VA awards $22.3M contract for patient television system upgrades to HIB Technical Installation Services Inc

Contract Overview

Contract Amount: $22,300 ($22.3K)

Contractor: HIB Technical Installation Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-05-02

Contract Duration: 26 days

Daily Burn Rate: $858/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DIRECTTV PATIENT TELEVISION SYSTEM UPGRADE

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,300.01 to HIB TECHNICAL INSTALLATION SERVICES INC for work described as: DIRECTTV PATIENT TELEVISION SYSTEM UPGRADE Key points: 1. Value for money appears fair given the short duration and fixed-price nature of the contract. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are low due to the fixed-price contract and short performance period. 4. Performance context is specific to upgrading patient television systems within VA facilities. 5. Sector positioning is within the IT and maintenance services for healthcare facilities.

Value Assessment

Rating: fair

The contract value of $22.3 million for a 26-day period suggests a high daily rate. Benchmarking against similar IT equipment installation and maintenance contracts is difficult without more detailed scope of work. However, the firm-fixed-price structure provides cost certainty for the government. The value proposition hinges on the successful and timely upgrade of essential patient entertainment and communication systems.

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 lack of competition means that the Department of Veterans Affairs did not solicit bids from multiple vendors. This approach is typically used when a specific vendor is uniquely qualified or when urgency dictates a rapid award. Without a competitive process, it is challenging to ascertain if the best possible price and terms were secured.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as alternative vendors were not considered. This could potentially lead to a higher overall cost compared to a fully competed contract.

Public Impact

Veterans in VA facilities will benefit from upgraded television systems, potentially improving their comfort and access to information. The services delivered include the installation and upgrade of patient television systems. The geographic impact is likely concentrated within VA facilities in Michigan, where the contractor is based. Workforce implications may include temporary employment opportunities for installation technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the justification for a sole-source award.
Potential for vendor lock-in if this system requires specialized maintenance.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Short performance period limits long-term financial exposure.
Focus on essential patient comfort and communication systems.

Sector Analysis

This contract falls within the broader IT services and electronic equipment maintenance sector. The market for healthcare IT infrastructure and patient experience technology is significant, with ongoing needs for upgrades and replacements. Comparable spending benchmarks would typically involve contracts for network upgrades, hardware installation, and system integration within federal healthcare facilities. The specific niche of patient television systems is a smaller segment within this larger market.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to HIB Technical Installation Services Inc., a single entity, does not appear to directly benefit the small business ecosystem in this instance. Further analysis would be needed to determine if HIB Technical Installation Services Inc. itself is a small business.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, with the justification for this approach being key. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Equipment Procurement
Healthcare IT Infrastructure Upgrades
Patient Entertainment Systems
Electronic Equipment Maintenance Services

Risk Flags

Sole-source award lacks competitive pricing.
High per-day cost warrants further scrutiny.
Limited information on contractor's past performance.
Unclear scope of work and expected performance benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,300.01 to HIB TECHNICAL INSTALLATION SERVICES INC. DIRECTTV PATIENT TELEVISION SYSTEM UPGRADE

Who is the contractor on this award?

The obligated recipient is HIB TECHNICAL INSTALLATION SERVICES 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 $22,300.01.

What is the period of performance?

Start: 2026-04-06. End: 2026-05-02.

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 contracts are awarded when only one vendor possesses the unique capability, technology, or proprietary knowledge required for the service, or in cases of extreme urgency where competition is not feasible. For this contract, the Department of Veterans Affairs would have had to document why HIB Technical Installation Services Inc. was the only viable option. Without this documentation, it's impossible to fully assess the necessity of the sole-source approach and its potential impact on cost-effectiveness for taxpayers.

How does the per-day cost of this contract compare to industry averages for similar installation services?

The contract duration is 26 days, and the total value is $22,300,001. This equates to approximately $857,692 per day. This daily rate appears exceptionally high for installation services, even for specialized IT equipment. Industry averages for IT installation and maintenance vary widely based on complexity, labor rates, and equipment involved. However, a rate of this magnitude would typically be associated with large-scale, complex system deployments or highly specialized technical services, not a 26-day upgrade project. Further investigation into the scope of work and the specific technologies being installed is necessary to understand this high daily cost.

What is the track record of HIB Technical Installation Services Inc. with the Department of Veterans Affairs or other federal agencies?

The provided data indicates that HIB Technical Installation Services Inc. is the contractor. However, it does not offer details on their past performance, track record, or previous contract history with the Department of Veterans Affairs or other federal agencies. A comprehensive assessment of this contract's risk would require reviewing past performance evaluations, any documented issues on previous contracts, and their overall experience in delivering similar services. Without this information, it's difficult to gauge their reliability and capability.

What specific technology or system is being upgraded, and what are the expected performance improvements?

The contract specifies a 'DIRECTTV PATIENT TELEVISION SYSTEM UPGRADE.' While the name suggests an upgrade to the television system provided by DIRECTV, the exact nature of the upgrade (e.g., hardware replacement, software update, new service integration) and the specific performance improvements expected are not detailed in the provided data. Understanding the technical scope is crucial for evaluating the necessity and value of the contract. Improvements could range from enhanced channel selection and on-demand content to better reliability and integration with hospital networks.

What is the historical spending pattern for patient television systems at this VA facility or across the VA?

The provided data focuses on a single contract award and does not offer historical spending patterns for patient television systems at this specific VA facility or across the Department of Veterans Affairs. To assess if $22.3 million for this upgrade is consistent with past investments, one would need to analyze previous contracts for similar services, including their values, durations, and scopes. Understanding historical spending would help determine if this award represents an increase, decrease, or stable level of investment in patient entertainment technology.

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: NONE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12225 GREENVILLE AVE STE 702, DALLAS, TX, 75243

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,300

Exercised Options: $22,300

Current Obligation: $22,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline