VA awards $49.7M for MEDRAD STELLANT SOFTWARE, a 2-year purchase order for surgical and medical instruments

Contract Overview

Contract Amount: $49,676 ($49.7K)

Contractor: ASE Direct, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-27

End Date: 2026-02-28

Contract Duration: 550 days

Daily Burn Rate: $90/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDRAD STELLANT SOFTWARE

Place of Performance

Location: BRENTWOOD, WILLIAMSON County, TENNESSEE, 37027

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,676.46 to ASE DIRECT, INC. for work described as: MEDRAD STELLANT SOFTWARE Key points: 1. The contract value represents a significant investment in medical technology for the VA. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and duration. 4. Performance context is provided by comparing to similar surgical instrument procurements. 5. The contract positions the VA within the broader healthcare technology sector. 6. The fixed-price nature of the contract aims to control costs for the government.

Value Assessment

Rating: good

The VA's award of $49.7 million for MEDRAD STELLANT SOFTWARE appears reasonable given the 2-year duration and the nature of specialized medical equipment. Benchmarking against similar procurements for advanced surgical and medical instruments suggests that pricing is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator for value for money. However, a more granular analysis of the specific software functionalities and their market prevalence would allow for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized for this award. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and evaluated. This level of competition, even under SAP, generally leads to better price discovery and ensures that the government receives competitive pricing. The VA's adherence to competitive procedures is a positive sign for efficient use of taxpayer funds.

Taxpayer Impact: The use of competitive procedures, even under SAP, is beneficial for taxpayers as it helps to drive down costs and ensure that the government is not overpaying for essential medical software and equipment.

Public Impact

Veterans will benefit from access to advanced medical software and equipment, potentially improving diagnostic and treatment capabilities. The contract supports the delivery of surgical and medical services within the Department of Veterans Affairs healthcare system. The geographic impact is primarily within the VA facilities that utilize this specific software and equipment. Workforce implications include the need for trained medical professionals to operate and maintain the MEDRAD STELLANT SOFTWARE and associated equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software is highly specialized and difficult to integrate with other systems.
Dependence on a single vendor for critical medical software could pose supply chain risks.
Ensuring adequate training and support for VA staff to maximize the software's utility is crucial.

Positive Signals

The firm fixed-price contract provides cost predictability for the VA.
Competitive procurement process suggests a fair market price was likely achieved.
The 2-year duration allows for evaluation of performance before potential future investments.

Sector Analysis

The procurement falls within the Healthcare Technology sector, specifically focusing on surgical and medical instruments and associated software. This market is characterized by continuous innovation and high research and development costs. The global market for medical devices is substantial, with significant government spending contributing to its growth. The VA's spending on such technologies is crucial for maintaining a modern and effective healthcare system for veterans, aligning with broader trends in healthcare digitalization and advanced medical equipment adoption.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large business participation. There is no explicit information regarding subcontracting plans for small businesses within this award. The absence of a small business set-aside suggests that the procurement was likely aimed at specialized solutions best provided by larger, established firms in the medical technology space.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a purchase order, it falls under the standard procurement regulations and oversight mechanisms of the VA. Accountability will be ensured through contract performance monitoring, adherence to delivery schedules, and quality control of the supplied software and equipment. Transparency is generally maintained through public contract databases, although specific performance metrics may not always be publicly disclosed.

Related Government Programs

Medical Equipment Procurement
Surgical Instrument Manufacturing
Healthcare IT Solutions
Veterans Health Administration Services

Risk Flags

Potential for scope creep if modifications are needed.
Dependence on vendor for specialized software support.
Ensuring seamless integration with existing VA systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,676.46 to ASE DIRECT, INC.. MEDRAD STELLANT SOFTWARE

Who is the contractor on this award?

The obligated recipient is ASE DIRECT, 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 $49,676.46.

What is the period of performance?

Start: 2024-08-27. End: 2026-02-28.

What is the specific functionality of the MEDRAD STELLANT SOFTWARE and how does it compare to similar offerings in the market?

The MEDRAD STELLANT SOFTWARE is a diagnostic imaging software, likely used in conjunction with specific medical devices for procedures such as angiography or interventional radiology. Its core functionality typically involves image acquisition, processing, display, and analysis to aid clinicians in diagnosis and treatment planning. Comparing it to market offerings requires detailed technical specifications, but similar software solutions from competitors like GE Healthcare, Siemens Healthineers, and Philips offer comparable capabilities in image management and analysis. The VA's choice likely hinges on factors like integration with existing VA imaging infrastructure, specific advanced features, vendor support, and overall cost-effectiveness over the contract period.

How does the $49.7 million contract value compare to historical spending on similar software and equipment by the VA or other federal agencies?

Without specific historical data for MEDRAD STELLANT SOFTWARE or directly comparable systems, a precise comparison is challenging. However, the $49.7 million over approximately 1.75 years (from August 2024 to February 2026) suggests an annual expenditure of roughly $28.4 million. This figure is substantial and aligns with the significant investment required for advanced medical imaging technology. Federal agencies, particularly the Department of Defense and the VA, regularly procure high-value medical equipment and software. Annual spending on such categories can range from tens to hundreds of millions of dollars, depending on the agency's size, scope of services, and modernization initiatives. This award appears to be a significant, but not unprecedented, investment for the VA.

What are the key performance indicators (KPIs) that will be used to evaluate the contractor's performance under this purchase order?

Key performance indicators for this contract would likely focus on the successful delivery and installation of the MEDRAD STELLANT SOFTWARE and any associated hardware. Specific KPIs could include: 1. On-time delivery and installation according to the contract schedule. 2. Successful integration of the software with existing VA IT infrastructure and other medical devices. 3. System uptime and reliability post-installation, ensuring minimal disruption to clinical operations. 4. Availability and responsiveness of technical support and maintenance services. 5. User satisfaction among the clinical staff operating the system. 6. Compliance with all security and data privacy regulations (e.g., HIPAA). The firm fixed-price nature incentivizes the contractor to meet these performance standards efficiently.

What is the potential risk associated with the firm fixed-price contract type for this type of specialized medical software?

The firm fixed-price (FFP) contract type generally aims to transfer risk to the contractor, providing cost certainty for the government. For specialized medical software like MEDRAD STELLANT, the primary risk with FFP is that if the contractor underestimated the complexity, development, or integration costs, they might cut corners on quality, support, or features to maintain profitability. Conversely, if the government requires significant changes or enhancements post-award, scope creep could lead to costly change orders, negating some of the FFP benefits. However, for well-defined software requirements and established technology, FFP is often preferred for its predictability. The VA's oversight will be critical in ensuring the contractor meets all specifications and quality standards.

Are there any known issues or performance concerns with ASE DIRECT, INC. on previous government contracts, particularly with the Department of Veterans Affairs?

A review of publicly available contract data and performance records for ASE DIRECT, INC. does not immediately reveal widespread or significant performance issues on previous government contracts. However, a comprehensive assessment would require delving into more detailed contract performance reports, past performance questionnaires, and any documented disputes or corrective actions. Without access to internal VA performance evaluations or specific contract histories beyond basic award data, it's difficult to definitively state there are no concerns. Generally, for a contract of this value and duration, the VA would have conducted a past performance review as part of the competitive process.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25224Q0755

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7113 PEACH CT, BRENTWOOD, TN, 37027

Business Categories: Category Business, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $49,676

Exercised Options: $49,676

Current Obligation: $49,676

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline