VA awards $346K for Pyxis maintenance, a sole-source purchase order to CareFusion Solutions

Contract Overview

Contract Amount: $346,452 ($346.5K)

Contractor: Carefusion Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $952/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HINES + CBOCS CAREFUSION/BD PYXIS MAINTENANCE AND SUPPORT

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $346,452 to CAREFUSION SOLUTIONS, LLC for work described as: HINES + CBOCS CAREFUSION/BD PYXIS MAINTENANCE AND SUPPORT Key points: 1. This contract represents a sole-source award, limiting opportunities for competitive pricing. 2. The duration of the contract is one year, suggesting a need for ongoing support. 3. The award is a purchase order, a common mechanism for acquiring goods and services. 4. The North American Industry Classification System (NAICS) code indicates a focus on equipment repair and maintenance. 5. The contract is firm-fixed-price, providing cost certainty for the government. 6. The vendor, CareFusion Solutions, LLC, is the likely incumbent for this service.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and market data. As a sole-source award for maintenance and support of specific equipment (Pyxis), the price is likely influenced by the proprietary nature of the system. However, the relatively low dollar amount for a one-year support contract suggests it may be within a reasonable range for specialized equipment maintenance. Further analysis would require comparing this price to similar support contracts for medical equipment or to the original equipment cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. This typically occurs when a specific vendor is the only one capable of providing the required service or when the value falls below competitive bidding thresholds. The lack of competition means there was no opportunity to solicit multiple bids and potentially achieve a lower price through market forces. This approach is often used for specialized maintenance or when the incumbent is the only viable option.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. The government relies on the vendor's pricing without the leverage of alternative offers.

Public Impact

Veterans Affairs medical facilities in Illinois will benefit from the continued operational readiness of their Pyxis medication management systems. The contract ensures the maintenance and support of critical healthcare equipment, directly impacting patient care. The services delivered are essential for the reliable functioning of pharmacy and nursing operations within VA facilities. The geographic impact is limited to Illinois, where the VA facilities requiring this specific support are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the sole-source justification could mask potential inefficiencies.
Reliance on a single vendor for critical equipment maintenance may pose a risk if the vendor's performance declines or they exit the market.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Awarding to a known entity (likely incumbent) may ensure continuity of service and expertise.
The contract duration is clearly defined, allowing for predictable budgeting.

Sector Analysis

The healthcare equipment maintenance sector is characterized by specialized services often tied to proprietary technology. Companies like CareFusion Solutions (part of BD) are key players in providing support for medical devices such as automated medication dispensing systems. The market size for such services is substantial, driven by the continuous need to ensure the reliability and functionality of critical healthcare infrastructure. This contract fits within the broader category of medical equipment repair and maintenance, a segment that requires specific technical expertise and often involves long-term support agreements.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a specific vendor, it is unlikely that subcontracting opportunities for small businesses would be a primary consideration unless explicitly mandated by the prime contractor. The absence of a set-aside or specific subcontracting goals means there is no direct mechanism to promote small business participation through this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and internal VA oversight procedures. Accountability measures would include performance monitoring against the terms of the firm-fixed-price agreement and adherence to the service level agreements, if any. Transparency is limited due to the sole-source nature of the award, but the contract details should be publicly available through federal procurement databases.

Related Government Programs

Department of Veterans Affairs Medical Equipment Maintenance Contracts
Pyxis Medication Management System Support
Healthcare Technology Maintenance Services
Federal Purchase Orders for Equipment Support

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of competition reduces transparency in pricing.
Potential for vendor lock-in with proprietary systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $346,452 to CAREFUSION SOLUTIONS, LLC. HINES + CBOCS CAREFUSION/BD PYXIS MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is CAREFUSION SOLUTIONS, 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 $346,452.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of CareFusion Solutions, LLC with the Department of Veterans Affairs?

CareFusion Solutions, LLC, now part of Becton, Dickinson and Company (BD), has a history of providing medical technology and support services to the Department of Veterans Affairs. Analyzing past performance data, including contract awards, delivery performance, and any reported issues or commendations, would provide insight into their reliability and effectiveness. Previous contracts for similar maintenance and support services, especially for Pyxis systems, would be particularly relevant. A review of their performance history can help assess the risk associated with this sole-source award and confirm their suitability as the incumbent provider.

How does the pricing of this contract compare to similar maintenance agreements for Pyxis systems or comparable medical equipment?

Direct comparison of this contract's pricing to similar Pyxis maintenance agreements is difficult without access to proprietary pricing data from other vendors or contracts. However, as a sole-source award, the government did not leverage competitive bidding to establish the price. To benchmark value, one could analyze the original acquisition cost of the Pyxis systems, the duration and scope of services provided under this contract, and compare the annual support cost as a percentage of the equipment's value. Additionally, researching industry standards for maintenance contracts on similar automated dispensing systems could offer a broader perspective on whether the $346,452 for 364 days is within a typical range, considering the specialized nature of the equipment and the vendor's unique position.

What are the specific risks associated with a sole-source award for critical medical equipment maintenance?

Sole-source awards for critical medical equipment maintenance carry several risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive process, potentially resulting in less value for taxpayer money. Secondly, the government becomes dependent on a single vendor, which can create leverage issues if the vendor's performance declines or if they decide to increase prices significantly in future renewals. Thirdly, there's a risk of vendor lock-in, where switching to a different provider becomes technically difficult or prohibitively expensive due to proprietary systems or specialized knowledge. Finally, without competitive pressure, there might be less incentive for the vendor to innovate or proactively improve service quality.

What is the historical spending pattern for Pyxis maintenance and support by the Department of Veterans Affairs?

To assess historical spending patterns for Pyxis maintenance and support by the VA, one would need to analyze federal procurement databases for awards related to 'Pyxis', 'medication dispensing systems', and 'maintenance/support' over several fiscal years. This analysis should identify the primary contractors, the volume of contracts awarded, and the total expenditure. Understanding whether this $346,452 award is consistent with, higher than, or lower than previous spending levels for similar services can indicate trends in pricing, vendor reliance, and overall investment in this area. It would also reveal if spending has been concentrated with specific vendors or spread across multiple sources.

What is the potential impact of this contract on the overall IT or medical equipment maintenance market?

This specific contract, valued at $346,452 for one year, is unlikely to have a significant impact on the overall IT or medical equipment maintenance market due to its relatively small size and sole-source nature. The market for medical equipment maintenance is substantial, driven by numerous healthcare providers and a variety of equipment manufacturers. While CareFusion Solutions (BD) is a major player, this single award does not fundamentally alter market dynamics. However, it does reinforce the incumbent's position for this specific VA requirement and highlights the ongoing demand for specialized support services for automated medication dispensing systems within the federal healthcare sector.

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

Solicitation ID: 36C25226Q0238

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 3750 TORREY VIEW CT, SAN DIEGO, CA, 92130

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

Financial Breakdown

Contract Ceiling: $346,452

Exercised Options: $346,452

Current Obligation: $346,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline