VA Awards $610K for BD MAX Repair Services, Lacking Competition

Contract Overview

Contract Amount: $61,069 ($61.1K)

Contractor: Becton, Dickinson and Company

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2027-05-31

Contract Duration: 729 days

Daily Burn Rate: $84/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BD MAX REPAIR AND MAINTENANCE SERVICES - VASTLHCS

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63125

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $61,068.81 to BECTON, DICKINSON AND COMPANY for work described as: BD MAX REPAIR AND MAINTENANCE SERVICES - VASTLHCS Key points: 1. Contract value of $610,688.81 for repair and maintenance. 2. Sole-source award to BECTON, DICKINSON AND COMPANY. 3. High risk due to lack of competition and potential for overpayment. 4. IT and Electronic Equipment Repair sector.

Value Assessment

Rating: questionable

The contract is for repair and maintenance services. Without competitive bidding, it's difficult to assess if the $610,688.81 price is fair and reasonable compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning no competition was sought. This significantly limits price discovery and could lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.

Public Impact

Veterans may experience service disruptions if equipment maintenance is not cost-effectively managed. Taxpayers may be overpaying for essential repair services due to the absence of competitive bidding. The VA's reliance on a sole-source contract could indicate a gap in strategic sourcing or vendor management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Essential service for medical equipment

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector. Spending benchmarks for this sector are highly variable based on equipment type and service level agreements.

Small Business Impact

The contract does not indicate any specific provisions or set-asides for small businesses, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the VA is receiving fair value and that this approach is justified and not a recurring practice.

Related Government Programs

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

Risk Flags

Lack of competition
Sole-source award
Potential for price inflation
Limited transparency
Missed small business opportunities

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $61,068.81 to BECTON, DICKINSON AND COMPANY. BD MAX REPAIR AND MAINTENANCE SERVICES - VASTLHCS

Who is the contractor on this award?

The obligated recipient is BECTON, DICKINSON AND COMPANY.

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 $61,068.81.

What is the period of performance?

Start: 2025-06-01. End: 2027-05-31.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award is critical. Agencies typically use sole-source contracts when only one responsible source can provide the required supplies or services. For this BD MAX repair contract, the VA would need to demonstrate why BECTON, DICKINSON AND COMPANY is the only viable option, considering factors like proprietary technology or unique expertise. Without this justification, the award raises significant concerns about competition.

How will the VA ensure the pricing remains fair and reasonable throughout the contract period without competitive benchmarking?

Ensuring fair pricing on a sole-source contract requires robust internal cost analysis and potentially independent government cost estimates. The VA should actively monitor market trends for similar services and engage in detailed negotiations with the contractor. Regular reviews of the contractor's cost structure and performance metrics are essential to mitigate the risk of overpayment and ensure value for taxpayer money.

What is the potential impact on healthcare delivery at VASTLHCS if BD MAX equipment experiences significant downtime due to maintenance issues?

Downtime of critical BD MAX equipment at VASTLHCS could directly impact patient care, potentially delaying diagnostic procedures, treatments, or sample processing. This could lead to increased patient wait times, reduced operational efficiency for medical staff, and potentially compromise the quality of care. Ensuring timely and effective maintenance is crucial for uninterrupted healthcare services.

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

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25525Q0362

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 7 LOVETON CIR, SPARKS GLENCOE, MD, 21152

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

Financial Breakdown

Contract Ceiling: $78,998

Exercised Options: $78,998

Current Obligation: $61,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline