days

Daily Burn Rate: $85/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PM/TRAINING - ORTIS ROBOTIC CARVER SYSTEM

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46202

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $61,812 to EPICA APPLIED TECHNOLOGIES LLC for work described as: PM/TRAINING - ORTIS ROBOTIC CARVER SYSTEM Key points: 1. The contract value represents a significant investment in specialized medical equipment. 2. Limited competition suggests potential for higher pricing compared to a more open market. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. This purchase order is for a specific system, indicating a need for specialized maintenance and training. 5. The duration of the contract suggests a long-term requirement for the robotic carver system. 6. The award is a sole-source purchase order, bypassing standard competitive procurement processes.

Value Assessment

Rating: fair

Benchmarking the value of this robotic carver system is challenging due to its specialized nature and the sole-source award. Without competitive bids, it's difficult to ascertain if the $6.18 million price reflects optimal value for money. The fixed-price nature of the contract provides cost certainty for the VA, but the absence of competition raises questions about whether a lower price could have been achieved through a more open bidding process. Further analysis would require comparing this system's capabilities and price to similar, albeit potentially less specialized, equipment available on the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. This indicates that the Department of Veterans Affairs likely determined that Epica Applied Technologies was the only source capable of providing the specific robotic carver system or the required maintenance and training. The lack of competition means that price discovery through market forces was bypassed, potentially leading to a higher cost than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The VA did not leverage the potential for cost savings that typically arises from a competitive procurement environment.

Public Impact

Veterans receiving care will benefit from advanced surgical or procedural capabilities enabled by the robotic carver system. The contract supports the delivery of specialized medical services within VA facilities. The geographic impact is primarily within Indiana, where the system will be deployed and maintained. The contract may have implications for specialized technical workforce training and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award bypasses competitive pricing, potentially increasing costs for taxpayers.
Lack of competition limits transparency in pricing and value assessment.
Reliance on a single vendor for specialized equipment can create future dependency and limit flexibility.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Award to a specific vendor ensures acquisition of a required specialized system.
Contract duration suggests a commitment to long-term patient care needs.

Sector Analysis

The healthcare technology sector is characterized by rapid innovation and high-value equipment. Contracts for specialized medical devices like robotic carver systems are common within the Department of Veterans Affairs and other large healthcare providers. The market for such systems is often niche, with a limited number of manufacturers or integrators capable of meeting specific technical requirements. Spending benchmarks for similar advanced medical equipment can vary widely based on system complexity, features, and intended use.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. The award to Epica Applied Technologies, a single entity, suggests a direct procurement for a specialized product or service, rather than a strategy aimed at fostering broader small business participation.

Oversight & Accountability

Oversight for this purchase order will likely fall under the Department of Veterans Affairs' internal procurement and financial management systems. Accountability measures would be tied to the delivery of the specified robotic carver system and associated training/maintenance as per the contract terms. Transparency is limited due to the sole-source nature of the award, with details of the justification for this approach not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were identified.

Related Government Programs

Medical Equipment Procurement
Robotic Surgery Systems
Veterans Health Administration Services
Precision Instrument Maintenance

Risk Flags

Sole-source award raises concerns about price competitiveness.
Lack of competition limits transparency and potential for cost savings.
Dependency on a single vendor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $61,812 to EPICA APPLIED TECHNOLOGIES LLC. PM/TRAINING - ORTIS ROBOTIC CARVER SYSTEM

Who is the contractor on this award?

The obligated recipient is EPICA APPLIED TECHNOLOGIES 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 $61,812.

What is the period of performance?

Start: 2025-06-01. End: 2027-05-31.

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

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is a 'SOLE SOURCE' award. A sole-source justification is typically required when only one responsible source is available or capable of meeting the agency's needs. For specialized equipment like a robotic carver system, this could be due to proprietary technology, unique integration requirements with existing systems, or the need for specific manufacturer-provided training and support that only the original equipment manufacturer or an authorized reseller can provide. The Department of Veterans Affairs would have documented this justification internally, outlining why a competitive process was not feasible or advantageous. Without access to that specific justification document, the precise reasons remain speculative but likely center on technical specificity and vendor capability.

How does the $6.18 million price compare to similar robotic carver systems or related medical equipment?

Directly comparing the $6.18 million price for this specific robotic carver system is challenging without knowing the exact model, its capabilities, and the scope of included services (maintenance, training). However, advanced robotic surgical and procedural systems can range from hundreds of thousands to several million dollars. For instance, some robotic surgical platforms can cost upwards of $1 million to $2 million initially, with significant ongoing costs for maintenance, disposables, and software updates. Given the 'PM/TRAINING - ORTIS ROBOTIC CARVER SYSTEM' description, this likely represents a substantial investment in a specialized piece of equipment. The sole-source nature of the award means a direct price comparison to competitive bids is impossible, but the overall cost falls within the expected range for high-end, specialized medical robotics, though the exact value proposition is obscured by the lack of competition.

What are the potential risks associated with a sole-source award for specialized medical equipment?

Sole-source awards for specialized medical equipment carry several potential risks. Firstly, the absence of competition can lead to inflated pricing, as the contractor faces less pressure to offer the most cost-effective solution. Secondly, it can reduce transparency in the procurement process, making it harder to verify that fair market value was obtained. Thirdly, it creates a dependency on a single vendor for critical equipment, potentially limiting future flexibility in upgrades, repairs, or replacements. If the sole-source vendor experiences financial difficulties, discontinues the product line, or significantly increases prices in the future, the agency may be left with limited options. Finally, it bypasses the opportunity to foster innovation and competition among multiple suppliers, which could drive down costs and improve technology over time.

What is the expected performance and impact of the ORTIS Robotic Carver System within the VA?

The ORTIS Robotic Carver System is expected to enhance the capabilities of the Department of Veterans Affairs in performing specific medical procedures. While the exact function isn't detailed, robotic systems in healthcare typically aim to improve precision, minimize invasiveness, reduce recovery times, and potentially enable new treatment modalities. For the VA, this translates to potentially better patient outcomes for veterans, improved efficiency in surgical suites, and the adoption of cutting-edge medical technology. The system's deployment in Indiana suggests a focus on serving veterans in that region with these advanced capabilities. The training component ensures that medical staff are proficient in operating and maintaining the system, maximizing its utility and safety.

How does this contract fit into the VA's broader strategy for modernizing medical technology?

This contract for the ORTIS Robotic Carver System likely represents a component of the VA's broader strategy to modernize its medical technology and enhance the quality of care provided to veterans. By investing in advanced robotic systems, the VA aims to keep pace with advancements in medical science and practice, offering veterans access to state-of-the-art treatments. Such procurements are often driven by clinical needs assessments and a desire to improve surgical outcomes, reduce patient recovery times, and potentially expand the range of procedures offered. This specific award, though sole-source, signals a commitment to acquiring specialized tools that are deemed essential for meeting the complex healthcare needs of the veteran population, aligning with goals of providing efficient, effective, and high-quality healthcare services.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25025Q0439

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 901 CALLE AMANECER STE 150, SAN CLEMENTE, CA, 92673

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

Financial Breakdown

Contract Ceiling: $160,543

Exercised Options: $61,812

Current Obligation: $61,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline