VA Awards $3.86M for Medical Equipment Repair to Servestrong Solutions LLC
Contract Overview
Contract Amount: $3,860,000 ($3.9M)
Contractor: Servestrong Solutions LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-04-05
End Date: 2027-04-04
Contract Duration: 1,094 days
Daily Burn Rate: $3.5K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MEDICAL EQUIPMENT REPAIR SERVICE BASE+4
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75216
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $3.9 million to SERVESTRONG SOLUTIONS LLC for work described as: MEDICAL EQUIPMENT REPAIR SERVICE BASE+4 Key points: 1. Contract value of $3.86 million over 3 years. 2. Awarded to Servestrong Solutions LLC. 3. Competition method was 'Competed under SAP', indicating a potentially limited competition. 4. Sector is Electronic and Precision Equipment Repair and Maintenance (NAICS 811210).
Value Assessment
Rating: fair
The contract value of $3.86 million for a 3-year period appears reasonable for medical equipment repair services. Benchmarking against similar contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves smaller dollar values and may limit the number of potential bidders. This could impact price discovery and potentially lead to higher costs compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential medical equipment maintenance for veterans. The efficiency of the procurement process under SAP will influence the overall value for taxpayers.
Public Impact
Ensures continued functionality of critical medical equipment for veterans. Supports a small business (assuming Servestrong Solutions LLC qualifies). Maintains operational readiness within VA healthcare facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP.
- Potential for higher costs with limited bidders.
Positive Signals
- Supports VA's mission to provide healthcare.
- Contract duration provides stability.
Sector Analysis
The Electronic and Precision Equipment Repair and Maintenance sector is crucial for government operations, particularly in healthcare. Spending benchmarks for this type of service can vary widely based on equipment complexity and service level agreements.
Small Business Impact
The contract was awarded to Servestrong Solutions LLC. Further analysis is needed to confirm if Servestrong Solutions LLC is a small business and to assess the impact of this award on small business participation goals.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement oversight procedures should ensure compliance and performance, but the limited competition aspect warrants attention.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition
- Potential for overpayment due to SAP
- Lack of detailed performance metrics in provided data
Tags
electronic-and-precision-equipment-repai, department-of-veterans-affairs, tx, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $3.9 million to SERVESTRONG SOLUTIONS LLC. MEDICAL EQUIPMENT REPAIR SERVICE BASE+4
Who is the contractor on this award?
The obligated recipient is SERVESTRONG SOLUTIONS 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 $3.9 million.
What is the period of performance?
Start: 2024-04-05. End: 2027-04-04.
What is the typical cost range for similar medical equipment repair contracts of this duration and scope within the VA?
Determining the typical cost range requires access to a broader dataset of similar VA contracts. Factors like the specific types of medical equipment, the required response times for repairs, and the geographic service area significantly influence pricing. Without this comparative data, it's difficult to definitively assess if $3.86 million over three years is competitive.
What specific criteria were used to justify competing this contract under SAP, and what was the estimated cost savings compared to full and open competition?
Justification for using SAP typically relates to the contract's estimated value falling below certain thresholds, simplifying the procurement process. However, for a contract valued at $3.86 million, it raises questions about whether a broader competition could have yielded better pricing. Information on estimated cost savings or specific justifications for SAP is not provided in the data.
How will the VA measure the effectiveness and quality of Servestrong Solutions LLC's repair services to ensure optimal value for taxpayer dollars?
The VA will likely measure effectiveness through performance metrics outlined in the purchase order, such as response times, repair completion rates, equipment uptime, and customer satisfaction surveys from VA facilities. Regular performance reviews and adherence to service level agreements are key to ensuring quality and value.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 36C25724Q0408
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8749 ARVIN HILL RD, AUBREY, TX, 76227
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $6,500,000
Exercised Options: $3,860,000
Current Obligation: $3,860,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-04-05
Current End Date: 2027-04-04
Potential End Date: 2029-04-04 00:00:00
Last Modified: 2026-01-26
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)