VA awards $27,952 for Emergency X-Ray Repair, highlighting potential risks in sole-source procurement

Contract Overview

Contract Amount: $27,952 ($28.0K)

Contractor: American Medical Imaging LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-30

End Date: 2026-04-07

Contract Duration: 1,012 days

Daily Burn Rate: $28/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY X-RAY REPAIR SERVICE.

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53295

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27,952 to AMERICAN MEDICAL IMAGING LLC for work described as: EMERGENCY X-RAY REPAIR SERVICE. Key points: 1. The contract value is relatively low, suggesting a focus on specific equipment maintenance. 2. Lack of competition raises concerns about potential overpricing and limited vendor options. 3. The emergency nature of the repair may justify the procurement method, but requires scrutiny. 4. The IT sector is not directly applicable; this falls under equipment repair and maintenance.

Value Assessment

Rating: questionable

The contract value of $27,952 for emergency X-ray repair is difficult to benchmark without specific service details. However, the absence of competition suggests potential for higher pricing than if multiple vendors were considered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method, especially if not fully justified by emergency circumstances, can lead to less favorable pricing and reduced market exploration.

Taxpayer Impact: Taxpayer funds may be at risk of being overspent due to the lack of competitive bidding, potentially leading to higher costs for essential medical equipment maintenance.

Public Impact

Veterans may experience delays in critical X-ray equipment repair if the sole provider faces issues. The VA's reliance on a single vendor for emergency repairs could impact the availability of diagnostic services. Transparency in emergency procurement processes is crucial to ensure fair pricing and efficient use of taxpayer money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited vendor pool for critical services

Positive Signals

Addresses an emergency need
Firm fixed price contract type

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector. Spending benchmarks for such services vary widely based on equipment type, age, and service level agreements. The VA's spending in this area is critical for maintaining operational medical equipment.

Small Business Impact

The data does not indicate whether small businesses were considered or participated in this procurement. The limited competition approach may have excluded potential small business vendors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Given the limited competition, enhanced oversight is recommended to ensure the necessity of the procurement method and the fairness of the pricing.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for inflated pricing due to lack of competition.
Risk of service disruption if the sole vendor is unavailable.
Limited transparency in the procurement justification.
Dependency on a single vendor for critical medical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27,952 to AMERICAN MEDICAL IMAGING LLC. EMERGENCY X-RAY REPAIR SERVICE.

Who is the contractor on this award?

The obligated recipient is AMERICAN MEDICAL IMAGING 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 $27,952.

What is the period of performance?

Start: 2023-06-30. End: 2026-04-07.

What specific emergency circumstances necessitated a limited competition procurement for X-ray repair services, and were alternative competitive options explored?

The justification for limited competition typically involves urgent and compelling circumstances that prevent a full and open solicitation. The VA would need to document these specific emergency conditions, such as critical equipment failure impacting patient care, and demonstrate why a competitive process was not feasible within the required timeframe. Without this documentation, the procurement method raises concerns about potential circumvention of competitive principles.

How does the $27,952 contract price compare to industry benchmarks for similar emergency X-ray repair services, considering the vendor and equipment type?

Benchmarking this contract requires detailed information on the specific X-ray equipment model, the nature of the emergency repair, and the vendor's standard rates. Without this context, a direct comparison is challenging. However, the absence of competition suggests the price may not reflect the most cost-effective market rate. A post-award review comparing the invoiced costs against industry averages for similar emergency services would be prudent.

What is the VA's strategy for ensuring continued availability and competitive pricing for X-ray repair services beyond this emergency contract?

The VA should develop a proactive strategy that includes market research to identify potential vendors, establish pre-negotiated service agreements with competitive rates, and explore options for preventative maintenance to minimize emergency repair needs. Regularly reviewing vendor performance and pricing, and actively seeking competitive solicitations for routine and emergency services, will be crucial for long-term cost-effectiveness and operational readiness.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 CENTERPOINTE DR STE 200, LA PALMA, CA, 90623

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

Financial Breakdown

Contract Ceiling: $27,952

Exercised Options: $27,952

Current Obligation: $27,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline