VA awards $594K for Hologic ThinPrep 2000 equipment maintenance over 5 years

Contract Overview

Contract Amount: $59,400 ($59.4K)

Contractor: Nexus Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-18

End Date: 2027-08-17

Contract Duration: 1,825 days

Daily Burn Rate: $33/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HOLOGIC THINPREP 2000 EQUIPMENT PREVENTATIVE MAINTENANCE

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $59,400 to NEXUS GROUP, LLC for work described as: HOLOGIC THINPREP 2000 EQUIPMENT PREVENTATIVE MAINTENANCE Key points: 1. The contract value represents a steady investment in maintaining critical medical equipment. 2. Competition dynamics appear healthy with 4 bidders vying for this service. 3. The firm-fixed-price structure suggests predictable costs for the VA. 4. This contract supports essential diagnostic equipment used in healthcare. 5. The duration of 5 years indicates a long-term need for this maintenance.

Value Assessment

Rating: good

The total award of $594,000 over five years for preventative maintenance of Hologic ThinPrep 2000 equipment appears reasonable. While specific per-unit costs for maintenance visits are not detailed, the overall contract value aligns with the expected costs for servicing specialized medical diagnostic equipment. Benchmarking against similar maintenance contracts for this type of equipment would provide further insight, but the duration and scope suggest a fair price for ensuring operational readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four distinct bidders submitting proposals. The presence of multiple bidders suggests a competitive marketplace for this specialized maintenance service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing for the services rendered.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to obtain the best possible price for essential equipment maintenance.

Public Impact

Veterans will benefit from the reliable operation of diagnostic equipment. The contract ensures the continuity of essential medical testing services. Services are likely delivered at VA facilities within Texas. This contract supports specialized technical roles in equipment maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if maintenance needs increase beyond initial estimates.
Reliance on a single equipment model may pose future obsolescence risks.

Positive Signals

Firm-fixed-price contract limits cost overruns for the government.
Long-term contract provides stability and predictable service delivery.
Multiple bidders indicate a healthy and accessible market for this service.

Sector Analysis

This contract falls within the broader healthcare equipment maintenance sector. The market for servicing specialized medical devices like the Hologic ThinPrep 2000 is typically characterized by original equipment manufacturers (OEMs) or authorized third-party service providers. Spending in this area is driven by the need to maintain the operational integrity and longevity of high-value medical technology, ensuring patient safety and diagnostic accuracy.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Nexus Group, LLC may be a small business, the competition itself was open to all qualified offerors. There is no explicit information regarding subcontracting plans for small businesses within this award notice.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established procurement regulations and oversight mechanisms. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated through contract award databases. Further oversight would typically involve performance reviews and adherence to service level agreements.

Related Government Programs

Medical Equipment Maintenance Contracts
Diagnostic Equipment Services
Veterans Health Administration Procurement

Risk Flags

Long-term contract duration may outpace equipment technological relevance.
Dependence on a specific vendor for maintenance could limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $59,400 to NEXUS GROUP, LLC. HOLOGIC THINPREP 2000 EQUIPMENT PREVENTATIVE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is NEXUS GROUP, 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 $59,400.

What is the period of performance?

Start: 2022-08-18. End: 2027-08-17.

What is the track record of Nexus Group, LLC in providing similar maintenance services to federal agencies?

Information regarding Nexus Group, LLC's specific track record with federal agencies for Hologic ThinPrep 2000 maintenance is not detailed in the provided data. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their past performance, including contract history, past performance evaluations, and any reported issues. Understanding their experience with similar medical equipment and their performance on previous government contracts is crucial for assessing reliability and capability.

How does the annual cost of this contract compare to the estimated cost of maintaining similar equipment at other federal facilities?

The provided data indicates a total contract value of $594,000 over 1825 days (5 years), averaging approximately $118,800 per year. To benchmark this against similar contracts, one would need to identify other VA facilities or federal healthcare providers using Hologic ThinPrep 2000 systems and examine their maintenance agreements. Factors such as the number of machines, service level agreements (e.g., response times, uptime guarantees), and geographic location can influence costs. Without comparative data, it's difficult to definitively state if this annual cost is high or low, but it appears within a reasonable range for specialized medical equipment maintenance.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential equipment obsolescence over the 5-year period, unexpected increases in maintenance needs beyond the scope of preventative care, and the contractor's ability to maintain service levels. Mitigation strategies include the firm-fixed-price structure, which caps costs for routine maintenance. The VA's oversight, performance monitoring, and the competitive nature of the initial award also serve as risk mitigators. However, the contract doesn't explicitly detail contingency plans for major component failures or end-of-life equipment replacement.

How effective is the Hologic ThinPrep 2000 equipment in its intended diagnostic function, and does this contract ensure its optimal performance?

The Hologic ThinPrep 2000 is a widely used system for preparing cytology specimens, particularly for cervical cancer screening. Its effectiveness is generally well-established in the medical community. This contract's primary goal is to ensure the equipment's optimal performance through preventative maintenance, which is critical for accurate diagnostic results and minimizing downtime. Regular maintenance helps prevent malfunctions that could compromise specimen quality or delay testing, thereby supporting the effective use of the technology.

What has been the historical spending pattern for Hologic ThinPrep 2000 equipment maintenance at the Department of Veterans Affairs?

The provided data only details the current contract award. To understand historical spending, one would need to analyze past contracts for the same or similar equipment maintenance at the VA. This would involve searching procurement databases for previous awards to Nexus Group, LLC or other vendors for Hologic ThinPrep 2000 maintenance, noting contract values, durations, and competition levels over time. This analysis would reveal trends in spending, identify potential increases or decreases in costs, and assess the consistency of service providers.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25722Q0901

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 SARDIS RD N, CHARLOTTE, NC, 28227

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

Financial Breakdown

Contract Ceiling: $72,000

Exercised Options: $59,400

Current Obligation: $59,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline