VA awards $257K contract to INSTYMEDS CORP for machinery, citing no competition

Contract Overview

Contract Amount: $257,458 ($257.5K)

Contractor: Instymeds Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-07-01

End Date: 2027-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $141/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSTYMEDS

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78405

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $257,457.5 to INSTYMEDS CORP for work described as: INSTYMEDS Key points: 1. The contract value of $257,457.5 is modest, suggesting a specific need. 2. INSTYMEDS CORP is the sole awardee, raising questions about competition. 3. The 'Other Commercial and Service Industry Machinery Manufacturing' sector is broad. 4. A 5-year duration (1825 days) for this value warrants scrutiny.

Value Assessment

Rating: questionable

The contract value is relatively low for a 5-year term. Without a competitive process, it's difficult to assess if the firm fixed price is optimal or if a better price could have been achieved through competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Veterans may receive equipment or services related to machinery manufacturing. The VA's procurement process for this item lacked transparency due to sole-source award. Taxpayer funds are being allocated without a clear demonstration of best value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration for the value
Sole-source award

Positive Signals

Specific awardee identified
Contract duration aligns with potential equipment lifecycle

Sector Analysis

The 'Other Commercial and Service Industry Machinery Manufacturing' sector encompasses a wide range of equipment. Benchmarking spending in this specific sub-sector is challenging without more detail on the machinery procured.

Small Business Impact

There is no indication that small businesses were considered or involved in this sole-source award. The contract was awarded directly to INSTYMEDS CORP.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight in the competition phase. Further review would be needed to confirm if justification for sole-source was adequate and properly documented.

Related Government Programs

Other Commercial and Service Industry Machinery Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpayment
Limited transparency
Long contract duration for value

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $257,457.5 to INSTYMEDS CORP. INSTYMEDS

Who is the contractor on this award?

The obligated recipient is INSTYMEDS CORP.

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 $257,457.5.

What is the period of performance?

Start: 2022-07-01. End: 2027-06-30.

What specific machinery is being procured, and why was it deemed necessary to award this contract on a sole-source basis?

The specific machinery procured is not detailed in the provided data. A sole-source award typically requires a strong justification, such as unique capabilities of the vendor, urgent need, or lack of available alternatives. Without this justification, it's difficult to assess the necessity and potential value.

What is the risk associated with awarding a 5-year contract for $257K without competition?

The primary risk is paying a premium due to the absence of competitive bidding, potentially leading to inflated prices. A long duration also locks the government into a single vendor, limiting flexibility if needs change or better options emerge. This increases the financial risk for taxpayers.

How effective is this contract likely to be in meeting the VA's needs, given the procurement method?

The effectiveness is uncertain without knowing the specific needs and the vendor's capabilities. While the VA selected INSTYMEDS CORP, the lack of competition means we cannot be sure if this is the most effective solution or if alternative vendors could have provided superior value or service at a better price.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25722Q0809

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6501 CITY W PKWY, EDEN PRAIRIE, MN, 55344

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $257,458

Exercised Options: $257,458

Current Obligation: $257,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline