VA awards $2.76M lease for GI endoscopes to Micromed LLC under full and open competition

Contract Overview

Contract Amount: $2,759,634 ($2.8M)

Contractor: Micromed LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-22

End Date: 2026-02-13

Contract Duration: 1,240 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LEASE OF GI ENDOSCOPES FOR HINES VA

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46268

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.8 million to MICROMED LLC for work described as: LEASE OF GI ENDOSCOPES FOR HINES VA Key points: 1. Contract awarded to a single vendor, Micromed LLC, for GI endoscopes. 2. The contract duration is approximately 3.5 years, ending in February 2026. 3. Awarded under a firm-fixed-price contract type, indicating predictable costs. 4. The North American Industry Classification System (NAICS) code 339112 points to surgical and medical instrument manufacturing. 5. The contract was awarded by the Department of Veterans Affairs. 6. Geographic location of performance is Indiana (IN).

Value Assessment

Rating: fair

Benchmarking the value of this lease requires more detailed cost data for comparable GI endoscope leases. Without specific unit pricing or comparison to similar VA or other federal agency procurements, it's difficult to definitively assess if $2.76 million represents excellent value. The firm-fixed-price structure offers cost certainty, which is a positive indicator for budget management. However, the absence of readily available comparative data prevents a strong value-for-money assessment at this time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The data does not specify the number of bids received, which would provide a clearer picture of the competitive landscape. A robust competition typically leads to better pricing and innovation. The fact that it was competed openly is a positive sign for price discovery and taxpayer value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through vendor rivalry. This ensures that the government is not overpaying for necessary medical equipment.

Public Impact

Veterans receiving care at Hines VA facilities will benefit from access to GI endoscopy services. The contract ensures the availability of essential medical equipment for diagnostic and therapeutic procedures. The services are delivered within Indiana, impacting local healthcare delivery. The contract supports the medical equipment manufacturing sector, potentially through supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes it hard to verify if the $2.76M is competitive.
No information on the number of bidders limits assessment of competition intensity.
The specific type and model of GI endoscopes leased are not detailed, hindering performance comparison.

Positive Signals

Awarded under full and open competition, indicating a fair process.
Firm-fixed-price contract type provides cost predictability.
Contract duration is clearly defined, allowing for planning.

Sector Analysis

The medical instrument manufacturing sector is a critical component of the healthcare industry, encompassing the production of a wide range of devices from simple tools to complex diagnostic equipment. Spending in this sector by federal agencies like the VA is substantial, driven by the need to equip hospitals and clinics. This contract for GI endoscopes fits within the broader category of surgical and medical instruments, a market characterized by technological advancements and specialized manufacturing capabilities. Benchmarking this specific lease against other federal procurements for similar equipment would provide further context on its market positioning.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The primary focus of this procurement was on obtaining the necessary equipment through the most competitive means available.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver the specified goods within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, allowing for review. Specific Inspector General jurisdiction would depend on any potential fraud, waste, or abuse identified within the contract's lifecycle.

Related Government Programs

VA Medical Equipment Procurement
Surgical Instrument Leases
Federal Healthcare Spending
Medical Device Contracts

Risk Flags

Lack of detailed pricing information for benchmarking.
Number of bidders not specified, limiting competition assessment.
Specific equipment model details are absent.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.8 million to MICROMED LLC. LEASE OF GI ENDOSCOPES FOR HINES VA

Who is the contractor on this award?

The obligated recipient is MICROMED 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 $2.8 million.

What is the period of performance?

Start: 2022-09-22. End: 2026-02-13.

What is the specific model and manufacturer of the GI endoscopes being leased, and how do their features compare to other available models?

The provided data does not specify the exact model or manufacturer of the GI endoscopes being leased, only that the contract is with MICROMED LLC. To assess the value and performance, it would be crucial to identify the specific endoscope models. This information would allow for a comparison of features, technological capabilities, and potential maintenance requirements against other leading brands and models in the market. Understanding these specifics is key to determining if the leased equipment represents current technology and meets the clinical needs of the Hines VA.

How many bids were received for this "full and open competition" solicitation, and what was the range of proposed prices?

The data indicates the contract was awarded under "FULL AND OPEN COMPETITION" but does not specify the number of bids received or the range of proposed prices. A robust competition typically involves multiple bidders, and knowing the number of offers provides insight into the level of market interest and potential vendor rivalry. If only one or two bids were received, it might suggest barriers to entry or limited market availability. The absence of price range data prevents a detailed analysis of how competitive the final negotiated price truly was for the government.

What is the historical spending pattern of the Department of Veterans Affairs for GI endoscopes, and how does this award compare?

The provided data does not include historical spending patterns for GI endoscopes by the Department of Veterans Affairs. To establish a benchmark, one would need to analyze past contracts for similar equipment, considering factors like quantity, duration, model, and inflation. Comparing this $2.76 million award to previous procurements would help determine if the current pricing is consistent, higher, or lower than historical norms. Such analysis is essential for assessing long-term cost trends and identifying potential efficiencies or cost escalations.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this lease agreement?

The provided contract data does not detail specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this lease. Typically, such agreements would outline requirements for equipment uptime, maintenance response times, and potentially training for VA staff. The absence of this information makes it difficult to assess the contractor's performance obligations and the mechanisms for ensuring the reliable availability and functionality of the leased GI endoscopes. Further review of the contract's statement of work would be necessary to identify these performance metrics.

Does MICROMED LLC have a track record with the VA or other federal agencies for similar medical equipment leases or sales?

The provided data identifies MICROMED LLC as the contractor but does not offer details on their past performance record with the VA or other federal agencies. A thorough assessment would require investigating their contract history, including previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues. Understanding their experience with similar procurements is crucial for evaluating their reliability and capability to fulfill this contract effectively.

Industry Classification

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

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8730 COMMERCE PARK PL STE E, INDIANAPOLIS, IN, 46268

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

Financial Breakdown

Contract Ceiling: $2,759,634

Exercised Options: $2,759,634

Current Obligation: $2,759,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0045

IDV Type: FSS

Timeline