VA awards $199K for surgical instruments, with potential for future growth in medical device manufacturing

Contract Overview

Contract Amount: $199,243 ($199.2K)

Contractor: Skytron LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-14

End Date: 2026-05-31

Contract Duration: 137 days

Daily Burn Rate: $1.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SKYTRON ASCEND IP VIDEO/AUDIO

Place of Performance

Location: GRAND RAPIDS, KENT County, MICHIGAN, 49512

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $199,243.45 to SKYTRON LLC for work described as: SKYTRON ASCEND IP VIDEO/AUDIO Key points: 1. Value for money appears reasonable given the specialized nature of the equipment. 2. Competition dynamics indicate a standard procurement process for this type of item. 3. Risk indicators are low, suggesting a straightforward purchase of commercial off-the-shelf items. 4. Performance context is tied to the VA's ongoing need for medical equipment. 5. Sector positioning is within the broader medical device manufacturing industry.

Value Assessment

Rating: good

The contract value of $199,243.45 for SKYTRON ASCEND IP VIDEO/AUDIO equipment appears to be within a reasonable range for specialized medical instruments. Benchmarking against similar contracts for advanced surgical imaging systems would provide a more precise value assessment. However, given the typical costs associated with such technology, the pricing is likely competitive, especially if the system offers advanced features and integration capabilities. The firm fixed-price nature of the award also provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process was utilized for this purchase order. While the specific number of bidders is not provided, SAP is designed to encourage competition for purchases below certain thresholds. The use of SAP indicates that the VA sought to obtain competitive pricing and best value from multiple sources, ensuring a fair market price was achieved.

Taxpayer Impact: The competitive nature of the procurement under SAP helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans will benefit from access to advanced surgical and medical instruments. The contract supports the delivery of high-quality surgical procedures within VA facilities. Geographic impact is primarily within the facilities served by the VA's Michigan region. Workforce implications include ensuring medical professionals have the tools needed for effective patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system requires proprietary consumables or maintenance.
Ensuring interoperability with existing VA IT infrastructure is crucial for seamless integration.

Positive Signals

Firm fixed-price award provides cost predictability.
Awarded to a known entity in the medical device manufacturing sector.
Contract duration is relatively short, allowing for re-evaluation of needs.

Sector Analysis

The medical device manufacturing sector is a significant and growing industry, driven by technological advancements and an aging global population. This contract falls within the surgical and medical instrument manufacturing sub-sector, which includes a wide array of products from basic instruments to complex imaging and robotic systems. Spending in this area by government agencies like the VA is substantial, reflecting the critical need for up-to-date medical technology to serve beneficiaries.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside. However, the nature of advanced medical equipment manufacturing often involves larger, specialized firms. Future analysis could explore subcontracting opportunities for small businesses in areas like installation, maintenance, or training related to this equipment.

Oversight & Accountability

The contract is a purchase order awarded by the Department of Veterans Affairs, subject to internal VA oversight and potentially the Government Accountability Office (GAO) for bid protests. Transparency is maintained through federal procurement databases. The firm fixed-price nature of the contract simplifies financial oversight by establishing a clear ceiling for expenditures.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Surgical Instrument Manufacturing Contracts
Federal Healthcare Technology Spending

Risk Flags

Potential for vendor lock-in
Interoperability challenges with existing systems
Cybersecurity risks for networked medical devices

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $199,243.45 to SKYTRON LLC. SKYTRON ASCEND IP VIDEO/AUDIO

Who is the contractor on this award?

The obligated recipient is SKYTRON 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 $199,243.45.

What is the period of performance?

Start: 2026-01-14. End: 2026-05-31.

What is the track record of SKYTRON LLC in supplying similar IP video/audio surgical systems to the federal government?

A review of federal procurement data indicates that SKYTRON LLC has a history of supplying medical equipment. While specific details on 'SKYTRON ASCEND IP VIDEO/AUDIO' systems to the VA or other federal agencies are not immediately apparent from this single award, the company's presence in the federal market suggests prior experience. Further investigation into contract databases like FPDS or SAM.gov could reveal the extent and nature of their past performance, including contract values, agencies served, and performance ratings. This would help assess their reliability and capability in delivering complex surgical technology.

How does the unit cost of the SKYTRON ASCEND IP VIDEO/AUDIO system compare to similar systems procured by other federal agencies or the private sector?

Without specific unit details or a breakdown of the $199,243.45 award, a direct per-unit cost comparison is challenging. However, the total award value suggests a significant investment, likely for multiple units or a comprehensive system. To benchmark, one would need to identify comparable IP video/audio surgical systems from other manufacturers and compare their advertised prices or recent contract awards. Factors such as included features (e.g., resolution, recording capabilities, integration with operating room systems), warranty, and support services heavily influence pricing. A comparison against systems procured by agencies like the Department of Defense or large hospital networks could provide valuable insights into market competitiveness.

What are the primary risks associated with the implementation and long-term use of this SKYTRON ASCEND IP VIDEO/AUDIO system within the VA?

Key risks include potential technical obsolescence, as medical technology evolves rapidly. Interoperability with existing VA IT infrastructure and electronic health records (EHR) is another significant risk; failure to integrate seamlessly could hinder workflow efficiency and data capture. Vendor lock-in for maintenance, repairs, and proprietary consumables presents a financial risk. Furthermore, ensuring adequate training for medical staff to maximize the system's capabilities and minimize user error is critical. Finally, cybersecurity risks associated with any networked medical device must be managed to protect patient data and system integrity.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring the VA obtains the best value for specialized medical equipment like this?

SAP is designed to streamline the procurement process for purchases below certain dollar thresholds (currently $250,000), aiming for efficiency and quicker delivery. For specialized medical equipment, SAP can be effective if the market research is thorough and a sufficient number of qualified vendors are identified and encouraged to bid. The competitive nature, even under SAP, helps in price discovery. However, the effectiveness hinges on the VA's ability to clearly define requirements and evaluate offers beyond just price, considering technical capabilities and long-term support. For highly complex or critical systems, a more extensive competitive process might yield even better value, but SAP offers a balance of speed and competition for items like this.

What is the historical spending pattern of the VA on surgical and medical instruments, and how does this award fit into that trend?

The VA historically spends billions of dollars annually on medical equipment, supplies, and pharmaceuticals to serve the nation's veterans. Spending on surgical and medical instruments is a substantial component of this budget. This $199,243.45 award represents a relatively small portion of the VA's overall medical equipment procurement. It aligns with the ongoing trend of the VA investing in modernizing its medical technology to improve patient care. Analyzing year-over-year spending trends for similar instrument categories would reveal whether this award is part of an increasing, decreasing, or stable investment pattern in this specific technology.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25026Q0203

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5085 CORPORATE EXCHANGE BLVD SE, GRAND RAPIDS, MI, 49512

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

Financial Breakdown

Contract Ceiling: $199,243

Exercised Options: $199,243

Current Obligation: $199,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline