VA Modifies Rotech Healthcare Contract for Home Oxygen Delivery, Adding $63K in Value

Contract Overview

Contract Amount: $63,106 ($63.1K)

Contractor: Rotech Healthcare Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-08

End Date: 2026-02-07

Contract Duration: 30 days

Daily Burn Rate: $2.1K/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: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $63,106.39 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 adds $63,106.39 to Rotech Healthcare's existing contract for home oxygen and DME delivery. 2. The modification is a zero-dollar modification, indicating no change in the total contract value but a procedural update. 3. The contract is for Home Health Care Services in Illinois, serving VISN 12. 4. The modification extends the contract period by 30 days, from January 8, 2026, to February 7, 2026.

Value Assessment

Rating: fair

The contract's value is relatively small at $63,106.39, making direct price comparisons difficult without more detailed service breakdowns. However, the zero-dollar nature of the modification suggests it's not a significant price increase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was not competed under Simplified Acquisition Procedures (SAP), suggesting it may have been awarded through other means or is a modification to an existing non-competed award. The lack of competition details makes it hard to assess price discovery.

Taxpayer Impact: The modification adds a small amount to an existing contract, so the direct taxpayer impact is minimal and tied to the ongoing service provision.

Public Impact

Ensures continued delivery of essential home oxygen and durable medical equipment (DME) to veterans in VISN 12. Maintains service continuity for beneficiaries relying on these critical healthcare supplies. Supports veterans in Illinois by providing necessary medical equipment and services at home.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on competition method for the original award and this modification.
Zero-dollar modification can sometimes mask underlying issues or be used for administrative convenience without full transparency.

Positive Signals

Ensures continued service delivery for a critical veteran need.
Modification extends service period, preventing potential gaps in care.

Sector Analysis

The healthcare sector, particularly home health services, is crucial for supporting aging populations and individuals with chronic conditions. Spending in this area is often driven by necessity and regulatory requirements, with benchmarks varying widely based on service scope and patient population.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in the original contract or this modification. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The modification is a zero-dollar modification, which typically undergoes internal review. However, the specific oversight mechanisms for this particular modification and the original contract award are not detailed in the provided data.

Related Government Programs

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

Risk Flags

Lack of transparency regarding original contract competition.
Potential for administrative modifications to obscure underlying contract performance issues.
Limited data to assess true value for money.
Dependence on a single contractor (Rotech Healthcare) for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $63,106.39 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 $63,106.39.

What is the period of performance?

Start: 2026-01-08. End: 2026-02-07.

What was the original contract vehicle and competition strategy for Rotech Healthcare's home oxygen and DME services?

The provided data states the contract was 'NOT COMPETED UNDER SAP'. This implies it was either awarded through a different competitive process, a sole-source justification, or is a modification to a pre-existing contract that was not subject to SAP. Further details on the original award are necessary to fully understand the competition strategy and its impact on pricing and value.

What is the specific purpose and justification for this zero-dollar modification, beyond extending the delivery period?

While the modification extends the delivery period by 30 days, the 'zero-dollar' nature suggests it might be for administrative purposes, exercising an option, or incorporating a change that doesn't alter the contract's financial value. Understanding the precise reason is key to assessing if it represents a genuine need or a procedural adjustment with potential downstream implications.

How does the pricing for these home oxygen and DME services compare to industry benchmarks or similar VA contracts, given the modification?

Without a detailed breakdown of the services and their associated costs, it's challenging to perform a robust price comparison. The modification's zero-dollar value means it doesn't introduce new pricing, but the underlying rates established in the original contract would need to be benchmarked against similar contracts or market rates for home health services to assess overall value for money.

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: $63,106

Exercised Options: $63,106

Current Obligation: $63,106

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25225D0009

IDV Type: IDC

Timeline