VA Modifies Rotech Healthcare Contract for Home Oxygen Delivery Services, Adding $31,734

Contract Overview

Contract Amount: $31,735 ($31.7K)

Contractor: Rotech Healthcare Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-16

End Date: 2026-02-15

Contract Duration: 30 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODIFICATION TO EXERCISE 52.217-8 FOR VISN 12 HOME OXYGEN AND DME DELIVERY SERVICES (ZERO DOLLAR MODIFICATION)

Place of Performance

Location: TOMAH, MONROE County, WISCONSIN, 54660

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31,734.71 to ROTECH HEALTHCARE INC. for work described as: MODIFICATION TO EXERCISE 52.217-8 FOR VISN 12 HOME OXYGEN AND DME DELIVERY SERVICES (ZERO DOLLAR MODIFICATION) Key points: 1. Contract modification for essential home oxygen and DME delivery services. 2. Rotech Healthcare Inc. is the incumbent provider. 3. The modification is a zero-dollar action, but the base value is significant. 4. Services are for VISN 12, covering Wisconsin. 5. The contract is for Home Health Care Services.

Value Assessment

Rating: fair

The contract's base value of $31,734.71 for a 30-day period appears reasonable for specialized home healthcare services. However, without more detailed cost breakdowns or comparisons to similar contracts for oxygen and DME delivery, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method may limit price discovery and potentially lead to higher costs compared to a fully competitive process.

Taxpayer Impact: The limited competition approach could result in taxpayers paying more than necessary for these essential home healthcare services.

Public Impact

Ensures continued access to vital home oxygen and durable medical equipment for veterans in Wisconsin. Maintains continuity of care for patients relying on these services. Supports veterans with chronic respiratory conditions and other health needs. The modification ensures service availability through February 15, 2026.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing.
Lack of detailed cost data hinders full value assessment.
Reliance on a single vendor for essential services.

Positive Signals

Ensures continuity of critical healthcare services for veterans.
Specific focus on home-based care delivery.
Contract duration provides stability for service provision.

Sector Analysis

The Home Health Care Services sector is critical for supporting aging populations and individuals with chronic conditions. Spending benchmarks for this sector can vary widely based on service type, geographic location, and patient needs. This contract falls within a specialized niche of home-based medical equipment and delivery.

Small Business Impact

The data indicates this contract was not competed under SAP and does not specify small business participation. Further analysis is needed to determine if small businesses had an opportunity to compete or if subcontracting opportunities exist.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The zero-dollar modification suggests administrative adjustments rather than new funding, but oversight is crucial to ensure the base contract's value and performance meet veteran needs.

Related Government Programs

Home Health Care Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of detailed cost breakdown for value assessment.
Potential for vendor lock-in with sole-source or limited competition.
Dependence on a single vendor for critical patient services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31,734.71 to ROTECH HEALTHCARE INC.. MODIFICATION TO EXERCISE 52.217-8 FOR VISN 12 HOME OXYGEN AND DME DELIVERY SERVICES (ZERO DOLLAR MODIFICATION)

Who is the contractor on this award?

The obligated recipient is ROTECH HEALTHCARE 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 $31,734.71.

What is the period of performance?

Start: 2026-01-16. End: 2026-02-15.

What is the historical performance of Rotech Healthcare Inc. under similar VA contracts for home oxygen and DME delivery?

Historical performance data for Rotech Healthcare Inc. under similar VA contracts is crucial for assessing reliability and value. Past performance can indicate the vendor's ability to meet delivery timelines, maintain equipment quality, and provide satisfactory patient support. Reviewing past performance metrics, such as on-time delivery rates, complaint resolution, and patient satisfaction scores, would offer a more robust understanding of their capabilities and potential risks.

How does the per-unit cost of oxygen and DME delivery under this contract compare to industry benchmarks for similar services in Wisconsin?

Comparing the per-unit costs of oxygen and DME delivery to industry benchmarks in Wisconsin is essential for evaluating cost-effectiveness. Without this benchmark data, it's difficult to ascertain if the government is receiving a fair price. Factors like delivery radius, equipment type, and service frequency influence costs, so a nuanced comparison is necessary to determine if the current pricing is competitive or potentially inflated due to limited competition.

What is the VA's strategy for ensuring competitive pricing in future contract actions for home oxygen and DME delivery services?

The VA's strategy for future competitive pricing in home oxygen and DME delivery is vital for long-term cost savings. This could involve exploring market research to identify more potential vendors, breaking down large service areas into smaller, more accessible contracts, or utilizing different contract types that incentivize cost reduction. Proactive market analysis and a commitment to broader competition are key to ensuring taxpayer funds are used efficiently.

Industry Classification

NAICS: Health Care and Social Assistance › Home Health Care Services › Home Health Care Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6251 CHANCELLOR DR STE 119, ORLANDO, FL, 32809

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,735

Exercised Options: $31,735

Current Obligation: $31,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25225D0009

IDV Type: IDC

Timeline