VA awards $64.7K for balloon service, raising questions about competition and value

Contract Overview

Contract Amount: $64,682 ($64.7K)

Contractor: Getinge USA Sales, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-01-09

End Date: 2025-01-08

Contract Duration: 730 days

Daily Burn Rate: $89/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: GETINGE BALLOON SERVICE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $64,681.53 to GETINGE USA SALES, LLC for work described as: GETINGE BALLOON SERVICE Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Limited competition may lead to suboptimal pricing for taxpayers. 3. Lack of performance data makes value assessment difficult. 4. Contract duration of two years suggests ongoing need for service. 5. Service falls under repair and maintenance of precision equipment. 6. Geographic focus on Texas for service delivery.

Value Assessment

Rating: questionable

The contract value of $64,681.53 for balloon service appears high for a purchase order of this nature, especially given the lack of competitive bidding. Without comparable contract data or market benchmarks for similar services, it is difficult to definitively assess value for money. The fixed-price nature of the award provides some cost certainty, but the absence of competition prevents a thorough evaluation of whether the price reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed. The data indicates only one bidder was considered. This lack of competition means the Department of Veterans Affairs did not explore the market to identify potential alternative providers or solicit competitive pricing. Consequently, the agency may not have secured the most cost-effective solution available.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher costs for taxpayers compared to a fully competed contract.

Public Impact

Veterans in Texas may benefit from the availability of necessary medical equipment maintenance. The service ensures the operational readiness of critical medical devices. The contract supports a specific repair and maintenance function within the VA. Workforce implications are minimal, likely involving specialized technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Limited transparency into the justification for sole-source award.
Absence of performance metrics makes it hard to gauge service quality.
Potential for vendor lock-in due to non-competitive nature.

Positive Signals

Contract addresses a specific need for equipment maintenance.
Fixed-price award provides some cost predictability.
Service is geographically focused, potentially streamlining delivery.

Sector Analysis

The contract falls under the Electronic and Precision Equipment Repair and Maintenance sector, specifically NAICS code 811210. This sector is crucial for ensuring the functionality of sophisticated medical and scientific equipment used by government agencies. Spending in this area is often driven by the need for specialized technical expertise and timely service to minimize downtime of critical assets. Benchmarking this specific 'balloon service' is challenging without further clarification on the type of balloons and their function.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information provided regarding subcontracting plans for small businesses. This suggests that opportunities for small businesses within this specific procurement are likely limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and internal controls. However, the lack of competition and detailed performance metrics may limit the effectiveness of oversight in ensuring optimal value and service quality. Inspector General involvement would likely be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

Medical Equipment Maintenance Services
Healthcare Equipment Repair
Veterans Affairs Procurement

Risk Flags

Sole-source award without clear justification.
Lack of competitive bidding limits price discovery.
Absence of performance metrics hinders value assessment.
Potential for inflated pricing due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $64,681.53 to GETINGE USA SALES, LLC. GETINGE BALLOON SERVICE

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 $64,681.53.

What is the period of performance?

Start: 2023-01-09. End: 2025-01-08.

What specific type of 'balloon service' is being procured, and why is it essential for the VA?

The provided data does not specify the exact nature of the 'balloon service.' It could refer to maintenance, calibration, or supply of balloons used in various medical devices such as ventilators, cardiac assist devices, or diagnostic imaging equipment. Understanding the specific application is crucial for assessing its criticality and justifying the procurement. Without this context, it's difficult to determine the necessity and potential impact of service disruption. Further clarification from the agency would be needed to understand the precise function and importance of these balloons within the VA's healthcare operations.

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

The data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE.' Typically, sole-source awards are justified when only one responsible source is available or capable of providing the required service. This could be due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible. However, for a service like 'balloon service,' it is unusual to have only one potential provider. A detailed justification from the VA, outlining why other vendors could not be considered, would be necessary to validate this sole-source determination and ensure it aligns with federal procurement regulations aimed at maximizing competition.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not include information on performance metrics or service level agreements (SLAs) for this contract. This is a significant gap, especially for a service contract. Without defined metrics, it is challenging for the VA to objectively measure the contractor's performance, ensure the quality of service delivered, and hold GETINGE USA SALES, LLC accountable. Establishing clear SLAs, such as response times, repair completion rates, or equipment uptime, would be essential for effective contract management and for verifying that the $64,681.53 expenditure provides adequate value.

How does the pricing of this contract compare to market rates for similar balloon services?

Direct comparison of pricing is difficult without knowing the specific type of balloon service. However, the total contract value of $64,681.53 over two years, awarded on a sole-source basis, raises concerns about potential overpricing. Federal agencies are expected to obtain fair and reasonable prices, typically achieved through competition. Since this contract was not competed, there is no market-based evidence to suggest that this price is competitive. A thorough market research analysis or benchmarking against similar services procured competitively by other healthcare providers would be needed to assess the reasonableness of the price.

What is the track record of GETINGE USA SALES, LLC with federal contracts, particularly with the VA?

The provided data identifies GETINGE USA SALES, LLC as the contractor. While this specific award is a sole-source purchase order, further investigation into the contractor's broader federal contract history would be beneficial. This includes examining past performance on similar contracts, any history of contract disputes or terminations, and overall compliance with federal acquisition regulations. Understanding their performance record with the VA and other agencies can provide insights into their reliability and capability to deliver the required services effectively and at a reasonable cost.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45 BARBOUR POND DR, 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: $80,852

Exercised Options: $64,682

Current Obligation: $64,682

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline