VA awards $168K for ZEISS eye equipment maintenance, raising questions about competition and value

Contract Overview

Contract Amount: $168,386 ($168.4K)

Contractor: Proaim Americas, LLC.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-15

End Date: 2026-12-14

Contract Duration: 1,460 days

Daily Burn Rate: $115/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ZEISS EYE EQUIPMENT MAINTENANCE SERVICES FOR THE VA ST. LOUIS HEALTHCARE SYSTEM.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63109

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $168,386.38 to PROAIM AMERICAS, LLC. for work described as: ZEISS EYE EQUIPMENT MAINTENANCE SERVICES FOR THE VA ST. LOUIS HEALTHCARE SYSTEM. Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about whether the VA secured the best possible value. 3. The contract duration of four years suggests a long-term reliance on this specific vendor. 4. Fixed-price contract type offers some cost certainty but may not incentivize efficiency. 5. The service category, repair and maintenance of electronic and precision equipment, is critical for healthcare operations. 6. Small business participation is not explicitly detailed, warranting further investigation.

Value Assessment

Rating: fair

Benchmarking the value of this $168,386 contract for ZEISS eye equipment maintenance is challenging without more detailed cost breakdowns or comparisons to similar sole-source awards. The fixed-price nature provides some predictability, but the lack of competition means the VA may not have benefited from competitive pricing pressures. Without knowing the specific services included and the typical market rates for such specialized maintenance, it's difficult to definitively assess value for money. However, sole-source awards often carry a premium due to the absence of competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means that only one vendor, PROAIM AMERICAS, LLC, was solicited for this requirement. The lack of competition limits the VA's ability to explore alternative solutions or pricing structures that might be available from other qualified providers. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less favorable pricing outcomes.

Taxpayer Impact: Taxpayers may have paid a higher price for these maintenance services due to the absence of competitive bidding. The lack of transparency in the procurement process means it's harder to ensure that federal funds were used in the most cost-effective manner.

Public Impact

Veterans receiving care at the VA St. Louis Healthcare System will benefit from the continued operational readiness of ZEISS eye equipment. Essential diagnostic and treatment capabilities for ophthalmology services will remain available. The contract supports specialized maintenance services, ensuring the reliability of critical medical technology. The geographic impact is localized to the VA St. Louis Healthcare System in Missouri.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a critical healthcare service.
Potential for inflated pricing due to sole-source award.
Limited transparency in the procurement process.
No explicit mention of small business subcontracting goals.

Positive Signals

Contract awarded to a specific vendor for specialized equipment maintenance.
Fixed-price contract provides cost certainty for the duration.
Service ensures continued availability of essential medical equipment for veterans.

Sector Analysis

The healthcare equipment maintenance sector is a vital component of the broader healthcare industry, ensuring the functionality of sophisticated medical devices. This contract falls under the Electronic and Precision Equipment Repair and Maintenance (NAICS 811210) category. The market for specialized medical equipment maintenance can be concentrated, with original equipment manufacturers (OEMs) or authorized service providers often holding significant market share. Benchmarking this specific contract is difficult without comparative data on ZEISS equipment maintenance contracts across the federal government or the private sector.

Small Business Impact

This contract does not appear to have a small business set-aside. Furthermore, there is no explicit information provided regarding subcontracting opportunities for small businesses. Given the sole-source nature of the award, it is unlikely that small businesses were considered as prime contractors. Further investigation into subcontracting plans would be necessary to understand the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers responsible for medical equipment maintenance. The VA has an Office of Inspector General (OIG) that investigates fraud, waste, and abuse within the department, which could potentially review this contract if significant concerns arise. Transparency is limited due to the sole-source nature and lack of publicly available detailed justifications.

Related Government Programs

VA Medical Equipment Maintenance Contracts
Federal Healthcare IT Procurement
Sole-Source Service Contracts
Precision Equipment Repair Services

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed justification for sole-source procurement.
Limited information on contractor's past performance and experience.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $168,386.38 to PROAIM AMERICAS, LLC.. ZEISS EYE EQUIPMENT MAINTENANCE SERVICES FOR THE VA ST. LOUIS HEALTHCARE SYSTEM.

Who is the contractor on this award?

The obligated recipient is PROAIM AMERICAS, 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 $168,386.38.

What is the period of performance?

Start: 2022-12-15. End: 2026-12-14.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available to satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without the official justification document, it is impossible to verify the validity of the sole-source determination. This lack of transparency is a concern for ensuring fair competition and optimal use of taxpayer funds.

How does the pricing of this contract compare to market rates for similar ZEISS eye equipment maintenance services?

Direct comparison of pricing is difficult without access to detailed service scopes and market data for ZEISS eye equipment maintenance. However, sole-source awards are generally expected to be less competitive than those resulting from full and open competition. The absence of multiple bids means the VA did not benefit from the price discovery mechanisms inherent in a competitive bidding process. To assess value, one would need to compare the proposed costs against industry benchmarks for similar specialized medical equipment maintenance, considering factors like technician expertise, parts availability, and response times.

What is PROAIM AMERICAS, LLC's track record with the VA and for similar maintenance services?

The provided data indicates that PROAIM AMERICAS, LLC is the contractor for this specific ZEISS eye equipment maintenance service. However, it does not offer details on their past performance with the VA or their experience with similar maintenance contracts. A comprehensive assessment would require reviewing their contract history, past performance evaluations (if available), and their demonstrated expertise in maintaining specialized medical equipment like ZEISS systems. Without this information, it's difficult to gauge their reliability and capability beyond this single award.

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

The primary risks associated with a sole-source award for critical medical equipment maintenance include higher costs due to lack of competition, potential for complacency from the sole provider leading to reduced service quality, and a lack of flexibility if the provider's circumstances change (e.g., going out of business, increasing prices significantly). For critical equipment like that used in eye care, service disruptions could directly impact patient care. The absence of competitive pressure may also mean less incentive for the contractor to innovate or offer cost-saving efficiencies.

What is the historical spending pattern for ZEISS eye equipment maintenance at the VA St. Louis Healthcare System?

The provided data only pertains to a single purchase order awarded in December 2022. It does not offer any historical spending context for ZEISS eye equipment maintenance at the VA St. Louis Healthcare System. To understand historical spending patterns, one would need to analyze procurement records over several fiscal years, identifying all contracts related to this specific equipment and vendor, as well as any competitors. This would reveal trends in contract values, duration, and competition levels over time.

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: 36C25523Q0066

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Proaim Americas LLC.

Address: 16024 MANCHESTER RD STE 200, ELLISVILLE, MO, 63011

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

Financial Breakdown

Contract Ceiling: $176,108

Exercised Options: $168,386

Current Obligation: $168,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline