VA Awards $19.9M Contract for Surgical Appliances to DBM LLC, Sole Source

Contract Overview

Contract Amount: $19,902 ($19.9K)

Contractor: DBM LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-25

End Date: 2026-04-24

Contract Duration: 30 days

Daily Burn Rate: $663/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LIMB

Place of Performance

Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19,902 to DBM LLC for work described as: LIMB Key points: 1. Significant contract value of $19.9 million for surgical appliances. 2. Sole-source award to DBM LLC raises questions about competition. 3. Potential risk associated with limited competition and price discovery. 4. Spending falls within the Surgical Appliance and Supplies Manufacturing sector.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without competitive benchmarks. As a sole-source award, there's a risk that the price may not reflect the best value achievable through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP and was awarded sole-source. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Veterans may experience delays or receive suboptimal products if pricing is not competitive. Small businesses in the surgical appliance sector may miss out on opportunities. Taxpayer funds are allocated without the assurance of the best possible price.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Contract awarded to a specific company
Clear end date for service delivery

Sector Analysis

The Department of Veterans Affairs is procuring surgical appliances, a critical component of healthcare services. Spending in this sector is often driven by patient needs and technological advancements in medical devices.

Small Business Impact

The sole-source nature of this award means that small businesses specializing in surgical appliances did not have an opportunity to compete for this contract, potentially limiting their market access.

Oversight & Accountability

Oversight is needed to ensure the VA received fair pricing and that the sole-source justification was appropriate. Future procurements should explore competitive options to maximize value.

Related Government Programs

Surgical Appliance and Supplies Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in price discovery.
Missed opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19,902 to DBM LLC. LIMB

Who is the contractor on this award?

The obligated recipient is DBM 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 $19,902.

What is the period of performance?

Start: 2026-03-25. End: 2026-04-24.

What is the justification for awarding this contract sole-source, and how does it ensure value for the VA?

The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. However, without this specific justification, it's difficult to confirm if value was maximized. The VA should have a documented rationale, and this should be reviewed to ensure it aligns with procurement regulations and serves the best interest of veterans and taxpayers.

What are the risks associated with a sole-source award for surgical appliances, and how can they be mitigated?

The primary risk is paying a premium due to the lack of competition, potentially leading to inflated prices. Mitigation strategies include rigorous price analysis by the agency, negotiating favorable terms, and ensuring the vendor's performance is closely monitored. For future procurements, the VA should actively seek opportunities to introduce competition to ensure fair pricing and access to innovative solutions.

How does this sole-source award impact the effectiveness of the VA's supply chain for surgical appliances?

A sole-source award can reduce supply chain flexibility and potentially lead to reliance on a single vendor, which might impact delivery times or product availability if issues arise with that vendor. While it can streamline procurement in the short term, it limits the VA's ability to leverage market competition for better terms, potentially affecting the overall effectiveness and cost-efficiency of its surgical appliance supply chain in the long run.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: 1919 STATE RD, LA CROSSE, WI, 54601

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,902

Exercised Options: $19,902

Current Obligation: $19,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline