VA awards $24.1M contract for electromedical apparatus manufacturing, a sole-source purchase order

Contract Overview

Contract Amount: $24,104 ($24.1K)

Contractor: Walker and Marshall Management Services L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-10

End Date: 2026-06-01

Contract Duration: 52 days

Daily Burn Rate: $464/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EVOKED POTENTIAL AND OTOACOUSTIC EMISSIONS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $24,103.8 to WALKER AND MARSHALL MANAGEMENT SERVICES L.L.C. for work described as: EVOKED POTENTIAL AND OTOACOUSTIC EMISSIONS Key points: 1. Contract awarded as a sole-source purchase order, raising questions about competition and potential value. 2. The contract is for manufacturing electromedical and electrotherapeutic apparatus, a niche but critical area for healthcare. 3. A short performance period of 52 days suggests a specific, immediate need or a bridge contract. 4. The fixed-price nature of the contract provides some cost certainty, but the lack of competition limits benchmarking. 5. The awarding agency is the Department of Veterans Affairs, indicating a focus on veteran healthcare needs. 6. The contractor, Walker and Marshall Management Services L.L.C., is the sole recipient, highlighting a lack of broader market engagement for this specific award.

Value Assessment

Rating: questionable

Given this is a sole-source purchase order with a very short duration, a direct comparison to similar contracts is challenging. The fixed-price nature offers some predictability, but without competitive bidding, it's difficult to ascertain if the $24.1 million represents optimal value for money. The pricing cannot be benchmarked against market rates due to the lack of competitive proposals. Further analysis would be needed to understand the specific circumstances driving the sole-source award and the justification for the price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. There is no indication of a competitive process, such as a request for proposals or multiple bids. This limited competition means that price discovery through market forces was not utilized, potentially leading to a higher cost than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competition. The government did not leverage market dynamics to secure a more cost-effective solution.

Public Impact

Veterans will benefit from the supply of essential electromedical and electrotherapeutic apparatus, crucial for diagnosis and treatment. The contract ensures the availability of specialized medical equipment for VA healthcare facilities. The geographic impact is primarily within the VA healthcare system, potentially serving facilities nationwide. Workforce implications are likely minimal for this specific short-term contract, focusing on manufacturing and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for money.
Short performance period raises questions about the scope and urgency of the requirement.
Lack of competition may indicate a lack of market availability or a specific relationship with the sole provider.

Positive Signals

Contract addresses a specific need for electromedical apparatus within the VA.
Fixed-price contract provides cost certainty for this specific award.
Awarding agency is focused on serving the veteran population.

Sector Analysis

The contract falls within the Electromedical and Electrotherapeutic Apparatus Manufacturing sector (NAICS 334510). This industry produces a range of medical devices used for diagnosis, monitoring, and therapy. The market size for such apparatus is substantial, driven by healthcare demand globally. This specific contract appears to be a direct procurement for essential medical equipment, fitting within the broader landscape of healthcare technology spending.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The sole-source nature of the award bypasses opportunities for small businesses to compete for this specific requirement.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. As a sole-source award, the justification for this procurement method would be subject to internal review. Transparency is limited due to the lack of public competition. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Medical Equipment Procurement
Electromedical Apparatus Manufacturing
Federal Healthcare Technology Contracts

Risk Flags

Sole-source award
Lack of competition
Short performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24,103.8 to WALKER AND MARSHALL MANAGEMENT SERVICES L.L.C.. EVOKED POTENTIAL AND OTOACOUSTIC EMISSIONS

Who is the contractor on this award?

The obligated recipient is WALKER AND MARSHALL MANAGEMENT SERVICES L.L.C..

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 $24,103.8.

What is the period of performance?

Start: 2026-04-10. End: 2026-06-01.

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

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE'. Without further documentation from the Department of Veterans Affairs, the specific justification remains unknown. Typically, sole-source awards are justified under circumstances such as only one responsible source being available, or an urgent and compelling need that would cause unacceptable delays if a competitive process were followed. The nature of the product (electromedical apparatus) might suggest a highly specialized item where only one manufacturer possesses the necessary patents, technology, or expertise. However, the short duration of the contract (52 days) could also point towards an urgent need or a bridge contract while a broader competition is prepared.

How does the $24.1 million price compare to similar electromedical apparatus procurements?

Direct comparison of the $24.1 million price is difficult without knowing the exact specifications of the 'EVOKED POTENTIAL AND OTOACOUSTIC EMISSIONS' apparatus being procured. However, given the sole-source nature and the short performance period, it is challenging to benchmark this price against competitive market rates. If this represents a significant quantity or a highly specialized piece of equipment, the price might be justifiable. Conversely, without competitive bids, there's a risk that the price is not optimized. Further investigation into the unit cost and quantity would be necessary for a more robust value assessment.

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

Sole-source awards for critical medical equipment carry several risks. Firstly, the lack of competition can lead to inflated prices, meaning taxpayers may overpay for the goods. Secondly, it limits the government's ability to explore innovative solutions or alternative technologies that might be offered by other vendors. Thirdly, it can create vendor lock-in, making it difficult to switch suppliers in the future if performance issues arise or better options become available. Finally, it raises concerns about transparency and fairness in the procurement process, potentially undermining public trust.

What is the significance of the short performance period (52 days) for this contract?

The short performance period of 52 days for this $24.1 million contract is notable. It suggests that the requirement is either for a very specific, immediate need, or it could be a bridge contract intended to provide continuity of supply while a longer-term, potentially competitive contract is being established. If it's for an immediate need, it implies a critical gap in the VA's equipment supply. If it's a bridge, it means this large sum is being spent without the benefit of a full competitive cycle for the ongoing requirement, which could be a concern for long-term cost efficiency.

What is the track record of Walker and Marshall Management Services L.L.C. with the Department of Veterans Affairs?

The provided data does not include information on the track record of Walker and Marshall Management Services L.L.C. with the Department of Veterans Affairs or any other federal agency. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS-NG for past awards, contract performance evaluations (e.g., CPARS), and any reported issues. Without this information, it's impossible to evaluate their reliability, past performance quality, or experience in delivering similar electromedical apparatus.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Electromedical and Electrotherapeutic Apparatus Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7272 WISCONSIN AVE, BETHESDA, MD, 20814

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,104

Exercised Options: $24,104

Current Obligation: $24,104

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline