VA awards $422K for surgical headlights to Ronin Surgical Corp, a sole-source purchase order

Contract Overview

Contract Amount: $42,200 ($42.2K)

Contractor: Ronin Surgical Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-23

End Date: 2026-04-30

Contract Duration: 38 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SURGICAL HEADLIGHT SYSTEM

Place of Performance

Location: LA JOLLA, SAN DIEGO County, CALIFORNIA, 92037

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $42,200 to RONIN SURGICAL CORP for work described as: SURGICAL HEADLIGHT SYSTEM Key points: 1. The contract value of $422,000 for surgical headlights appears to be a moderate investment for the Department of Veterans Affairs. 2. The sole-source award suggests limited market exploration, potentially impacting price competitiveness. 3. The short duration of the contract (38 days) indicates a need for immediate supply rather than a long-term strategic acquisition. 4. The absence of competition raises questions about whether the VA secured the best possible value. 5. The specific product category, surgical and medical instruments, is critical for patient care within the VA system. 6. The contract's fixed-price nature provides cost certainty for the government, but the lack of competition limits benchmarking.

Value Assessment

Rating: fair

The award of $422,000 for surgical headlights to Ronin Surgical Corp is a single purchase order with a short performance period. Without comparable contract data or market research documentation, it is difficult to definitively assess value for money. However, sole-source awards often carry a higher risk of inflated pricing compared to competitively bid contracts. The fixed-price nature offers some cost predictability, but the lack of competition prevents a robust benchmark against market rates or other similar procurements.

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. The data indicates it was not competed under the Simplified Acquisition Procedures (SAP), suggesting a potential deviation from standard competitive processes for this value range. The lack of competition means there were no other bidders to consider, and the VA did not benefit from the price discovery mechanisms inherent in a competitive bidding environment.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price. Without competitive pressure, the awarded price may be higher than what could have been obtained through a bidding process.

Public Impact

Veterans receiving surgical care will benefit from the availability of these surgical headlights. The Department of Veterans Affairs will be able to equip its facilities with necessary surgical instruments. The primary geographic impact is likely within the VA facilities served by this purchase order, potentially concentrated in California given the state code. The contract supports the manufacturing workforce involved in producing surgical instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a sole-source award raises concerns about potential overpayment.
Short contract duration may indicate an urgent need, potentially leading to less favorable terms.
Limited transparency on the justification for the sole-source award.

Positive Signals

The award ensures the availability of critical surgical equipment for veterans.
Fixed-price contract provides cost certainty for the government.
The contractor, Ronin Surgical Corp, is supplying a specific medical instrument.

Sector Analysis

The market for surgical and medical instruments is a significant segment within the broader healthcare industry. This contract falls under NAICS code 339112, Surgical and Medical Instrument Manufacturing. The global market for surgical instruments is substantial, driven by increasing healthcare expenditures, technological advancements, and a growing demand for minimally invasive procedures. Federal agencies like the VA are major purchasers in this sector, often seeking specialized equipment to support their patient care missions. Benchmarking this specific award is challenging without more detail on the exact specifications of the headlight system.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and was not awarded to a small business (ss: false). Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this specific award. The focus appears to be on a direct procurement from a specific supplier.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. Accountability measures would include ensuring the delivered goods meet specifications and are received within the agreed timeframe. Transparency is limited due to the sole-source nature of the award; the justification for not competing the contract would be a key document for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award without clear justification
Potential for inflated pricing due to lack of competition
Short contract duration may indicate reactive procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $42,200 to RONIN SURGICAL CORP. SURGICAL HEADLIGHT SYSTEM

Who is the contractor on this award?

The obligated recipient is RONIN SURGICAL CORP.

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 $42,200.

What is the period of performance?

Start: 2026-03-23. End: 2026-04-30.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to proprietary technology, unique capabilities, or urgent and compelling circumstances. Without access to the contract file or justification documentation, it is impossible to determine the precise reason. However, the lack of competition raises concerns about whether alternative solutions were adequately explored or if the urgency was a result of poor planning. Further investigation into the VA's procurement records would be necessary to ascertain the official justification.

How does the $422,000 contract value compare to similar surgical headlight procurements by the VA or other federal agencies?

Directly comparing the $422,000 contract value for surgical headlights is challenging without more specific details about the product's features, quantity, and the contract's duration. However, federal procurement data often shows a wide range for such equipment. Purchase orders for specialized medical devices can vary significantly based on brand, technology (e.g., LED vs. traditional bulb, battery life, illumination intensity), and whether they are part of a larger system. Given this is a sole-source award with a short performance period (ending April 30, 2026), it suggests a specific, potentially immediate need. Without competitive bids, it's difficult to establish a benchmark price. A broader analysis of similar NAICS code 339112 procurements by the VA over the past few years, looking at unit prices and contract volumes, would be needed for a more robust comparison.

What are the potential risks associated with a sole-source award for critical medical equipment like surgical headlights?

Sole-source awards for critical medical equipment like surgical headlights carry several potential risks. Primarily, the lack of competition can lead to higher prices than might be achieved in a competitive bidding process, meaning taxpayer dollars may not be used as efficiently. There's also a risk of reduced innovation, as contractors may have less incentive to offer advanced features or cost-saving improvements when they are the only option. Furthermore, reliance on a single supplier can create supply chain vulnerabilities; if the sole source encounters production issues or goes out of business, the VA could face shortages of essential equipment. Finally, the absence of a competitive process can sometimes mask inadequate quality control or service, as the contractor may feel less pressure to maintain high standards when there are no alternatives for the buyer.

What is Ronin Surgical Corp's track record with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding Ronin Surgical Corp's specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. To assess their performance, one would need to examine their contract history, including past awards, performance evaluations (if available), and any reported issues or disputes. A search of federal procurement databases like SAM.gov or FPDS could reveal previous contracts awarded to this company, their value, and the agencies involved. Understanding their history would help determine their reliability, experience in delivering similar products, and overall value proposition to the government. Without this historical data, it's difficult to gauge their established performance.

Given the short duration (38 days) and fixed-price nature, what does this imply about the urgency and nature of the VA's need for these surgical headlights?

The short contract duration of 38 days, coupled with a fixed-price award, strongly suggests an urgent and immediate need for the surgical headlights. This timeframe is insufficient for a lengthy development or manufacturing cycle, implying that the items were likely needed quickly to fulfill an existing operational requirement or to replace a depleted stock. The fixed-price structure provides cost certainty for the VA, which is beneficial in urgent situations where budget overruns are a concern. However, the combination of urgency and a sole-source award might indicate that the VA had to accept the supplier's terms rapidly without the benefit of negotiation or competitive pricing, potentially at a premium.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25026Q0358

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6420 AVENIDA WILFREDO, LA JOLLA, CA, 92037

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,200

Exercised Options: $42,200

Current Obligation: $42,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline