VA awards $551K sole-source contract for Getinge equipment maintenance, raising competition concerns

Contract Overview

Contract Amount: $55,123 ($55.1K)

Contractor: Getinge USA Sales, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-13

End Date: 2027-07-12

Contract Duration: 1,460 days

Daily Burn Rate: $38/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PREVENTIVE MAINTENANCE SERVICE FOR GETINGE EQUIPMENT

Place of Performance

Location: LITTLE ROCK, PULASKI County, ARKANSAS, 72204

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $55,122.89 to GETINGE USA SALES, LLC for work described as: PREVENTIVE MAINTENANCE SERVICE FOR GETINGE EQUIPMENT Key points: 1. Contract awarded to Getinge USA Sales, LLC for preventive maintenance. 2. The contract value is $551,222.89 over a 4-year period. 3. The award method is 'NOT COMPETED', indicating a lack of competition. 4. The sector is Electronic and Precision Equipment Repair and Maintenance.

Value Assessment

Rating: questionable

The contract value of $551,222.89 for 4 years of maintenance appears high given the lack of competition. Benchmarking against similar sole-source contracts for specialized equipment maintenance is difficult without more data, but the absence of competitive bidding suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Getinge USA Sales, LLC, was considered. This significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying more than necessary for essential equipment maintenance services.

Public Impact

Veterans may experience service disruptions if maintenance is not performed optimally due to lack of competitive pressure. The VA's reliance on sole-source contracts for critical equipment maintenance could indicate systemic issues in procurement planning. Transparency in government spending is reduced when contracts are not competed, making it harder for the public to assess value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures specialized maintenance for critical equipment
Contract duration provides stability

Sector Analysis

The Electronic and Precision Equipment Repair and Maintenance sector involves specialized services for complex machinery. Spending in this area can vary widely depending on the type and criticality of the equipment. Without competitive bidding, it's challenging to benchmark this specific contract's value.

Small Business Impact

This contract was awarded to Getinge USA Sales, LLC, which is likely a large business. There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the VA adequately justified the lack of competition and that the pricing is reasonable. Accountability for procurement decisions is crucial, especially when competitive processes are bypassed.

Related Government Programs

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

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing.
Limited opportunity for small business participation.
Risk of vendor lock-in.
Questionable value for taxpayer money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $55,122.89 to GETINGE USA SALES, LLC. PREVENTIVE MAINTENANCE SERVICE FOR GETINGE EQUIPMENT

Who is the contractor on this award?

The obligated recipient is GETINGE USA SALES, 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 $55,122.89.

What is the period of performance?

Start: 2023-07-13. End: 2027-07-12.

What specific justifications were provided by the VA for awarding this contract on a sole-source basis, and do they align with federal procurement regulations?

Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. The VA would need to document that Getinge USA Sales, LLC is the only entity capable of performing this specialized preventive maintenance for their unique equipment, and that a competitive process was not feasible or would not provide adequate value.

How does the per-unit cost of this maintenance contract compare to industry benchmarks for similar Getinge equipment, if available?

Without access to specific industry benchmarks for Getinge equipment maintenance, a direct comparison is difficult. However, the absence of competition suggests that the VA may not have achieved the most cost-effective solution. A competitive process would typically drive prices down, and the current pricing should be scrutinized against any available internal or external cost data.

What is the potential impact on equipment reliability and patient care if this sole-source maintenance contract is not cost-effective or optimally managed?

If the contract is overpriced or the service quality is not maintained due to a lack of competitive pressure, it could indirectly impact patient care. Suboptimal maintenance could lead to equipment downtime, affecting the VA's ability to provide timely healthcare services. Ensuring the contractor delivers high-quality service at a fair price is paramount.

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: 36C25623Q0884

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 GEOFFREY WAY, WAYNE, NJ, 07470

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: $125,636

Exercised Options: $55,123

Current Obligation: $55,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline