VA awards $20.3M sole-source contract for SMARTDRIVE Power Assist System to TISPORT, LLC

Contract Overview

Contract Amount: $20,313 ($20.3K)

Contractor: Tisport, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-19

End Date: 2024-09-30

Contract Duration: 195 days

Daily Burn Rate: $104/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: SMARTDRIVE POWER ASSIST SYSTEM

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20,313.48 to TISPORT, LLC for work described as: EXPRESS REPORT: SMARTDRIVE POWER ASSIST SYSTEM Key points: 1. Contract awarded on a sole-source basis, raising questions about potential lack of competition and price optimization. 2. The contract duration of 195 days suggests a short-term need or a pilot program. 3. The North American Industry Classification System (NAICS) code 339113 indicates a focus on surgical appliance and supply manufacturing. 4. The contract is a firm-fixed-price purchase order, which shifts cost risk to the contractor. 5. The awardee, TISPORT, LLC, is the sole provider for this specific system, necessitating a sole-source justification. 6. The contract is being performed in Texas (TX).

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to benchmark the value for money. The $20.3 million price tag for a 195-day contract for a power assist system warrants scrutiny. Comparisons to similar systems or previous procurements by the VA would be necessary to assess if this price is reasonable. The sole-source nature limits the ability to leverage market competition for better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning TISPORT, LLC was the only vendor considered. This typically occurs when a product or service is unique and only one vendor can provide it. The lack of competition means the VA did not explore options from other potential suppliers, which could lead to higher prices than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without alternative offers, there's less pressure on the contractor to offer the most cost-effective solution.

Public Impact

Veterans requiring the SMARTDRIVE Power Assist System will benefit from access to this specialized medical equipment. The system is likely intended to aid patients with mobility or physical limitations in performing certain tasks. The primary geographic impact is within Texas, where the contract is being performed. The contract supports the manufacturing and supply chain related to surgical appliances.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition raises concerns about whether the most innovative or cost-effective solution was secured.
The specific nature of the 'SMARTDRIVE Power Assist System' needs further clarification to understand its necessity and uniqueness.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA, transferring cost overrun risk to the contractor.
The contract addresses a specific need for a power assist system, likely for patient care.
The awardee is specialized in surgical appliance manufacturing, suggesting relevant expertise.

Sector Analysis

The healthcare sector, specifically the manufacturing of surgical appliances and supplies, is characterized by specialized products and often proprietary technologies. Contracts in this area can sometimes be sole-sourced due to unique product requirements or patents. The market size for such specialized assistive devices can vary significantly, but the VA's procurement indicates a recognized need within its patient population. Benchmarking would require identifying comparable power assist systems for medical use.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The award to TISPORT, LLC, a single entity, does not indicate direct benefits or implications for the broader small business ecosystem in this instance. Further analysis would be needed to determine if TISPORT, LLC itself is a small business or if subcontracting opportunities exist beyond the provided data.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' procurement and contracting oversight mechanisms. Accountability measures would be tied to the terms of the firm-fixed-price contract, ensuring delivery of the specified goods. Transparency is limited by the sole-source nature of the award; however, contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medical Equipment Procurement
Assistive Devices
Surgical Supplies
Department of Veterans Affairs Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency on product specifics and alternatives considered.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20,313.48 to TISPORT, LLC. EXPRESS REPORT: SMARTDRIVE POWER ASSIST SYSTEM

Who is the contractor on this award?

The obligated recipient is TISPORT, 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 $20,313.48.

What is the period of performance?

Start: 2024-03-19. End: 2024-09-30.

What is the specific functionality and intended use of the SMARTDRIVE Power Assist System?

The SMARTDRIVE Power Assist System is a specialized piece of medical equipment designed to aid individuals, likely veterans, with mobility or physical limitations. While the provided data does not detail its exact function, 'power assist' suggests it enhances the user's ability to perform tasks by providing powered support. This could range from assisting with movement, operating other devices, or performing rehabilitation exercises. Its specific application within the VA's healthcare services would determine the precise benefits and patient populations served. Further documentation or product specifications would be required for a comprehensive understanding of its capabilities and intended use cases.

What is TISPORT, LLC's track record with the Department of Veterans Affairs and other federal agencies?

Information regarding TISPORT, LLC's specific track record with the Department of Veterans Affairs (VA) and other federal agencies is not detailed in the provided data. As this is a sole-source award, it implies a prior relationship or a unique capability that led to this direct award. To assess their track record, one would need to examine historical contract awards, performance reviews, and any past issues or successes with federal procurements. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their history, including contract values, types of goods or services provided, and overall performance ratings. Without this historical context, it's difficult to evaluate their reliability and past performance.

How does the $20.3 million price for this system compare to similar procurements or market rates?

Benchmarking the $20.3 million price for the SMARTDRIVE Power Assist System is challenging without competitive data. As a sole-source award, the VA did not have the benefit of comparing multiple bids to establish a market rate. To assess value for money, one would need to research similar power assist systems for medical applications, considering factors like features, intended use, and manufacturer. Comparing this price to previous VA procurements of similar equipment, or to contracts awarded by other healthcare providers (if publicly available), would be crucial. The firm-fixed-price nature of the contract offers cost certainty but does not inherently guarantee a competitive price. A thorough market analysis or consultation with independent healthcare equipment evaluators would be necessary for a robust comparison.

What are the potential risks associated with a sole-source award for critical medical equipment?

Sole-source awards for critical medical equipment carry several potential risks. Firstly, the absence of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it limits the government's ability to explore alternative technologies or suppliers that might offer better performance, reliability, or features. Thirdly, it can create vendor lock-in, making it difficult and potentially more expensive to switch providers in the future. Finally, sole-source justifications are sometimes used when a product is unique, but there's also a risk that the uniqueness is overstated or that a competitive process could have yielded comparable or superior options at a better value. This necessitates rigorous justification and oversight to ensure taxpayer funds are used efficiently.

What is the historical spending pattern for the SMARTDRIVE Power Assist System or similar equipment by the VA?

The provided data does not include historical spending patterns for the SMARTDRIVE Power Assist System or similar equipment by the Department of Veterans Affairs (VA). To understand historical spending, one would need to query federal procurement databases for past contracts awarded for this specific system or for comparable power assist devices used in medical settings. Analyzing trends in contract values, quantities purchased, and the number of bidders over time would reveal whether this $20.3 million award represents an increase, decrease, or is consistent with past expenditures. Understanding historical spending is crucial for assessing the reasonableness of the current award and identifying any significant deviations that might warrant further investigation.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical Appliance and Supplies Manufacturing

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

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

Parent Company: Ua-Wav LLC

Address: 2701 W COURT ST, PASCO, WA, 99301

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

Financial Breakdown

Contract Ceiling: $20,313

Exercised Options: $20,313

Current Obligation: $20,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline